Bifalgorithm post · Property · 13.05[E][4][c], p. 13-84 (1982). Proof of actual harm, or

Metro-goldwyn-mayer Studios

Metro-goldwyn-mayer Studios (Property · 13.05[E][4][c], p. 13-84 (1982). Proof of actual harm, or) — "Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., 545 U…

Ideas in this flowchart

  • MGM Studios Inc. v. Grokster, Ltd. concerns distributor liability for third-party copyright infringement.
  • The legal question is when a distributor of a product capable of lawful and unlawful use is liable for infringement by its users.
  • A distributor is liable when it promotes the product's use to infringe copyright through clear expression or affirmative steps fostering infringement.
  • Grokster, Ltd. and StreamCast Networks, Inc. distribute free software products.
  • The software enables users to share electronic files through peer-to-peer networks.
  • In peer-to-peer networks, users' computers communicate directly rather than through central servers.
  • Peer-to-peer networks provide advantages in cost, speed, security, and efficiency.
  • They eliminate the need for costly server storage and high-bandwidth server capacity.
  • Copies stored on many users' computers can make file requests and retrievals faster.
  • Direct exchanges can continue between connected computers without a server failure disabling the entire network.
  • These benefits contribute to the substantial and growing popularity of peer-to-peer networks.
  • Peer-to-peer networks are used to store and distribute information or files.
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Metro-goldwyn-mayer Studios

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Property

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"Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., 545 U.S. 913 (2005) J USTICE S OUTER delivered the opinion of the Court. The question is under what circumstances the distributor of a product capable of both lawful and unlawful use is liable for acts of copyright infringement by third parties using the product. We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties. I A Respondents, Grokster, Ltd., and StreamCast Networks, Inc., defendants in the trial court, distribute free software products that allow computer users to share electronic files through peer-to-peer networks, so called becaus e users’ computers communicate directly with each other, not through central servers. The advantage of peer-to-peer networks over information networks of other types shows up in their substantial and growing popularity. Because they need no central computer server to mediate the exchange of information or files among users, the high-bandwidth communications capacity for a server may be dispensed with, and the need for costly server storage space is eliminated. Since copies of a file (particularly a popular one) are available on many users’ computers, file requests and retrievals may be faster than on other types of networks, and since file exchanges do not travel through a server, communications can take place between any computers that remain connected to the network without risk that a glitch in the server will disable the network in its entirety. Given these benefits in security, cost, and efficiency, peer- to-peer networks are employed to store and distribute"

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