Grokster pulls peer-to-peer client

— 2:23 AM on November 8, 2005

Embattled peer-to-peer company Grokster has agreed to stop distributing its file swapping software and pay $50 million in damages to the movie studios and record labels that have been pursuing it for years. The settlement follows a US Supreme Court decision holding P2P companies liable for copyright infringement if they'd encouraged it.

"One who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement," Justice David Souter wrote in the court's majority opinion.
Grokster will apparently return with a legal P2P service, possibly as a rebranded version of MashBoxx.
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