1012512010 13:43 fax 213 687 3702 munger tolles & olson [4] 003/019 l " itu) st.\ ii~s...

$: 1012512010 13:43 FAX 213 687 3702 MUNGER TOLLES & OLSON [4] 003/019 L " ITU) ST.\ II~S DISTRJCT COLiRI S()t THFJ$
1012512010 1343 FAX 213 687 3702 MUNGER TOLLES amp OLSON [4] 003019

L ITU) ST II~S DISTRJCT COLiRI S()t THFJltN DISTRICT OF NEW YORK

I Jl~I rUTORDS LtC ]ITIC [~HltOR[)I( CORPORxrrOK BivlG

~ ItSlC CPII RECOfDS LLC ir-d I CAi)110 RFCORDS IC EIFKTR l-0TUUNvlL GROL] JC lTERSCOP[ RFCORDS LFAlT I RI~C()RDS 1LC -1010 RECORD

COilPAN L P PRIORJT R1OCORDS j Ie S()Y ILSIC fmiddotTEKL-]IF l tk~1

tsus SONY

DOCUMENT ELECTRONICALLYFILED DOC ____________~

DATE FlIED Ie ( 201 D

or) Ci 05936 (Ki) S()y 8JC ~IUSIC ElTERTJiIFNT E(F CASEl~(j RECORDINCjS IC l1lJ ARU

I BROS RJCURDS [Ie j PROPOSEDj CONSETI

I iiJ lNCTI0 lPlailltif~lt

U[ WIRE Ll _I 111 GROL-P L ~LRK (iURr00J GREG BI[)SO j Uli UTll~ WIRE FAilfL ( Lllln~j)

PRIU~S[ lIP

DefenLiar ts

PI1intiirs RISr RlCORDS LLC TL~TIC RLCORD]0JG CORPORTI00

LNTUjlIE0il GROUP 1( rNTJlZ~nWE RECORDS LAfACE RFCORDS LC

IUIO RITORi) C()IPmiddotj JP PRiOltITY R[CORDS LLC SO~Y vIUSIC

iNC VIRG RECORDS -ifGRJC )JC llld RGR BROS RHORDS IC

(C()lkClicly P]~lin1ns-) md UilL Wm LIC [] CRUUP LIC md MmiddotZK (ORIO

WHERLS P[ulHifi h~le fiied a ~1( (lOll i)r a Permanent InjunclilIl nsl Jinll

Wire IUoC io )-1) and

Case 106-cv-05936-KMW -DCF Document 334 Filed 102610 Page 1 of 17

1012512010 1343 FAX 213 687 3702 MCNGER TOLLES amp aLSO f4j004019

iIO101l I()I PcrmZllllnl Injunctiuil

[I j 1rl1la1-lll Injullclioll lhal apiClU belu shall

ul the C(urt Lime Wires slipubtion as 11 PlIt orllll PCnllIllCllt lnjul1ctioJl is to the Corm

liligaliL)n lI1clliciing on appLuJ (cccpr any

cldlcgc tu the Cunsent [njuilLlioil incluJilg the Pcrrnancnl Injunction all ofhich Lime Wirt

may contest in lily COllr ollly un ap[lcai aflc the cnln of ~l final judgment ill this UCliOIl) linC

cllkred Iay Ii 20 I 0 alld amended un ld~IY ()j () (Order) (Doc fu 223 aJ11I1lt1ing Due

)lgt 2]() ill allY aPIKctithClt may follcm t eltry ora fil1aljuJgmcnt ic this aClipi1 Lime ic

willllll take any uppeai non or othclYisc Ul1lcst n any cULIrt tillS CU[JScllt Injulictioll induJing

the Inllment unCliull bdp prior [tile nlr n d Inltllpdgmllll 1Il r11 acliun

I 1 Tl~ ilrllCC agree thal Ii (H~rt In IlirisJicit111 III ll1lc1 this l(lnsnl [Iliuncllol

lIcllllg the Pcrmanent lniullclloj) hel) ~llJ t(J ellforce the sarnc pursuant to the lerms hereul

I i No sccurit shall be required with rpct il) the entry OfClllY nflhe proYisinll )f

tJllS Consent lnjunction incl ing the Pcrmanent injUl1cliDJ1 helow

PERMANET IltJeNCTION

Ih Court cl1lcr a Permanent Injullclull ill tiur ur (lie lluimirs ulld agaillst Lime Wire

urSLI~Hllll) 17 L Se ~ 50 lI~d Fdera lZuk otTJd Proceuure ()5 and in accordance ilh lih


101252010 13 44 FAX 213 687 3702 MUlGER TOLLES amp OLSO [4J 005019

I PFRMAENT INJlNCTIVE RELIEF IS WARRATED

In its Order the Court held Lime Wic I ror lnducement or copyright infringCIl1cll

it 11 it fur commOl1 law copyright ringcmenl lnd unfair compdnion as to Plainift~

l)[cc[ed pn-l)72 works The cckJlc sh()LiJ ~~s u alalkr of law that

bull Lime Wire llllellliul1Jlh CllC1UrageJ direct inlril1gemellC by LimL Wire Llser

