The record companies and movie studios who brought suit against Sharman Networks for copyright infringement won a court room victory earlier this month when U.S. District Judge Stephen V. Wilson dismissed the companies claim that it could not be sued in the United States because it is based in Australia and incorporated in the South Pacific nation of Vanuatu. That judgement allowed the lawsuit brought by the record companies and film studios to move forward. 

Sharman’s counter-suit alleges that the record companies and film studio are engaging in copyright misuse, monopolization, and deceptive acts and practices. 

"In seeking to simultaneously stop illegal copying and to maintain their dominant position in the distribution of musical and movie content, the industry plaintiffs have obscenely overreached," Sharman said. 

Sharman claims that when the record companies and film studio band together they are effectively monopolizing their respective industries, which the company believes are behind the times. 

According to the Associated Press, Sharman is asking for a “jury trial, damages, attorney fees and a permanent injunction against the entertainment industry so that it can't ‘enforce any of their United States copyrights against any person or entity.’"