File-sharing operator failed to appeal court ruling.

MMO Japan, which until April 2003 operated a file-sharing service, will have to pay 37 million yen ($345,000) as compensation for copyright violation.

The ruling comes after MMO declined to appeal a March 31 decision in Tokyo's High Court, upholding an earlier ruling against the company.

The Recording Industry Assn. of Japan and Japanese Society for Rights of Authors, Composers and Publishers sued MMO Japan in February 2002 for copyright violation, the first such action against a file-sharing service in the country. They accused MMO of distributing a Japanese-language version of the File Rogue file-sharing program.

In January 2003 the Tokyo District Court found MMO Japan guilty of violating the copyrights of the labels and publishers represented by the RIAJ and JASRAC.

MMO Japan could not be reached for comment.