Bankruptcy could protect Jammie Thomas

[p2p rules]

Prior to last year, bankruptcy court would not have sheltered Jammie Thomas-Rasset from the $1.92 million debt she owes the music industry. But a decision by the Ninth Circuit Court of Appeals in San Francisco could enable her to walk away from the debt, several legal experts said on Friday.

In a stunning jury decision on Thursday, Thomas-Rasset was found liable for willful copyright infringement and ordered to pay damages of $80,000 for each of the 24 songs she was accused of illegally file sharing. The 32-year-old is the first person accused of online music piracy by the Recording Industry Association of America who has taken his or her case to court.

This is the second time that a jury has ruled in the case against the Brainerd, Minn., resident. In October 2007, she was ordered to pay $222,000, but the decision was thrown out after the judge in the case acknowledged he erred in giving jury instructions. Thomas-Rasset has become the Joan of Arc of the file-sharing community. She has vowed to keep fighting. She's told reporters she hasn't the means to pay the RIAA, and wouldn't if she could.

Here's why bankruptcy court may be an option for Thomas-Rasset, according to Ira Rothken, the lawyer who has represented BitTorrent tracking sites such as TorrentSpy and Isohunt, and has a long record of defending clients against the entertainment industry:

CNet