Music Law Advisory Bulletin

Supreme Court Issues Landmark Internet Copyright Decision in Grokster
[June 2005]

Earlier today, the United States Supreme Court issued a landmark decision in the Grokster peer-to-peer filing sharing case. In an unanimous opinion (9-0) authored by Justice David H.Souter, the Court reversed the Ninth Circuit's decision that had affirmed a summary judgment motion filed by defendants Grokster and StreamCast, holding that Internet file-sharing services can be held responsible for distributing software that is intended primarily for use by customers to swap music and movies illegally. The Supreme Court's decision sends the case back to lower court, with an instruction that the district court revisit the summary judgment motion that had been filed by the plaintiff studios, record labels, and music publishers.

The decision establishes a broad and favorable understanding of the law of inducing copyright infringement. Specifically, the Court held that "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 by third parties." Moreover, the Court acknowledged that plaintiffs may rely on circumstantial evidence to prove the requisite intent.

The Court left open the possibility that other bases for liability also might exist.

The decision can be found at
http://a257.g.akamaitech.net/7/257/2422/27
jun20051200/www.supremecourtus.gov/opinions/04pdf/04-480.pdf

We will be providing a more detailed analysis of the decision in the near future.

Kelli Sager, Andrew Thomas and Jeff Blum of Davis Wright Tremaine LLP were co-counsel with Carey Ramos, Peter L Felcher, Aidan Synnott, Theodore Cheng and John Longwell of Paul Weiss Rifkind Wharton and Garrison LLP in representing the songwriter and music publisher plaintiffs in this case.

For more information, please contact:

Jeffrey H. Blum Jeffrey H. Blum
Los Angeles
(213) 633-6800
jeffreyblum@dwt.com

Kelli L. Sager Kelli L. Sager
Los Angeles
(213) 633-6800
kellisager@dwt.com

Andrew J. Thomas

Andrew J. Thomas
Los Angeles
(213) 633-6800
ajthomas@dwt.com
   

This Advisory is a publication of the Music Law Group of Davis Wright Tremaine LLP. Our purpose in publishing this Advisory is to inform our clients and friends of recent developments in the music industry. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may be given only in response to inquiries regarding particular situations.

Copyright © 2004, Davis Wright Tremaine LLP.


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