(Old) ut 2q)

The Lil11eWirc clkm i(lflWlfl is ucd illhelmillgly ror il1fringement ll1d

nllo l~Jr miringcJ11cl1l 011 a mussc scull lid at 31 33)

bull 1l11c Wire km ahout th lbstnlltial iniljnglJ11lnt being COllllllillcJ hy 1lin

irc Llsers (fJ ~l 32

bull r1le jre markeled ihclf III gt)aj)Sld user rl cre known cOPYflghl

iniringds and prumokd Lime ircs infringing capabililics till aI33-34)

o Lime Wire JCtlc) assiscJ i lfnnging users in their infringl11cl11 eftlllts allll

kteJ the LlIlliWire client oran by ~carching (Ol copyrighted naterial lid ~l

bull Lirnl lIe jt1ilcJ to implcmcn a11 mednillgfultcchl1o[ogicnl batTiers or design

cl1llice~ ail1cJ ltIt Jimillishing il1ringllllenl (d at 3L)

bull Lime Wire luinss modcl dl(1cnd on mJSi infringement relying on a

massic user populalion gellllated ry the Li1lcWirc soltmiddotanmiddots in[jingcllHllshy

elublmg fenlrls (Ill at 37)

rile result of this nc other ilcb cidcning Pbintf intern j]~ been iniringemcnlllj

IIl111ilTs mks on a J1l~1Ssi SCI (It n 13) lim Vile has all enllrl11llUS l~cr base

lid ~Il ~6 i [n June 01 2U05 Lime Win procialIncd itelf lh industry -tancbrcl 111 peer-l~)-ptlr

flk-shmll1g Jnd cstimcd that mon [han J billllll songs Vere dOvllloadcd througil peT-co-peer

iksi1aring every monlh (Pbinlifts St~ltcll1tll or l l1disputed FilLls SiTj Cl)il I [Njearl

~1I of the files silarld and dOlluaded by [ jill jclser~ aI copyrighted and nol luthorizcd l~)r


GlJ006019MUNGER TOLLES amp OLSON101252010 1344 FAX 213 687 3702

LllwlI11mized tiks aJL~ ll1Jny ur those tlll~ CDJ1iain onlt or Plaintiffs proteccd orb (Sl1i ~r

11))-110 )

ll the nearly 10 years since the parties tilcd lheir respective summary judgment

Ilhl1 llilS 1l11cWirc has continued tn bt a told or choice for r~lll1pant il1iringement lliPlaltltitr

dl)IJiuacllOlll l1silc Ilwrc th~1l1 51) )IiIi) fillll bringing the total downloads llftbe clielli

frtl11jLlsl that OIlC cbsilC - I L cxclusic (It dlniomb rrem LllllC Wires U11 cbsile - III

1hllC 11111 200 mil (~l11d counting) 111 shllrl Lime Wires already enormOLlS installed bus

has ul1h sotten bigger in the last 10 years

LillhjmiddotC client suftJre nol unly cunlinucs 10 be duwllloaded but dso continues 10

he li~ed )1 thl Ilksprcad IIlfrmge1lCnlS tlla Lime Wire inlended [0 induce IJnc vire is

tscr base unlimited lccess to the millions of unauthorized tik

aaj~lhc Cor JoVnoa~L Lime ires itability was established based un a subst1 30

Reeurdings in accurdmcc with Judge Lynchs instruction Sue Order at 5 117 J Everyone of

hosc~1l Recordings is stll] fulh available for donload tlmlllgh [jmc Virc (DccJratioll 01

Jilll~m Song (Snng Dec) ( -+ ) rl~inlilrs 1b) cubmitleu ejckncc (hut hundreds or reeurliillggt

currenly lll Billboard lagQzincs ClllllS ofL)p Hi hilS for Counlry Rock Pop Ittin Pop as

ell lS th YCMS 200- and 2)Ol) arc Iso udillble Ii)] imrncclltc donluad throLlth [he

Lill1cir-2 System cll1d SOltllC (

llliUlldilt nJltf luI Plailltiffs Indeed in ~lllltlll)glJttS cases here cOllns bave rOLlnd defendants

iJbk lll1 summQry juug11elll (or inducing idringlllllllL (ill saml courts hae heid that lh

pblltiftcupvri12ht 011lt1 arc entitled to a rlrl1)~ment injunction n0twithstanding that further

Jllc (okser Ftc 5 8 F Supp 2J 1197 1gt+1 (CD Cal 20(7) (Croksfc1 NCI(I(j


~007019~WNGER TOLLES amp OLSON101252010 1344 FAX 213 687 3702

CUllillhw PilllIIl 1[111 tile r Fung Ll CV Ol-S7H SVV (le) (Duc 0 -116) (el) (

Ia 2U 2UIO) (Deciar21ioll llteily KlJIS (Kblls D~cL) E 2) lriSld RIClms 11 (Ii 1

[117Ic()1 filL 0 07-C7 -gX22 (lIB (Doc No 2X4) (SD Y Oct 8 20()9) (Klaus Decl

)

