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Kazaa Boss Faces Court Scrutiny Of Assets

by Mary Swire, for LawAndTax-News.com, Hong Kong

21 November 2005

Following the ruling, issued earlier this year, that Kazaa operator Sharman Networks was guilty of copyright infringement for its failure to prevent users from illegally sharing music files, it emerged last week that Sharman principal Nikki Hemming is to face cross-examination regarding her assets.

Judge Michael Moore called for the examination in part because Ms Hemming sold her Sydney mansion to Sharman's accountant John Myers when faced with the record industry lawsuit, but continued to live in the property.

According to reports, Mr Myers distributed half of the proceeds of the sale to Ms Hemming's partner, and half to a trust controlled by Sharman Networks in Vanuatu.

Judge Moore observed that there were "several unusual features" that needed to be examined regarding the sale, including the timing, and Ms Hemming's stake in the Vanuatu trust.

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