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The owners of the Kazaa file-sharing network are suing the movie and recording industries, claiming that they don't understand the digital age and are monopolizing entertainment. Sharman Networks Ltd. filed its counterclaim Monday in response to a copyright-infringement lawsuit brought by several recording labels and movie studios. That lawsuit accuses Sharman of providing free access to copyright music and films to millions of Internet users in the United States. Sharman's counterclaim alleges copyright misuse, monopolization, and deceptive acts and practices. Sharman said the entertainment companies are behind the times and don't realize that consumers need not buy CDs, DVDs or videotapes to enjoy music or films. Sharman also claimed that movie studios 'dominate and, when they act in concert, have monopoly power' for the aftermarket distribution of first-run major motion pictures. Likewise, the company said, recording labels 'when they act in concert, have monopoly power in the distribution of recorded music...'
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