Kazaa CEO's Assets to be Examined

If you believe the ruling of the Australian Court, Nikki Hemming made her money by taking advantage of thousands of Internet users' apparent careless attitude towards piracy.

On Thursday, an Australian judge ordered Hemming, the Sharman Networks CEO, to face cross-examination on her assets from record industry lawyers.

Sharman Networks was found guilty of copyright infringement on its Kazaa file-sharing network in September. The service was given a period of two months to eliminate piracy on its network, and a hearing to set damages was scheduled for early next year.

The ruling was another win for the record industry, who asked the court to order the disclosure of Sharman executives' assets after the sale of Hemming's mansion to a Sharman accountant in March. She has remained in the house since that time.

Judge Michael Moore said the sale -- and the way it was handled -- raised questions as to its purpose. For example, the sale took place five days after the company received the outline of the record industry's case.

"One can infer that the strengths and weaknesses of the respective cases would have been apparent to the parties and those advising them," Moore wrote in the ruling. "Greater clarity about this matter may arise from the cross-examination."

Sharman expressed its disappointment with the decision in a statement on Thursday, and said it would consider its options in the matter.

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