Closing? Capitulating? Or Heading Undeground? [9:24 am]
P2P music sites closing doors in legal fallout [pdf]
Popular file-sharing site WinMX.com ceased operating and the New York office of another, eDonkey.com, appeared to be closed, in the continuing legal fallout among underworld peer-to-peer music services, industry sources and users said on Wednesday.
[...] The latest developments come on the heels of a pending deal in which file-sharing service Grokster Ltd. is set to be acquired by Mashboxx LLC, a new company formed with the intent of establishing a legal peer-to-peer music company, sources familiar with the matter said.
[...] The current generation of file-sharing networks are all descendants of the original music-sharing phenomenon Napster, which was forced to shut down, and now operates as a legal music service.
However, peer-to-peer technology has lived on in programs like WinMX, which represent a sort of transitional generation of media-sharing programs between the pioneering Napster and more modern programs like Gnutella and eDonkey.
Despite the legal wrangling, free file-sharing has persisted and many in the industry believe it is about to embark on a new era in which it will finally be embraced commercially by media companies for legitimate purposes.

