MGM vs Grokster

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This case has lots of people talking. The opinion handed down from the Supreme Court is, quite simply, this:

"We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties."
For example, if I designed a P2P, file-sharing software program and promoted it for sharing copyrighted music and movies, I could be held liable for what the users of my software did. As much as I hate to admit it, the Supreme Court does have a point. In their opinion, Justice David Souter wrote:

"Each of them clearly voiced the objective that recipients use the software to download the copyrighted works and took active steps to encourage infringement"
Making Sense of the whole thing: A good link for questions and answers. This does not mean absolute victory for the RIAA and the MPAA. The Supreme Court rendered an opinion regarding the interpretation of the law. The case will return to Los Angeles where the judge will be constrained to rule within the interpretation. Other file sharing networks and the makers of the software could be in danger as well from this ruling and the resulting verdict out of LA. If they promote the use of their software for illegally trading copyrighted works. The real question is: will file sharing go away? History would show us that it is very unlikely file sharing, or illegal file sharing, will go away. Laws can be created but the behavior isn't likely to be changed. Prohibition did not stop the use and sale of alcohol; it only drove them deeper underground. The same could be said for illegal drugs. Hillary Rosen, ex-ceo of the RIAA, isn't even sure that this opinion will bring about victory:

"But knowing we were right legally really still isn't the same thing as being right in the real world. We had that euphoria with the first Napster decision. I hope my former colleagues remember that. The result was lots of back and forth and leverage hunting on both sides and continued litigation and then a great service shut down to make room for less great services. And more legal victories didn't bring more more market control no matter how many times it was hoped it would."
However, the new ceo of the RIAA is more confident:

Still, the music industry called the ruling a crucial victory. "This is a new day," said Mitch Bainwol, CEO of the Recording Industry Association of America trade group. "Legitimate file sharing now can really take off."
However I have to wonder if those suggesting that this ruling will stifle P2P innovation. Even if the product does not overtly promote the use the product for less than legal purpose, the court has shown us ( and unanimously ) which way they are going to lean. So, if you are planning the next-best, P2P product you need to be careful how you are going to promote it.

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This page contains a single entry by Jim published on June 28, 2005 6:16 PM.

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