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Scour to end file-swapping service

The online file-sharing company says it will shut down its exchange service within two days in an effort to resolve pending litigation and expedite the sale of its assets in U.S. Bankruptcy Court.

Online file-sharing company Scour said Tuesday it will shut down its exchange service within two days in an effort to resolve pending litigation and expedite the sale of its assets in U.S. Bankruptcy Court.

The announcement came after the court granted the Los Angeles-based company's motion to disable the file-sharing application.

"We believe our unilateral decision to take down the Exchange will facilitate a resolution of the copyright infringement litigation pending against Scour," Scour president Dan Rodrigues said in a statement. "In addition, we expect the shutdown of the Exchange to facilitate a sale of Scour's assets, which will maximize creditor recovery."

Scour's technology enables computer users to swap digital music and video files directly among themselves, without the use of a central server.

The controversial company was sued in July by every major Hollywood studio, ultimately leading Scour to file for protection from creditors under federal bankruptcy law.

Earlier this month, music Web site Listen.com offered to buy the technology assets of Scour for $5 million in cash and more than 500,000 shares of stock.

CenterSpan Communications, a Hillsboro, Ore.-based maker of file-sharing software, said Tuesday it will submit a bid for Scour's assets.

Scour said it will consider bids for its assets until Dec. 12.

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