Peer-to-peer network executives and record company leaders were said to be starting talks June 30 on how Kazaa, Grokster, Morpheus, and other P2P file swap services can get legitimate access to copyright music files, CBS Marketwatch reported earlier that day.
A P2P group known as the Distributed Computing Industry Association – and which includes Kazaa's corporate parent, Sharman Networks – was expected to meet with music industry leaders including EMI senior vice president of digital distribution Ted Cohen, one of the industries most vocal critics of P2P sytems, and Walt Disney digital industry relations director Phil Lelyveld, Marketwatch reported.
Grokster president Wayne Russo was also said to be preparing a Congressional lobbying effort on behalf of requiring content owners to offer blanket download licenses, Marketwatch added. "We realize there's a lot of work to be done," Russo told the San Jose Mercury News. "We've got a lot of tar on us that we've got to wash off."
This reported meeting occurred five days after Sharman launched version 2.5 of Kazaa, adding new features that include licensed content channels, a rewards program for sharing licensed content, and upgraded security.
“The evolution of Kazaa Media Desktop reflects our commitment to Sharman’s long term goals," said chief executive officer Nikki Hemming in a statement. "It provides an excellent user experience by improving choice, usability, and security, and further bridges the gap between content creators, owners and users."
"We're thrilled to be leveraging the Kazaa Media Desktop to deliver this compelling entertainment channel," said independent RAS Records' chief executive officer, Gary Himelfarb, when Kazaa 2.5 launched. "Secure peer-to-peer offers a great sales and marketing platform for small independent record labels, and we look forward to using it to reach a whole new audience of reggae and dancehall fans."
Not that consumers should expect a legitimate service that offers a the same breadth of choice that the current P2P systems have. The labels once turned down an offer from Napster to pay them at least $1 billion a year – and once the labels and file-sharing companies have reached an agreement, the labels then have to come to one with most of the artists they have and their publishing companies.