File-Sharing Services May Be Held Liable, Court Rules

By Larry Abramson

Published June 27, 2005 at 12:00 AM EDT

The U.S. Supreme Court rules unanimously that Internet file-trading networks can be held liable and sued if their customers use their software to violate copyright protections on downloaded videos or music. The ruling is a blow to companies such as Grokster and Streamcast.

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