One year ago, on June 27, 2005, the Supreme Court released its much-anticipated ruling in Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd . The unanimous decision held that Grokster and StreamCast, the distributors of popular peer-to-peer "file sharing" software, could be held secondarily liable for copyright infringement committed by their users if Grokster and StreamCast took active steps to induce infringement. This document outlines the limits on the scope of secondary copyright liability that follow from a close reading of the Grokster decision together with the landmark decision in Sony Corporation of America v. Universal City Studios, Inc. (1984), and patent law precedents relating to inducement liability. The Center for Democracy and Technology believes the legal principles set forth in this article represent the best reading of current law in the wake of Grokster and that careful observance of these principles by lower courts would serve the Grokster Court's goal of ensuring that secondary liability for copyright infringement "does nothing to compromise legitimate commerce or discourage innovation having lawful promise."

STLR is proud to present: Interpreting Grokster: Limits on the Scope of Secondary Liability for Copyright Infringement, a perspective by the Center for Democracy and Technology (CDT).