LimeWire to Shut Down Operations On December 31st
LimeWire, the NYC-based file-sharing service, said on Friday that it would completely shut down its operations as of December 31, 2010. The SoHo office will be closed in the process.
NYC-based LimeWire appears to have distributed its final file.
The announcement appears to mark the final chapter for the highly controversial company, which started out as a peer-to-peer (P2P) file-sharing service that easily enabled the unauthorized online exchange of music files.
LimeWire issued a statement saying, “As a result of our current legal situation, we have no choice but to wind down LimeWire Store operations. Despite our dedication and efforts, Dec. 31, 2010, will mark the day when LimeWire Store shuts its virtual doors.”
After being the subject of a lawsuit by the major labels in 2006, LimeWire attempted to go legit with a subscription service selling licensed music from independent labels. In May, however, Judge Kimba M. Wood of Federal District Court in Manhattan ruled that LimeWire was liable for copyright infringement, decision that could compel the company to pay hundreds of millions of dollars in damages.
Making matters worse for LimeWire, In October, Judge Wood ordered it to disable any functionality enabling searching, downloading, uploading, file trading and/or file distribution – essentially outlawing its core P2P offering. Although the LimeWire store was able to continue operation, it proved to be only a temporary stay before the company’s decision to shut down completely at year’s end.
While the doors to LimeWire are being shuttered – and unfortunately dozens of NYC music professionals will lose their jobs in the process – it does not mark the final chapter in the company: In January, a hearing is scheduled for damages owed to the major labels.
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