StreamCast Networks and software company Paltalk have signed a deal to offer people who use the Morpheus file-swapping service the ability to send instant messages. Under the deal, StreamCast and Paltalk said they will offer the Morpheus Messenger to all Morpheus users with the launch of Morpheus 2.0, expected this month. Although the service will be free, people will also have the option to upgrade to another version, called Morpheus Plus, that offers video capability for $9.95 for three months or $24.95 per year.
StreamCast has been waging a legal fight against the big record labels over its file-swapping service. Last week, StreamCast attorney Andrew Bridges, a partner with high-profile Palo Alto, Calif., law firm Wilson Soncini Goodrich & Rosati, said he isfrom the case and that StreamCast is seeking new counsel. New York-based Paltalk develops software for videoconferencing, instant messaging and voice e-mail.