Can The Grokster Settlement Close The File-Sharing Pandora's Box?

Last month, Grokster apparently gave up. The P2P filing-sharing service Nov. 7 filed documents with a Los Angeles federal court reporting that it had reached a settlement in its lengthy legal case with the nation's largest record companies, motion picture studios and music publishers, as represented by the Recording Industry Association of America (RIAA). <br>This decision leads many experts to believe that a distributor of P2P technology with a legitimate intent not to infringe others' rights would not be liable for a third-party infringing use of the technology. But despite that perhaps being the case, the Court failed to create a bright-line test to help identify a "clear expression or other affirmative steps taken to foster infringement" which, as Justice Breyer stated in his concurring opinion and as discussed in this article, could have a chilling effect on others creating or advancing file-swapping and other possibly legitimate technologies. Future litigations will necessarily turn on a case-by-case basis not as to the nature of the technology but potentially on the distributors' business plans.