studios et al grokster et argued march decided june respondent companies distribute free software allows computer users share electronic files networks called computers communicate directly central servers although networks used share type digital file recipients respondents software mostly used share copyrighted music video files without authorization seeking damages injunction group movie studios copyright holders hereinafter mgm sued respondents users copyright infringements alleging respondents knowingly intentionally distributed software enable users infringe copyrighted works violation copyright act discovery revealed billions files shared across networks month respondents aware users employ software primarily download copyrighted files although decentralized networks reveal files copied respondents sometimes learned infringement directly users questions regarding copyrighted works respondents replied guidance respondents merely passive recipients information infringement record replete evidence began distribute free software clearly voiced objective recipients use software download copyrighted works took active steps encourage infringement notorious service napster sued copyright holders facilitating copyright infringement respondents promoted marketed napster alternatives receive revenue users instead generate income selling advertising space streaming advertising users number users increases advertising opportunities worth evidence either respondent made effort filter copyrighted material users downloads otherwise impede sharing copyrighted files acknowledging respondents users directly infringed mgm copyrights district nonetheless granted respondents summary judgment liability arising distribution software ninth circuit affirmed read sony america universal city studios holding distribution commercial product capable substantial noninfringing uses give rise contributory liability infringement unless distributor actual knowledge specific instances infringement failed act knowledge appeals found respondents software capable substantial noninfringing uses respondents actual knowledge infringement owing software decentralized architecture held liable also held materially contribute users infringement users searched retrieved stored infringing files involvement respondents beyond providing software first place finally held respondents held liable vicarious infringement theory monitor control software use right current ability supervise use independent duty police infringement held one distributes device object promoting use infringe copyright shown clear expression affirmative steps taken foster infringement going beyond mere distribution knowledge action liable resulting acts infringement third parties using device regardless device lawful uses pp tension competing values supporting creativity copyright protection promoting technological innovation limiting infringement liability subject case despite offsetting considerations argument imposing indirect liability powerful given number infringing downloads occur daily using respondents software widely shared product used commit infringement may impossible enforce rights protected work effectively direct infringers practical alternative go device distributor secondary liability theory contributory vicarious infringement one infringes contributorily intentionally inducing encouraging direct infringement infringes vicariously profiting direct infringement declining exercise right stop limit although copyright act expressly render anyone liable another infringement sony secondary liability doctrines emerged common law principles well established law pp sony addressed claim secondary liability infringement arise distribution commercial product copyright holders sued sony manufacturer videocassette recorders claiming contributorily liable infringement occurred vcr owners taped copyrighted programs evidence showed vcr principal use taping program later viewing convenient time found fair noninfringing use moreover evidence sony desired bring taping violation copyright taken active steps increase profits unlawful taping facts conceivable basis liability theory contributory infringement distribution product vcr capable commercially significant noninfringing uses held sony liable theory reflected patent law traditional staple article commerce doctrine distribution component patented device violate patent suitable use ways doctrine absolves equivocal conduct selling item lawful unlawful uses limits liability instances acute fault case ninth circuit misread sony mean product capable substantial lawful use producer held contributorily liable third parties infringing use even actual purpose cause infringing use shown unless distributors specific knowledge infringement time contributed infringement failed act upon information sony displace secondary liability theories pp nothing sony requires courts ignore evidence intent promote infringement evidence exists never meant foreclose rules liability derived common law rule inducement infringement developed early cases different today evidence active steps taken encourage direct infringement advertising infringing use instructing engage infringing use shows affirmative intent product used infringe overcomes law reluctance find liability defendant merely sells commercial product suitable lawful use rule premises liability purposeful culpable expression conduct nothing compromise legitimate commerce discourage innovation lawful promise pp record presented respondents unlawful objective unmistakable classic instance inducement advertisement solicitation broadcasts message designed stimulate others commit violations mgm argues persuasively message shown three features evidence intent particularly notable first respondents showed aiming satisfy known source demand copyright infringement market comprising former napster users respondents efforts supply services former napster users indicate principal exclusive intent bring infringement second neither respondent attempted develop filtering tools mechanisms diminish infringing activity using software ninth circuit treated failure irrelevant respondents lacked independent duty monitor users activity evidence underscores intentional facilitation users infringement third respondents make money selling advertising space