The court order comes two months after the firm lost a copyright battle with the music industry, in which an Australian court found that the company was acting illegally in allowing users to breach music copyright. Sharman Networks is appealing that ruling, with the appeal due to be heard in late February.
At the time, Justice Murray Wilcox stayed an injunction against the firm for two months, so that Kazaa could implement measures to filter copyrighted music from its system. Those two months have now passed, and yesterday, according to the International Federation of Phonographic Industries (IFPI), Justice Wilcox warned Kazaa to put in place a new keyword filter system by 5th December or face complete shutdown.
The new filter, involving 3,000 keywords to be selected by record companies, will apply to all new versions of the Kazaa software. It can be updated on a fortnightly basis to target the latest and most popular music releases nominated by record companies.
IFPI Chairman and CEO John Kennedy said: "Kazaa has received its final warning. It is time for services like Kazaa to move on – to filter, go legal or make way for others who are trying to build a digital music business the correct and legal way.”
The Australian record companies' body ARIA has also welcomed the order.
According to ARIA Chief Executive Stephen Peach, "Today's decision is excellent news for all artists going into the Christmas period. The court has put an end to Kazaa's delay tactics on filtering and ordered them to get on with it if they wish to continue operating."