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Grokster was a peer-to-peer (P2P) software company. P2P allows users to search the files of other users (“peers”) connected to the service, and illegally copy any desired copyrighted movie or song from the available files.

MGM Studios filed suit against Grokster, arguing that the company should be held liable for encouraging its users to break copyright law.

The U.S. Supreme Court, in a unanimous decision, ruled that Grokster was indeed liable for copyright infringement. In one accompanying opinion, Justice Stephen Breyer wrote, “Deliberate unlawful copying is no less an unlawful taking of property than garden-variety theft.”

Downloading copyrighted material without appropriate authorization has always been illegal. The Supreme Court reinforced this fact in the strongest terms.

Furthermore, companies that encourage their customers to steal copyrighted material can now also be held accountable.