Tll nbtill1 ~l l~rlllal1Cllt II1jullclic11l Phinlifis mllst sholl

(I) that ilbcyj ha[c] suffered LIn irreparubc illJUIY (2) that rCllhdics uaibbc al i(1 sLieh Ji nunClUI damage- are inadequate to compensate fix lhlt il1jury (1) thaI eOllsiJcring the balance of hlJJships bctC~ll the pluilltilT and dd~ndal1t a rel1led in lCquil) is ltllTcJ[](cci and (-n Ihal the public interest ould nol he cliscvcd l) a permdncllt inju e(iun

( 2(10 1 1729)26 ell 7 (2d Cll April ~(J 2()IO)

(quoting lBm ilL ercFHhul1fe rIc 5-17lS 388391 (2006)) Each ollhe fuur

t~lctnr- cigbs in t~lOr l)f a pcrmmcnl inJunc iol1

A Plaintiffs Han Suffered IrTc1arable Harm And ViII Continlle To ))0 So Absent An Injundioll

lailll If shan 21utlered alld 11 I Cell

1rl inducement iJcsprcld inlringemc]t o1thcir works Irreparable horm is an injury

Unt I I1clthlr remote nor peculatic but actlui dnd iml11ilenl and that cannot be lcl1l(dicu by In

I Ilid l1lol1etury damages Forest Cily 1)ull Iluui Inc j Town ojX Jellljleud 175 L 3d

1-l-l 153 (2d eif (99) ICC Iso FUfIrey lilllji [ullll) lJ Wuh(ec Curp S5() F3d 10

II S (2d Cil U()(raquo) a (lirtcl reulr of Lime in intentionally inducing idesJn2ad

n lllt lell-Known C~hC- lloiing tU othe l L1I11e Vires rrcckcessors ~ar~kr and im~lcrmiddot the courb ssuld injll1ltlion agcullSt the ddcndants even ithoul l summar jUJ~tl1llt lliiihdilY SCt 1amp Nelnlds filC ojlj(1 Illc 2S-l r3d ]OC)L 1099 (9th (ir (aflir1111lg UJstliCl COUlS order to shut down the a)Slcr scnicL In ( Allllsler Copyrighl

JUig(lioll 3~ rd ()-+3 65() (7th (ir 20rn) (tflirming injunctinn aglnst iimsicr)


101252010 1344 FAX 213 687 3702 MUNGER TOLLES amp OLSON 008019

jinl PlallllilTs be irrcparable ham bccausc it IS virtually certain llwt hlY ill he

cntilkd ttl ~1l1 enlllllOUS damage uJrd alkr tria t1l3 ill

at I 17 (Tkcause it is c-trcmdy unlikely that

i dC(lldanlsj will be able ttl compensate Plai 11iff l1londarily for the inllingcmenls It has Illduced

ill the p~ISL nr the nfringll11cnls t cl1uld illdtce in ~he future PbilHiiTs la ~II1J ill cOlltinue

11111 rc i1 1l1llst like bl ~iablc (or lllO~ in dUI1ltges than it will ever be able to pay Set

RelJiUlld_ 5- SF Supp 2d at 117 s they arc emitled III do Plaintilfs seek Statutory

cbmages unJcr the Act as a remcd Iti Lime Wire-s unJavlul conduct (First

Amcndcd Complainl n 7~_ 87_ 99) Wherc the defendants c(lIlciuct is iJlfuL the mngl of

-la~ut(1l damag rllns from 575010 SI51(U) (1 17 [ISC ~ SfJ4(a)(2)-(c) lln order III

Plll iilrlliness a ~ailJtiT mut show tklt thc uclcnclLlllc kllc or should have knoJl thlttt itshy

1359 1364 (SDN y l)9) Plailluts- Ull(unrolnld eidencc h$ proven thal LW intended

~( encourage inlringLlllcIlt h) distributing LilllcWin ginll 11 part L Ws ltlWi1re1CSS of

uilsLmLll infungelTlcll1 hy users that L _-n( that LimeVre uSers were committing

mJnngelllcl[ ~lIld t111 jtJhc mass( scale or infringtmci1 commil1cd by rimeWin

clden along lIh nUl11erDUS other item cdailcd ill thc

summary juclgnwnl record shos Limc Wire -llmost certainly will he liable [or statutory

JlllllQges here the upnJ limit for e1ch aurd i~ SJ 50_000 See CJroklhr Remwu(

518 I Supp d at 1217 (noting thL --IXtLllL rcldti()llsilip betweell inducemcl1t and it finding of

lultIplicd


I4i 009019MUNGER TOLLES amp OLSON1012512010 1344 FAX 213 687 3702

slalulLlr damuucs a issLic l1Lr~ is so staggc mg thai it would cr prchabh hc well bcyonX

[ll1e il~ anlicljJ1lcd resources Ciuknl R(JIlOlhl 518 f SUJp 2d at L17

ec()ul Plaintiffs arc being subjcckl~ to a different but no less irreparable typc or injury

