The court's decision comes after the RIAA, Recording Industry Association of America, on behalf of the recorded music industry, brought a lawsuit against Lime Group, the company behind the software, four years ago.
District Judge Kimba Woods ruled that it was clear that Limewire and the company's former CEO Mark Gorton were guilty of promoting copyright infringement among users for their own personal gain.
LimeWire created its service in 2000 and has been downloaded 200 million times, describes it as the world's most popular P2P file-sharing service, with more than 50 million monthly users. In the case, it was claimed that 93 per cent of all traffic on LimeWire was made up of infringing content.
A spokesperson for the RIAA said: “By finding Lime Wire's CEO personally liable, in addition to his company, the court has sent a clear signal to those who think they can devise and profit from a piracy scheme that will escape accountability.”
The 13 record companies that filed the lawsuit against LimeWire are Arista, Atlantic, BMG Music, Capital, Elektra, Interscope, LaFace, Motown, Priority, Sony BMG, UMG, Virgin and Warner Music Group.
The next hearing in the case is set for June 1.
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