LimeWire is a tool dependent on the users. Millions of users worldwide use it generously to share copyrighted material illegally. In 2005, the US Supreme Court stated that Grokster and Morpheus software motivated users to engage in illegal file-sharing behavior, an accusation that even LimeWire is facing. In 2006, several music recording companies sued LimeWire for supporting piracy.

Therefore, it can be said that using Limewire to download music and other copyrighted material is illegal. Even if the software company that developed Limewire cannot be sued, people using the software can be sued. This was seen when Recording Industry Association of America took up the initiative to start suing individuals who downloaded music using illegal file sharing.

LimeWire, on the other hand, defends itself by saying that it is a software and therefore, a tool. And, the way a tool is used, depends on individual users.

In 2007, LimeWire proposed to create an online store to buy legal music. However, major music labels did not show any interest to add their songs to LimeWire. In response, LimeWire filed an anti-trust law suit, but this case was dismissed by a US District Court judge. Therefore, the proposed online store is still not operational. However, LimeWire has managed to work out licensing deals with two independent music distributors, IRIS Distribution and Nettwerk Productions.

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