Music Industry Still Putting the Squeeze on LimeWire

Paul Lilly

Everyone knows you can't squeeze blood from a turnip, but you might be surprised how much cash you can choke out of LimeWire. The former peer-to-peer file sharing service is the center of another lawsuit, this one by Merlin, a trade group that represents more than 12,000 independent labels. These record companies claim LimeWire founder Mark Gorton reneged on a promise he made in 2008 to pay them for tracks that LimeWire users pirated before going belly-up, and it's time to settle up.

According to a CNet report , the suit takes aim at Lime Wire, the company that created LimeWire, based on Gorton's promise to pay Merlin members an amount comparable to whatever Lime Wire ended up settling with the four major music labels. Perhaps Gorton didn't realize exactly how much he and his company would be in for when he made that agreement.

A federal judge last year sided with the music labels and ordered that LimeWire be shut down. More recently, Gorton agreed to fork over $105 million to settle up with the labels, and that's the figure Merlin wants Lime Wire to use when figuring out how much it owes the independent music labels.

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