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