StreamCast Loses District Court P2P File Sharing Case
Text of Decision
In attempting to apply the Supreme Court's new "inducement" doctrine from MGM v. Grokster, District Judge Stephen V. Wilson, the same judge that in an earlier ruling had cleared StreamCast of infringement charges, found "…evidence of StreamCast's unlawful intent … overwhelming", held StreamCast liable for inducing Morpheus users to infringe on copyright and granted the plaintiffs summary judgment. Subject to any successful appeal, StreamCast is liable for up to $150,000 for each copyrighted song or movie shared with Morpheus which, of course, trends towards a damages value of $infinity!
The rather unclear Supreme Court doctrine of inducement requires a "clear expression or other affirmative steps" beyond mere distribution of P2P software to find infringement. Judge Wilson held that the test was met because: (i) Internal e-mails by StreamCast executives showed their awareness of users' infringements, they were eager to insure the supply of copyrighted content on the network, (iii) they implemented features that made it easier to infringe, and (iv) they failed to implement technology that could have deterred some infringements.
After MGM v. Grokster, Sharman Networks (Kazaa), Grokster, iMesh (Bearshare), eDonkey, Qtrax, Mashboxx and others settled. StreamCast was one of the few that decided to fight on. A StreamCast spokesperson said the company may appeal. LimeWire remains the only other large P2P Player still fighting on.
- StreamCast to Slug it Out Against the MPAA/RIAA in the Courts After All (April 10, 2006)
- U.S. Supreme Court Finds Grokster Liable (June 27, 2005)
- Grokster & Streamcast Win Major Court Victory (August 9, 2004)