When file-sharing service Grokster and entertainment giant MGM Studios face off Tuesday in front of the Supreme Court, the lawyers will argue copyright law. But the court’s decision will affect how people use entertainment and share information.
The highly anticipated case, MGM Studios v. Grokster, pits all the major movie studios and record labels against Grokster and StreamCast Networks, two operators of file-sharing services.
The entertainment companies petitioned the Supreme Court to take the case after the 9th U.S. Circuit Court of Appeals ruled in August that file-sharing companies are not liable for their users’ copyright infringement. The decision upheld a lower-court ruling from April 2003.
The appeals court based its ruling on the 1984 Supreme Court Sony Betamax case. In that case, the court ruled Sony’s videotape recorder was a legal device because it was “capable of substantial non-infringing uses,” even though it could be used to violate copyrights. The case is credited with leading to a lucrative home-video and DVD market for the entertainment companies. The decision also provided innovators with a benchmark to support the development of new products.
A number of emerging-technology companies are among the Grokster supporters who have filed a friend-of-the-court brief in the case, concerned that a ruling for the entertainment companies could stifle innovation and harm their businesses.
The Supreme Court is expected to rule on the case in June. Whatever the outcome, observers think the issue may end up in Congress.
Source: Wired