Hollywood takes P2P battle to high court

Sun Oct 10, 2:21 PM ET

Ben Fritz, STAFF

http://news.yahoo.com/news?tmpl=story&cid=1944&u=/variety/20041010/va_ne_al/
hollywood_takes_p2p_battle_to_high_court&printer=1

MPAA, RIAA (news - web sites), and National Music Publishers Assn. members
Friday asked the U.S. Supreme Court (news - web sites) to overturn an August
Appeals Court decision in favor of peer-to-peer networks Grokster and
Morpheus.

The court ruled in August that unlike the outlawed Napster (news - web
sites), Grokster, Morpheus and other current P2P networks can't be held
responsible for copyright infringements on their networks as they don't help
distribute it.

Decision infuriated movie and music industry execs, who claim P2P is costing
them billions of dollars a year due to piracy.

The "writ of certiorari" asks the Supreme Court to consider overturning the
9th Circuit Court of Appeal's decision because it conflicts with a previous
ruling about P2P application Aimster and alleges that it incorrectly
interprets the 1984 Sony Betamax case that legalized VCRs.

"By forcing the square peg of this case into the round hole of
Sony-Betamax," the writ argues, "the 9th Circuit created a completely novel
test for secondary liability, unmoored from law or logic, that poses a grave
threat to the very existence of intellectual property in the digital era."

Secondary liability is a legal theory that would hold P2P companies
responsible for piracy conducted by users of their software.

The writ even argues that the 9th Circuit decision encourages piracy, saying
it "will also encourage even more people to use" P2P, therefore, "further
eroding respect for copyright on the Internet."Movie and music companies
filed the writ now in hopes that the high court will decide whether to
accept the case by the end of the year and, if it does, hear arguments next
year.

P2P companies responded immediately with the now-common refrain that media
companies are opposing technological progress and existing law.

"The plaintiff's brief is an indictment against the Supreme Court's 1984
Betamax decision itself," said Michael Weiss (news - web sites), CEO of
Morpheus parent company Streamcast Networks. "The law is clear and has
already been decided."

But plaintiffs responded that P2P, with its easy access to illegal free
content, is inhibiting the growth of legitimate alternatives.

"Now is the time for the courts to review these businesses that depend upon
violation of copyright," MPAA topper Dan Glickman said. "Unless the laws
keep pace with innovation, we run the risk of imperiling the creation and
development of legitimate new technologies that form the foundation of the
information economy driving our country's growth."

Writ comes as the Hollywood-supported Induce Act, which would essentially
outlaw P2P, appears to have died for the current congressional session. 

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