MPAA will appeal Grokster decision


Motion Picture Association of America president Jack Valenti said Friday that
the association will appeal a California District Court decision that two online
companies were not liable for producing the software to allow copying and
streaming music and movies on the Internet.

Valenti took as a victory, however, the judge's ruling that users would be
liable for making and distributing illegal copies.

"The court made it clear that the activity of users of file-copying networks
to distribute copyrighted music, motion pictures and television programs is
illegal -- it's not `sharing,' it's stealing," Valenti said.

The file-sharing services -- Grokster Ltd. and StreamCast Networks Inc. --
distribute software to share files over so-called peer-to-peer networks.

The only place where the court surprised him, Valenti said, was that the
companies themselves were not liable. "We believe that is not so," he added,
"and it will be overturned on appeal."