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Thursday, 17 February 2005
File sharing goes before Supreme Court
CNN International

On March 29, the Supreme Court will hear arguments in Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., a closely-watched case involving peer-to-peer file sharing - a process in which people send or receive music or movies over the Internet.

The most famous peer-to-peer file sharing site was, of course, Napster. However, after a number of rounds of litigation, Napster has now been transformed into a site that, for a monthly payment, allows only legal downloads of music (that is, downloads of copyright music for which a license has been granted).

Other sites, however, continue to offer peer-to-peer file sharing software despite the fact that one of its uses is to pirate copyrighted music and movies -- and Grokster is one such site.

The Court's ultimate decision in MGM v. Grokster is very likely to be one of the landmarks of this term.
The allegations in the case

The list of plaintiffs in the case is a virtual "Who's who" of influential Hollywood record and film companies. The defendants in the case are Grokster and StreamCast Networks -- which provide software that allows peer-to-peer file sharing of music and movies on personal computers.

According to the plaintiffs, more than 90 percent of the files that are actually exchanged using the software consist of copyrighted material that the swapper -- that is, the person who makes files available for download on his or her computer -- has no right to distribute. For this reason, the plaintiffs -- who say they own the lion's share of the copyrights at issue -- seek whopping damages against Grokster and StreamCast.

Their theory of liability holds that Grokster and StreamCast are responsible for the software users' copyright infringement -- either because they contribute to users' infringement, or because the infringement is, in effect, their own. These two varieties of infringement are called "contributory" and "vicarious" infringement, respectively.

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Last Updated ( Thursday, 17 February 2005 )
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