A Grokster Primer
28 entertainment cos asked Supreme Court to reverse
two lower-court rulings that found file-sharing cos aren’t
responsible when their users illegally download music
and other copyrighted content
Landmark Betamax case of 1984 – Supreme Court
rejected argument that Sony Corp. should be liable for
the recording of copyrighted television shows using its
new recorder (5-4 decision, w/ Stevens and O’Connor in
majority, Rehnquist in minority)
In 1975, Sony introduced first home videotape recorder,
Betamax ($2,295)
Studios maintained that Betamax ruling covered very
different product in very different time
Argued that primary use of peer-to-peer file-swapping networks
is to illegally trade copyrighted materials
A Grokster Primer
Like Napster, Grokster and StreamCast offer free software that is
used to access trading networks
But while Napster stored files to access trading networks, Grokster and
Morpheus let users directly trade files from one computer to another
In 2001, group of record labels convinced federal appeals court to shut
down the old Napster
Movie studios said that if they fail, artists will lose their motivation
to create new movies, songs, or other art, knowing it can easily be
stolen
Meanwhile, Grokster’s advocates said that if file sharers lose,
technology companies would have little incentive to innovate, fearful
of legal consequences
Supreme Court ruled against Grokster June 2005, holding that music
industry could sue file-sharing businesses if they help people obtain
copyrighted material for free
Grokster shut down in November 2005 as part of settlement with music
industry
Source: Wall Street Journal, 3/29/05, 11/8/05