Grokster closes down to settle copyright case

Internet file-sharing site Grokster has shut down operations to settle a copyright violation lawsuit filed against it by the recording industry.

Visitors to the Grokster website on Monday were greeted with a statement denouncing the copying of copyrighted music rather than the previous invitation to download software that allows them to search the computers of other users for music they wish to copy.

“There are legal services for downloading music and movies,” the message said. “This service is not one of them.”

The move came following a landmark Supreme Court ruling in June that allowed Grokster to be found liable for copyright infringements by its users. The ruling sent the case back to the lower courts for consideration.

Under the terms of the settlement, Grokster has agreed to stop distributing its software or operating any components of its network, and has agreed to a permanent injunction against infringing on any of the music or movie copyright in the future.

“This settlement brings to a close an incredibly important chapter in the history of digital music,” said RIAA chairman Mitch Bainwol in a statement. “This is a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere. At the end of the day, this is about our ability to invest in new music. An online marketplace populated by legitimate services allows us to do just that.” (dpa)