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US Supreme Court Rules In MGM v Grokster 
Posted on Monday, June 27, 2005 - 12:00 AM

The US Supreme Court on 27 June 2005 ruled in MGM v Grokster that someone who distributes a device with the intention of promoting its use to infringe copyright, is liable for the infringing acts of third parties using the device.

This is regardless whether the device has lawful uses. The court further ruled that Grokster's unlawful objective is unmistakable as its advertisement or solicitation broadcasts a message designed to stimulate others to commit violations by:
(a) targeting former Napster users;
(b) not attempting to develop filtering mechanisms to reduce infringing activities; and
(c) encouraging the use of the software as the more advertisements are sent out, the greater is the advertising revenue.