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LimeWire, which was once the iTunes of file-sharing software, is officially dead.

Parent company the Lime Group received a permanent injunction (PDF here) this afternoon from U.S. District Judge Kimba Wood ordering it to stop distributing and supporting LimeWire, and the company complied. The injunction is the latest step in a copyright infringement lawsuit filed by the Recording Industry Association of America (RIAA) way back in 2006. Last May, the RIAA was granted summary judgment on almost all counts, and later in the summer it filed for a permanent injunction. That injunction came down today.

It's quite a downfall for a piece of software that was once found on one-third of all PCs worldwide, according to digital music tracker BigChampagne.

Earlier this month, the company contacted me to talk about plans for a forthcoming service that will launch with a different name. They weren't ready to share details, but the service is going to be more extensive than the LimeWire Store, which sells MP3 downloads from some independent labels, and will have some sort of social aspect. The company's PR rep said that development was almost done, and that Lime hoped to launch the new service by the end of 2010.

But development was only half the battle--the company was trying negotiate deals with the four major labels that form the RIAA's backbone and sell about 80% of all recorded music.Today's injunction could put a freeze on those talks, but LimeWire still plans to press forward anyway. But the digital music road is tough enough for legal services like Rhapsody that have good relationships with the major labels. Without them, it's almost impossible to make a dent..

A hearing to determine damages in the RIAA trial is set for January, and LimeWire could be on the hook for $1 billion or more.

CEO George Searle has posted a statement on today's injunction on the company's blog..