IrolIllht llaLirc lfthc mrringemenllhal Lim ire has illc1UClcL specifically hum the c()nlinued

infringcl1Wl1l nftbcir works ti1wugh Lime V re viral system Plaintiffs j-aye the exclusive

ngh in npruducc and distrilmh their copyri~htcd works 17 l Sc ~ J U6 1-11 if u full

dmlagcs awarJ cre somehow salisJiccl 1Il1~c Wir largc-scale UIlClutJoricd distribution 01

digt~i copIes cCPluintills cupyrighted wurk ill continue to fJciJitatc gClhnljons of

infringement )et Groksfer Rnwlld 51 ~ Imiddot upp 2u ill 1217 [ilcb tincc 111 illegal copy oli1e

lj PlamtilTs copyrighted orks is dowtloilkd tlrough the LimeWirc software that copy n1ltl

l1cl1 be lIscd to gtpaJ countless cleriatiyc 1I1Jril1g111g copies This inflicts exponential harm on

IlaiIlilTs ccusin rights See jellfieli ( lll1il rnx Filii Corp I Sfreefcr 431- F Supp 2d

Ariz 006 ((cry lICl ho rcccjCS onc oflhc copyrighted works

through the pcer-to-p-er ~cfkeJ is in tum ca)lbk i)falslt tmnsl111ting perfecl copies of the

icc()rliingly 1he proc(-$ is P(11clltially cponntial rather than lineaL threatening

irtLlaily unstoppahk infringement oflhe cClpjrighl) Because dlmagLS cannol address this

cl1l1inllcd ulncrJbllit~ Lime ircs indued iniiIlltl1lcll caucs jrreparable ham See FlJre

CIfY J)ull H(Jlls fllC 175 F3J at 153 (harlll llat cannot be remcdied by damozcs uard is

IncparaDk)

Third Plaintiff nCC irreparahle IlrlrIl because Lime Wire j~leilitltes tbe llnDulhorizcd

fIe distribution of Plainti rls c(lp~righled woris precisdy the same product that [lIJintdf-

PJy 111IIIiul$ to Clarkel l1d selllll COllSlImers uinger 2010 WI 1729J26 at l)](I [TillC

1aibbIlIlY or tIec infringing ltopics or Plaillti~s wurks lhrough Lime Wire irrcprrahly

Ul1dnllil~es lhe tlroill~ kgitmlle market lor (tI1SLlll1Cr te purchase access tn the anh nrks

0 (V 06-5n SVdC-) at 3-4 (Klms Decl Ex) As a restlll of il111 Wires

inducement gCllclnlions of potclltial purchaser or Plaintiffs products have instead grown up

~lecllstomcd to U(hl1lillding their mLlsic 1(11 rre( te ilelr()-C()hh~m-J)er Sludios Inc 1

7


~OlO019MUNGER TOLLES amp OLSON101252010 13 45 FAX 213 687 1702

(roklkr Ltd )-+) [I S lJLL 92X-29 (2005) (digital di~trlbutil1n oCcopyrightcd mmcri31

threcllcns copynghl holders as nccr before beeau-gtc cn]y copy is Identical to the- originaL

oping is casy and m~lny people (csreci~dl the ~olng) usc tile-shmi software to download

ctlpynghlcd orks) A ampJ1 Records file aplfltl file l) F3d 1004 1017 (0th Cir 20(1)

(eiling apscs deleterious cHeet on the PcSCl1t tlnd futllre digital dOmload markcC) Thal

11~rl1 can nccr be remedied in money dall1lt1cs an injunction must issue

B Plaintiffs Have 70 Adequate Remcdv At Law

bre as hcre the lkfendnts 11 hi unahk to pay the likely aard ofdamages

l-rcmed anahsis mirr()r~ thc irreparable harm inquiry

(frukSfCi RClIlund 51 ~ F Supp ~d 12 j 9-20 Al1huugh the Cupyright 1(t provides that Plaintil

11Ilsl recei- Jll clard oC statutory umwgc- bastd on the infringing conduct in this Cl-gte J 7

lSl ~ 50-+(c) thm remedy at 11 almost ccrtlinly will be inadeqICllc to compelbnte Plaintiffs

rur the infringements of copyright thal Lime Virc intention]ll induced Lime Wircs

iJcsprcad dissell1mation oftJw LimeWire SCnwm h~lS left Plaintiffs cnpyrigi11d works

ulncrab~o (u massive and contil111ing infringcl11lnt by millions upon millions of uSers

10ICO(r iic danugcs 111 be part of ( ppropriate remedy for past infringemcnt they

l1I111Ut PlOtccl PlaintJtTs ngZlIlt flllure infringmenls Only a permancnt injunctwl1 can do so

C The Bitlance Of Hardships Is Wholv In Plaintiffs Favor

With respecr 10 the balance oChardsillps rilcmassin scale ) infringel11Cllllhrough the

LiJ11ltln client h~]s caused greal and irreparac injury to PlaintifC) and any hIIdship to Lime

