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April 27, 2003 Sunday Safar 24, 1424


File-swapping software deemed not different from VCRs


LOS ANGELES, April 26: Makers of software that allows users to swap music and film files over the Internet for free are not responsible for copyright infringements, a judge here ruled.

Federal judge Stephen Wilson ruled in a case that pitted major Hollywood studios and big-name recording companies against Grokster and StreamCast Networks Inc, the makers of file-swapping software Morpheus.

The surprise decision, handed down Friday, is a reversal for Hollywood’s quest to combat Internet piracy, which deprives artists and producers of sales income. The music industry was victorious against song-swapping service Napster in 2001.

But in a ruling on Friday Wilson argued that “Grokster and Streamcast are not significantly different from companies that sell home video recorders or copy machines, both of which can be and are used to infringe copyrights.

“It is undisputed that at least some of the individuals who use (the) defendant’s software are engaged in direct copyright infringement of plaintiffs’ copyrighted works,” he went on.

But the companies themselves are not responsible, Wilson said, citing VCRs and Sony as a precedent.

“Sale of video cassette recorders (VCRs) did not subject Sony to contributory copyright liability, even though Sony knew as a general matter that the machines could be used, and were being used, to infringe the plaintiffs’ copyrighted works,” he said.

Lawyers for Grokster and StreamCast hailed the decision.

“We believe the Morpheus case is about technology, not piracy, and today the court agreed, making it clear that technology companies are not responsible for every misuse of the tools they make,” said attorney Fred von Lohmann.

Plaintiffs in the suit against Grokster and StreamCast include MGM, Columbia, Disney, Paramount, Warner Bros, 20th Century Fox and Universal, as well as recording companies Virgin, Sony, Arista and Capitol Records.

The Motion Picture Association of America declared itself disappointed by the outcome and said it planned to appeal.

“We strongly believe that those who encourage, facilitate and profit from piracy are breaking the law and should be held accountable,” stated Jack Valenti, chairman and chief executive officer of the industry association.

“We will continue our ongoing efforts to fight piracy on all levels — from educating the public about the value of protecting copyrighted works to pursuing our legal claims against infringers — and fully intend to appeal this decision.”

StreamCast Networks Inc says on its website that Morpheus, which allows users to share text, images, audio, video, and software files, has been downloaded over one hundred million times around the world.—AFP



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