The Supreme Court has handed movie studios and record
labels a sweeping victory against file swapping, ruling that
peer-to-peer companies such as Grokster could be held responsible for
the copyright piracy on their networks. In a unanimous
decision issued Monday, the nine justices said companies that build
businesses with the active intent of encouraging copyright infringement
should be held liable for their customers’ illegal actions.
“We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps
taken to foster infringement, is liable for the resulting acts of
infringement,” Justice David Souter wrote in the majority opinion.
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