The Case of MGM v. Grokster
"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.)