CREATIVE COMMUNITY PRAISES SUPREME COURT DECISION
IN GROKSTER CASE
June 27, 2005
In a decision announced today, the United States Supreme Court overturned
the ruling of the Ninth Circuit Court of Appeals in favor of the plaintiffs
in the case of MGM, et al. v. Grokster, Ltd., et al.
The following is a joint statement from the preeminent entertainment
unions – American Federation of Musicians, American Federation
of Television and Radio Artists, Directors Guild of America, Screen Actors
Guild, and Writers Guild of America, west – on today’s Supreme
Court ruling. These organizations also filed a “friend of
the court” brief in January 2005 urging the Court to consider the
negative impact of Internet piracy on artists.
“Today a clear and unmistakable message has been sent – that
work created by our members deserves the same basic financial protections
as every other product in the marketplace. Unauthorized file-swapping
of copyrighted material is property theft, plain and simple, and this
theft destroys the very protections that allow our members to sustain
a career and provide for their families. We applaud the Supreme
Court’s decision that advances in technology serve to
enhance and promote, rather than undermine, the vibrant and diverse cultural
and artistic traditions of this country.
“Today’s decision marks an economic and creative victory
for every creator whose livelihood has been threatened by the blatant
copyright infringement running rampant on peer-to-peer sites across
the Internet. What is most important about it is the determination
that just because something can be distributed freely, does not mean
that it is free, and that the financial rights of creators and copyright
holders can no longer be ignored.”
Public Knowledge Statement Regarding MGM v Grokster
June 27, 2005
The
following statement is from Gigi B. Sohn, president of Public Knowledge,
on the Grokster decision today:
"Today's Court decision in the Grokster case underscores a principle
Public Knowledge has long promoted -- punish infringers, not technology.
The Court has sent the case back to the trial court so that the trial
process can determine whether the defendant companies intentionally encouraged
infringement. What this means is, to the extent that providers of P2P
technology do not intentionally encourage infringement, they are exempt
from secondary liability under our copyright law. The Court also acknowledged,
importantly, that there are lawful uses for peer-to-peer technology,
including distribution of electronic files 'by universities, government
agencies, corporations, and libraries, among others.'
"The Court is clearly aware that any technology-based rule would
have chilled technological innovation. That is why their decision today
re-emphasized and preserved the core principle of Sony v. Universal City
Studios -- that technology alone can't be the basis of copyright liability
-- and focused clearly and unambiguously on whether defendants engaged
in intentional acts of encouraging infringement. The Court held expressly
that liability for providing a technological tool such as the Grokster
file-sharing client depends on 'clear expression or other affirmative
steps taken to foster infringement.' What this means is, in the absence
of such clear expression or other affirmative acts fostering infringement,
a company that provides peer-to-peer technology is not going to be secondarily
liable under the Copyright Act."
HOYER,
BONO JOINT STATEMENT ON GROKSTER RULING Representatives Are Co-Founders of the Congressional Recording Arts
and Sciences Caucus
June 27, 2005
WASHINGTON - House Democratic Whip Steny Hoyer (MD) and Representative Mary Bono
(R-CA) released the following statement today in response to the Supreme Court's
9-0 decision in Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd.:
"We are extremely pleased that the Supreme Court's 9-0 decision in the Metro-Goldwyn-Mayer
Studios, Inc. v. Grokster, Ltd. case protects the innovative and copyrighted
works of our nation's creative community. This decision supports our U.S.
industries that employ more than five million Americans and produce one of our
top exports: intellectual property, including motion pictures and music. Furthermore,
it is a strong repudiation to the rapid proliferation of copyright piracy on
the internet.
Over 90% of the use of Grokster software is for infringement purposes. Therefore,
this decision prevents the legitimization of peer-to-peer file sharing software
programs such as Grokster that encourage and facilitate the illegal sharing of
copyrighted works. This activity subverts not only our economy, but
also the creative community, such as songwriters, musicians, screen writers and
other artists who drive American creative and artistic innovation.
