April 26, 2003
Newsflash: Grokster Wins

Is this the betamax case for digital files? As previously mentioned here, a Federal Judge in LA ruled in favor of Streamcast and Grokster, stating they are not liable for the actions of thier users. Andy Lack, the new chief of Sony Music, had an interesting take: "I'm relieved on some level because the judge affirmed everything we've been saying, but for one point, which may distract people from the real meaning of the decision," he told the NYT. In other words, he feels the decision affirms the music industry's right to go after individuals...but they plan to appeal, of course. Early buzz is that this will hasten the shift to rational digital distribution models for media companies. Let's hope so.

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