Kazaa came bundled with and adware (specifically from a company called Brilliant Digital Entertainment). Your PC became a zombie node, quietly serving ads in the background. Power users quickly learned to strip out the crap using tools like "Kazaa Lite."
The (Recording Industry Association of America) began suing individual users—grandmothers, college students, 12-year-olds—for thousands of dollars per song. Meanwhile, the major labels sued Sharman Networks directly. Kazaa came bundled with and adware (specifically from
In 2005, the U.S. Supreme Court ruled in MGM Studios, Inc. v. Grokster, Ltd. that companies distributing file-sharing software could be liable if they actively encouraged infringement. Kazaa settled in 2006 for over $100 million, agreeing to become a legitimate, licensed music service. Inc. v. Grokster