Slashdot Mirror


RIAA, MPAA Lose Suit Against Streamcast and Grokster

ha-reed writes "News.com is reporting that a federal court judge in Los Angeles has handed down a ruling that Streamcast Networks (the company that makes Morpheus) and Grokster are not liable for copyright infringements due to files that are traded with their software. The judge made the comparison between file sharing software and VCR's that many supporters of file sharing often use." EFF has the decision (1.4Mb PDF) online (and a .torrent is here in case eff.org melts, which it won't). See our most recent story about the lawsuit.

26 of 591 comments (clear)

  1. Correction! by Anonymous Coward · · Score: 0, Informative

    It's News.com.com.

  2. Judge Wilson by Anonymous Coward · · Score: 5, Informative

    Judge Wilson, who decided this case, is known as a libertarian. He's no corporate stooge, as some have suggested, just becasue he ruled that Kazaa can be sued in the US.

    Now that we finally got some results on the merits, we can see that we may actually be in good hands here.

    1. Re:Judge Wilson by geekee · · Score: 2, Informative

      No. He only ruled Kazaa could be sued in the US. Apparently, if they actually are sued they'd win in his court and not be held liable. All perfectly reasonable and consistent.

      --
      Vote for Pedro
    2. Re:Judge Wilson by Anonymous Coward · · Score: 1, Informative

      He does get overturned. The 9th Circuit tends to be somewhat more political than the District Courts. The interesting thing about the 9th Circuit is that it has both hardcore liberals and hardcore conservatives. There are about 25 judges in all. But only 3 judges sit on any one case, and they are chosen randomly. Depending on the makeup of the panel, you can be pretty sure how many cases will turn out in advance.

      Judge Wilson has been overturned by both liberal and conservative panels. He tends to have more trouble with the liberals, since he has a reputation as being someone who is not friendly to plaintiffs. But I have personally seen him make plenty of decisions that were (or would have been) aplauded by the ACLU.

      Bottom line: He was a Reagan appointee, but he's not political, not looking to get put on the 9th Circuit. I was hoping he'd decide this way on this case, and he did. He'll do the right thing on Kazaa too.

  3. Reading the PDF of the ruling now� by HalfStarted · · Score: 4, Informative

    Other than the low quality... a PDF of a scanned fax apparently, it is a good read, not nearly as hard a read as some other court documents I have had a look at. One of the most important quotes from the ruling in my opinion is "Here, it is undisputed that there are substantial noninfringing uses for Defendants' software..." pg.11 ln.16 to me this is basically affirming the right of p2p networks and technologies in general to exist. Hopefully this works its way around and is used against the MPAA's and RIAA's efforts to lobby for technology controls.

    --


    Have you thought for yourself today?
  4. They did it 20 years ago by Anonymous Coward · · Score: 5, Informative

    The Supreme Court: Sony vs. Univeral - "The sale of the VTR's to the general public does not constitute contributory infringement of respondents' copyrights."

  5. Now, Time to Send Judge Eick Packing by richardtallent · · Score: 2, Informative

    While looking up Judge Wilson from this article, someone with some respect for the difference between a technology and its application, I noticed that the page template looked familiar. Turns out that ol' Judge Charles F. Eick is a few floors down from Judge Wilson in the same building.

    In case your memory is decaffinated at the moment, Eick is the judge that ruled to force SonicBlue to spy on its ReplayTV owners to collect copyright infringement proof against them for movie studios plaintiffs in a lawsuit, a ruling fortunately overturned by another judge.

    Well, it turns out that a citizen's panel is reviewing Judge Eick for reappointment and needs our opinion regarding his judicial conduct. Deadline is May 5. Maybe the first step to winning the war for privacy is to make sure judges sitting on benches understand that whole 4th amendment thingie?

  6. Re:I would hardly celebrate... by michael · · Score: 2, Informative

    In criminal cases, if the government loses, they can't appeal. In civil cases such as this one, both sides may appeal. The Appeals Process.

  7. Re:Great news! by xyu · · Score: 2, Informative

    Umm, the Verizon case isn't about whether or not file-sharing programs are illegal. Its about some people who committed copyright infringement, and the RIAA wants their names. This decision doesn't change anything for the Verizon case.

