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Clampdown on file-sharing industry

Publish date: 10 August 2005
Issue Number: 1093
Diary: Legalbrief eLaw
Category: General

The head of the US Senate Commerce Committee has warned online file-sharing companies that if they do not crack down on piracy and pornography available via their networks, Congress will force them to act.

The Washington Post reports that Senator Ted Stevens said many senators are urging him to move against file-sharing firms, despite a recent Supreme Court decision that parties on all sides of the issue said eliminated the need for congressional action anytime soon. File-sharing vendors such as Grokster, Kazaa and Morpheus enable hundreds of millions of consumers around the world to trade songs, videos, software programs and other digital files with each other directly. Many people use the systems to bypass retail outlets, which the entertainment industry says is costing it billions of dollars. Last month, the Supreme Court ruled in a case involving Grokster Ltd. that file-sharing firms could be held liable for the actions of their customers if the vendors actively encourage their users to steal. The entertainment industry, which earlier this year failed to get Congress to pass a liability law for inducement, hailed the decision and said it saw no need to return to Congress. Full Washington Post report

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