The United States Supreme Court will hear on Tuesday a landmark case that could have far-reaching consequences for both copyright holders and the technology industry. At issue is whether two P2P network operators, Grokster and StreamCast are liable for the copyright infringement committed by their users.
Both file-sharing companies contend that P2P networks can be used to share legal content and they cannot control, and thus are not liable for, any piracy going on. Sharman Networks, owner of Kazaa, has mounted a similar defense in a case brought by the record industry in Australia.
The entertainment industry, which will be represented in court by MGM Studios, disagrees with such claims. Hollywood and the RIAA say that P2P companies such as Grokster and StreamCast are no different from the old Napster, and have built their business by encouraging users to share illicit content.
A federal appeals court sided with the file sharing networks last August, stating that Grokster and StreamCast’s Morpheus had legitimate uses, even if the majority of users are trading illegal content. But the industry refused to give up, and the case will be decided by the nation’s top court.
Read the complete story @ BetaNews
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