The Motion Picture Studio plaintiffs in the case Metro-Goldwyn-Mayer Studios Inc, et al., v. Grokster, Ltd, et al. today announced a landmark settlement with Sharman Networks Limited roughly one year after the Supreme Court's decision in Grokster. Sharman will continue operations while employing new technologies to prevent unauthorized distribution of copyrighted works on its system.
Sharman was a co-defendant in the case and operated the Kazaa application and the FastTrack network, the leading unlawful peer-to-peer file-trading systems at the time the case was brought to court. The settlement with the movie industry coincides with a global settlement between Sharman and the recording industry, also announced today.
This is another important victory in this historic case," said Dan Glickman, MPAA President and CEO. "Since the Supreme Court's unanimous decision a little more than one year ago, we have seen a surge in new legal opportunities for consumers. Today's settlement announcement represents yet another milestone in the progress the content and online communities have made in coming together to meet consumer demands while still respecting the rights of content creators."
Glickman also acknowledged the support of the entire industry throughout the process, particularly the guilds and theater owners.
"Speaking with a unified voice on the importance of copyright protection conveyed a powerful message," Glickman said.
The United States Supreme Court in June of last year unanimously ruled that individuals or companies that actively encourage copyright infringement by the users of their service can be held responsible for their users' conduct. Having established a clear principle of law, the Supreme Court returned the case to the federal District Court for the Central District of California for final resolution.
Rather than continue the litigation, Sharman will discontinue its current business operations, effective immediately, and will begin use of new technology to prevent the MPAA members' copyrighted content from being distributed on its peer-to-peer system without consent. "The clarity of the Court's decision provided the content and technology sectors a window of opportunity which both sides are embracing," Glickman said. "I applaud the work Sharman has done to develop and deploy new filtering technology, which represents a breakthrough for online distribution opportunities. Such endeavors are paving the way for the future of consumer choice and entertainment. We look forward to working with the broader technology sector to create greater choices for consumers."
About the MPAA
The Motion Picture Association of America (MPAA) serves as the voice and advocate of the American motion picture, home video and television industries from its offices in Los Angeles and Washington, D.C. Its members include: Buena Vista Pictures Distribution; Paramount Pictures; Sony Pictures Entertainment Inc.; Twentieth Century Fox Film Corporation; Universal City Studios LLLP; and Warner Bros. Entertainment Inc.
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