Clearly, technological advancements have fostered the enjoyment of these creative
works. There can be a future for peer-to-peer networks as long as they uphold
copyright protections. However, while we have a healthy debate on how to
reconcile intellectual property laws in the face of new technologies, our government
first must protect intellectual property rights. As we move into the digital
marketplace, it is incumbent upon the courts and policymakers to demonstrate
that they can and will protect intellectual property rights now and in the future. Therefore,
we strongly support the decision of the Supreme Court in this case. We
are hopeful that this decision will ensure that any further litigation proceeds
with the goal of ending this infringing activity."
Congresswoman Mary Bono and Congressman Steny Hoyer are the co- founders and
co-chairs of the Congressional Recording Arts and Sciences Caucus.
Electronic Frontier Foundation: Supreme Court Ruling Will
Chill Technology Innovation
Copyright Liability Standard in Grokster Decision Endangers P2P and Other
New Technologies
June 27, 2005
Washington, DC - Today the Supreme Court issued a ruling that could
impede makers of all kinds of technologies with expensive lawsuits. The
long-awaited decision in MGM v. Grokster states that P2P software manufacturers
can be held liable for the infringing activities of people who use their
software. This decision relies on a new theory of copyright liability
that measures whether manufacturers created their wares with the "intent" of
inducing consumers to infringe. It means that inventors and entrepreneurs
will not only bear the costs of bringing new products to market, but
also the costs of lawsuits if consumers start using their products for
illegal purposes.
"Today the Supreme Court has unleashed a new era of legal uncertainty
on America's innovators," said Fred von Lohmann, EFF's senior intellectual
property attorney. "The newly announced inducement theory of copyright
liability will fuel a new generation of entertainment industry lawsuits
against technology companies. Perhaps more important, the threat of legal
costs may lead technology companies to modify their products to please
Hollywood instead of consumers."
The Supreme Court has also ordered the lower court to consider whether
peer-to-peer companies Grokster and StreamCast can be held liable under
the new standard. StreamCast is confident that it will pass muster under
the new, multi-pronged test.
Congresswoman
Watson: "Supreme Court decision on Grokster a Giant Victory
for American Creativity and Innovation"
June
27, 2005
Washington,
DC – Congresswoman Diane E. Watson (CA-33rd), chair of the
Congressional Entertainment Industries Caucus, today applauded the Supreme
Court's unanimous decision vacating the 9th Circuit Court of Appeals'
ruling in MGM
v. Grokster and remanding the case back to the lower court. It held that
internet file-sharing services must be held responsible for intellectual property
violation if they intend for their customers to use software primarily to swap
songs and movies illegally.
"Today's unanimous decision by the Supreme Court represents a great triumph
for American creativity and innovation. File sharing companies that actively
coax consumers into violating copyrights laws can no longer escape legal consequences
under the guise of "fair use," stated Congresswoman Watson. 'They will
no longer be able to unduly profit from the talent and hard work of our nation's
creators," added Watson.
The Supreme Court agreed to hear MGM v. Grokster in December 2004 after
the 9th Circuit's ruling in favor of the defendants. At issue is whether a
peer-to-peer technology company can be held financially liable for illegal
activities taking place on its network. The Circuit Court, citing the 1984 Sony-Betamax decision,
held that "substantial non-infringing uses" of Grokster exists and
thus could not be shut down. The Supreme Court reverses, stating that "one
who distributes a device with the object of promoting its use to infringe copyright.
. . is liable for the resulting acts of infringement by third parties."
"Today's clear guidance from the Supreme Court will help enhance the effective
enforcement of our nation's copyright laws and strengthen the public's respect
for the value of intellectual property rights," said Congresswoman Watson. "I
hope today's decision will send a message to all pirates that winking and nodding
at digital theft will not be tolerated any more than theft itself. I am confident
that the lower courts will carefully apply this well-reasoned opinion in finding
Grokster and other similar companies liable for actively inducing their customers
into illegal use of their products."
Statement
by Neil Portnow, President of The National Academy of Recording
Arts & Sciences,
Inc. on the Supreme Court’s Ruling on MGM v. Grokster
June 27, 2005
The National Academy of Recording Arts & Sciences, Inc. (The Recording
Academy®) represents 17,000 musicians, composers, artists, engineers,
producers and songwriters and is dedicated to improving the quality of
life and cultural condition for music and its makers.
