Sharman Networks, owner of Kazaa file-sharing software, is paying millions of dollars to music companies and the movie industry to settle copyright disputes. The entertainment industry sued Sharman for violating intellectual property laws. The company has vowed to use all reasonable means to combat online piracy. It intends to redesign its programs to stop customers from downloading and illegally distributing copyrighted music and films. The company believes customers attempting to steal these files will be frustrated once filters are built into the new versions of the software. As to how Sharman will implement its security application, it has not been disclosed. Kazaa, one of the pioneers in free Internet downloads, has become infamous because of issues on spyware monitoring. The settlement will free Sharman from its legal entanglements. The company has reported that its software has been downloaded more than 389 million times. It has also claimed running the Fast Track file-sharing network. Court provisions authorize Sharman to legally distribute copyrighted files. Sharman plans to do this by negotiating licenses with media companies. Audio and video files will be offered at a cost. The service it plans to offer will be similar to Apple Computer Inc.s iTunes service. This cooperation between file-sharing applications and the entertainment industry is expected to benefit consumers, artists and the audio-visual market.