The history of P2P file sharing service Kazaa (which actually started life as “KaZaA”) is known to most of us born in the eighties or before, and consists mainly of copyright related lawsuits and adware-ridden software. The gist of the story can be found on its Wikipedia profile , but what many seem to forget in present times is that the service is still around , serving users an unlimited amount of (licensed) songs for a $20 monthly subscription fee. Recently, a Symantec security program apparently identified the Kazaa desktop client as high-risk, flagging the software as adware. This prompted Brilliant Digital Entertainment, the company that operates Kazaa, to issue a special notice / consumer alert to its customers. And it isn’t pulling any punches. While boasting about the fact that Kazaa is now a legitimate business offering over one million fully licensed tracks to its customers, Kazaa claims Symantec for the second time in recent weeks incorrectly identified it as being high risk. As a result, the company says, a subset of users were unable to use Kazaa because Symantec’s security software flagged it as adware. Some of its users were apparently “sufficiently spooked by Symantec’s unilateral action” after those warnings that they followed its advice to remove Kazaa. In an angered statement, the company adds: Symantec had justified turning off the music for some of Kazaa customers by flagging files in the Kazaa music plug-in application as high risk due to the files being used for serving advertisements. As a result Kazaa customers or subscribers running Norton AV are having these files stripped from the application which prevents them from using the service. It continues: Symantec’s error, hot on the heels of a similar mistake against Spotify , highlights the potential for anti-virus companies to do more harm than good in the effort to displace pirate operations from the on-line marketplace. After the Spotify incident (Symantec classified the music streaming service as a Trojan about a week ago), the security software company apologized on Twitter. It’ll be interesting to see how they handle this notice from Kazaa. CrunchBase Information Kazaa Symantec Information provided by CrunchBase

Chances are you’ve never heard of Netbiscuits – I sure hadn’t. But the company operates one of the world’s largest B2B web software platforms enabling thousands of publishers to create, manage and generate revenue from mobile websites. Netbiscuits serves the mobile Internet programs for brands like Yahoo, MTV, and eBay, and well known digital agencies such as Razorfish, Isobar, and ad networks like Google-owned AdMob. To give you an idea of its size: globally, Netbiscuits claims to deliver more than 1.5 billion mobile page impressions on a monthly basis. This morning, the decade-old company announced that it has partnered with Universal Music Group to help the music company expand its line-up of direct-to-consumer mobile content and services, after a successful test run centered around a mobile website for Bon Jovi in November 2009. The terms of the agreement were not disclosed. Netbiscuits will essentially be aiding UMG in setting up and operating artist-branded mobile websites, which will give fans the ability to interact with other fans and to make purchases directly from their handsets. Based on the mobile websites, Netbiscuits also enables UMG to set up hybrid apps for several major platforms, including the iPhone, Android, and Windows Mobile devices. UMG also plans to utilize the text messaging service that comes integrated within the Netbiscuits platform, providing music fans with SMS alerts whenever their favorite artists are in town.

Digital music company eMusic is rumored to be up for sale , according to various reports, but that hasn’t stopped it from signing licensing deals with big music. This morning, eMusic announced that it come to an agreement with Warner Music Group and that it will soon begin selling tracks from WMG’s roster of artists to its U.S. users. eMusic last year inked a similar deal with Sony Music Entertainment. The agreement includes titles from WMG’s Atlantic Records, Rhino Records and Warner Bros. Records as well as from independent labels distributed through WMG’s Alternative Distribution Alliance (ADA) stable that are not currently sold on eMusic. The deal will make 10,000 catalog albums from artists like REM, Depeche Mode and Aretha Franklin available for downloading, but does not include newer hit records. eMusic says it currently offers more than 7.5 million tracks, and that it has sold more than 350 million music downloads under its current ownership. The company sells monthly membership plans beginning at 24 credits for $11.99. One of its rival, FreeAllMusic, yesterday announced that it had signed an agreement with Universal Music for ad-supported downloads. eMusic CEO Danny Stein reiterated earlier rumors about its plans to complement the company’s subscription-based music download service with streaming, telling Reuters that the company is currently in talks with label partners for new licensing deals that would allow registered users to stream songs, similar to services like CBS-owned Last.fm and LaLa (which Warner Music Group invested in and was recently acquired by Apple ). Streaming would be added in 2010, provided rights holders come to terms with the realities of new business models, Stein said. We’ve contacted the company for more information about its streaming plans, such as timing and pricing. Interestingly, Stein didn’t dismiss rumors about a potential sale of eMusic, but told Reuters that a buyer would have to pay its owner, Dimensional Associates, for a successful 2010 and 2011 upfront in order for them to consider it. Which sounds to me like something that you would say if you were definitely up for sale. Crunch Network : CrunchGear drool over the sexiest new gadgets and hardware.

Do not expect UFC to look the other when it comes to online piracy of its various pay-per-view events. Dana White, the company’s president, recently told the Vancouver Sun that he and the UFC will do whatever it takes to eliminate piracy. “It’s gonna cost us a lot of money, but guess what, it’s gonna cost [the pirates] a lot of money. It’s gonna get to the point where it’s like, f*ck it, maybe we shouldn’t pirate MMA anymore.” This is not a very forward-thinking way of looking at the problem, no. It was only a few weeks ago that I first made mention of UFC’s efforts against piracy . The gist of the argument was, just let it happen and concentrate on maintaining the company’s momentum. The UFC doesn’t want to end up like the music industry, having sued its fans into indifference, if not antagonism, toward its product.

File syncing and storage startup Zumodrive has raised $1.5 million in funding led by Sherpalo Ventures with Tandem Entrepreneur s and VeriFone CEO Douglas Bergeron participating. We initially reviewed Zumodrive here. While there are a plethora of syncing and storage services available to users, Zumodrive, which spawned from Y Combinator startup Zecter, has a different take on file syncing. Similar to other services, Zumodrive creates a drive on your device that is synced to the cloud. But service has a different twist-the service tricks the file system into thinking those cloud-stored files are local, and streams them from the cloud when you open or access them. ZumoDrive, which currently has 300,000 users, recently launched a new version which lets users to access their music playlists, photo albums and document folders on any device. ZumoDrive mimics a standard hard drive but saves content in the cloud and then streams it to each device instead of saving local copies, making it the killer app for the netbook and other devices with limited storage. Zumo now plays nice with the iPhone, with an new app that lets users sync their content to their phone without having todeal with local storage capacity issues. And ZumoDrive released a new version of its system that wirelessly syncs playlists between devices, auto-detects content, and lets users link file folders on their devices to ZumoDrive only once so that changes in that folder will always be linked to ZumoDrive. The service has also been upgraded to integrate well with media applications, like iTunes, so users can play entire music libraries saved in ZumoDrive on multiple devices without manually syncing content. ZumoDrive will use the new funding for product development. Zecter previously launched a product called Versionate , an office-wiki product, that we first covered in July 2007. We wrote about them again a year ago. ZumoDrive faces competition from Dropbox, SugarSync, and Box.net. Crunch Network : CrunchGear drool over the sexiest new gadgets and hardware.