Lime Wire countersues recording labels

The maker of LimeWire online file-sharing software has filed a counterclaim against recording industry giants in New York district court, alleging they employed unfair business practices as part of a conspiracy to control digital distribution technology.

Lime Wire LLC,the New York-based company that makes the peer-to-peer software, filed its counterclaim Monday.

According to court documents, the software maker alleges that the recording companies "employed unlawful, unfair and/or deceptive business practices … aimed at deterring the consumer from engaging in legitimate business with Lime Wire."

The company also claims that it has lost business as a direct result of the recording industry's alleged actions.

Lime Wirewas sued in August by more than a dozen companies,including Warner Bros. Records, Virgin Records America andSony BMG Music Entertainment. The recording labels allege in court documents that the file-sharing program's makers "designed, promote, distribute, support and maintainthe LimeWire software" and other services for the purpose of making and distributing an unlimited number of copies of music files.

The LimeWire softwarecan be used to share computer files over a network such as the internet, including multimedia files such as music and video. Those files can include copyrighted works such as popular songs and movies.

Conspiracy alleged

"This case is but one part of a much larger modern conspiracy to destroy all innovation that content owners cannot control," Lime Wire alleges incourt documents filed as part ofits counterclaim.

Lime Wirealso alleges in thecourt filing that copyright owners havetried to prevent the exploitation of new technology by suing makers of software, digital music players,internet service providers, search engines,venturecapitalists and even lawyers who represent any of these companies.

"Their goal is quite simple: to prevent the development of any technology — even the internet — that is not designed and organized to control piracy," the company alleges in the documents filed with the court.

None of the allegations made by Lime Wire or the recording companies have been proved in court.

Lime Wireis a subsidiary of technology incubator Lime Group LLC.