A Sydney judge today (Oct. 8) rejected an appeal by Sharman Networks, owner of the Kazaa P2P file-sharing service, and digital rights management company Brilliant Brilliant Digital Entertainment in th

A Sydney judge today (Oct. 8) rejected an appeal by Sharman Networks, owner of the Kazaa P2P file-sharing service, and digital rights management company Brilliant Brilliant Digital Entertainment in the copyright-infringement suit brought against them by record companies.

The two Sydney-based companies were raided in February by investigators for the Music Industry Piracy Investigation (MIPI) unit on suspicion of music copyright infringement.

MIPI had conducted the raid under civil search orders; Sharman and Brilliant Digital claimed that this was a "substantial injustice" that had damaged their reputation. The companies also claimed that some material had been seized that was not relevant to the case.

Brilliant Digital further stated that the raids were "a very considerable invasion of privacy" and that it had suffered "real economic loss" as a result of the publicity following the raids.

However, the full Court of Appeal declared that the material seized was kept by an independent solicitor (chosen by the two companies) and not "insecure or vulnerable in any way," nor was the material "physically or geographically inaccessible." The court rejected the appeal explaining, "While the present situation is undoubtedly inconvenient for the applicants for leave we do not see this as amounting to substantial injustice."

The copyright infringement suit is due to be heard in court in late November.