A federal court judge has rejected a request by the music industry to freeze assets belonging to Lime Wire and founder Mark Gorton.

In March, U.S. District Court Judge Kimba Wood ruled that Lime Group, parent company of Lime Wire and founder Mark Gorton are liable for copyright infringement by enabling and "inducing" users of the file-sharing software LimeWire to pirate songs from the four major record companies.

The Recording Industry Association of America, which filed a copyright complaint against Gorton and LimeWire in 2007, wanted to make sure Gorton or his companies didn't do anything with their money before the judge decides how much the company must pay in damages to the music industry. The RIAA has alleged that in the past Gorton has transferred personal assets into a family trust in an attempt to avoid compensating the major labels for damages.

According to the RIAA and Lime Wire representatives, Wood decided that because records show Gorton and the companies under his control had not moved any money around recently, the label's interests in the assets was not in jeopardy.

"This is a positive development in the case and one that certainly benefits our global user base," Lime Wire said in a statement.

Full story: c|net