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FILE-SHARING RULING WILL NOT STOP ILLEGAL DOWNLOADING OF MUSIC AND VIDEO FILES
by
Bob Lowe
July 27, 2005

The Supremes have spoken.

The nation’s highest court issued its decision in the Metro-Goldwyn-Mayer Studios v. Grokster case on June 27, unanimously declaring that Grokster and its competitor, StreamCast, which runs the Morpheus file-sharing site, could be held liable for their users illegally duplicating copyrighted digital media such as CDs, DVD and MP3 music files.

The Justices said Grokster and Morpheus were used overwhelmingly to trade pirated music and movies from the Internet and may have even encouraged it.

The two firms had argued that the software they produced was legal under Sony v. Universal City Studios. This is a 1984 Supreme Court case that ruled VCRs were legal, despite concerns that they could be used to pirate movies, videos and TV programs.

At the time, the court based its decision on the fact that the VCR was "capable of substantial non-infringing uses" like time-shifting to enable consumers to record programs for later viewing. VCRs also are frequently used quite legitimately to play movies and other video products that are legally purchased or rented from video stores.

The U.S. Court of Appeals for the 9th Circuit in San Francisco had sided with Grokster and StreamCast, arguing that the file-sharing software had uses that did not infringe on copyrighted materials. Because the software operates in a decentralized manner without using a central computer and because Grokster and StreamCast could not track users and had no direct knowledge of any specific violation of copyright laws, the appeals court said it could not be held liable for the behavior of users who illegally downloaded the software.

But Justice David H. Souter said the record was "replete with evidence" that the two companies "acted with a purpose to cause copyright violations by use of software suitable for illegal uses." He said "the probable scope of copyright infringement is staggering."

 
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