directing ads screens computers employing software software used ads sent greater advertising revenue since extent software use determines gain distributors commercial sense enterprise turns use record shows infringing evidence alone justify inference unlawful intent import clear entire record context pp addition intent bring infringement distribution device suitable infringing use inducement theory requires evidence actual infringement recipients device software case evidence infringement gigantic scale substantial evidence supports mgm elements summary judgment respondents error remand reconsideration mgm summary judgment motion order pp vacated remanded souter delivered opinion unanimous ginsburg filed concurring opinion rehnquist kennedy joined breyer filed concurring opinion stevens joined studios et petitioners grokster et al writ certiorari appeals ninth circuit june justice souter delivered opinion question circumstances distributor product capable lawful unlawful use liable acts copyright infringement third parties using product hold one distributes device object promoting use infringe copyright shown clear expression affirmative steps taken foster infringement liable resulting acts infringement third parties respondents grokster streamcast networks defendants trial distribute free software products allow computer users share electronic files networks called users computers communicate directly central servers advantage networks information networks types shows substantial growing popularity need central computer server mediate exchange information files among users communications capacity server may dispensed need costly server storage space eliminated since copies file particularly popular one available many users computers file requests retrievals may faster types networks since file exchanges travel server communications take place computers remain connected network without risk glitch server disable network entirety given benefits security cost efficiency networks employed store distribute electronic files universities government agencies corporations libraries among users networks include individual recipients grokster streamcast software although networks enjoy using software used share type digital file prominently employed networks sharing copyrighted music video files without authorization group copyright holders mgm short including motion picture studios recording companies songwriters music publishers sued grokster streamcast users copyright infringements alleging knowingly intentionally distributed software enable users reproduce distribute copyrighted works violation copyright act et seq ed supp ii mgm sought damages injunction discovery litigation revealed way software worked business aims defendant company predilections users grokster eponymous software employs known fasttrack technology protocol developed others licensed grokster streamcast distributes similar product except software called morpheus relies known gnutella user downloads installs either software possesses protocol send requests files directly computers others using software compatible fasttrack gnutella fasttrack network opened grokster software user request goes computer given indexing capacity software designated supernode computer comparable power capacity collect temporary indexes files available computers users connected supernode indexing computer searches index may communicate search request supernodes file found supernode discloses location computer requesting requesting user download file directly computer located copied file placed designated sharing folder requesting user computer available users download turn along file folder gnutella network made available morpheus process mostly except versions gnutella protocol supernodes versions peer computers using protocol communicate directly user enters search request morpheus software sends request computers connected turn pass request along connected peers search results communicated requesting computer user download desired files directly peers computers description indicates grokster streamcast use servers intercept content search requests mediate file transfers conducted users software central point substance communications passes either although grokster streamcast therefore know particular files copied searches using software show available networks software reaches mgm commissioned statistician conduct systematic search study showed nearly files available download fasttrack system copyrighted grokster streamcast dispute figure raising methodological problems arguing free copying even copyrighted works may authorized rightholders also argue potential noninfringing uses software significant kind even infrequent practice musical performers example gained new audiences distributing copyrighted works free across networks distributors unprotected content used networks disseminate files shakespeare example indeed streamcast given morpheus users opportunity download briefs case though popularity quantified quantification parties anecdotal statistical evidence entered thus far show content available fasttrack gnutella networks say much files actually downloaded users one say often software used obtain copies unprotected material mgm evidence gives reason think vast majority users downloads acts infringement well million copies software question known downloaded billions files shared across fasttrack gnutella networks month probable scope copyright infringement staggering grokster streamcast concede infringement downloads brief respondents uncontested aware users employ software primarily download copyrighted files even decentralized fasttrack gnutella networks fail reveal files copied time time moreover companies learned users infringement directly users sent company questions playing copyrighted movies downloaded companies responded app mgm notified companies million copyrighted files obtained using software grokster streamcast however merely passive recipients information infringing use record replete evidence moment grokster streamcast began distribute free software one clearly voiced objective recipients use download copyrighted works took active steps encourage infringement notorious service napster sued copyright holders facilitation copyright infringement records napster supp nd cal aff part