While Napster’s service only lets its members transfer MP3 music files, Scour’s members can transfer both music and movie files. Lawsuits were brought against Scour by members of both the music and movie industries, including Walt Disney, 20th Century Fox, Sony Pictures Entertainment and MGM who argue that the Scour service is used for the exchange of pirated material.
Scour has filed for what is known as Chapter 11 protection, a reference to part of the US bankruptcy code that allows the company to continue operating. Filing under Chapter 7 would indicate the immediate demise of a company.
Scour’s president, Dan Rodrigues, said:
“We took this step in order to perserve Scour’s future. The Chapter 11 process will also provide our management and board of directors with adequate time to review and develop re-capitalisation and restructuring alternatives to strengthen and improve Scour’s business position.”