Streamcast has given up on recording industry negotiations and will seek a trial. It will be the first major U.S. legal battle since the Supreme Court ruled that P2P companies could be held liable for active inducement a year ago.

CEO Michael Weiss said "It really wasn't a matter of money. It was something that turned what looked to be a full-on partnership into a one-sided, unworkable deal. What happened (is) this outside law firm that mucked this whole thing up ... seeking revenge, retaliation and retribution."