The Kazaa Media Desktop (KMD) software was originally created in
2000 by a company known as KaZaA BV. Fabian Toader, a Romanian
national who now lives in the US and works for Microsoft, worked on
the software as a freelancer but, he says, did not have a written
contract with the company.
Kazaa is free and believed to be the most downloaded piece of
software on the internet – with 1.9 million downloads in the last
week alone, according to its web site. The benefit for Sharman
Networks is a healthy source of advertising revenue.
Toader claims that as he did not sign a contract with KaZaA BV
he still retains copyright in the code that he developed.
"My code has made KMD one of the most popular programs ever. I
just want to be fairly compensated for my contribution," said
Toader, according to the Associated Press. The report states that
he is demanding $25 million in damages.
Rich Chernela, spokesman for Sharman, told the AP, "The work
done by Fabian Toader on early versions of the Kazaa Media Desktop
software was done under a work for hire agreement that expressly
states that Kazaa BV [originally KaZaA BV] owned all rights to any
work related to the development of the software".
Sharman and Toader met in court last August, when the company
obtained an injunction against the freelancer, alleging attempted
blackmail.