James Delahunty
7 Nov 2005 14:00
Grokster, a popular file-swapping company involved in a battle with the movie and music industries for the past few years, has agreed to cease distribution of its Peer-to-Peer software. The decision comes following a legal settlement with the Hollywood studios and the Recording Industry Association of America (RIAA). Grokster recently suffered a legal defeat in the Supreme Court when the court ruled in favor of the entertainment companies over Grokster and co-defendant StreamCast Networks.
The entertainment companies accused both Grokster and StreamCast of contributing and inciting massive copyright infringement by use of the companies' P2P services. Millions of people worldwide use P2P networks to download and share copyrighted music and movies with each other daily. Grokster will now stop supporting its file sharing software and the associated network.
"This settlement brings to a close an incredibly significant chapter in the story of digital music," Mitch Bainwol, CEO of the RIAA, said in a statement. "This is a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere." While it is a step toward ending the four year legal case, the lawsuit is by no means over yet.
StreamCast Networks' remains in operation and the company has indicated that it plans to continue fighting the case in lower courts. Grokster's decision might put more pressure on StreamCast to settle however. Grokster is working on, and will offer a legal service soon. "The brand will live on," said attorney Michael Page. "It is shut down, but we look forward to launching a licensed, legal new version of Grokster."
Source:
ZDNet