The 9th U.S. Circuit Court of Appeals yesterday ruled in favor of Grokster Ltd. and StreamCast Networks Inc., stating that the companies are not liable for the sharing of copyrighted works by users of their software.
The three-judge panel unanimously upheld a lower court ruling that dismissed much of the lawsuit brought forth by music labels and movie studios because Grokster and StreamCast’s programs do not utilize centralized servers that point users to copyrighted materials, as the original Napster did.