"Today is a good day for music fans and the 17,000 musicians, composers,
artists, engineers, producers and songwriters that are the members of
the Recording Academy. By unanimously upholding the rights of creators,
the Supreme Court has defended an environment for legal online music
services to thrive.
As the National Academy of Recording Arts AND Sciences, our membership
embraces new technologies that deliver their music to fans in innovative
ways. The court is forging the way for the legal digital services - those
that compensate the creative professionals - to enable music fans to
hear their favorite artists wherever, whenever and however they want.
The unanimous Supreme Court opinion sends a clear message to those
who use technology to encourage copyright infringement, while recognizing
the importance of honest, legitimate innovation that fosters protection
of the rights of creators of music.
Previously The Recording Academy submitted an amicus brief on behalf
of the creative community, which depends on sales of its works to earn
a living. We thank the Court for its insight into this important case
and for the protection of music makers. The Academy will continue to
defend its members' rights wherever and whenever necessary."
RIAA Statement On MGM V. Grokster Supreme Court Ruling
June 27, 2005
WASHINGTON -- In response to the U.S. Supreme Court's ruling today in
the case MGM v. Grokster, the Recording Industry Association of America
(RIAA) issued the following statement from Chairman and CEO Mitch Bainwol:
"With this unanimous decision, the Supreme Court has addressed
a significant threat to the U.S. economy and moved to protect the livelihoods
of the more than 11 million Americans employed by the copyright industries.
The Supreme Court has helped to power the digital future for legitimate
online businesses – including legal file sharing networks – by
holding accountable those who promote and profit from theft. This decision
lays the groundwork for the dawn of a new day – an opportunity
that will bring the entertainment and technology communities even closer
together, with music fans reaping the rewards."
RECORDING ARTISTS’ COALITION HAILS
UNANIMOUS SUPREME COURT GROKSTER DECISION IN FAVOR OF THE ENTERTAINMENT
INDUSTRY
June 27, 2005
The Recording Artists’ Coalition (RAC) applauds the Supreme Court’s
decision to overturn the Grokster case, establishing clearly for the
first time that creators of unauthorized peer-to-peer (P2P) file-sharing
systems are liable for contributory copyright infringement if they induce
the users of their system to share unauthorized copyrighted music and
movie files. This decision is a victory for all recording artists,
songwriters, and their fans.
The 9-0 decision, released this morning, also paves the way for record
labels and recording artists to enter into serious negotiations to license
copyrighted music to the developers of P2P systems.
“By ruling against Grokster, the Supreme Court has vindicated
the rights of artists, songwriters, and copyright owners. There
is no more important case for the future of our business. These
unauthorized P2P systems promote copyright infringement on an unprecedented
scale. They make millions of dollars in advertising, but pay the
artists nothing,” said Don Henley, president and co-founder of
RAC.
In January 2005, RAC, the National Academy of Recording Arts & Sciences,
along with a number of artist and songwriter associations, and 54 high-profile
recording artists, filed an Amicus Brief with the U.S. Supreme Court
in the Grokster litigation urging the Supreme Court to overturn the Ninth
Circuit’s opinion that Grokster, Kazaa, Morpheus, and other unauthorized
P2P systems are not liable for contributory copyright infringement.
The 54 recording artists who signed on to the RAC/NARAS Amicus Brief
are: Don Henley, Glenn Frey, Joe Walsh & Timothy B. Schmit (the Eagles),
Jimmy Buffett, Kenny "Babyface" Edmonds, “Mya” Harrison,
Gavin Rossdale, Sheryl Crow, Kix Brooks & Ronnie Dunn (Brooks & Dunn),
Bonnie Raitt; Natalie Maines, Martie Maguire & Emily Robison (The
Dixie Chicks), Stevie Nicks, Phil Vassar, Patty Loveless, Reba McEntire;
Mickey Hart & Bill Kreutzman (of The Grateful Dead), Avril Lavigne,
Dido, Denyce Graves, Tom Jones; Jesse Colin Young, Sarah McLachlan, Martina
McBride, Sam Moore (of Sam & Dave), Joe Terry & David White (of
Danny and the Juniors), Billy Preston, Boz Scaggs, Diana Krall, Elvis
Costello, Brian Wilson, Kenny Rogers, Tom Waits; Tyler Stewart, Jim Creeggan,
Steven Page, Ed Robertson & Kevin Hearn (Barenaked Ladies), Deryck
Whibley, Dave Baksh, Cone McCaslin & Steve Jocz (Sum 41), Brandon
Hargest, Brittany Hargest, Chris Fedun & Lesley Moore (Jump 5), Bethany
Dillon, Nichole Nordeman, and Michael W. Smith.
