'Freeze' call for Kazaa assets

The company directors behind the Kazaa peer-to-peer software have sold and mortgaged their multi-million dollar homes as the end of court proceedings looms.

The Federal Court heard on Friday that Nikki Hemming, CEO of Kazaa owner Sharman Networks, sold her property in the exclusive Sydney suburb of Castle Cove in February for $2.1 million.

"[They] are at the point where they seek to dissipate their assets in anticipation of an adversarial finding," counsel for the record labels, Tony Bannon SC, said.

The property was sold to John Myers, an accountant for financial advice firm Terra Crest Business Solutions (TCBS). However, the listed address of TCBS was the same as LEF Interactive, the parent company of Sharman Networks, Bannon said.

Myers was described as "Sharman's accountant" in e-mails produced as evidence in the trial.

Bannon questioned the nature of the sale, and said Hemming was still living at the home.

Bannon revealed that a similar property transfer by Kevin Bermeister, managing director of Brilliant Digital Entertainment and subsidiary Altnet, was made in September. Bermeister, who lives with his wife at their home in Vaucluse, Sydney, mortgaged his share of the property to his spouse for $3,375,000.

Bannon also noted that Brilliant Digital Entertainment's lease on its Australian premises in Sydney expired last month.

"These events... demonstrate the risk of disposition of assets," Bannon said.

The record industry filed a motion seeking "Mareva orders", which prevent the Sharman parties from further transfer of assets.

"Identifiable assets have been disposed out of the control of the respondents," Bannon said.

"We want an indication of what other assets there may be."

However, senior counsel for Sharman, Anthony Meagher, said the matter should be adjourned till the trial resumes on March 22.

Sharman was were in the midst of preparing final submissions, and the motion was just a distraction tactic, he said.

"The applicants became aware of this on February 17, and wrote to us on the 28th," Meagher said.

"That indicates the [level of] threat they anticipate that assets will be moved."

Sharman was prepared to agree to the Mareva orders, but not the disclose of other assets, which weren't relevant to the central issue of copyright, according to Meagher.

Justice Stone adjourned the matter to Friday afternoon.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Steven Deare

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?