Sharman Networks (Kazaa) Raided By Music Industry

[Lion7718]

Source: Slyck (http://www.slyck.com/news.php?story=386)

In a move that Sharman Networks calls a "knee-jerk" reaction, the Australian music industry has raided the offices of Sharman Networks and Brilliant Digital. Such a raid is permissible under the "Anton Pillar Order", which allows copyright holders in Australia to search a suspects home. In addition, they raided the homes of CTO Phil Morle and CEO Nikki Hemming. In addition, neither Phil Morle nor Nikki Hemming were allowed to enter their homes during the raid.

According to ABC News Australia, "The Australian Record Industry Association's chief piracy investigator, Michael Speck, says his representatives raided 12 premises in three states this morning gathering evidence for a civil action to be launched in the Federal Court next week (Tuesday)."

The lawyers of the Australian music industry were looking for incriminating evidence that could be used against Sharman Networks come Tuesday. The Australian music industry, along with a broad spectrum of copyright officials, were looking for anything in Sharman's offices that contained infringing materials, including illegal copies of software such as their operating systems or illegal mp3s.

Sharman's official response on Australian radio states this action is a waste of time and money as has been shown multiple times overseas.

The house raiding was performed by law enforcement officials and lawyers. Depending on what, if anything, the Australian Music Industry and its allies find, the repercussions for Sharman could be serious. However at this point, Sharman Networks is confident that there is no infringing material on their premises. At this point, copyright officials are looking for any excuse to shut Shaman Networks LTD down, at least temporarily, until legal proceedings begin. We'll pass along additional information as it become available.

[Lion7718]

Source: ZDNET (http://www.zdnet.com.au/news/business/0,39023166,39116016,00.htm)

UPDATE:
Music Industry Piracy Investigations this morning raided the offices of P2P companies Sharman Networks and Brilliant Digital Entertainment, along with the homes of key executives and several ISPs.

MIPI obtained an Anton Pilar order – which allows a copyright holder to enter a premises to search for and seize material that breaches copyright without alerting the target through court proceedings – yesterday from Justice Murray Wilcox, and began raiding premises in Queensland, New South Wales and Victoria this morning searching for documents and electronic evidence to support its case against the peer-to-peer companies.

In addition to the offices of Sharman Networks and Brilliant Digital Entertainment (BDE), MIPI raided the residences of Sharman Networks’ CEO Nikki Hemming, Brilliant Digital Entertainment Chief Executive Officer and President Kevin Burmeister and Phil Morle, Director of Technology at Sharman Networks. Monash University, the University of Queensland and the University of New South Wales were also raided, as well as four ISPs including Telstra.

"Telstra lawyers are presently working with lawyers from the record labels in order to determine exactly what information is being sought under the terms of the order," Telstra spokesman Warwick Ponder told ZDNet Australia . "We have not been asked for and will not provide any BigPond subscriber information."

"Telstra has made it very clear for a long time now that it does not support copyright infringement or any other illegal activity," said Ponder. "At the same time Telstra clearly respects its obligation to protect customers information and privacy under the Telecommunication Act and Privacy Act under Federal law."

MIPI general manager Michael Speck told ZDNet Australia the order was specifically targeted at the operators of the Kazaa network. "This is not about individuals, this is about the big fish," said Speck. "This is a signal that Internet music piracy is finished in Australia." The ISPs and Universities were raided to gain evidence about the operators of the Kazaa network.

The investigation into the Kazaa network has been ongoing for six months, and was precipitated by a significant change in the physical and technical structure of Sharman Networks, according to Speck. "The Kazaa operation infringes copyright within the terms of the Australian Copyright Act," he said.

Full Story (http://www.zeropaid.com/bbs/showthread.php?t=18027)

[Roadblock]

Interesting, if not a little unsettling. I am no fan of Sharman, as I think they are their own worst enemies, but those kind of tactics are troublesome, to say the least. We need to be on our toes here in the US to make sure that our right to privacvy is protected with equal fervor as the greedy desires of the big money corporations like the RIAA.

[NitnayLion]

What is an ANTON PILLAR ORDER?

As a general guidance;

An Anton Pillar Order is an order allowing for an applicant (without notice to a respondent) to enter the respondent's premises and inspect or seize documents or other items.

The issuance of an Anton Pillar Order has been deemed necessary by a Court of Law to demonstrate through substantial evidence that this legally binding order is both vital and necessary to preserve evidence.

An Anton Pillar order can include the following conditions such as:-

a requirement that the respondent disclose the whereabouts of specified documents
an inventory of seized items to be prepared and that the defendant have an opportunity to check it and sign it before documents are removed
an order not to use documents or items seized for any purpose other than for the purpose under which the order was originally granted
an offer of explanation to the persons served with the order in plain language as to the meaning and effect of the order and the person's right to obtain legal advice before compliance with it.
When issued, the Anton Pillar order is often seen as an effective and very public remedy used by Software Vendors when they are attempting to stop illegal software use (termed Software Piracy) and Copyright Infringement to achieve or effect recovery of property

OK, What are your rights?

The following information lists some of the rights of an organization against whom an Anton Pillar Order has been obtained.

Seek Legal Advice
The organization is usually given the right under the Terms of the Order to obtain legal advice before the vendors solicitors commence searching the premises. BUT the time-frame is LIMITED.

How long can you delay the execution of an Anton Pillar Order?
When served with an Anton Pillar order, you have between 1 and 2 hours to seek legal advice from your solicitors who should be present whilst the Vendor’s solicitors search your premises to "search, seize and remove illegal copies of software, discs, manuals and other documents and evidence" which indicate that software theft has occurred.

Who should be present during the execution of an Anton Pillar Order?
It is always advisable for the organization's solicitors to be present while the Order is being executed in order to ensure that the terms of the Order are strictly complied with and the Vendor's solicitors do not search or seize material not permitted by the Order.

Can an Anton Pillar Order be discharged?
The organization has the right to apply to the Court for the Order to be discharged BUT only under specific conditions. It is extremely rare in practice for an application to be made to discharge the Order before it is executed. The very nature of an Anton Pillar order is one of "surprise and discovery".

An Anton Pillar Order can be discharged in the following circumstances

a; if there was something fundamentally wrong with the Order which has been obtained eg; the Vendor had targeted the wrong organization

b; or the Vendor had failed to disclose to the Court important information which might have affected the Court's decision whether or not to grant the Order in the first place.

Lastly,

WHY BOTHER ABOUT PROOF OF PURCHASE?

One of the most painful aspects of all is the requirement after the order is served, usually within 14 days, to provide documentary evidence to the court, which PROVES that you own the software that is the subject of the court order (and may extend to PROVING that ALL software is legally acquired), by showing software compliance registers (an inventory approach), license numbers, discs and manuals, AND originals of all invoices from the SUPPLIERS of the software that you own!

Imagine what you need to do to backtrack and reconstruct accounting records etc to PROVE and this INCLUDES copies of invoices etc that you have paid "fair market value" (ie; legally acquired licenses) for what you have installed

More info here (http://www.freedomfight.ca/forum/showthread.php?threadid=274)

[Cassavus]

Originally posted by Roadblock
Interesting, if not a little unsettling. I am no fan of Sharman, as I think they are their own worst enemies, but those kind of tactics are troublesome, to say the least. We need to be on our toes here in the US to make sure that our right to privacvy is protected with equal fervor as the greedy desires of the big money corporations like the RIAA.

I totally agree! I'm no fan of Sharman either, but this move is nightmarish. I don't like to hear these kind of things at all.