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KaZaA — the software company behind KaZaA.com, the KaZaA filesharing network and client software — has shut down operations because it can no longer afford to fight its legal battles.

Of course, KaZaA hasn't seen fit to make a Mac client yet, but there are implications for the Mac world. Also, there is the entertainment factor: KaZaA's survival in the face of adversity has begun to rival the Napster soap opera.

You see, the comany has recently divested itself of the KaZaA network to a privately held firm called Sharman Networks, located on a remote Pacific Island. Sharman Networks has yet to be sued by the recording industry.

According to the AP News, lawyers for the major labels accuse KaZaA of playing a "corporate shell game."

Whatever their game is, it's getting fun!