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By John Borland, 24 September 2003 07:57

NEWS File-swapping company Sharman Networks filed new antitrust charges against record labels and Hollywood studios, hoping to deflect copyright infringement claims still pending over its popular Kazaa software. The suit, which claims record labels and movie studios have conspired to drive Sharman Networks out of business in order to monopolise digital distribution, is virtually identical to charges first raised by the file-swapping company in January. Those charges were largely dismissed by a federal judge in July. The new suit, filed late on Monday, addresses the judge's concerns that Sharman was not directly harmed by the labels' and studios' actions. The revised suit lists the precise "conspiratorial" behaviour that Kazaa says took place, including names of record executives who expressed interest in peer-to-peer distribution, but who then backed out. The "monopolistic purpose of this conspiratorial conduct is to drive distributors of content using peer-to-peer platforms out of business," Sharman's suit alleges. The copyright holders' "purpose is to limit the means for future digital distribution of either music or major theatrical works in a way that the (studios and record labels) can in the future more directly control the relevant markets." The lawsuit is the latest twist in file-swapping companies' attempts to defend against copyright infringement charges by turning scrutiny on the business practices of the corporate record labels and movie studios. Those companies have walked a fine line throughout the development of legal internet distribution and antipiracy lawsuits, often acting together through trade associations and investing together in Internet businesses. Complaints by a first generation of wounded internet companies were enough to trigger a federal antitrust investigation into the big record labels' online activities in 2001, although no charges were ultimately filed. John Borland writes for News.com