Copyright Law

Copyright Law

Chris C. Zimmer

Grantham University

Abstract:

This paper discusses the background and Court decision in MGM v. Grokster and gives an additional copyright infringement case that adds further clarity surrounding the use of innovative software intended for file sharing among users. This paper also touches on United States Law on copyright infringement. Finally, it closes with the author’s opinion on technology innovation and copyright infringement.

Copyright Law

Grokster, Ltd developed a software program that allowed file sharing over peer-to-peer networks. Files that can be shared in this manner include digital movies, music and games. The issue at hand is that by giving consumers the ability of file sharing and copying, the consumer does not have to purchase these entertainment items and MGM sued Grokster and Streamcast Networks for copyright infringement.

The case was originally dismissed in the U.S. District Court for the Central District of California, which cited the Sony Corp v. Universal Studios case, a case that protected VCR manufacturers from contributory infringement. For the Sony case, the court stated that technology could not be barred if it was capable of “substantial non-infringing uses.” In Grokster, MGM was seeking liability for makers of file sharing technologies user copyright infringement. The Ninth Circuit Court of Appeals upheld the lower courts decision acknowledging that person-to-person (P2P) software has legitimate and legal uses.

In 2005, the U.S. Supreme Court heard the case on appeal. The high court unanimously held that the defendant P2P software developers could be sued for inducing copyright infringement. This decision was predicated on the facts concerning the marketing actions taken by Grokster and Streamcast for the file sharing software and based on the Copyright Act of 1976. Grokster was forced to pay $50 million to the music and recording industries as a result of this decision.

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