The US Supreme Court has handed movie studios and record labels a sweeping victory against file swapping, ruling that peer-to-peer companies such as Grokster could be held responsible for the copyright piracy on their networks.
In a unanimous decision issued on Monday, the nine justices said companies that build businesses with the active intent of encouraging copyright infringement should be held liable for their customers’ illegal actions.
Justice David Souter wrote in the majority opinion: “We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement.”
The decision comes as a surprisingly strong victory for copyright companies and stands to reshape an internet landscape in which file swapping has become commonplace. [more @ www.silicon.com]