A US federal judge has hinted that he is likely to allow US record companies and movie studios to sue the Australia-based parent company of Kazaa, a popular online file-swapping service.
US District Court Judge Stephen Wilson heard arguments on whether Sharman Networks, which is headquartered in Australia and incorporated in the Pacific island nation of Vanuatu, is subject to US copyright laws.
"It is a difficult question, but it has to be resolved," said the judge. "The court will do its best to resolve it promptly."
Ironically, US courts have previously ruled that US companies could not be sued by foreign authorities, after throwing out a ruling made by a French court against web portal Yahoo.
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