Suit Against Sharman Allowed to Stand

A federal judge refused to dismiss a copyright-infringement lawsuit by the major Hollywood studios and record companies against Sharman Networks Ltd., distributor of the popular Kazaa software for online file-sharing.

Sharman, based in the South Pacific island of Vanuatu, argued that it could not be sued in the United States.

But U.S. District Judge Stephen V. Wilson in Los Angeles disagreed, finding that the company has significant commercial contacts with California residents and that its actions outside the country allegedly aided piracy within the U.S.

-- Jon Healey