Justices Decide to Take Up P2P Case

WASHINGTON — The U.S. Supreme Court will rule on whether peer-to-peer file-sharing services can be held liable for copyright infringement.

The court on Friday agreed to hear the arguments of Metro-Goldwyn-Mayer studios vs. Grokster and StreamCast Networks. Other media companies involved on MGM's side of the case include The Walt Disney Co., Time Warner, News Corp.’s 20th Century Fox, General Electric's Universal Studios and Sony, among others.

The media companies claim file-sharing has cost them billions of dollars in lost sales and say the file-sharing companies enable people to trade music and video files of content they own in a way that "assists and facilitates" copyright infringement.

The case, which will be heard in the spring with a decision expected by June, is the latest in a long line of legal attacks by the media industry against companies that have built software to create file-sharing networks.

Grokster Ltd. and StreamCast Networks Inc. provide free Internet-based conduits for users to swap computer files and are primarily used to exchange digital recordings of music and video. The companies make money off advertising on their websites.

The entertainment industry said in its Supreme Court appeal that a "resolution of the question presented here will largely determine the value, indeed the very significance of copyright in the digital era."

Grokster and StreamCast, in a countering legal brief, had urged the Supreme Court to reject the entertainment industry appeal. The two services argued that federal copyright law hasn't had the chance to catch up with new computer technologies such as the peer-to-peer services and that Congress was the right place solve problems arising from those services.

"Congress is itself in the midst of considering the very issue petitioners urge on this court," Grokster and StreamCast said in their brief. "The first of these is an omnibus copyright measure that combines several proposals intended to develop public copyright education programs and enhance penalties for direct infringers."

Grokster and StreamCast urged the Supreme Court to allow their services to continue operating because there are numerous legitimate uses for the file-sharing services that don't violate copyright laws.

Congressional action on copyright legislation can come no earlier than 2005 after the next Congress convenes in January.

The entertainment industry in 2001 sued the two services in a federal district court in California. There, a federal trial judge dismissed the case. The 9th U.S. Circuit Court of handled the case on appeal.

A 9th Circuit panel ruled unanimously that Grokster and StreamCast face no secondary liability under federal law for copyright infringement.

A similar case in the The Netherlands in 2002 came out in favor of Sharman Networks, maker of file-sharing software Kazaa. The court there found that the company was not responsible for the behavior of its users.

The case is Metro-Goldwyn-Mayer Studios vs. Grokster, 04-480.

Copyright © 2025 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

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

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

Show More