UK software companies should be aware that they may still be held liable for the illegal use of their software by internet or other users even if the company has no control over what users do with the product once it is downloaded. So warns a UK anti-fraud lawyer.
Steven Philippsohn says: "The Supreme Court of the United States has made a unanimous ruling in favour of MGM Studios in the case MGM Studios vs. Grokster. The court held that developers of software violated US federal copyright law when they provided computer users with the means to share music files on the internet without the permission of the copyright holder.
"The case was brought by 28 movie and music makers who claimed that illegal file sharing was damaging profits. The key issue was whether Grokster and StreamCast, which operated the peer-to-peer file-sharing networks Grokster and Morpheus, should be held liable for contributing to, or even inducing, the illegal acts of people who use their software. The evidence suggested that more than 90 per cent of the copyrighted works on these networks were not authorized to be shared."
"This case also demonstrates that when considering litigation, claimants should look at all possible targets including third parties who may have negligently or otherwise assisted the wrongdoer."
