The U.S. Supreme Court Friday said it would decide whether the online services that make file-sharing possible can be sued for copyright infringement. The case involves a lawsuit brought by MGM
Studios and other major companies against Grokster and StreamCast Networks, which offers Morpheus peer-to-peer software. The entertainment industry argues that online trading networks should be held
responsible when their users copy music, movies, and other protected works without permission.
In August, the Ninth Circuit Court of Appeals ruled that peer-to-peer networks are not liable for
copyright infringement because, like VCRs, they can be used for legitimate purposes. The Supreme Court is expected to issue a decision by June.
Entertainment-industry trade groups like the
Recording Industry Association of America (RIAA) have complained that peer-to-peer file sharing networks enable copyright violations by allowing consumers to trade copyrighted files. "Without strong
rules of the road, there will never be a level playing field for the multitude of legitimate online music services trying to do the right thing," the RIAA said in a press statement. "There are seminal
issues before the Court--the future of the creative industries and legitimate Internet commerce. These are questions not about a particular technology, but the abuse of that technology by
practitioners of a parasitical business model."