June 27th, 2005

More Bad News From The Supreme Court

You have to admit they've been on something of a roll lately:

Internet file-sharing services will be held responsible if they intend for their customers to use software primarily to swap songs and movies illegally, the Supreme Court ruled Monday, rejecting warnings that the lawsuits will stunt growth of cool tech gadgets such as the next iPod.

The unanimous decision sends the case back to lower court, which had ruled in favor of file-sharing services Grokster Ltd. and StreamCast Networks Inc. on the grounds that the companies couldn't be sued. The justices said there was enough evidence of unlawful intent for the case to go to trial.

File-sharing services shouldn't get a free pass on bad behavior, justices said.

"We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by the clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties," Justice David H. Souter wrote for the court.

I'm not going to do much else other than link to something that Mark Cuban wrote over at Blog Maverick back in January:

With all the home movies we are creating and saving on our computers. All the digital pictures of our families and friends. All the personal music created at home. All the corporate data and presentations. All the books, software, newsletters, newspapers, discussion forums, blogs, websites and emails that are created and saved digitally. How big a percentage could music and movies be ? 1/10 of 1 percent? At most ?

Every single one of these items can benefit from the distribution efficiencies created by Peer to Peer networks. Every person and company in this country that wants to exchange digital data can benefit from peer to peer technologies. Just because the uses aren

3 Responses to “More Bad News From The Supreme Court”

  1. Beau says:

    OK. So since Cuban will never acknowledge it to be an issue because it detracts from his Tom Cruise-esque belief that every word he utters is brilliant, how would you compensate musicians, producers, writers, etc., for the work they do?

    Or will music and all other forms of content become pastimes for those who are already wealthy? Those who need to support themselves need not apply?

  2. jaarons says:

    Eric, one thing worth noting is that the ruling suggests companies can only be held liable based on intent and promotion. That is, if I develop some new peer-to-peer application and market it as the best way to find any music or movies, then I’m partially to blame for any copyright infringement caused by my program. If I make the P2P app available, say “Hey, you can use this for legitimate purposes,” and clarify what those are, then the SCt ruling suggests I’m not to blame for subsequent illegal usage. Is that really an unfair ruling? I think it’s reasonable.

    It’d be nice if MGM (and, by extension, the MPAA and other media organizations) offered a better online distribution method. I don’t deny what Cuban has said in that regard. However, that doesn’t make it any less right to download files without fair compensation for those artists responsible for the work.

  3. Ben Wright says:

    Well how are people supposed to know it’s wrong to download music if the 10 commadnments can’t be posted?

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