Judge Rules Against StreamCast In Copyright-Infringement Case

A federal judge has ruled that the MORPHEUS P2P file-sharing software allows for the unlawful distribution of copyrighted music, movies and other works, reports REUTERS. In a case dated back to 2001, U.S. District Judge STEPHEN WILSON ruled yesterday (9/27) that STREAMCAST NETWORKS INC., the distributor of MORPHEUS, had contributed to "massive copyright infringement because it had constructed a business model that relied on massive copyright infringement and did not attempt to block the trading of copyrighted materials."

This court has spoken clearly, powerfully and persuasively to the principle that businesses based on theft will be held accountable

STREAMCAST, based in WOODLAND HILLS, CA, is considering an appeal and maintained that it did not encourage users to infringe on copyrighted works and never intended to do so.

"The court's ruling is disappointing. STREAMCAST will consider its options, including appealing the decision. MORPHEUS is an innovative, multiuse program with legal uses that are overwhelming. In the meantime, MORPHEUS will continue to discourage users from infringing upon copyrighted works," the company said in a statement.

Following the legal victory, RIAA Chairman & CEO MITCH BAINWOL stated: "This is an especially gratifying marker in the continuing transformation of the online music marketplace. This court has spoken clearly, powerfully and persuasively to the principle that businesses based on theft will be held accountable. No single court ruling solves piracy or can make up for several challenging years for the music community, but there's no doubt that this particularly important decision means that the rules of the road for online music are better today than they were yesterday. When decisions like this one make clear that businesses based on theft won't be accepted, the winners are the music industry, who can invest more in bringing great music to the public, and fans who will have access to a wider array of exciting legal options."

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