Grokster Decision Remanded to Lower Court

We have been waiting a long time for this ruling. Today, the U.S. Supreme Court remanded to the lower court its earlier decision favoring Grokster and StreamCast Networks, rejecting the argument that holding companies liable for improper use of their technology by customers will discourage technological innovation.

Judge Souter, in his written opinion stated, "We hold that one who distributes a device with the object of promoting its use to infringe copyright ... is liable for the resulting acts of infringement by third parties." (Associated Press. "High Court Rules Against File-Sharing Services," in FoxNews.com (27 June 2005).