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.
“Mark Gorton and Lime Wire pocketed millions by enabling people to obtain songs online without paying for them,” wrote CNET's Greg Sandoval Tuesday. “Now, Gorton and his company could end up paying damages of over $1 billion.”
Sandoval's detailed piece was written in anticipation of the recording industry's high-stakes damages trial against Lime Wire that got underway earlier this week. Little would he have known back then that just a few hours later CNET would be sailing in the same boat as Lime Wire.
A bunch of rappers are suing CBS Interactive, CNET's parent company, for inducing copyright infringement by distributing the LimeWire P2P software. That's about as much as we are allowed to tell you before the jump. So hit the jump for more.