Scour Could Face $250 Billion In Liability

Following an announcement on Friday that it had
filed for Chapter 11 bankruptcy protection, Scour Inc., a
high-profile online entertainment service, now reportedly said
it is carrying about $4 million in debt and could be liable for up to
$250 billion in damages stemming from pending litigation.

A Reuters report today said the privately held company, whose
investors include well-known Hollywood agent Michael Ovitz and Los
Angeles grocery magnate Ron Burkle, listed about $1.2 million in
assets and $4 million in debt, but could be required to cough up as
much as $250 billion in damages if several lawsuits alleging
copyright infringement are successful. The company is also confronted
by a number of vendors waiting to be paid. Scour recently laid off
all but 12 of 70 employees, the report said.

Scour, which allows surfers to download audio and video files via
swap technology similar to Napster's, faces infringement charges
brought by some of entertainment's most powerful names, such as News
Corp. Ltd.'s 20th Century Fox, Sony Corp.'s Sony
Pictures Entertainment, The Walt Disney Co.,
Metro-Goldwyn-Mayer Inc., and others, Reuters said.