Four record labels have settled a lawsuit with Kazaa. Under the settlement, Kazaa will play more than $100 million to EMI, Sony BMG, Universal Music and Warner Music. Kazaa will also commit to going fully legitimate.
According to the International Federation of Phonographic Industry, Kazaa has contributed to a significant amount of "damage" in the music industry. IFPI chairman and CEO John Kennedy said "these are very substantial damages being paid -- in excess of $100 million -- and Kazaa will go legal immediately. They've had time to prepare for this." Representatives for the MPAA also said that Kazaa will be implementing technology that will prevent users from transferring copyrighted material over the network.