Supreme Court rules against Grokster

In a rare unanimous decision, the U.S. Supreme Court has ruled that P2P networks can be held liable if they intend for customers to use their services to share files illegally. "We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by the 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 in the Court's opinion. In the case pitting the music industry against Grokster and StreamCast, the file-sharing services had argued that they can't control the activities of their users. However, the court rejected that argument, saying that the services have marketed themselves as resources for illegal file sharing. The case now returns to a lower court, which had earlier ruled without trial in Grokster's favor.
 

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