Irc hy the ini ul1ciGlJ is 131 OueilhcJ by tint injury (Order at 33) Lime Wire canllot he

l1l~Id to cumplain lit injury llil It busiwss is based on pi of iring wm thc copTlght

illiringcl11cm (hal Lil1h Wire il1lll1tiol1ally il1dncd (lei al 36)


~Oll0191012512010 1345 FAX 213 fi87 3702 ~fUNGER TOLLES amp OLSON

l) The Public Interest Favors an Injunction

The Injunction ill not harm but ra~ 101 wdl sern the pubhe interest Tilc public inte-Iegt

i SLcd hy lphniciing CllP~ richl rmectioll lI1d glen the harm caused by Lime Wirc a

jWillatnt inJunction is Ile-cesstry to present the intcgricy of those protections

For all L1C E1regoing reISI)l1S the perm31lCIlt injunction entered herein is aprropriatc

II TERMS OF THE PERIVIAlENT INJL~CTION

A Delinitions

(11 iJurj10SC~ (I thi~ Perl1lallC 1t Jnju1cion clpitaii7cd wos and pl1rlses nol

then ISC cktrl1ed shall hac the Illcanil~s Sll forth be]l)

(a I Lime Vin~ means Lime Gr(Hlp LLl Llmc Wire LLC and lark

CilrIOll md l~lCh ofthel11 and their officers agents directors servants employees salespersons

inJcpclldcll1 Clll1lraClors iltlOne)S distributers corporations pllInts suhsidiaries affiliatc~

5UrCeiors assigns and all those perS(11S in cclit CQllClrl or pmicipatioll with c~h or 811 01

them Id1l rcccic acluailloicc olthis Pltcn11ltmcllt injullcllOIL

(b) Lime Wire System and Software means

(I) -n and all csions orille soIharc program that Lime Wire hu

dlstribulc(1 under the J1UJ11l LllneWin LimeWirc 8-5]( --LmVirc EXknded PRO I1r

Llllleire PRO t)I any c)ther program of comparable functionality regardless or the trade nUl1lL

ll1L1er lllCh Lime Vire has distrj~lUled

(i i) The computer] arowac and sernrs operatecl by )1 (n bch~11 r 0 (

(iii) The limcwirccol11 and iimcwircorg ehsiks 0pCLikJ by or UI1

bhztlf of Lime Wire and

I)


4J 012019MUNGER TOLLES amp OLSON101252010 1345 FAX 213 687 3702

(c)

ire lllJ Jl1) conduct by ur ull bcilalf of Limc virc crwblillg users to connecl tll and Llse

~lllnpllcr nelorb 1) rcproducto and JistribL lc 1Illalllhurlilo copies of digital fitgt

(d) LimeWire Software Iefers only to the sollwarc programs distributed b)

LllllcWin Sylem and Software including hill not ilmikd to froslWire Acquisitioll EkarFli

Cabl) GllLlckLlsiGnllcD~A Gtk-gnutella KCasy ~1P3 Rockel Phex Poisoned Sharcaa

SYlllclla 13itTorrCtlL lITolTcnL VuzdAurcus iJitComct TrmJsmissi(1ll Delugl BilLord

Ill jllralch~l~ as lhll~l SstCl1lS or SOflVmC lited bcCorc 01 as uClhc date of this 1rmanCill

purpDse nr a mateid lise Llll unluthoricd rCrr)dllC~ion distribution communicatiull 10 Ill

publie (heiher by transmitting or naklllg (1 ibbil) public perfonmll1cc or (llh~r exploiw1 ion

11 dll cupyrighlcJ Ii k or 01]

If) Copyrightld orks llllallS til cuplightcd yorks (or poniUils lJcnnl

hdh~r m in cislenclt- or later crcalc(L ill hich lt1Il Plainliff (including its parLmiddotnts

~bs(laris ltTillates ()r distributecllabelsl ons lr con1rol all exclusive right llJldcr Section

I(ll) Olilc Ullikd Slates Copyrighlct (17 l( ~ J ()f)) or under state or common law

O


013019MUNGER TOLLES amp OLSON10252010 1345 FAX 213 687 3702

l mealls any prson or llllil wlw or which u~es IhL Lill1cvirc

Syslen alld Sottare ur ~llly Comparable S SICl and Software

(h) legacy Cser~ mCDrs lselS or LilllcWire SoClware thai was uistribukd

prim to the date of this Permanent Injunction

(i) Legacy Snn~ire 11~an~ copIes (lrtl~c LimcWire Software in usc hy

U) CorTight Filler ml~JI1S a robll~l ~tl1d secUlc means to exhaUSlivd)

)[C-H l SllS of the LimeWm System lI1d ~()f1ltlrl from uSIng the LimeWire )stcm and

Su1are and Lsers u( any COlllrarbk Systm and SOflymC frurl using stich Comparable

Syshm and SoJlware as applicable 0 copy reproduce dowtJload distribute comll1unica1l to

the plblic (WhllllLr by lransmitting or ll11kin ZiailabiL) uplc1ad link lL) tral1smlL publjcl~

perlil or olhef ISC exploit 311 llJ1JutllOrizJ or tnlicenscci audio or audiO-Visual Copyrighled

