While many technology news outlets claim Monday’s decision by the U.S. Supreme Court in the MGM vs. Grokster case is a major loss for peer-to-peer file swapping, I completely disagree. As this technology matures, legal decisions such as the one made Monday are necessary to ensure its survival as a legitimate service.
Contrary to the plethora of unenlightened opinions tossed around in CNet’s News.com discussion forums, the court did not rule that peer-to-peer (P2P) software was illegal. Nor did it rule that any software that can be used to illegally copy files is illegal. This means that legitimate P2P software, web browsers, instant messaging clients, and other collaboration and communication tools are still perfectly legal.
There is one major difference between Grokster and legitimate P2P tools. Courts often rule on intent, and in the case the Supreme Court found sufficient evidence to show that Grokster operated under the intent of facilitating the illegal distribution of material protected under copyright.
Illegal behavior is illegal whether your company is introducing shiny new technology or not. No company charged and found guilty of illegal activity should be able to continue operations without penalty and change, at the least. Once again, this ruling does not make P2P software illegal.
The U.S. is not the only country dealing with this issue. I recently commented on Canada’s P2P ruling as well as the work being done to protect the rights of copyright holders.
Rather than continuing to sue the individual and business users of P2P software in a court-clogging mass of confusion, content owners won a much-needed victory against the technology providers promoting these illegal activities. With this resolution in place, P2P software companies can now grow and flourish by promoting legitimate and beneficial uses for this technology. Rather than living in constant fear of law suits, P2P developers can rest under the knowledge that the Supreme Court has identified and documented the behavior that defines illegal P2P business. Armed with this knowledge, P2P companies can achieve the positive image required for growth and prosperity through legal business means.
Wrap-up:
- P2P Software is still perfectly legal
- Companies distributing P2P software while promoting illegal activities can be held liable
- Digital content owners retain control of their property and distribution
My guess, is that anybody who isn’t sleeping a little better tonight probably has a mountain of stolen MP3 files on their hard drive. Just to help calm those criminals down before bed, let me remind you that this case does not do away with individual law suits by content owners. Nighty-night, criminals.
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