rev part streamcast gave away software program kind known opennap designed compatible napster program open napster users downloading files napster opennap users computers evidence indicates always streamcast intent use opennap network able capture email addresses initial target market promote streamcast morpheus interface app indeed opennap program engineered leverage napster million user base streamcast monitored number users downloading opennap program number music files downloaded also used resulting opennap network distribute copies morpheus software encourage users adopt internal company documents indicate streamcast hoped attract large numbers former napster users company shut order otherwise streamcast planned next napster kit developed streamcast delivered advertisers example contained press articles streamcast potential capture former napster users introduced potential advertisers company similar napster broadcast banner advertisements users software urging adopt opennap internal company executive stated put network place napster pulls plug free service orders shut prior positioned capture flood million users actively looking alternative thus streamcast developed promotional materials market service best napster alternative one proposed advertisement read napster announced soon begin charging fee courts order shut first get around another proposed ad touted streamcast software alternative napster asked hen lights went napster users go ellipsis original streamcast even planned flaunt illegal uses software launched opennap network chief technology officer company averred goal get trouble law get sued best way get new evidence grokster sought capture market former napster users sparser revealing grokster launched opennap system called swaptor inserted digital codes web site computer users using web search engines look napster ree filesharing directed grokster web site download grokster software grokster name apparent derivative napster streamcast executives monitored number songs certain commercial artists available networks internal communication indicates aimed larger number copyrighted songs available networks networks point course attract users mind infringe promotional materials developed showing copyrighted songs examples kinds files available morpheus morpheus fact allowed users search specifically top songs inevitably copyrighted similarly grokster sent users newsletter promoting ability provide particular popular copyrighted materials brief motion picture studio recording company petitioners addition evidence express promotion marketing intent promote business models employed grokster streamcast confirm principal object use software download copyrighted works grokster streamcast receive revenue users obtain software nothing instead companies generate income selling advertising space stream advertising grokster morpheus users employing programs number users program increases advertising opportunities become worth cf app doubtless demand free shakespeare evidence shows substantive volume function free access copyrighted work users seeking top songs example latest release modest mouse certain far numerous seeking free decameron grokster streamcast translated demand dollars finally evidence either company made effort filter copyrighted material users downloads otherwise impede sharing copyrighted files although grokster appears sent warning users infringing content received threatening notice copyright holders never blocked anyone continuing use software share copyrighted files streamcast rejected another company offer help monitor infringement blocked internet protocol addresses entities believed trying engage monitoring networks discovery parties side case summary judgment district limited consideration asserted liability grokster streamcast distributing current versions software leaving aside whether either liable damages arising past versions software past activities supp cd cal district held used grokster morpheus software download copyrighted media files directly infringed mgm copyrights conclusion contested appeal nonetheless granted summary judgment favor grokster streamcast liability arising distribution current versions software distributing software gave rise liability view use provide distributors actual knowledge specific acts infringement case cv svw pjwx cd june app appeals affirmed analysis defendant liable contributory infringer knowledge direct infringement materially contributed infringement read sony america universal city studios holding distribution commercial product capable substantial noninfringing uses give rise contributory liability infringement unless distributor actual knowledge specific instances infringement failed act knowledge fact software capable substantial noninfringing uses ninth circuit view meant grokster streamcast liable actual knowledge owing decentralized architecture software also held grokster streamcast materially contribute users infringement users searched retrieved stored infringing files involvement defendants beyond providing software first place ninth circuit also considered whether grokster streamcast liable theory vicarious infringement held liability defendants monitor control use software right current ability supervise use independent duty police infringement granted certiorari ii mgm many amici fault appeals holding upsetting sound balance respective values supporting creative pursuits copyright protection promoting innovation new communication technologies limiting incidence liability copyright infringement artistic protection favored technological innovation may discouraged administration copyright law exercise managing see sony universal city studios supra see generally ginsburg copyright control new technologies dissemination colum rev lichtman landes indirect liability copyright infringement economic perspective harv tech tension two values subject case claim digital distribution copyrighted material threatens copyright holders never every copy identical original copying easy many people especially young use software download copyrighted works breadth software use may well draw public directly debate copyright policy peters brace memorial lecture copyright enters public domain copyright soc address register copyrights indications ease copying songs movies using