DIGITAL MAN BITES SENIOR CITIZEN DOG: KaZaA sues entire entertainment industry.

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.

The latest filing came two weeks after U.S. District Judge Stephen V. Wilson dismissed Sharman's claim that it could not be sued in the United States because it is based in Australia and incorporated in the South Pacific nation of Vanuatu.

Wilson had found Sharman subject to U.S. copyright laws because it has substantial usage by Californians and its actions are alleged to contribute to commercial piracy within the United States.

Sharman's counterclaim alleges copyright misuse, monopolization, and deceptive acts and practices.

"In seeking to simultaneously stop illegal copying and to maintain their dominant position in the distribution of musical and movie content, the industry plaintiffs have obscenely overreached," Sharman said.

It seeks a jury trial, damages, attorney fees and a permanent injunction against the entertainment industry so that it can't "enforce any of their United States copyrights against any person or entity."

Via the Savant forum. Now that's balls-out.