Grokster: Supremes Not Hot on P2P Lawsuits

WASHINGTON — After round one in the MGM vs. Grokster case before the U.S. Supreme Court, peer-to-peer software companies seem to be ahead on several justice’s scorecards.

At the heart of the case is whether P2P companies should be held liable for revenue entertainment companies claim they are losing due to illegal sharing of copyrighted material by end users.

During animated discussions, several justices voiced concerns that the threat of legal action against software companies could severely impede innovation.

Justice Antonin Scalia said he feared allowing entertainment companies to sue technology makers would lead to a mindset that, “[If] I’m a new inventor, I’m going to get sued right away before I get a chance to do business.”

The Grokster case dates back to 2001, when entertainment companies, including the Recording Industry Association of America and the Motion Picture Association of America, filed suit against Grokster and fellow P2P software maker Morpheus, arguing that companies that produce products that are primarily used for illegal piracy should be held responsible for the actions of their users.

The defendants have maintained that their products also have, and are intended for, legal uses, and that they should not, therefore, be held liable when consumers choose to use their products in unlawful ways.

So far, the P2P companies have won victories in both U.S. District Court and the 9th U.S. Circuit Court of Appeals, and they seem to have won over Justice Breyer, who noted during the discussion that P2P technology offers “some really excellent” non-infringing uses.

Donald Verrilli, an attorney representing the entertainment industry, fired back that of 2.6 billion files traded over P2P networks each month, only a few hundred thousand are legal.

“That’s the whole business,” Verrilli said. “What they’re talking about as lawful is a tiny, teeny little fraction.”

Justice Stephen G. Breyer questioned whether an open door policy on litigation against innovators whose technology has potentially illegal uses would have stifled development of copy machines, VCRs and even the printing press.

Justice David Souter noted that the Apple iPod falls into the same category and how any inventor or developer, given the threat of legal action, could approach the market with confidence.

However, not all justices fell on the side of P2P. Justice Anthony M. Kennedy, for one, worried that software companies are being allowed to build businesses and reap massive profits from what is, in essence, stealing.

“That seems wrong to me,” he said.

A decision is not expected until mid Summer.

Copyright © 2026 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

SinfulXAI to Launch New AI Generator

AI companion platform SinfulXAI has announced its new AI video generator, launching in February.

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

X3 Expo Day 2 Delivers Stars, Screenings and Fan Favorites

The sun once again shone brightly on the historic Hollywood Palladium as throngs of avid fans made their way through the doors, ready to experience Day 2 of the 2026 X3 Expo.

X3 Expo Kicks Into Gear With an All-Star Lineup

Outside the historic Hollywood Palladium on Friday, a huge crowd of fans lined Sunset Boulevard, eagerly awaiting the opening of the 2026 X3 Expo and their big chance to meet the cream of the crop of adult stars.

2026 XBIZ Honors Salutes Resilience Across the Online Adult Industry

The 2026 XBIZ Honors packed house Wednesday night, turning the Kimpton Everly Hotel’s Nichols Ballroom into a gala celebration of industry excellence.

Elevated X Integrates CCBill for Payment Processing

Elevated X has added CCBill payment processing integration to its ELXNexus traffic management and affiliate software.

Florida Congressman Files Latest Bill to Repeal Section 230

Rep. Jimmy Patronis of Florida has become the latest member of Congress to propose legislation that would repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Irish Parliamentary Committee Weighs Stricter AV Laws

The Irish national parliament’s Joint Committee on Arts, Media, Communications, Culture and Sport met Wednesday to discuss regulation of online platforms and improving online safety, including calls for stricter age verification by adult sites.

Ofcom Issues Guidance on Age Check Placement for Adult Sites

U.K. media regulator Ofcom on Wednesday published its recommendations for where and how adult sites should deploy age checks as required for compliance with the Online Safety Act.

Show More