The U.S. Supreme Court on Monday opened the operators of file-sharing services to lawsuits over allegations they allow users to swap copyrighted materials.

In a unanimous ruling, the court held that Grokster [Web Site] and StreamCast Networks, the creators of the Morpheus software [Web Site], could be held liable for the actions of their users. "One who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties," Justice David Souter wrote for the majority.

The two firms' had argued that their services are akin to VCR technology. The court previously held that taping of copyrighted material didn't violate the law.

But the court said Grokster and StreamCast gave out free software with the intention of allowing the distribution of copyrighted material.

Get the Story:
File-Sharing Firms Can Be Held Liable (The Washington Post 6/28)
pwpwd
Justices Reinstate Suits on Internet File Sharing (The New York Times 6/28)
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Sharing Culture Likely to Pause but Not Wither (The New York Times 6/28)

Decision in MGM v. Grokster:
Syllabus | Opinion [Souter] | Concurrence [Ginsburg] | Concurrence [Breyer]