US Supreme Court – File-sharing suffers major defeat
The US Supreme Court has ruled that file-sharing companies are to blame for what users do with their software. The surprise ruling could start a legal assault on the creators of file-sharing networks such as Grokster and Morpheus.
The case was brought by 28 movie and music makers who claimed that rampant piracy was denting profits. The Supreme Court judges were expected to rule in favour of the file-sharers because of legal precedents set when video recorders first appeared.
The unanimous ruling is a victory for recording companies and film studios in what is widely seen as one of the most important copyright cases in years.
The legal case against Streamcast Networks – which makes the software behind Grokster and Morpheus – began in October 2001 when 28 media companies filed their legal complaint.
The complaint alleged that Streamcast was prospering on the back of the unfettered piracy taking place on the file-sharing networks.
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It is unclear yet what action this ruling will prompt from movie studios and music makers who brought the original case. It could mean claims for substantial damages from Streamcast or moves to get the file-sharing networks shut down.
Wayne Rosso, former Grokster president and now head of legal file-sharing system Mashboxx, said: “If I’m running the RIAA [Recording Industry Association of America], you’re going to see lawsuits coming down like a Texas hailstorm. Don’t be surprised to see an unusually large number filed immediately.”
He said it would mean that users would have to get used to paying for music.
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