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Palfrey also said the laws were ambiguous with respect to the file-sharing companies...
Yagan, who is the president of MetaMachine—a company that distributes the peer-to-peer program, eDonkey—testified before the Senate Judiciary Committee that he is working with recording companies on ways to make file-sharing legal with eDonkey...
...Sept. 13, the Recording Industry Association of America (RIAA) began a letter-writing campaign aimed at seven of the largest file-sharing companies, including MetaMachine, which set the stage for a large-scale litigation process. Yagan cited this correspondence and high legal costs as the major motivation for his move to privatization...
...Yagan maintains that his company never violated any copyright laws. According to the current interpretation of the law established by the recent Supreme Court decision MGM v. Grokster, it is not illegal to sell file sharing software. Rather, it is against the law to encourage illegal downloads...
...Palfrey also reiterated the importance of the individual copyright laws concerning file-sharing...