MusicCity.com is under attack from the copyright police, and a court in the Netherlands ordered it to halt file swapping a couple of weeks ago. It’s holding steady so far, and it announced today that it plans to release a new version of the Morpheus software which will tap into Gnutella, a true peer-to-peer network. That suggests Morpheus will be even more decentralized and difficult to shut down. On its face, this is a good sign, an indication that MusicCity is standing up to its attackers and does not intend to shut down or cripple its service. I wish the announcement had more details – it’s fuzzy enough that there’s still a possibility that MusicCity might build in some nasty surprises for users in an attempt to placate the copyright folks. For the moment, it’s still the file swapping network of choice.

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