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Metro-Goldwyn-Mayer Studios v. Grokster, 518 F. Supp. 2d 1197 (1997)
If a copyright holder shows that a distributor is flagrantly distributing protected content, can that copyright holder obtain an injunction preventing continued distribution? A federal judge considered that question in Metro-Goldwyn-Mayer Studios versus Grokster.
Grokster, Limited, and StreamCast Networks, Incorporated, created and distributed software enabling users to engage in peer-to-peer sharing of music and video files, including material protected by copyright. StreamCast’s product was called Morpheus.
Metro-Goldwyn-Mayer and 27 other movie studios, record companies, and other copyright holders, sued Grokster and StreamCast in federal court for facilitating copyright infringement. The district court ruled in favor of Grokster and StreamCast, and the Ninth Circuit affirmed. But the United States Supreme Court reversed, holding that Grokster and StreamCast were liable for their software inducing copyright infringement. Grokster thereafter settled with the copyright holders, leaving only StreamCast as the remaining defendant. Based on the Supreme Court’s decision, the district court then granted MGM summary judgment. MGM then moved for a permanent injunction preventing StreamCast from allowing any further infringement across its Morpheus network.
The copyright holders established that Morpheus users could trade and duplicate protected material for free. StreamCast established that it couldn’t readily segregate the infringement occurring on Morpheus from the non-infringing uses.
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