Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd.
Peer-to-peer file sharing software has made the distribution of virtually any type of digital file uncomplicated and readily accessible. A user merely installs the software on his computer, thus allowing the computer to function both as a client and server. The file sharing software allows the user's computer to be accessed via the Internet by other users who may then retrieve digital files from the host computer.
The use of peer-to-peer file sharing software thrives in the area of music and motion pictures, where users easily share digitized music and movie files with one click of the mouse. Copyright owners, such as songwriters, music publishers, and motion picture studios, have not gone unaffected and claim that the majority of peer-to-peer file sharing involves copyrighted material of which the users are benefiting without any monetary compensation accruing to the copyright owners. In Metro-Goldwyn-Mayer Studios Inc., v. Grokster, a group of copyright owners allege that peer-to-peer software distributors Grokster Ltd. and StreamCast Networks, Inc. are contributorily and vicariously liable for any copyright infringement committed by users of their software. The United States Supreme Court may likely rule in favor of the copyright owners, as the Court generally does not want to sanction the kind of lawless behavior which is undoubtedly taking place across these networks. However, the Court would also like to avoid criticism for overstepping its power by censoring distributors, which may lead to a verdict in favor of the software distributors.
Questions as Framed for the Court by the Parties
Whether the Ninth Circuit erred in concluding, contrary to long-established principles of secondary liability in copyright law (and in acknowledged conflict with the Seventh Circuit), that the Internet-based "file sharing" services Grokster and StreamCast should be immunized from copyright liability for the millions of daily acts of copyright infringement that occur on their services and that constitute at least 90% of the total use of the services.
Brief Facts
There are many benefits of living in an increasingly high-tech world where innovations seem to emerge daily. Digital services are becoming progressively faster and more convenient while modern devices continue to shrink and yet possess more functionality.
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