Grokster Shuttered in Court Settlement

Abstract

Following the U.S. Supreme Court's ruling this summer against Grokster, the company has agreed to a settlement that requires it to shut down its operations. The Supreme Court unanimously ruled that despite the possibility of noninfringing uses of Grokster's technology, the company could be held liable for violations that took place using its tools because it did not adequately discourage or deter users from such violations. According to the Recording Industry Association of America (RIAA) and the Motion Picture Association of American (MPAA), in the settlement Grokster agreed to end its operations and to permanently cease contributing to copyright infringement, either directly or indirectly. The Grokster site no longer includes links to download the company's software, instead featuring a message noting that copyright violations are illegal and will be prosecuted. The company said it plans to launch a legal service, called Grokster3G, in the near future.