The MPAA and RIAA filed the appeal in October, after the Ninth
Circuit Court of Appeals decided to throw out a copyright case
brought by the industry against Streamcast Networks Inc., the
company behind the Morpheus file-sharing software, and Grokster
Ltd, on the grounds that, while the companies provide the software
used by file-sharers to swap illegally copied digital files, the
software can also be used for legitimate purposes.
The Supreme Court has not yet decided whether to hear the
appeal, but the deadline for parties to put forward submissions in
favour of or against the hearing of the appeal passed on Monday,
the day on which StreamCast and Grokster submitted their joint
filing.
The companies argue that the Ninth Circuit correctly applied the
rule set out by the Supreme Court 20 years ago in a case concerning
Sony's Betamax video recorder, which had been accused of infringing
TV and movie studios' copyrights.
Sony won the case because the machine had significant
non-infringing uses.
"Morpheus is used for substantial non-infringing purposes, and,
therefore, the Betamax standard applies, resulting in StreamCast
not being secondarily liable for any direct infringing uses by
users of Morpheus," said StreamCast's general counsel, Matthew A
Neco. "It is our belief that there is no need for the Supreme Court
to review the matter."
The request by the MPAA and RIAA joins those that have already
been put to the Supreme Court, mostly from state attorney generals,
industry associations and artists – and mostly in favour of the
appeal being heard.
The Supreme Court is not expected to make a decision for several
months.
