MGM v Grokster Quiz

Legal Question

Are companies that create file sharing software and encourages its users to use said software for copyright infringement held liable for infringement?

Judge Argument for Grokster

Inventors will be scared of entering technology market for fear of lawsuits

Decided

June 26, 2005

Argued

March 28, 2005

Plaintiff

Metro-Goldwyn-Mayer Studios

Precedent

Sony Corp. v. Universal City Studios (Betamax Case)

Defendant

Grokster, Ltd.

Conclusion

- Court rules in favor of MGM - Grokster held liable for encouraging and profiting from direct infringement - Copyright Act doesn't make anyone liable for another's infringement, but secondary liability doctrines apply

Facts of Case

- Grokster distributes peer-to-peer file sharing software - Grokster encourages users to illegally share copyrighted files - MGM sues Grokster for violation of the Copyright Act