File-Sharing Sites Found Not Liable for Infringement

Affirming a lower court decision, a federal appellate court ruled Thursday that the distributors of software used by millions of people to exchange music files over the Internet cannot be held liable for aiding copyright infringement. The decision gives distributors of peer-to-peer file-sharing software a significant victory in their long battle with the record and movie industries, legal experts said. The plaintiffs in the case, the music and movie industries, have argued that file-sharing networks are forums for mass copyright piracy. The software of both companies, which can be downloaded over the Internet, allows users to share music, video and other digital files that they store on their computers. Ninety percent of the files shared, according to music and movie industry executives, include copyrighted material. Read More.