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Communication Law Keyed to Benjamin, 2nd Ed.
Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd.
Citation:
545 U.S. 913, 125 S. Ct. 2764, 162 L. Ed. 2D 781 (2005)Facts
Grokster and StreamCast distributed free software that allowed users to share electronic files through peer-to-peer networks, where computers communicate directly with each other rather than through central servers. While peer-to-peer networks have legitimate uses, evidence showed that approximately 90% of files available for download through these networks were copyrighted works. The companies targeted former users of Napster (a file-sharing service shut down for facilitating copyright infringement) and actively promoted their software’s ability to access copyrighted content. StreamCast’s internal documents revealed plans to attract Napster users and become “the next Napster.” Both companies generated revenue by selling advertising space displayed to users of their software. Neither company attempted to filter copyrighted material or impede infringing activity, despite being aware of widespread infringement. MGM and other copyright holders sued the companies for contributory and vicarious copyright infringement based on their users’ unauthorized downloading of copyrighted works.
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