Reference no: EM132233352
Facts: Grokster, Ltd., and StreamCast Networks, Inc. distributed free software that allowed computer users to share electronic files through peer-to-peer networks. The Grokster and StreamCast software could be used for legal purposes, such as sharing non-copyrighted files. Nonetheless, nearly 90 percent of the files available for download through Grokster or StreamCast were copyrighted. Billions of files were shared each month. The two companies encouraged illegal use of their software.
A group of copyright holders sued Grokster and StreamCast alleging that they were violating the copyright law. Both parties moved for summary judgment. The trial court held for Grokster and StreamCast; the appeals court affirmed. The Supreme Court granted certiorari.
Issue: Were Grokster and StreamCast violating copyright law?
Holding: Judgment for Grokster and StreamCast reversed. Anyone who distributes a device for infringing copyrights is liable if:
the distributor intends to promote the infringement of copyright law, and
there is actual infringement by recipients o
Is that what Grokster and the other defendants did? Is intent to violate the law enough to create liability?