software like grokster napster fostering disdain copyright protection wu code law rev case presented us fears said offset different concern imposing liability infringers distributors software based potential unlawful use limit development beneficial technologies see lemley reese reducing digital copyright infringement without restricting innovation stan rev brief innovation scholars economists amici curiae brief emerging technology companies amici curiae brief intel corporation amicus curiae argument imposing indirect liability case however powerful one given number infringing downloads occur every day using streamcast grokster software widely shared service product used commit infringement may impossible enforce rights protected work effectively direct infringers practical alternative go distributor copying device secondary liability theory contributory vicarious infringement see aimster copyright litigation one infringes contributorily intentionally inducing encouraging direct infringement see gershwin pub columbia artists management infringes vicariously profiting direct infringement declining exercise right stop limit shapiro bernstein green although copyright act expressly render anyone liable infringement committed another sony universal city studios gershwin pub columbia artists management supra nimmer nimmer copyright despite currency principles secondary liability dealt secondary copyright infringement one recent case mgm tailored principal claim opinion look earlier holding order sony universal city studios supra addressed claim secondary liability infringement arise distribution commercial product product novel time know today videocassette recorder vcr copyright holders sued sony manufacturer claiming contributorily liable infringement occurred vcr owners taped copyrighted programs supplied means used infringe constructive knowledge infringement occur trial merits evidence showed principal use vcr taping program later viewing convenient time found fair infringing use evidence sony expressed object bringing taping violation copyright taken active steps increase profits unlawful taping although sony advertisements urged consumers buy vcr favorite recorded programs blackmun dissenting neither uses necessarily infringing facts evidence stated indicated intent promote infringing uses conceivable basis imposing liability theory contributory infringement arising sale vcrs consumers knowledge use infringe vcr capable commercially significant noninfringing uses held manufacturer faulted solely basis distribution analysis reflected patent law traditional staple article commerce doctrine codified distribution component patented device violate patent suitable use ways aro mfg convertible top replacement noting codification cases doctrine devised identify instances may presumed distribution article commerce distributor intended article used infringe another patent may justly held liable infringement one makes sells articles adapted used patented combination presumed intend natural consequences acts presumed intend shall used combination patent new york scaffolding whitney see also james heekin baker canda michigan malleable iron electric ohio brass red jacket mfg davis holly vergennes machine cc renwick pond cas cc sdny sum article good nothing else infringement canda michigan malleable iron supra legitimate public interest unlicensed availability injustice presuming imputing intent infringe see henry dick overruled grounds motion picture patents universal film mfg conversely doctrine absolves equivocal conduct selling item substantial lawful well unlawful uses limits liability instances acute fault mere understanding one products misused leaves breathing room innovation vigorous commerce see sony universal city studios supra dawson chemical rohm haas henry dick supra parties many amici case think key resolving sony rule particular means product capable commercially significant noninfringing uses sony universal city studios supra mgm advances argument granting summary judgment grokster streamcast current activities gave much weight value innovative technology little copyrights infringed users software given works available one networks shown copyrighted assuming remaining noninfringing use mgm says qualify substantial quantify sony extent holding product used principally infringement qualify see brief motion picture studio recording company petitioners mentioned grokster streamcast reply citing evidence software used reproduce public domain works point copyright holders actually encourage copying even infringement principal practice software today argue noninfringing uses significant grow agree mgm appeals misapplied sony read limiting secondary liability quite beyond circumstances case applied sony barred secondary liability based presuming imputing intent cause infringement solely design distribution product capable substantial lawful use distributor knows fact used infringement ninth circuit read sony limitation mean whenever product capable substantial lawful use producer never held contributorily liable third parties infringing use read rule broad even actual purpose cause infringing use shown evidence independent design distribution product unless distributors specific knowledge infringement time contributed infringement failed act upon information internal quotation marks alterations omitted circuit found streamcast grokster software capable substantial lawful use concluded basis reading sony neither company held liable since showing software without central server afforded knowledge specific unlawful uses view sony however error converting case one liability resting imputed intent one liability theory sony displace theories secondary liability find error grant summary judgment companies mgm inducement claim revisit sony mgm requests add quantified description point balance protection commerce liability rests solely distribution knowledge unlawful use occur enough note ninth circuit judgment rested erroneous understanding sony leave consideration sony rule day may required sony rule limits imputing culpable intent matter law characteristics uses distributed product nothing sony requires courts ignore evidence intent evidence case never meant foreclose rules liability derived common sony universal city studios vicarious liability imposed