http://www.theregister.co.uk/2005/06/27/p2p_goes_down/The US Supreme Court has ruled unanimously against the free-wheeling ways of P2P software makers Grokster and StreamCast in a decision that will have many of the most vocal open technology advocates up in arms.
The ruling means that developers of P2P software can be held liable for their users' actions and that the software makers must work to prevent the distribution of copyrighted material. Two lower courts had already ruled that P2P software showed enough non-infringing uses for it to be protected under the well-known 1984 Sony ruling that permitted the sale of the VCR. The Supreme Court, however, disagreed with the lower courts, saying that they took too broad an interpretation on Sony and that the P2P firms made little to no effort to curb illegal file-trading.
"We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by the clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties," Justice David H. Souter wrote.
This decision sends the case back to a lower court where judges will revisit the request of the movie and music companies - represented by MGM - to declare P2P software makers liable for their users' copyright violations.
This will now have a flow on effect around the world, two ISP's in Australia have been taken to court for users running Bit Torrent hubs...