  8. Re:What else has he decided before? by NetDanzr · · Score: 5, Informative
    Actually, the same judge is deciding the Kazaa tial, and it seems that he will be siding with Kazaa.

    Other cases that were handled by Judge Willson hint to the fact that he is one of the few liberal and pro-Internet (as in "in favor of freedom of individual Internet users") in the country.

  9. Very Important Decision by GregBildson · · Score: 2, Informative

    This is great news! The importance can not be understated w.r.t. software developer's rights.

    Having submitted an amicus brief in the case on behalf of Gnutella developers, we hope that it helped.

    http://www9.limewire.com/amicus_brief.pdf

  10. Re:This is the kind of mindset every judge needs by crankyspice · · Score: 2, Informative

    I'm glad at least one judge out there realizes that file sharing is not something that should be illegal!

    Have you read the opinion? It's a very narrow read on a very specific fact pattern, and in no way suggests or establishes that "file sharing is not something that should be illegal." Quite to the contrary, it acknoledges that illegal activity was taking place but that under existing case law, these two companies are not liable under existing legal theories of contributory copyright infringment.

    Individual users of the software can and will be targetted as directly infringing; this is already happening, and will only get worse.

    --
    geek. lawyer.
  11. Re:It probably helped... by crankyspice · · Score: 3, Informative

    No idea if those details made it into the courtroom or not

    Rest assured, they did. I've read the amicus briefs on this case, and the many declarations. As they're public documents, I can make them available if anyone's interested.

    --
    geek. lawyer.
  12. Re:VCR Analogy by NanoGator · · Score: 4, Informative

    "First, both tools can be used in the same way, but file sharing apps provide for widespread distribution of content. Generally speaking, VCRs don't have such a far reaching capability."

    I don't think the point had to do with distribution, it had to do with the legality of using a VCR. There's plenty of legal things you can do with a VCR even though it can be used to violate copyrights.

    As for the VCR being a tool for distribution, it kind of matters how you look at it. Somebody could tape Star Wars off the TV and resell that movie to make money. They'd be encouraged to do so as long as they're making money. With the internet and P2P, there's no real satisfaction towards sharing because you get no money out of it. It's just part of the network. It kinda balances out when you think of it that way. The distribution of it's not as bad as the making money from it. Then there's the whole matter of whether or not the other side is downloading it legally or not. (I.e. what if I'm downloading an Mp3 from a CD I have?)

    " VCRs on the other hand, often used for simply watching something at a different time..."

    That's part of it, but there's also the archival part of it. That's what got Jack Valenti all upset. He was worried about people making libraries of tapes and then selling them to each other. Time shifting is no longer time shifting when you mean for the tape to permenantly store that content. Then you really have made a copy, and since you didn't pay for it you're in trouble.

    Stupid, iddnt it? Good thing the courts ruled in consumer's favor over it.

    --
    "Derp de derp."
  13. Re:Deniability? by Sparr0 · · Score: 4, Informative

    Its not deniability, but control. Contributory infringement requires that they know about the infringement when they can do something about it. Napster could have shut down its network at any time, or blocked searches/transfers of copyrighted files, but it didnt, so they were guilty of contributory infringement. If all the gnutella/fasttrack client writers shut down all their servers it wouldnt affect the networks at all. They have no control over what the users are doing any more, so they arent contributing to the infringement.

  14. Re:Here's a shocker by gpinzone · · Score: 2, Informative

    It is not this judges job to decide if the DMCA is good or bad or unconstitutional.

    Careful. A judge can strike down a law as being unconstitutional. Laws have been challenged directly in case law. (Roe vs. Wade anyone?) The only time they can't declare a law unconstitutional is if it's an amendment.

  15. For those who won't RTFA... by vDave420 · · Score: 3, Informative
    ...The basis for the decision appears to be the distinction that these "true p2p networks" do not rely on central index servers run from that companies computers.

    In addition, the momentary potential for liability existed when the software was transferred from the Company to the User, and then if the Company should have reason to believe that the user will use it for infringing uses. As this information is not available to the Company at the time of software transfer to the User, they were not liable.

    Furthurmore, liability does not exist because "those comanies could shut their doors and turn off their computers, and the respective etworks would still work fine."

