"File-sharing site Kazaa will become a legal music download service following a series of high profile legal battles. The announcement follows the release of a music industry report that says more than 20 billion music tracks have been downloaded illegally in the last year.
File sharing and music piracy are key factors in the recent decline in record sales, according to the music business.
The Federal Court ordered Kazaa's owners, Sharman Networks, to modify the software to prevent further piracy.The modifications included a filtering system on 3,000 keywords to prevent users finding copyrighted material.
It was unclear whether the move prevented music piracy as many file-swappers stopped using Kazaa in favour of other networks.
"The market is now fragmenting. Unless you are an ardent downloader it is becoming harder to know where to go," he said. "The market is now fragmenting. Unless you are an ardent downloader it is becoming harder to know where to go," he said. "
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