CLE 123 inc.

Supreme Court Argument - MGM Studios v. Grokster (Constitutionality of File Sharing WebSites like Napster)

Facts of the Case: Grokster and other companies distributed free software that allowed computer users to share electronic files through peer-to-peer networks. In such networks, users can share digital files directly between their computers, without the use of a central server. Users employed the software primarily to download copyrighted files, file-sharing which the software companies knew about and encouraged. The companies profited from advertising revenue, since they streamed ads to the software users. A group of movie studios and other copyright holders sued and alleged that Grokster and the other companies violated the Copyright Act by intentionally distributing software to enable users to infringe copyrighted works. The district court ruled for Grokster, reasoning that the software distribution companies were not liable for copyright violations stemming from their software, which could have been used lawfully. The Ninth Circuit affirmed.

Question: Were companies that distributed file-sharing software, and encouraged and profited from direct copyright infringement using such software, liable for the infringement?

About the Lecturer

Mr. Jeffrey B. Gold Esq.

Jeffrey B. Gold is a partner in the Law Firm of Gold, Stewart, Kravatz, Benes & Stone LLP in Westbury, NY.

Mr. Gold's practice consists of insurance coverage, personal injury and commercial litigation.  He can be reached at (516) 512-6333 or at jgold@goldstewart.com.

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