MGM Studios and Grokster are in court today as the law attempts to determine whether companies that develop peer to peer (P2P) software are liable for the actions of their customers.
This is the second time MGM has taken the case to court. It lost the original case in 2003, and an appeal in August 2004. The court originally overturned the case based on the 1984 Betamax case. In that case it was determined that it was legal to copy using a video recorder because the devices were "capable of substantial non-infringing uses".
The counsel for Grokster argues that peer-to-peer file sharing platforms should be aloud to continue, as they will inevitably benefit the artists in the future. He explained to vnunet: "Time and again, the courts have refused to extend the copyright monopoly, and have allowed new technologies to develop and mature to the benefit of artists, the public and the very corporations that sought to ban them."