Grokster Loses Supremely

The U.S. Supreme Court made a unanimous decision that will affect the future of peer-to-peer file-sharing networks, and may have major implications for the delivery of digital music, movies and software. The ruling was against file-sharing networks Grokster, and StreamCast Networks (Morpheus)

"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," Justice David Souter wrote.

That means Internet file-sharing services will be held responsible if they intend for their customers to use software primarily to swap music and movies illegally.

The Metro-Goldwyn- Mayer (MGM)  vs. Grokster case has been a hot topic, as many in the entertainment industry blame file-sharing networks for the loss of billions of dollars in lost revenue. MGM was joined by 27 other entertainment companies in the suit against Grokster and StreamCast.

With an estimated 200 million people around the world using peer-to-peer file-sharing software, it may be too late to stop illegal downloading and sharing of multimedia content completely.