Recently, we reported that Sharman Networks, the operator of the Kazaa P2P network, had been ordered by the Australian Federal Court to alter its software. The Federal Court found that the Kazaa software had violated Australian copyright law, and ordered that the software be restrained from continuing to operate in Australia, unless changes were made to prevent it from being used illegally. Then, Kazaa vowed to fight the ruling, and appeal.

The music industry, however, has called the ruling "a milestone" and said that the consequence of this judgement will have global impact. They condemned Sharman's decision to appeal.

A spokesman for the record labels said his side was disappointed in Sharman's decision.

"We're disappointed they won't accept the umpire's decision. It can't be fair to build a business on somebody else's work," he said.

However, he added, the applicants were "absolutely delighted" with the judgement: "It's a great day for artists, and music."