Lime Group LLC, the company behind peer to peer application LimeWire, sued today in federal court by the RIAA for damages including $150,000 per occurance of copyright infringing files. The complaint seeks damages on the grounds that LimeWire, and thus Lime Group LLC, facillitated the trade of copywritten music between users and profited as a result of LimeWire's failure to "block" copyright protected material.

Lime Group LLC has so far refused comment.

Lime Group was threatened last September, along with a host of other P2P application developers, with legal action if the company failed to comply with RIAA demands to either shut down, successfully filter all copyright protected material or drop the open peer to peer topology for a licensed content model approved by the RIAA.

KaZaa recently settled a similar case for $115 million, others such as WinMX and Bearshare have shut down. Qtrax, another less known but veteran name in peer to peer is preparing to offer a licensed peer to peer model that would comply with the RIAA's demands.

[Via Digg]