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<i>Grokster</i>: Money For Nothing

By Eriq Gardner
August 18, 2005

The recording industry was dancing to the sweet music of victory in June, when the U.S. Supreme Court unanimously ruled in its favor in MGM Studios Inc. v. Grokster. But a post-verdict depression may be on the way, if the results of IP Law & Business's informal survey of 38 IP lawyers and professors are any indication. [Editor's Note: IP Law & Business is published by ALM, publishers of Internet Law & Strategy.]

In Grokster, the Court ruled that Grokster, Ltd., and Streamcast Networks, Inc., can be held liable for distributing software that allows users to share copyrighted music. The case now goes back to the trial court, where a jury will determine whether Grokster and Streamcast actively encouraged users to infringe copyrights.

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