America's proposed Induce Act has stalled in Senate. The controversial act aims to make technology firms like Sharman, who make the P2P software Kazaa, liable for the copyright infringement their product enables. It is part of a bid to stop such companies claiming they simply supply a file sharing network, and cannot be held liable for what files consumers then decide to share - a plea used by all the players in the P2P field from the first time Naspter found itself in court.
However, the proposed act is proving problematic because, in its current form, it is very far-reaching and could well implicate companies who make or distribute the players that consumers use to play their illegally acquired music. This could include Apple, Sony, most of the big electronics manufacturers and numerous retailers.
It is the failure for the entertainment and technology sectors to reach a compromise on the exact remit of the Act that has delayed the proposals' progress. Insiders now say those pushing for it - including the Recording Industry Association of America - are likely to drop their campaign for this session of Senate, preferring to try again next year rather than accept a watered down act this year.
That said, if the act does go through in its current state you might end up with a situation where Sony Music is suing Sony Electronics, which would be great, so lets hope it gets through!