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.