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WASHINGTON (Reuters)—File-sharing service
Grokster
Ltd. will stop distributing software
that allows users to copy songs without permission as part of a settlement
with the recording industry, an industry group said Monday.
The settlement with the Recording Industry Association of America comes
four months after the Supreme Court unanimously ruled that Grokster and
other "peer to peer" networks could be held liable if they induce users
into violating copyright laws.
The decentralized nature of most peer-to-peer software makes it
uncontrollable once it is released over the Internet. However, shutting
off sites where users first download the software may strangle the flow of
new users.
"There are legal services for downloading music and movies. This service
is not one of them," read a notice on Grokster 's Web site.
A Grokster attorney was not immediately available for comment.
Grokster is set to be bought by Mashboxx LLC, a company that aims to
establish an industry-sanctioned peer-to-peer company to compete with
online music stores like Apple Computer Inc.'s iTunes.
The recording industry believes that the rampant online song copying
enabled by Grokster and other peer-to-peer networks is largely responsible
for a five-year slide in CD sales, and
has sued
more than 7,000 individuals for copying songs over the Internet.
Two other popular peer to peer services,
WinMX.com
and eDonkey, shut down in September
after receiving cease-and-desist letters from the RIAA.
"At the end of the day, this is about our ability to invest in new music.
An online marketplace populated by legitimate services allows us to do
just that," RIAA chairman Mitch Bainwol said in a statement.
RIAA members include Vivendi Universal, Warner Music Group Corp., EMI
Group Plc. and Sony BMG Music Entertainment. |