sony case must rest fact sold equipment constructive knowledge potential infringement thus evidence goes beyond product characteristics knowledge may put infringing uses shows statements actions directed promoting infringement sony rule preclude liability classic case direct evidence unlawful purpose occurs one induces commission infringement another entic es persuad es another infringe black law dictionary ed advertising thus common law copyright patent defendant expected invoked infringing use advertisement liable infringement principles recognized every part law kalem harper brothers copyright infringement see also henry dick contributory liability patent infringement may found good conspicuous use one coƶperate infringement sale user invoked advertisement infringing use electric kelsey electric specialty relying advertisements displays find defendant willingness aid persons attempts may disposed make towards patent infringement rumford chemical works hecker cas cc demonstrations infringing activity along avowals infringing purpose use made supported liability patent infringement rule inducement infringement developed early cases different evidence active steps taken encourage direct infringement oak industries zenith electronics supp nd advertising infringing use instructing engage infringing use show affirmative intent product used infringe showing infringement encouraged overcomes law reluctance find liability defendant merely sells commercial product suitable lawful use see water technologies calco ca fed liability inducement one actively knowingly aid abet another direct infringement emphasis omitted fromberg thornhill demonstrations sales staff infringing uses supported liability inducement haworth herman miller uspq wd evidence defendant demonstrate recommend ed infringing configurations product support inducement liability sims mack trucks supp ed finding inducement use depicted defendant promotional film brochures infringes patent overruled grounds cf keeton dobbs keeton owen prosser keeton law torts ed definite tendency impose greater responsibility upon defendant whose conduct intended harm morally wrong reasons sony took doctrine patent law model copyright rule inducement rule sensible one copyright adopt holding one distributes device object promoting use infringe copyright shown clear expression affirmative steps taken foster infringement liable resulting acts infringement third parties course mindful need keep trenching regular commerce discouraging development technologies lawful unlawful potential accordingly sony find intentional inducement despite knowledge vcr manufacturer device used infringe mere knowledge infringing potential actual infringing uses enough subject distributor liability ordinary acts incident product distribution offering customers technical support product updates support liability inducement rule instead premises liability purposeful culpable expression conduct thus nothing compromise legitimate commerce discourage innovation lawful promise iii apparent question treating mgm evidence sufficient withstand summary judgment theory inducement goes need mgm part adduce evidence streamcast grokster communicated inducing message software users classic instance inducement advertisement solicitation broadcasts message designed stimulate others commit violations mgm claims message shown undisputed streamcast beamed onto computer screens users programs ads urging adoption opennap program designed name implied invite custom patrons napster attack courts facilitating massive infringement accepted streamcast opennap program offered software perform services factfinder conclude readily understood napster market ability download copyrighted music files grokster distributed electronic newsletter containing links articles promoting software ability access popular copyrighted music anyone whose napster free searches turned link grokster understood grokster offering ability napster people probably used napster infringing downloads also understanding anyone offered grokster suggestively named swaptor software version opennap companies communicated clear message responding affirmatively requests help locating playing copyrighted materials streamcast case course evidence described supplemented unequivocal indications unlawful purpose internal communications advertising designs aimed napster users lights went napster users go app ellipsis original whether messages communicated point record function message theory inducement prove defendant statements unlawful purpose disqualifies claiming protection incidentally point actual violators likely found among hear read message see supra proving message sent preeminent exclusive way showing active steps taken purpose bringing infringing acts showing infringing acts took place using device distributed summary judgment record replete evidence grokster streamcast unlike manufacturer distributor sony acted purpose cause copyright violations use software suitable illegal use see supra three features evidence intent particularly notable first company showed aiming satisfy known source demand copyright infringement market comprising former napster users streamcast internal documents made constant reference napster initially distributed morpheus software opennap program compatible napster advertised opennap program napster users morpheus software functions napster except used distribute kinds files including copyrighted movies software programs grokster name apparently derived napster initially offered opennap program software function likewise comparable napster attempted divert queries napster onto web site grokster streamcast efforts supply services former napster users deprived mechanism copy distribute overwhelmingly infringing files indicate principal exclusive intent part bring infringement second evidence unlawful objective given added significance mgm showing neither company attempted develop filtering tools mechanisms diminish infringing activity using software ninth circuit treated defendants failure develop tools irrelevant lacked independent duty monitor users activity think evidence underscores grokster streamcast intentional facilitation users third complement direct evidence unlawful objective useful recall streamcast grokster make money selling advertising space directing