Los Angles — A U.S. federal judge ruled Friday that the companies behind two popular file-sharing services are not liable for the illegal copying of music and movies by their users.
The 34-page ruling by U.S. District Court Judge Stephen Wilson was a blow to recording companies and movie studios who had sought to stem the illegal copying and distribution of their copyright works.
The decision, if it survives appeal, essentially absolves Grokster Ltd. and StreamCast Networks Inc. of liability. Grokster distributes file-sharing software by that name, and StreamCast distributes Morpheus. The ruling does not apply to a third and more popular service, Kazaa from Sharman Networks Ltd.
In his ruling, Judge Wilson cited the movie industry's efforts to hold Sony liable for video cassette recorders that can be used to make illegal copies of copyright works. The Supreme Court in 1984 ruled that sale of copying equipment by itself did not constitute copyright infringement..
Judge Wilson concluded that there was no evidence that Grokster and StreamCast could supervise and control the use of their services.
Unlike Napster, the pioneer file-sharing service ordered shut by the courts, Grokster and StreamCast say they only provide software and technical assistance. Napster hosted directories of users' files on its server.
"It's a vindication. We are not pirates," said Wayne Rosso, president of Grokster, which is based in Nevis, West Indies. "This is teaching the record companies and the movie companies a lesson. ... They need to rethink their business model."
An attorney representing a several recording companies in the case declined to comment on the ruling. A spokeswoman for the Recording Industry Association of America said the organization was reviewing the decision and intends to appeal.
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