Liability for Heinous Behavior

Lefsetz observes that "Conventional wisdom is the content companies won, P2P lost. The Grokster decision was heralded as a great day in the fight against file-trading and the establishment of legitimate online services.

The only problem is this is not what Justice Souter’s opinion said.

Justice Souter questioned whether file-trading was even hurting the labels. He restated the essence of Sony Betamax. The judgment didn’t turn on broad intellectual property issues, rather the decision took the form of castigation and liability for heinous behavior."

Below please find from Souter’s decision the actual behavior of Grokster and Streamcast:

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