• by January 26, 2005

A coalition of entertainment companies filed court papers yesterday complaining that file-sharing networks Grokster and StreamCast Networks are "breeding grounds" for piracy. They want the networks to be held responsible for the actions of their users.

Illegal downloading and file sharing of music tracks, videos, and other content is a big deal for the entertainment industry. When there is so much entertainment content widely available (often free, sometimes for a fee), why do people need to engage in illegal file sharing?

There is obviously money to be made from getting your hands on a first-run movie via the Web. If not, entertainment honchos wouldn't be so angry. There's also plenty of ad revenue at stake. They want the U.S. Supreme Court to regulate or curb companies that provide file-sharing tools. Software provided by companies like Grokster and StreamCast is used to conduct illegal file-sharing.

File-sharing services and a handful of digital rights advocacy groups say that a 1984 Supreme Court decision involving Sony VCRs established protections against potential illegal uses of file sharing. They argue that file sharing can be used for legal and illegal purposes.

It's not the first time Grokster and StreamCast have been taken to court. In 2001, a federal district court in Los Angeles aligned with Grokster, citing the Sony decision. The court found Grokster had legal users and further, that it couldn't control users' actions without substantially reworking the product.

The Supreme Court will hear oral arguments in the case March 29.