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BREAKING NEWS ~ Grokster shutting down to settle file-sharing suit

[JURIST] CBS News is reporting that file-sharing software developer Grokster [corporate website] has agreed to shut down its operations in order to settle an online piracy lawsuit filed by Hollywood and the music industry. In June 2005, the US Supreme Court ruled unanimously in MGM v. Grokster [opinion] that owners of file-sharing services can be held liable for contributing to copyright infringement. Grokster and other online music file-sharing companies have since been in settlement negotiations [JURIST report] with the recording industry, with music executives seeking agreements that would require file sharing networks to transition to paid services which prohibit the trading of copyrighted files without the permission of the copyright owner. The Electronic Frontier Foundation has in-depth coverage of the Grokster case.

4:23 PM ET - Under the terms of the settlement agreement [RIAA press release] submitted Monday to a federal court in California, Grokster will immediately stop supporting its file-sharing software and its associated peer-to-peer network. Grokster's co-defendant StreamCast Networks [corporate website], however, remains operational and has said that it will continue fighting the case in court. CNET News has more.

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