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File Sharing Software Provider Found Liable by US Federal Court
Streamcast, the operator of the Morpheus file sharing network, was recently found liable for encouraging its users to violate the copyright adhering to works of music, software and video. This is a significant victory for content providers who have been chasing after such “peer-to-peer” services since 2001.
Like other similar systems, the Morpheus client is downloaded by users onto their computers. The software allows these users to share their files with anybody else on the network, and provides them with access to other users’ shared files. The system records which users store specific files on their systems, and then allows users to download the same file from multiple sources, allowing for a faster rate of transfer.
Last year’s ruling of the United States’ Supreme Court in MGM Studios v. Grokster apparently laid the foundation for this finding by its holding that software firms could be liable for how users used their software if they deliberately encourage or induce customers to commit online piracy: “one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement”.
The recent decision of Justice Stephen Wilson granted the complainant’s motion for summary judgment on the basis that there was significant evidence of “massive infringement” and that the company had an unlawful intent. Whether this was an appropriate application of the principles set out in the Grokster case remains to be seen.
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