The complete text of the RAC Amicus Brief and the Supreme Court decision
will be available online at www.recordingartistscoalition.com.
Artist Quotes
"We’re really glad that the Supreme Court ruled the
way they did. Anything that makes it easier for our fans to access
legitimate sources of music is a good thing." -- Natalie Maines
of the Dixie Chicks
"Artists are not against technology. We fully embrace P2P
technology. But artists must have a choice between systems offering
music for free and systems that pay us." -- Bonnie Raitt
STATEMENT FROM MPAA PRESIDENT AND CEO DAN GLICKMAN
RE:
Supreme Court ruling on MGM v. Grokster
June 27, 2005
"Today's unanimous ruling is an historic victory for intellectual
property in the digital age, and is good news for consumers, artists,
innovation and lawful Internet businesses.
"The Supreme Court sent
a strong and clear message that businesses based on theft should not
and will not be allowed to flourish.
"This decision will be of utmost
importance as we continue developing innovative and legitimate ways to
marry content and technology so consumers can access entertainment on
a variety of devices.
"Protecting intellectual property rights and
aggressively combating copyright theft will keep an engine of economic
growth and job creation thriving; promote innovation; strengthen legitimate
businesses that unite technology and content in innovative and legal
ways; and ensure a future of quality and choice for consumers in the
United States and around the world."
CORNYN STATEMENT ON MGM v. GROKSTER DECISION
"Those who facilitate theft often are just as guilty as the thieves
themselves"
WASHINGTON-Sen. John Cornyn (R-Texas), a member of the Judiciary Committee's
Intellectual Property subcommittee, made the following statement Monday
regarding the U.S. Supreme Court's ruling in MGM v. Grokster:
"Today, the Supreme Court reinforced the principle that those who
facilitate theft often are just as guilty as the thieves themselves.
"Every day, literally millions of dollars in copyrighted works
are stolen via online services. This theft is no less wrong because
it is carried out in cyberspace - rather, potentially worse than common
shoplifting, it is putting thousands of Americans out of work and is
damaging one of the most important and vibrant sectors of the United
States economy. Unfortunately, the services that facilitate much
illegal online file sharing have been designed to encourage just that
type of behavior.
"When the founding fathers put the protection of intellectual property
in the Constitution, they recognized the unique and unlimited creativity
of the American people and the impact American innovators would have
on the world in the areas of art and technology.
"Today's decision by the Supreme Court is an affirmation of those
Constitutional principles and should be commended."
Sen. Cornyn is a member of the Judiciary Committee's Intellectual Property
subcommittee and the Congressional International Anti-Piracy Caucus.
He served previously as Texas Supreme Court Justice, Texas Attorney General,
and Bexar County District Judge.
Berman Statement on MGM v. Grokster
June 27, 2005
WASHINGTON -- In response to the U.S. Supreme Court's ruling today in
the case of MGM v. Grokster, Rep. Howard L. Berman made the following
statement:
"That this is a unanimous decision speaks volumes to what we all
know is true: stealing is stealing. The culture which
allowed a business to rely on theft has robbed our creative community.
"Today's ruling is a victory for American innovation. It helps
assure that artists will continue to thrive and create the music and movies
we love. Technology and the Internet win, too, because this decision will
propel opportunities for legitimate music and movie distribution services.
Rep. Howard Berman (CA) is the ranking Democrat on the House Judiciary
Committee's Subcommittee on Courts, the Internet, and Intellectual Property.
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Act March
10, 2005
FMC and artist groups file joint reply comments at FCC on localism in broadcasting,
MB Docket 04-233
January
3, 2005 PDF of document
