Facts: Grokster, Ltd., and StreamCast Networks,
Inc. distributed free software that allowed computer users to share
electronic files through peer-to-peer networks. The Grokster and
StreamCast software could be used for legal purposes, such as
sharing non-copyrighted files. Nonetheless, nearly 90 percent of
the files available for download through Grokster or StreamCast
were copyrighted. Billions of files were shared each month. The two
companies encouraged illegal use of their software.

A group of copyright holders sued Grokster and StreamCast
alleging that they were violating the copyright law. Both parties
moved for summary judgment. The trial court held for Grokster and
StreamCast; the appeals court affirmed. The Supreme Court granted
certiorari.

Issue: Were Grokster and StreamCast violating
copyright law?

Holding: Judgment for Grokster and StreamCast
reversed. Anyone who distributes a device for infringing copyrights
is liable if:

the distributor intends to promote the infringement of copyright
law, and

there is actual infringement by recipients o

Is that what Grokster and the other defendants did? Is intent to
violate the law enough to create liability?