Supreme Court Rules on Grokster Case

On June 27, 2005, the United States Supreme Court issued its decision for MGM v. Grokster. The central issue in the case was whether a file sharing service could be held liable for the activities of the users of the service. Users of file-sharing services often download music and movies illegally from such sites.

The court held that file sharers could be held liable for such activities. Justice David H. Souter, writing for the court, stated, "We hold that one who distributes a device with the object of promoting its use to infringe copyright, as shown by the clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties."

Below is a statement by AFM President, Thomas F. Lee, on the importance of the decision.

AFM STATEMENT ON MGM V. GROKSTER SUPREME COURT RULING

FOR IMMEDIATE RELEASE
June 27, 2005

Contact: Honore Stockley
(315) 422-4488 ext. 104

In response to the U.S. Supreme Court's ruling today in MGM v. Grokster, President Thomas F. Lee of the American Federation of Musicians of the United States and Canada has issued the following statement:

"The Supreme Court's decision is a move in the right direction for both the entertainment industry and online community. Illegal file sharing has harmed the families of millions of workers and artists for far too long. Most musicians who depend on legal downloading are not wealthy mega-celebrities. They are ordinary session musicians who depend on union-negotiated payments that fall drastically when sales fall. They are songwriters who depend on royalties to put food on the table. Musicians make music for love, but they cannot afford to do it without an income. The AFM wholeheartedly embraces the pursuit of technology when it is used for lawful purposes. The Supreme Court?s ruling lays the foundation for legitimate file-sharing providers to innovate and provide useful services that will benefit consumers without contributing to the pressing economic problem of music theft."