Supreme Court Rules P2P Networks Are Liable

WASHINGTON – In a blow to peer-to-peer technology providers, the U.S. Supreme Court has ruled that P2P developers are now legally responsible for the illegal acts of their users.

Favoring the long-held argument of the movie and music industries that P2P providers were enabling copyright infringement on their file-sharing networks, the unanimous court ruling in MGM vs. Grokster determined that distributors of a multi-purpose “tool” or software should be held liable for infringements committed by end-users of that product.

The Supreme Court ruled that there was sufficient evidence to demonstrate unlawful intent on the part of file-sharing services. The case now will find its way back to the lower courts where file-sharing services across the board can be sued for their contributory involvement in infringement cases.

Today’s decision marks the end of a three-year legal battle between the technology and entertainment industries that was originally struck down by the Ninth Circuit Court of Appeals using the Sony Betamax case, which determined that a new technology’s ability to enable infringement should not outweigh its importance for other, non-infringing uses.

But the music and movie industries took the case all the way to the Supreme Court where Justice David Souter determined that the earlier court decision had misinterpreted the 1984 Sony ruling as saying that any non-infringing use, no matter how minimal, was enough to relieve a company of liability for copyright infringement.

“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,” Souter said in the court’s opinion.

Defendants Grokster and Streamcast Networks (parent company of P2P program Morpheus) claimed in their arguments that while many P2P companies are aware that users employ their software primarily to download copyrighted files, the nature of their decentralized networks do not reveal which files are copied and when.

"Today the Supreme Court has unleashed a new era of legal uncertainty on America's innovators," Fred von Lohmann, of the Electronic Frontier Foundation, said, adding that the decision means that inventors and entrepreneurs will not only bear the costs of bringing new products to market, but also the costs of lawsuits if consumers start using their products for illegal purposes.

The Supreme Court ruling will provide a boost to litigation filed on behalf of movie and record studios against alleged infringers and could even provide legal precedent for any number of cases involving free downloaded music files that compete with pay-and-play services like Apple’s iTunes and other types of digital content delivery.

"Speaking on behalf of the over 27,000 music publishers and songwriters that were represented by the National Music Publishers' Association, we are tremendously gratified by the Court's unanimous decision that peer-to-peer services which promote piracy can be sued,” David Israelite, NMPA president and CEO, said. “Grokster and Streamcast knowingly facilitated piracy on a massive scale.”

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Open Mind AI Seeks Inclusion in EU's AI Debate

New European industry initiative Open Mind AI has penned a letter asking EU authorities to include adult companies and creators in ongoing discussions on setting up a legal framework for AI content.

Canadian Law Professor: Proposed Age Verification Bill 'Will Make Things Worse'

Leading Canadian newspaper The Globe and Mail this week published an op-ed written by a legal scholar outlining fundamental issues with the Conservative-backed age verification bill currently making its way through Parliament.

UK Labour Government Confirms it Will Continue Baroness-Led 'Porn Review'

The U.K. Labour government of Prime Minister Keir Starmer has confirmed it will continue the controversial full review of British pornography laws ordered by former Tory Prime Minister Rishi Sunak in July 2023.

AEBN Publishes Popular Searches for July and August

AEBN has released the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

SWR Data Survey Probes Concerns About Political Attacks on Industry

SWR Data, an adult-sector market research firm led by industry veterans Mike Stabile and MelRose Michaels, has released data from its upcoming 2024 State of the Creator report, illustrating creators’ concerns about political attacks on the industry.

FSC Urges SCOTUS to Strike Down 'Unconstitutional' Texas Age Verification Law

The Free Speech Coalition (FSC) urged the U.S. Supreme Court through a brief filed Monday to strike down Texas’ age verification law as unconstitutional.

Japanese Manga Industry Hit by Credit Card Companies' Anti-Porn Restrictions

Japanese manga retailers are reporting pressure from multinational credit card companies — many based in the U.S. and targeted by anti-porn religious conservatives — to censor their content if they wish to maintain their current payment processing arrangements.

Netherlands Government Continues Porn Probe Following Abuse Allegations

The Dutch government plans to continue investigating the local porn industry in the Netherlands, following a series of abuse allegations involving photographer and self-styled “model scout” Daniël van der W.

Clips4Sale Releases '20 Years of Fetish' Data Survey

Clips4Sale (C4S) has released a report based on 20 years of data and analysis to show how kink and fetish tastes have changed since the site began.

Grooby, Yanks Ink Website Management Deal

Grooby will begin managing Yanks.com under a new company, Blue.xxx.

Show More