ads screens computers employing software record shows software used ads sent greater advertising revenue becomes since extent software use determines gain distributors commercial sense enterprise turns use record shows evidence alone justify inference unlawful intent viewed context entire record import clear unlawful objective unmistakable addition intent bring infringement distribution device suitable infringing use inducement theory course requires evidence actual infringement recipients device software case account facts indicates evidence infringement gigantic scale serious issue adequacy mgm showing point order survive companies summary judgment requests although exact calculation infringing use basis claim damages subject dispute question summary judgment evidence least adequate entitle mgm go forward claims damages equitable relief sum case significantly different sony reliance case rule favor streamcast grokster error sony dealt claim liability based solely distributing product alternative lawful unlawful uses knowledge users follow unlawful course case struck balance interests protection innovation holding product capability substantial lawful employment bar imputation fault consequent secondary liability unlawful acts others mgm evidence case obviously addresses different basis liability distributing product open alternative uses evidence distributors words deeds going beyond distribution shows purpose cause profit acts copyright infringement liability inducing infringement ultimately found basis presuming imputing fault inferring patently illegal objective statements actions showing objective substantial evidence mgm favor elements inducement summary judgment favor grokster streamcast error remand reconsideration mgm motion summary judgment order judgment appeals vacated case remanded proceedings consistent opinion ordered studios et petitioners grokster et al writ certiorari appeals ninth circuit june justice ginsburg chief justice justice kennedy join concurring concur decision vacates full judgment appeals ninth circuit ante write separately clarify conclude appeals misperceived hence misapplied holding sony america universal city studios least genuine issue material fact fed rule civ proc liability grokster streamcast actively inducing copyright infringement also alternatively based distribution software products contributory copyright infringement neither score summary judgment grokster streamcast warranted bottom however labeled question case whether grokster streamcast liable direct infringing acts others liability jurisprudence may predicated actively encouraging inducing infringement specific acts opinion develops distributing product distributees use infringe copyrights product capable substantial commercially significant noninfringing uses sony see also nimmer nimmer nimmer copyright two categories overlap capture different culpable behavior long coexisting codified patent law compare active inducement liability contributory liability distribution product suitable substantial noninfringing use sony considered sony liability selling betamax video cassette recorder enlightened full trial record drawing analogy staple article commerce doctrine patent law sony observed sale article adapted patent infringing use suffice make seller contributory infringer article also adapted lawful uses quoting henry dick overruled grounds motion picture patents universal film mfg staple article commerce doctrine applied copyright stated must strike balance copyright holder legitimate demand effective merely symbolic protection statutory monopoly rights others freely engage substantially unrelated areas commerce sony accordingly held sale copying equipment like sale articles commerce constitute contributory infringement product widely used legitimate unobjectionable purposes indeed need merely capable substantial noninfringing uses ibid thus resolve sony case explained determine whether betamax capable commercially significant noninfringing uses ibid answer question considered whether significant number potential uses betamax noninfringing ibid homed one potential use private noncommercial television programs home recording broadcast tv program later personal viewing noninfringing concluded cases trial testimony showed authorized copyright holder others qualified legitimate fair use purchasers used betamax principally engage use plainly satisfie standard thus need sony give precise content question much actual potential use commercially significant development left later days cases ninth circuit went astray endeavor explain granted summary judgment grokster streamcast charge contributory liability based distribution software products relying earlier opinion records napster appeals held substantial noninfringing use shown copyright owner required show defendant reasonable knowledge specific infringing files careful examination record concluded indicates genuine issue material fact noninfringing use ibid appeals pointed band wilco made one albums available free downloading recording artists may authorized free distribution music internet public domain literary works films available grokster streamcast software ibid although acknowledged mgm assertion vast majority software use copyright infringement concluded grokster streamcast proffered evidence met sony requirement product need capable substantial noninfringing uses case differs markedly sony cf peters brace memorial lecture copyright enters public domain copyright soc grokster panel reading sony broadest given finding fair use little beyond anecdotal evidence noninfringing uses finding grokster streamcast software products capable substantial noninfringing uses district appeals appear relied largely declarations submitted defendants declarations include assertions hearsay number copyright owners authorize distribution works internet public domain material available networks including accessed grokster streamcast software supp cd cal app district declared undisputed substantial noninfringing uses defendants software thus obviating need proceedings supp conclusion appears rest almost entirely collection declarations submitted grokster streamcast ibid review declarations reveals mostly anecdotal evidence sometimes obtained authorized copyrighted works public domain works available online shared