Limewire To Close From New Year

Online peer-to-peer file sharing network LimeWire is set to close after the company announced the end of its legitimate online music store from New Year's Eve.

The company suffered a massive blow to its operations in October when a court determined that the platform's users were infringing copyright laws by freely sharing copyrighted material.

Limewire, founded in 2000 by Mark Gorton, has been repeatedly blamed by the record industry for declining record sales by allowing users to download free music.

According to All Things Digital, the company has announced that its legitimate store will close down on the New Year's Eve.

“Given our current situation, plans to bring our separate, legal music service to market have been cancelled. The beginning of 2011 will mark the closing of LimeWire's New York office and cessation of business by LimeWire,” the company said.

The LimeWire website carries a notice stating that they will no longer be adding any new users and that existing subscriptions will not be renewed.