It’s been almost one year since the U.S. Supreme Court handed down its ruling in the MGM v Grokster case, determining that Grokster and Streamcast can be held legally liable for what it calls “inducing” copyright infringement by users if they market their filesharing programs “with the object of promoting its use to infringe copyright.”
Although Grokster caved and accepted the judgment, paying a substantial amount to MGM, Streamcast hasn’t given up. The case is now being heard in US District Court in L.A. (Source: Hollywood Reporter.com)
The new “inducement test” is being hotly debated by entertainment and technology lawyers in and out of court. Even if StreamCast loses, attorney Charles Baker will seek to block damages by asserting the affirmative defense of copyright misuse. “The motion picture companies, record labels and publishers have for years colluded to limit the distribution of digital content”, pointing out the unfavorable licensing contracts that indie labels and others not associated with the majors are forced to accept.
Baker says, “The fight is far from over”, as the Supreme Court, in its ruling, invited anyone to take the case to the 9th Circuit Court of Appeals.
