KaZaA, P2PUnited Applaud Grokster-Morpheus Non-Infringement Ruling

Calling it a sign that it’s time for the film and music industries to stop litigating and start partnering with peer-to-peer technology, the parent of popular P2P network KaZaA praised last week’s federal appellate ruling that two of its rivals – Grokster and Morpheus – couldn’t be held liable for copyright infringement because their programs don’t run central servers bringing members to the material they want.

And P2P United, a growing lobby for peer-to-peer technology, called the appellate ruling a major victory for American consumers and the American economy.

“Legislation is not the answer,” said Sharman Networks chief executive Nikki Hemming. ”Commercialization of P2P is." Hemming was echoed by Sharman’s U.S.-based lead counsel, Rod Dorman, but with one advisory: P2P users must use their networks “responsibly.”

Dorman also said last week’s ruling, by a three-judge panel of the Ninth U.S. Circuit Court of Appeals, wouldn’t necessarily help Sharman in similar litigation it faces in Australia as well as in the U.S. But he added that he thought the ruling would likely be taken into account by the Australian courts.

“[T]he reasoning of the Ninth Circuit decision is powerful, sound and persuasive,” he said. “In addition, and more importantly, we are a global community and there should be consistent doctrines governing the application of copyright law to the Internet worldwide. I expect that the Australian court will consider the reasoning of the Ninth Circuit during its deliberations."

P2P United executive director Adam Eisgrau said the panel’s “complete and utter rejection” of Hollywood’s and “Big Music’s” arguments against P2P software proved P2P software has numerous non-infringement uses as well as valuable commercial use.

"While the court acknowledged that only Congress can make the kind of radical change in copyright law that the copyright cartel wanted in this case, it also clearly indicated that having the power to make change does not mean that change should be made,” Eisgrau said. “P2P United respectfully urges every Member of Congress to heed the court's strong advice that such radical change would be ‘unwise’.”