File-Sharing Software and Copyright Infringement (CRS Report for Congress)
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| Release Date |
Revised July 18, 2005 |
| Report Number |
RL31998 |
| Report Type |
Report |
| Authors |
Brian Yeh and Robin Jeweler, American Law Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
In Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., the Ninth Circuit Court
of Appeals decision
considered allegations of contributory and vicarious copyright infringement by companies which
distribute peer-to-peer file-sharing software. The software facilitates direct copyright infringement
by its users. It was the first decision to reject infringement claims against and find in favor of
companies distributing the software. Other digital media file-sharing software decisions found in
favor of the copyright holders, most notably A & M Records, Inc. v. Napster, Inc.
and In re: Aimster
Copyright Litigation. But in Grokster , the court granted summary judgment for
the software
companies. The court thus became the first to accept the "substantial, noninfringing uses" defense
to copyright infringement liability, a defense developed by the U.S. Supreme Court in connection
with use of VCRs in Sony Corp. of America v. Universal City Studios, Inc.
In a unanimous 9-0 decision, the U.S. Supreme Court reversed the Ninth Circuit, finding that
it had misapplied Sony . It articulated a new standard for the imposition of secondary
liability for
copyright infringement, namely "inducement." 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." Although firmly rooted in the common law, the Court imported the "inducement" theory
to copyright law much as it had adopted the safe harbor from infringement liability in
Sony from
patent law.
The Court was careful to preserve the safe harbor for dual use technology established by
Sony .
Sony bars secondary liability based on presuming or imputing intent to cause
infringement solely
from the design or distribution of a product capable of substantial lawful use, which the distributor
knows is in fact used for infringement. Inducement of copyright infringement may be demonstrated
when an actual purpose to cause infringing use is shown by evidence independent of design and
distribution of the product.
This report examines the background and holding in Grokster and the doctrinal
relationship
between Sony and Grokster . It will not be updated.