1)) iuch Copyright Plltcr must inch de lilL ability to filltr both by text i~ artist ltno

-ll1g titk) and by tIlt ll~C nl Fingerprinting T((i1noklgy as dctincd below

(k) --hngcrprinting [Lclmdogy refers to the most crTcctin aailabJt means

lli Cll[)klll-rccogllilioll fillcring basld 011 reco~~nizll1g tlll unique content of an ulllicrlying ludioshy

suZiI ork and detecting md preventing coping that (()nlC111 no maaer how the file

containing tlK clntlnl as created whether the tiil vas ripped Iiom a (1) DVD or

recurded imm a rauo 01 heisiull de) ane hich is available ljOln commercial cndors such

a~ udibk 1agiL

1


llJ014019MUGER TOLLES amp OLSON10252010 1345 FAX 213 687 3702

B Tenlls

Lime Wire IS permanent ecjoltllU anJ l~straillcd lIOIll Inrillgillg in lny mannr

~11 cllpyngh In an) unJ all Copyrighted W Jrks illCludlllg witholiT limitation by cllgaglllg in anshy

cdthe roljoil1~1 ilhOLll Titlen authority (film the relcanl Pluinti

(al lOpyillg rerrodLlcill~ JCJI1joading (Jirributing (which hcreinancr sha~1

includc without JimllatOn making a sound lHordillg l11 (llk maijable )c) distrllJltioll by

plaCIng iT in a computer file or foldcr lhat is acccs~ible b lllilcrs for dowllioading)

C111111lUlicZtling tn lh~ public uploading iinking to trmsmitling publicly performing or

(ltilciWISL exploitillg ill any manner any ofthc Copyrighced Worb alc1

hI (iiredly or illdircctl~ llahin~ tlcililating rcrmitting Clssisling sulieiting

e1cOurllpng or inducinil an~ Lser to llse tl1 LimeWirc SstCI1l and Suftare Of uther

Comparable Systelll andur SoflarC

to copy reproduce donloJd distribute COIllI1111l1 to the

ubic up]ul1 link transmit publici Icrfmll or ulhemise xpluit in any manner nny orlh

CppyriglllLmiddotd Works )1

(i) to nwke aai bb e am or (he (1J1Highted Works rur copying

reproducllon donloadmg distributing cOl11nunic~l1mg to the public uploading linking w

lrltmSl11l1ll1g pubiic [crflmmmce or uny olher exploitation

(e) dircdl- or indindly operllinr or assis~ing in or support rhe operntiol1

11 aa COl11plller server or cbitc or distrihulilg an sl1tiar~ ill my way related tl lhe

Lli11Wire SYSkJn lild Sortare or any other Ct)ll1)nrrahk System and Solarc that tnabk)

middotacililates permiLs ~ISSlsts uiicits encourages or illLluccs rhe copying rcproductitln

l~


f4j015019MlJNGER TOLLES amp OLSO10252010 1345 FAX 213 687 3702

do Illdadilig dlStri[llltll1g uploading Imklng tll transmitt1llg pub pcrCOrmLlI1Cc or otber

cPUilttiOl1 or any llC the Coprighlcd Worl s

(d) Lim Win is furtll (lrd(Icd tLl immcdiatdy CC~lse zmd desst from

dlsplayilJg or pcrmiltU1g III displayed lJl~ a(lertisin in through or by mClt1l1S urthe

Limeire SOn[Ue as dJ Tom dispbying tlte S()UnC clld J()r th LimcWirc Sollvnrc through

the LillcVirc S) stem ami SoftWltltc or throU11 l1~ Comparahle S lel1l and SoJtWlt1rC

lising ih tXsl clTorts Lime ire shall use ail reasonable tcchnologicd lllealJ 1)

i1lillctiialdy CeaSl and desist lle current inr nglI11Cl1t oj the Copyrighred Worb h lcgc

ISlr~ U1fOUgh the Jillcire System and Soi llC 8nd w rreent and InhIbit flilure

intjingcmCll[ of tile Cupyrighted Works fly Lltgacy lscrs of the Limeln S)Sllll and Sol1m

l1cluLlin~ iIIlOUI limlllltioll hshy

(a) djs~lhlil1g 1he sLilrching JOllluading uploading fik trading andor liic

d-lnhuliol1 Cundiol1llit~middot cmdior ali rUl1cliol1alil) 0 the Legacy Software

(h) cstahlishing default settings in the Legacy Software thaI hlock the sharillg

(d unauthorized media tiks

(c) prmiding all Users itl a l)()j to ullin-all the Legacy son are

(d) incluJilg a Copyright Filler tlltbc Lq~acy -011 arc including (to the

e~tcllll1occs)ary tli CLll1lply 111 this Paragraphl creating a nc CrIOI1 of thc LimWirc System

and Soliarl that mC(lrporalcs a Copyright Filer (~~ Ve[sI0n)

