Australian music companies raid Kazaa

The Australian music industry has launched raids on peer-to-peer technology developer Sharman Networks.

Australian trade organisation Music Industry Piracy Investigations (MIPI) sent investigators into Sharman Networks' Sydney offices and the homes of two of its executives.

The raids took place at 12 sites, including three Australian universities and several local ISPs.

Sharman Networks, which owns the Kazaa technology, labelled the move a "knee-jerk reaction" by the music industry.

But MIPI, which is owned by Universal, Festival Mushroom Records, EMI Music, Sony Music, Warner Music Australia and BMG Australia, said it would launch legal action against Kazaa in Australia's federal court next Tuesday.

The group's general manager, Michael Speck, said in a statement: "This sends a very clear signal to internet pirates in Australia that the game is up."

But Sharman Networks issued a statement describing the action as "an extraordinary waste of time" by going over the same ground as legal actions in the US and the Netherlands.

In December 2003, the Dutch Supreme Court ruled that Sharman could not be held liable for copyright infringement of music or movies swapped on its Kazaa software.