Microsoft Corp., world’s largest software maker, is said be to readying a competitor P2P client against BitTorrent, codenamed Avalanche.

Though Microsoft programmers at its UK Division did not reveal further details, it did say that Avalanche would work similar to BitTorrent and have other characteristics. For example, just like BitTorrent, Avalanche would download blocks of data from various sources to speed the download. They also said Avalanche would rely on personal computers instead of servers to share data from one system to another.

However, Microsoft said Avalanche would be DRM compatible, meaning the company would not let users share data unless they have permission to do so from the publisher. The software company said this would help solve problems with RIAA and MPAA by putting a threshold on piracy, yet still letting people share content legally. The company said this would prevent a lot of tension from users that are against the said organizations, as they wouldn’t have to worry about the content being illegal.

"Having a legitimate way to exchange intellectual property and respect copyright would be very welcome in the entertainment industry, and other industries too," said Charles Sims, Partner, Proskauer Rose Law Firm, New York Office.

Sims said the aforementioned groups don’t go after individuals unless they have to. He further added that this would be a welcome opportunity, as RIAA and MPAA can work on providing more legal content instead of spending resources on shutting down operators and service providers of illegal P2P services.

Microsoft did not reveal the exact launch date of Avalanche, but said it might be ready soon.