(el be1)lt dislributing any k Version Lime Wire must obtain apprcwal to

litl s() ]11111 PJainliJT alld tb Coun In ordr lC ohain 1he nccessar~ apprOltlls Lime Win l111151

pllwicie the 1cw VLriln to Pbintills ami the Cour ~lnd Plaintiffs ill report to the Court ithil1

30 dlY of receipt oj an operabk c VCrsi(l)l l1eher Plainliffs CODlJcr the Nc Version to


101252010 1345 FAX 213 687 3702 ~nTNGER TOLLES amp OLSON f4]016019

with the rtquinr1~llIs or thi~ Permllcnt Injunction 11 Plaintiffs conicicr the Nc

Version to IolZlte my of the kr111S or111[s Permanent InJunction Plaintiffs shall intlmn the

or the reasons hy Dnd

(n ifit is pC[l1lincd to cli~trihlltc a Nc Version Lime Wire must usc all

reasunahle lawful t1liClns Itl CGUSc cnu)uragc persuade andlor compel Legacy lscrs to upgrade

Crolll legacy SortlVarc tn the 1e Version

-I Lime Wire shill gIve nOlice ofthi PcrmUlltlll IlJunctioll

(lt1) to cnch of ri111~ Wire respcc[ic olflccrs agenb erVJllts employees

lilonhS prmcipals direct and indirect ~hanh()lders ard

(t) tu alllcrs ufthc LlmWire ystC11 and Sotiwurc throug1l my ltlaibblc

llCdllS (f communicatillg ith U5~rs inciudilg but nol limited to

(i) posting a I1lcssgr on the lbSllcS within the LimcWirc System

ilJ SonarL glilg notice of this injullction and informing Users that it is ilkgd to upload

~lllllur JUl1]uau Ul3llihotized copies of CUP ngllted -orks

(i I) sending the suU message to any Lscf who connect to til

Lime ire S ystcm aml sun arc

(iii) cmailing all of the Lcrs urthe LimcVirc SYShl1l 1Ilel SOna~~

lh)e ident~ic- and e-mail addresses arc I-no1110 Lime virL and

(C) tLl ali persons IIl 10 11 Lin Win~ conmunicales rcgllrtiillg any aClual

c) poteltial transfer (I1ltI11cr hy sale casc license a~signlllcnt cOl1cyancl lraJ-ler ilhoLll

cnllSideratll)] or otherwIse) l1rany ollersllip interLt in them or any interest in c1l1fhcir

-iglllJlcanl assets (incuding it]wut IJmitation any SlUlCC code oocct code othLr tLchnol()g

ciuillctir lEllllCS rraclemarks brands assets (lr ~oodili in Lll1~ way rclnted to the lirneVire

14


i4l 017019MUNGER TOLLES amp OLSON1012512010 1346 FAX 213 687 3702

S qem and ~urt ~HC) and to all SLhceSsors transrcres licensees or other assignees and all

those persons in aClle concert l)1 partlcipmioll wi1h each or any of them

- Linlc Vire nlusl l11e a rCfJurt 011 its progress ith the (ourt vithlD 14 daIs oCthe

elm or lhis PcnmHlenl injunctiol1 The reqllireJ report mustmiddot

(Ij eenitmiddot tll~l[ diSlribLtli()1 saks and adnrtising has stopped

(bl identit Il1l sttJb ha- been taken [(l cumply with the requirements of

Paragraph 2

(c J qUlt1l1ti J the piecise ct rlC l ur the itcnli lied steps on the onguing

illlimiddotj ngcIl1ent of the Copyrighted W urks inc Jdi ng but nul Ii mi led to idcl1ti t)ing how mall) slmggt

ehaning )i1 the (hen-currcnt Hillboard IVgo ine Top 200 Ii art or rernuin ltJaildlle for

dl1J1I(lad lhrough lh LimcVirc System and Software and

(ll) idenlih vlwt further skp arc ll1llle process ofhein6 madc or ill be

madc w COl11h(~ ongoing infringement as reqlllfd -y Parugraph2

6 [( Lime Virc (or any i1dJidud dendalll) sell kascs liccnses convcys gins

aa lranslers or otherWise assigns a or an) signdicanl part 01the hUsincss ccut oper~Hl()nS

or assets or Lime liroup LtC Llllle Win ILC or lIe Lime WllC ~yskm and Sothvare

(includillg without iUl1ilatiol1 any pan urtlle )mrec code object code other technolug) cinmaill

Il~ll1les racielllJrks bwncls Llsset or goudwill in any ay rebtlllto the LimcWire Systtm and

ulharel it ill require as cl condition of ill) such transaction that each purclwslr lessee or

uthcr tranfcrce ur ltlssignce (aci1 a lrullsjr~e) (el) submit tllihis Courts jurisdiction ald

(mil lJld fully Clic and relinquish any ar~llnen( thaL venlle or jUrlsdiction 11 llw Coun is

lhc tnllS oj this Permanent Injunction

15


101252010 1346 FAX 213 687 3702 MUIGER TOLLES amp OLSON iZl 018019

LIth irlt shall nol pcrll1it uny SLch tranSlL lion to close unk~s and until the COLIrt ha~ cnkrlcl

such ~n order as to lhlt TransiCrcc

7 ~L)thing in this Permanent In ullction shall limit the right of Plaintirfs to feCOWf

