Morpheus, Grokster Ruled Legal
On Friday U.S. District Court Judge Stephen V. Wilson ruled that file-sharing programs Morpheus and Grokster are legal, even though they are often used to copy songs and movies illegally. Unlike Napster, which was ruled illegal, Morpheus and Grokster are not liable for user violations because the software/networks do not monitor or control what people do with them. This is considered by many a major setback for the entertainment industry which claims to have lost millions in the last couple years because of the file-sharing practice. The decision applied the same principle that the 1984 Sony Betamax ruling did, that video cassette recorders were legal even though people could use them to violate copyright law.
That's an interesting interpretation of the law, and I think a fair one as well. But we all know the reocding industry has the money for many, many more appeals...
Source: Electric Basement
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