Grokster is a peer-to-peer file sharing program which runs under Microsoft Windows. It uses an interface similar to Kazaa, and combines searches over several P2P networks. It has been estimated that 90% of files shared on Grokster are downloaded illegally. [1]
In
April 2003, Grokster and Streamcast (providers of
Morpheus P2P software) obtained a ruling by a
Los Angeles federal court judge, Stephen Wilson, in its favor against the
Recording Industry Association of America and the
motion picture industry which stated that their file swapping software was not illegal. On
20 August 2003, the decision was appealed by Grokster's opponents. On
17 August 2004, the
United States Court of Appeals for the Ninth Circuit issued a partial ruling supporting Grokster, holding
This appeal presents the question of whether distributors of peer-to-peer file-sharing computer networking software may be held contributorily or vicariously liable for copyright infringements by users. Under the circumstances presented by this case, we conclude that the defendants are not liable for contributory and vicarious copyright infringement and affirm the district court's partial grant of summary judgment.
In December 2004, the Supreme Court agreed to hear the case. On 25 March 2005, billionaire and former Broadcast.com owner Mark Cuban announced he would finance Grokster's fight in the Supreme Court. Oral arguments were held for MGM v. Grokster on 29 March, 2005. A decision is expected in July 2005.
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