    Quoting from the judgement
    "Napster possessed the ability to monitor and control its network, and routinely exercised its ability to exclude particular users from it. id. In a virtual sense, the "premises" of the infringement were the Napster network i teelf and Napster had a duty to exercise its reserved right and ability to police those premises to the fullest extent possible- The client software was an essential component of the integrated Napster system, and Napster s obligation to police necessarily extended to the client software itself. Such is not the case here- Defendants provide software that communicates across networks that are entirely outside Defendants control.

    Another *very important* point:
    Although it may be possible that a new version of morpheus could have been written (by streamcast) that excluded the ability to locate files with a given fingerprint (a given SHA1, for instance), they would not be required to do so as the content was not being indexed or hosted via that Company's systems.

    To quote again:
    "However, whether these safeguards are practicable is immaterial to this analysis, as the obligation to \\police" arises only where a defendant has the "right and abilityfl to supervise the infrinqing conduc t . See NaDster , 239 F. 3d at 1023; Fonovisa , 76 F. 3d at 262. Plaintiffs' argument - that Defendants could do more to limit the functionali ty of their software with respect to copyrighted works forgets the critical distinction, broached above, between the Napster systemH and the software distributed by Defendants."

    In the case of Grokster , the network is the propriety FastTrack network, which is clearly not controlled by Defendant Grokster. In the case of StreamCast, the network is Gnutella , the open- source nature of which apparently places it outside the control of any single entity."

    This is an important decision, which could affect the path of p2p development, and my personal livelihood.
    Once again, a very satisfied and relieved
    -dave-

    Get yourself a legitimate high-preformance Gnutella client here!!

    --
    The pig browse. With Google. Sigh is to the chicken. Chicken is fool. Giggle. The DailyWTF giggle.
  16. Re:w00t! by joshki · · Score: 4, Informative
    uhm, no... It doesn't.
    Read the decision -- I know it's a bit long, but it's very easy reading for a court order. The order specifically says that there is copyright infringement going on. The only thing this does is absolve Grokster and Streamcast of responsibility for it because they're not "substantially contributing" to the infringement. One of the key points in their defense was the fact that they could all close their doors tomorrow and there would be no change in what was being traded on the networks. The other key point they made was that there was a substantial non-infringing use for the technology. There's a huge difference between their position and the college students who were working hard to ensure people could trade music and movies -- they can't claim ignorance, and they likely won't be able to claim non-infringing use of their networks either.

    Also, as soon as they (the college students) shut their networks down the file-trading stopped (over their networks at least) -- this case is mostly about gnutella and whether or not Grokster and Streamcast control gnutella and kazaa.... Neither of them do(they control some software used to access the networks, but there is no control over the networks -- that was a key point in their defense), and as a result they walk -- your college students won't likely be so lucky, although I think the lawsuit is ridiculous.

    --
    I do not read or respond to AC's. If you want a discussion, log in. Otherwise, don't waste your time.
  17. Re:HUGE news by Dr.+Blue · · Score: 3, Informative
    Too bad it looks like ISPs are about to lose in a case just like this.


    No, the ISP (Verizon) case is absolutely nothing like this one. The judge in this decision very clearly states that illegal copyright infringement is going on, just that it's not the responsibility of the software provider to police this. That's a good decision.


    So whose responsibility is the illegal copying? The person doing the copying, of course! In other words, it's the ISP users who are being protected by Verizon that are really responsible for their actions, and should be responsible for their actions. This is also good.


    So why is Verizon fighting this? The key issue in that case is that in order to compel the identity of the users, the RIAA is saying they can just say they need the info. No judicial oversight, no review, no nothing except RIAA saying "we need it." And that is fundamentally wrong. You're putting ISPs at the mercy of another private organization who can decide on whatever whim they want that they can violate the ISP users privacy.


    So it's not an issue of copyrighted file sharing being "ok". These two cases address entirely separate issues, so shouldn't be confused!
    And in neither of the two cases does anyone claim that sharing copyrighted files is ok.

  18. Not so clear-cut by Anonymous Coward · · Score: 1, Informative

    I dunno about that. The defendents were charged not just for running SMB indexing services (which true, might be legal under this ruling) but also for direct copyright infringement of up to hundreds of songs. Because they were involved in direct infringement, and because they (Peng, for instance) kept track of things like "top 20 searches" that would make them knowledgeable about specific acts of infringement, they may remain liable to contributory or vicarious infringement claims.

