Grokster Loses File-Sharing Case (condensed)
November 26th, 2005File-sharing service Grokster has agreed to stop distributing software that allows users to copy songs over the Internet after losing its case before the U.S. Supreme Court, a recording industry trade group said on Monday. The settlement with the Recording Industry Association of America follows the high court’s unanimous ruling in June that Grokster and other “peer to peer” networks can be held liable if they induce users into violating copyright laws.
The victory is largely symbolic because Grokster has steadily lost users over the years to more innovative services, said an expert who tracks file-trading traffic. “It’s a very famous brand primarily because of a Supreme Court case,” said BigChampagne CEO Eric Garland. “Most people have read about Grokster in the newspaper but have not actually used their software.”
Grokster is in the process of being sold to Mashboxx LLC, a company that intends to develop an industry-approved peer-to-peer service. A Grokster rebirth would not be unprecedented. Pioneering file-trading service Napster re-emerged as a pay service after recording industry lawsuits forced it to shut its doors in 2001.
full text: http://cdrinfo.com/Sections/…
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