111 nunc) s availahk under la 011 tlCCoun cJ Lime lrcs violaticns or low including withollt

limjl~llion a~l dam3ges alll)cd under 171- Sc )O~ kr any and all infringCll1Lllb ofPairHlCf-

UrHi1hs je)r which Lime Wire IS liahic all Jum~Jgcs allcled under orpjicubk stale 1lt1

llornysmiddot (ccs including without limitation lllOrrleys fccs uuthorized under J 7 USC ~ 505

S 1Y ptrsufl or entity tound to be ill Violation oj this Pennanenl Injunction shall he

sClbj ct to aU applicabk PC1lltleS and punish nelliS dluwed b law including wllhout hll1it81ion

Illl clll1lCl11pl of C01lL

9 The Court shall mainlilJJ1 cOl1tJluing inrisdicliol1 over thi ((elioJ] including with

rtspccllO dltll1hlgCS and costs including ntlorncys tgtcs for the purposes of enforcing t1is

Pcrmancnt InJunctIon for the purpose or entering jjn11 judgnlcllt against Lillle Wire on lhe

claims rcsonJ hy the Order and for the purpnsc or rcsohing liw lssLll and claims that remain

nJlcn in tile ca-c

16


10252010 1346 FAX 213 687 3702 MUNGER TOLLES amp OLSON ~019019

I() ti 011 apfcai or OlllC~Wc in11l lillgfllion any Lime Wire defendan (as de lined

)i1 Page ahrln) is lOUId not liable on illi OrCounl~ -V ill Pbntiffs Firsl Amendd Compl3int

Ihl tcentrl11~ of the lroDuscd I Consent Inj ul1ctin( sha1 no longer be binding against such

s [WUllnJ) A-iD AGREED TO 0 DE LLF Uf PLAINTIFfS AND LIME WfRE BY THEIR COUl-iSEL OF [CORD

Dared t~ 20]0 I

Uorney ror PlninlifCs

Munger Tolks amp Obon LLP JS5 Souh Grand Avenue 35th (lor ~os Angeles Caii fornia 90(j71-1560 1213) 683-9100 (213) 687-3702 (Fax)

KcllyKlallsmtocom

1middotlljmiddotI 1 l t 20 t 0

I

C(llken Sal

(l[)me) for DefcndJlll5

Wilsoll Soosini Goodrich amp Rosati PC 130J Avenue of Ihe Americas 40th Fiour New York New York 1009 (212) 999-5800 (12) 999-5890 (FJx)

[11sommer(~Vgr_COm

PLRSLNT TO SJPlLAT1()lt ITS SO ORDERED

Daltti 19-lJJ 20 I (J

I~-----~~ KIMl1A M WOOD

United Stales District Judge


1012512010 1343 FAX 213 687 3702 MCNGER TOLLES amp aLSO f4j004019

iIO101l I()I PcrmZllllnl Injunctiuil

[I j 1rl1la1-lll Injullclioll lhal apiClU belu shall

ul the C(urt Lime Wires slipubtion as 11 PlIt orllll PCnllIllCllt lnjul1ctioJl is to the Corm

liligaliL)n lI1clliciing on appLuJ (cccpr any

cldlcgc tu the Cunsent [njuilLlioil incluJilg the Pcrrnancnl Injunction all ofhich Lime Wirt

may contest in lily COllr ollly un ap[lcai aflc the cnln of ~l final judgment ill this UCliOIl) linC

cllkred Iay Ii 20 I 0 alld amended un ld~IY ()j () (Order) (Doc fu 223 aJ11I1lt1ing Due

)lgt 2]() ill allY aPIKctithClt may follcm t eltry ora fil1aljuJgmcnt ic this aClipi1 Lime ic

willllll take any uppeai non or othclYisc Ul1lcst n any cULIrt tillS CU[JScllt Injulictioll induJing

the Inllment unCliull bdp prior [tile nlr n d Inltllpdgmllll 1Il r11 acliun

I 1 Tl~ ilrllCC agree thal Ii (H~rt In IlirisJicit111 III ll1lc1 this l(lnsnl [Iliuncllol

lIcllllg the Pcrmanent lniullclloj) hel) ~llJ t(J ellforce the sarnc pursuant to the lerms hereul

I i No sccurit shall be required with rpct il) the entry OfClllY nflhe proYisinll )f

tJllS Consent lnjunction incl ing the Pcrmanent injUl1cliDJ1 helow

PERMANET IltJeNCTION

Ih Court cl1lcr a Permanent Injullclull ill tiur ur (lie lluimirs ulld agaillst Lime Wire

urSLI~Hllll) 17 L Se ~ 50 lI~d Fdera lZuk otTJd Proceuure ()5 and in accordance ilh lih








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1012512010 13:43 fax 213 687 3702 munger tolles & olson [4] 003/019 l " itu) st.\ ii~s...

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