  19. Maybe not, brother by SunPin · · Score: 2, Informative
    The ruling protects the software developers but leaves the end user wide open to litigation.

    We may still see some college kids get thrown in jail.

    --
    Laws are for people with no friends.
  20. RIAA is appealing... by joebeone · · Score: 2, Informative
    THE RIAA IS IMMEDIATELY APPEALING...

    http://www.riaa.com/PR_story.cfm?id=633

    Rosen on Streamcast Networks/Grokster Summary Judgment Decision

    4/25/03

    Hilary Rosen, Chairman and CEO, Recording Industry Association of America (RIAA):

    "We are pleased with the Court's affirmation that individual users are accountable for illegally uploading and downloading copyrighted works off of publicly accessible peer-to-peer networks. This is precisely the issue we have been seeking to focus the public's attention on, and yesterday's decision in the Verizon matter makes clear that individual infringers cannot expect to remain anonymous when they engage in this illegal activity.

    "We also note that the District Court in the Grokster matter recognized that the Defendants 'may have intentionally structured their businesses to avoid secondary liability for copyright infringement, while benefitting financially from the illicit draw of their wares.'

    "Businesses that intentionally facilitate massive piracy should not be able to evade responsibility for their actions. We disagree with the District Court's decision that these services are not liable for the massive illegal piracy that their systems encourage and we will immediately appeal to the 9th Circuit Court of Appeals."

  21. Re:w00t! by yakovlev · · Score: 2, Informative

    Unfortunately, no.

    The judge makes it very clear in the ruling that he is making no decisions on people who operate an index of copyrighted files. In fact, that seems like a reasonably clear case of contributory infringement. Writing a program that indexes copyrighted files is okay, but the moment you provide that index to others you have to take steps to restrict entries with copyrighted content. At a minimum, you may be able to claim DMCA safe harbor if you eliminate entries after the copyright holder tells you those entries are infringing.

  22. Thats exactly what *these* students were doing by autopr0n · · Score: 2, Informative

    The students the RIAA is suing are ones who wrote network search agents. One of them as a school project under an advisor.

    Hopefully the judge in that case will look at the results of this case and throw those suits right the fuck out the window.

    --
    autopr0n is like, down and stuff.
  23. bad news imo by Anonymous Coward · · Score: 1, Informative

    The judge in this case said that under the current law, writing a software program to facilitate this behavior is not illegal.

    He then subtly called on Congress to address the situation.

    Which they will do. With the help of the RIAA/MPAA.

    AND LIFE WILL SUCK. Because they really will go after authors of tools. Any tool that could possibly be used for filesharing. This will really be bad for free software......

    You think the DMCA is bad? How about making it illegal to write software that DOESN'T PREVENT copyright infringement! That's what we have to look forward to, folks. You won't be able to take the moral high ground, it will be cut out from under you by Congress. Minding your own business will no longer be an option.

  24. Re:Finally... by rjh · · Score: 2, Informative

    On the contrary--it's the military that doesn't stand a chance if civilians decide to make a stand.

    There are roughly 300,000,000 people in America. Roughly 150,000,000 own firearms. Assume the USG becomes so tyrannical that 1% of the firearms owners decide to take arms against the government, and 10% decide to support and shelter the 1% who will fight.

    Suddenly you've got an armed guerrilla uprising of 1.5 million people and 15 million support personnel. This is a fighting army three times the size of the American fighting forces (note: most soldiers today are in support roles, not combat roles) and a support army eight times the Army's support corps.

    This is not something any soldier wants to encounter. It's a nightmare, in point of fact.

    A close friend of mine is a ten-year veteran of the Military Police and serves on his post's MP-SWAT team. He's an extremely high-speed and professional operator. Last I asked him about what it'd be like to fight against a well-armed, well-supported guerrilla uprising, his answer was terse: "I'd blow my head off first and save myself the slow death."

    Please ask police forces (military police and otherwise) how much they'd like trying to take an American city by force against a resisting populace. Dollars to donuts says most of them would give answers reasonably close to Rick's. If you aren't willing to ask police forces--and it's as simple as going down to the local Sheriff's Department and asking some local deputy--then ask yourself this: why aren't you willing to ask the people who have the best idea of how difficult it'd be?

    In fact, why don't you ask the Russian Army how that little city in Chechnya is holding out? Have they managed to maintain control of Grozny yet?