Question

What company went out of business after losing a 2005 u.s. supreme court case that ruled promoting illegal copying of intellectual property, in this case music, is an infringement on copyright?

Answer 1

Grokster, LTD went out of business as a result of the decision in MGM Studios, Inc. v. Grokster, Ltd. While the court maintained that the nature of the File Sharing platform closely resembles the concept of recording movies or shows on a VHS tape (decided in Sony Corp. v. Universal City Studios) it was decided that Grokster could be held liable for the resulting acts of infringement by third parties because of their "clear expression or other affirmative steps taken to foster infringement."