Originally published July 7, 2005

On June 27, 2005, in Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., the United States Supreme Court held that software companies may be held liable for copyright infringement if there is evidence showing an intent to encourage infringement through use of their software by third parties. In delivering the unanimous decision of the Court, Justice Souter stated 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."

This ruling reversed a ruling of the United States Court of Appeals for the Ninth Circuit, which had held that defendants Grokster Ltd. and StreamCast Networks, Inc....

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