Grokster Chokes, But Its Illegal Software Lives On
By Marius Meland
Law360, New York (November 8, 2005, 12:00 AM EST) -- File-sharing software company Grokster Inc. is calling it quits on its current business model, agreeing to pay $50 million to the entertainment industry and shut down its servers. The move comes five months after the U.S. Supreme Court ruled it was liable for the infringing activity of its customers.
Like Napster, Grokster hopes to move to a legal business model, assuming it can recover from the damage award. But while the old model may be gone, the actions that triggered the lawsuit are not. Its software...