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California Appeals Court Deals Major Blow To Entertainment Industry In Copyright Suit

Law360 (August 20, 2004, 12:00 AM EDT) -- In a major setback for the entertainment industry, a federal appeals court in California has ruled that online file-sharing software companies are not liable for copyright infringement.

In a ruling favoring online P2P network Grokster Ltd. and others, the U.S. 9th Circuit Court of Appeals said that the relief from piracy sought by film and recording studios would undercut a technology that also has many legal uses.

“Under the circumstances presented by this case, we conclude that the defendants are not liable for contributory and vicarious...
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