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Record industry close to settlement with Kazaa

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The Recording Industry Ass. of America (RIAA) is close to agreeing on a legal settlement with file-sharing network Kazaa.

If reports are correct, a deal could be announced today.

The peer-to-peer network (founded by Skype creators Janus Friis and Niklas Zennstrom) and its parent company Sharman Networks have been bogged down in legal battles around the world.

The Kazaa homepage currently warns users in Australia not to download its products because of a recent court decision. A Dutch court has ruled that Kazaa users should not be identified by their IP addresses.

Neither Kazaa nor the RIAA were talking on the record yesterday.

Kazaa has been a particular target of the recording industry because it is supported by advertising and appears to have a viable business model.

The two founders of Kazaa announced plans for a similar system to distribute TV and video content. The scheme, code-named "the Venice Project" is currently in negotiations with content owners. ®

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