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A Bow to Innovation: The Supreme Court's Decision in MGM v. Grokster
The Supreme Court's recent decision in Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., ___ U.S. ___, 125 S.Ct. 2764, 75 U.S.P.Q.2d 1001 (2005) is noteworthy for the Court's decision to sidestep modifying the standard that the Court set in the Sony case in 1984 as to when a product distributor can be liable for infringing uses of its product. Although the Supreme Court was faced with compelling arguments from copyright owners and the technology industry alike both for and against modifying the standard in Sony Corp. v. Universal City Studios, 464 U.S. 417 (1984), it ultimately found that Grokster and its co-defendant StreamCast could be liable for infringing downloads, not because they distributed a product that was used to infringe copyrights, but because they took the additional step of actively inducing their users to download copyrighted material. In so doing, the Supreme Court avoided deciding whether it was appropriate that a mere distributor of a product “capable of substantial noninfringing use” should avoid liability even when its product is being used for massive copyright infringement.
Grokster and StreamCast had prevailed at both the district court level, Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., 259 F. Supp. 2d 1029 (C.D. Cal. 2003), and in the Ninth Circuit Court of Appeals, Metro-Goldwyn-Mayer Studios, Inc. v. Grokster Ltd., 380 F.3d 1154 (9th Cir. 2004), by relying on the Sony standard. The Supreme Court derived that standard in 1984 from Section 271(c) of the Patent Act (35 U.S.C. '271(c)), which exempts from liability one who distributes a “staple article of commerce” if the product is used to infringe. Applying that same standard to copyright law, the Court held that Sony was not liable for infringing uses because the Betamax recorder was capable of being used for noninfringing “time shifting,” which the Court found to be a fair use.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.