Scour files for bankruptcy protection

Hopes to "recapitalise, restructure and improve its business protection"

In the face of a lawsuit alleging copyright violation Internet entertainment service Scour has filed for chapter 11 bankruptcy protection in the US courts Thursday.

Scour, whose Scour Exchange (SX) service allows users to share image, audio and video files, is being prosecuted by America's music, recording and movie industries. They filed a lawsuit in July claiming that SX broke copyright laws by giving users access to copyright-protected content.

In a statement, Scour president Dan Rodrigues said: "We took this step in order to preserve Scour's future. The Chapter 11 process will also provide our management and board of directors with adequate time to review and develop recapitalisation and restructuring alternatives to strengthen and improve Scour's business position."

Scour claims that the bankruptcy filing, which stays all pending litigation against the company, will allow it to continue to evaluate various alternative business strategies. SX will remain available during the bankruptcy procedure.

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