This paper discusses the financial and legal problems of Kazaa.com, a firm known for its file-swapping software, which is used for downloading music and movies free from the Internet.
This paper discusses that Kazaa's multinational structure is rather confusing. The developers are Estonian, a Netherlands company commissioned the work and sold it to a company based in the Pacific island nation of Vanuatu, whose executives work in Australia. The author points out that many believe Kazaa has developed this kind of setup to protect itself from its legal battles with the entertainment industry, but Kazaa maintains no such reasons are involved. The paper discusses that Kazaa has deep financial troubles because its revenues are limited; service is free, and its main source of income is advertising.
From the Paper:
"While closing down Kazaa may prove to be a very difficult task because of its odd structure, Kazaa BV ran into major financial difficulties before it decided to sell off its assets to Sharman Networks Limited. Litigation caused massive financial problems. Kazaa BV claimed and the company declared it might go bankrupt if the lawsuits were not withdrawn. For this reason, it sold some of its sections to the Australian company."
"Kaaza.Com" 09 February 2012. Web. 11 Feb. 2012. <http://www.academon.com/Essay-Kaaza-Com/48984>
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Feb 12, 2004
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