"The Supreme Court Finally Steps Into The Fray Between Online File Swappers And The Major Movie And Recording Studios.
On March 29, the Supreme Court will hear arguments in Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., a closely-watched case involving peer-to-peer file sharing - a process in which people send or receive music or movies over the Internet.
The most famous peer-to-peer file sharing site was, of course, Napster. However, after a number of rounds of litigation, Napster has now been transformed into a site that, for a monthly payment, allows only legal downloads of music (that is, downloads of copyright music for which a license has been granted). Other sites, however, continue to offer peer-to-peer file sharing software despite the fact that one of its uses is to pirate copyrighted music and movies - and Grokster is one such site.
The Court's ultimate decision in MGM v. Grokster is very likely to be one of the landmarks of this term."
From: http://practice.findlaw.com/feature-0305.html (The article continues to give a simple, but good, overview of the case.)