In a major blow to civil libertarians and technological development, on June 27, the US Supreme Court ruled that manufacturers of peer-to-peer (P2P) software can be held liable for the copyright infringements of those using their software. The case, MGM vs Grokster, was brought in 2001 by 28 of the world's largest companies against the makers of the Morpheus, Grokster and Kazaa, which allow users to download files that are stored on other users' computers, including copyrighted songs and movie files. The entertainment companies lost the case at the district and appeal courts, in part because of a 1984 Betamax ruling that it was not possible to hold manufacturers responsible for the illegal use of their products (just as gun manufacturers are not held responsible for murders committed with their products). However, the Supreme Court accepted the "inducement" theory that manufacturers can be held liable if their products were designed with the "intent" of inducing consumers to infringe copyright. The court ordered a lower court to investigate if the P2P software had been designed with such intent. The decision is likely to have a significant impact on the development of P2P technology.
From Green Left Weekly, July 6, 2005.
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