By Simon Glickman

Calling Scour's multimedia file-sharing software and site "Napster with movies," Jack Valenti and the MPAA—along with the reliably litigious RIAA—have filed suit against the Beverly Hills-based netco.

The suit claims that Scour's business is built on the unauthorized use of copyrighted material. Scour's site and proprietary SX software allow users to share audio, video and photo files found either by "scouring" the Web or searching the service's user community.

"This is about stealing, plain and simple," reads the official statement from Valenti. "The artists it hurts most are the ones the public sees the least—the artists who depend on residuals and the technical people who work behind the scenes."

After issuing his quote, Valenti got back on the phone to reassure a film studio that SAG would cave in soon and accept a new commercial contract that offers a one-time fee instead of residuals, opening the doors for "Operation Thespian Crush."

"The technologies in question can be used perfectly legally—with the permission of the artists," reads a statement from RIAA head hilary rosen ',390,400);">hilary rosen ',390,400);">Hilary Rosen . "Many Web sites, artists, recording and motion picture companies are already doing this."

After issuing her quote, Rosen got back on the phone to reassure the major labels that Congress wouldn't pursue antitrust investigations for collusive CD-pricing or restraint of trade.

"Scour has always positioned itself as a cooperative, responsible and legally compliant partner within the entertainment community, and is working hand-in-hand with record labels, film studios and other entertainment companies to deliver licensed entertainment content to the Scour consumer," reads a response issued by the company this afternoon.

"We're very surprised about this morning's MPAA and RIAA lawsuit, given our productive conversations just this week with Sony, Warner and BMG regarding establishing business relationships with these companies. We also have a previously scheduled meeting with Universal. Adding to the confusion caused by this action, Scour already has licensed content agreements from Miramax and Hollywood Records, both of whom are plaintiffs in this lawsuit.

"In addition, Scour executives met this morning with Senator Orrin Hatch (R-UT), to discuss the recent congressional hearing on online music and to brief him on our recent discussions with these entertainment companies.

"Legal compliance is of utmost concern and important to the company and, since our launch, all Scour services have complied with all applicable laws, including the Digital Millennium Copyright Act of 1998."

Some in the entertainment industry believe Scour has been shielded from litigation thus far by the presence of CEO Michael Ovitz, who took over and funded the company after its development.

Scour's notice on "Copyright and Intellectual Property" calls the service a "search engine" and disclaims responsibility for any infringing material that its searches turn up. "However, Scour is sensitive to the rights of copyright owners," the notice adds, "and provides a system for copyright owners to notify us of any sites, linked to by the Scour search results interface, that have posted material without the proper permission of the copyright owner. Scour provides this system as a courtesy to copyright owners and assumes no responsibility by offering this service."