http://story.news.yahoo.com/news?tm...49&e=3&u=/nm/20040819/bs_nm/media_grokster_dc
LOS ANGELES (Reuters) - A federal appeals court on Thursday delivered a stinging blow to the anti-piracy efforts of major movie studios and music companies, ruling that several online file-sharing software companies are not liable for copyright infringement.
The three-judge panel of the U.S. 9th Circuit Court of Appeals found in favor of Grokster Ltd., among others, and held the relief from piracy sought by the movie and music studios would amount to a renovation of the existing copyright standards, which the court called "unwise."
In a nod to the rapid changes in the online media industry over the last few years, the judges further said history has proven that with new technology, markets have a way of correcting themselves.
"Thus, it is prudent for courts to exercise caution before restructuring liability theories for the purpose of addressing specific market abuses, despite their apparent present magnitude," the judges wrote in their opinion