Buzzsonic.com

November 22nd, 2004

Sydney, Australia based P2P company Sharman Networks today launched version 3 of its of controversial file sharing software Kazaa, this time integrated with VoiP application Skype which enables users with the software (and a headset and microphone) to make free phone calls worldwide. The newest edition of the file-sharing software, also sports enhanced search capabilities and a trial membership with blog service provider TypePad.

Kazaa claim that over 300 million people have already downloaded the Kazaa application and are using P2P technology legally to purchase licensed music files, videos, games and ring tones, though the percentage of that 300 million that actually use Kazaa to buy legal content wasn’t released. Recent research from Comscore Media Metrix suggest that Kazaa’s once all conquering user base of 30 million has dwindled down to 16 million in the face of the increasing legal action and the popularity of more anonymous P2P apps like Bit Torrent and eDonkey.

Kazaa has been heamoraging users in their droves in the last year under sustained legal action from the RIAA who have been targetting users of the software for illegally sharing music files with other users of the software.

Luxembourg based Skype was created by Niklas Zennstrom and Janus Friis, who famously also authored Kazaa, part of the underlying FastTrack file sharing network (which included Morpheus and Grokster) before selling the Kazaa software to Sharman in January 2002 after being blocked by copyright action in the Dutch courts in December 2001.