Grokster is lost
The Supreme Court has unanimously decided that filesharing companies should be held liable for copyright infringement performed on their networks.
“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 using the device, regardless of the device’s lawful uses,” Justice David Souter wrote in the ruling.
http://arstechnica.com/news.ars/post/20050627-5042.html
[Update - I think this is reasonable. Here's why.]
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