News Burst: Scour lays off 52 employees

Summary:Legal troubles are draining the company's bank balance, and scaring off new investment

Speculation is mounting that US-based firm Scour could be about to close down, as 52 of the company's 64 staff are made redundant Friday.

Scour, whose Scour Exchange (SX) search engine lets users share music and video files, was sued for copyright infringement in July. The Motion Picture Association of America and the Recording Industry Association of America claim that SX facilitated the illegal distribution of copyright material over the Internet.

Attempts made by Scour to win additional funding have not been successful, with investors unwilling to put up cash until the legal action had been resolved. Scour recently announced a high-powered legal team, but its resources have been drained by the lawsuit.

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Topics: Networking

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