updated 03:40 pm EST, Thu December 2, 2010
LimeWire may close shop on all legal music shops
LimeWire may be ready to abandon all its legal music service plans based on new leaks today. In addition to official notes to users and vendors that it would stop taking payments and close its current service on December 31, it reportedly also cancelled the music service that would have gone up after the removal of its peer-to-peer app. AllThingsD in obtaining the leak noted that the change was relatively sudden, coming even though it had promised previews of the service as recently as October.
It's speculated that the company may be trying to pare down its resources before a January court date that would determine how much LimeWire owes music studios in the wake of losing its battle over its file sharing app. It may want to avoid increasing the value of the company before a final decision on how much it owes.
Without any real businesses, however, it's not clear how long LimeWire has to remain in business.
The company had unsuccessfully argued in the past that it wasn't contributing to copyright violations. It had insisted it was an innocent bystander, but labels successfully contended that LimeWire knew its Gnutella-based network was primarily used for piracy and wasn't doing enough to stop it.