networks general statements benefits technology see decl janis ian app technologies offer musicians alternative channel promotion distribution decl gregory newby numerous authorized public domain project gutenberg ebooks made available morpheus kazaa gnutella grokster similar software products decl aram sinnreich file sharing seems net positive impact music sales decl john busher estimate acoustica generates sales per month result distribution trialware software gnutella fasttrack networks decl patricia hoekman search morpheus president bush speeches found several video recordings searches declaration independence bible found various documents declarant able download copy declaration decl sean mayers existing open decentralized networks offer content owners distinct business advantages alternate online distribution compare decl brewster kahle download prelinger films entitled redistribute files archive welcomes redistribution community users deposition brewster kahle testifying knowledge person downloading prelinger film using morpheus grokster kazaa compare also decl richard prelinger welcome redistribution prelinger films individuals using software products like morpheus kazaa grokster deposition richard prelinger understanding grokster understanding grokster know whether user grokster software made available share prelinger film see also deposition aram sinnreich testimony band wilco based press industry news groups declarations support summary judgment face evidence proffered mgm overwhelming use grokster streamcast software even absolute number noninfringing files copied using grokster streamcast software large follow products therefore put substantial noninfringing uses thus immune liability number noninfringing copies may reflective dwarfed huge total volume files shared district appeals sharply distinguish uses grokster streamcast software products case uses technology generally case sum record case developed evidence grokster streamcast products time overwhelmingly used infringe ante app infringement overwhelming source revenue products ante supp fairly appraised evidence insufficient demonstrate beyond genuine debate reasonable prospect substantial commercially significant noninfringing uses likely develop time record district ruled dispositively contributory infringement charge granting summary judgment grokster remand case resolved summary judgment favor mgm based grokster streamcast actively inducing infringement appeals emphasize reconsider fuller record interpretation sony product distribution holding studios et petitioners grokster et al writ certiorari appeals ninth circuit june justice breyer justice stevens justice join concurring agree distributor technology may liable infringing activities third parties actively seeks advance infringement ante agree light holding today need revisit sony america universal city studios ante members however take sony question whether grokster product capable significant noninfringing uses ante ginsburg concurring quoting sony supra answer question stating appeals wrong granted summary judgment issue grokster favor ante write explain disagree matter opinion sony record evidence described analyzed many briefs us together convince appeals conclusion adequate legal support begin sony standard sony considered potential copyright liability company illegally copy protected material rather sold machine video cassette recorder vcr used buyer use machine noninfringing purposes recording later viewing sometimes called sony uncopyrighted television programs copyrighted programs copyright holder permission buyer use machine infringing purposes well building libraries taped copyrighted programs buyer might use machine record copyrighted programs circumstances legal status act recording uncertain copying may may constituted fair use sony knew many customers use vcrs engage unauthorized copying blackmun dissenting fact said insufficient make sony infringer ultimately held sony liable customers acts infringement reaching conclusion recognized need law fixing secondary copyright liability strike balance copyright holder legitimate demand effective merely symbolic protection statutory monopoly rights others freely engage substantially unrelated areas commerce pointed patent law staple article commerce doctrine distributor product liable patent infringement customers unless product unsuited commercial noninfringing use dawson chemical rohm haas wrote sale copying equipment like sale articles commerce constitute contributory infringement product widely used legitimate unobjectionable purposes indeed need merely capable substantial noninfringing uses sony emphasis added ultimately characterized legal question particular case whether sony vcr capable commercially significant noninfringing uses declining give precise content terms ibid emphasis added applied standard survey commissioned district prepared respondents showing roughly vcr recordings type namely religious educational sports programming owned producers distributors testifying sony behalf object see brief respondent universal studios et al pp see also sony supra sony vcr use record sports programs representatives sports leagues object much higher percentage vcr users one point taped authorized program addition taping unauthorized programs plaintiffs large class content providers case owned small percentage total available unauthorized programming see ante ginsburg concurring taping actually done sony customers around sort referred authorized found magnitude authorized programming significant also noted significant potential future authorized copying supported conclusion referencing trial testimony professional sports league officials religious broadcasting representative also discussed los angeles educational station affiliated public broadcasting service made many programs available home taping rogers neighborhood widely watched children program basis testimony similar evidence determined producers kind authorized duplication copyrighted programs significant enough numbers create substantial market noninfringing use vcr emphasis added using key word substantial indicated circumstances alone constituted sufficient basis rejecting imposition secondary liability see sony demonstrated significant likelihood substantial numbers copyright holders object emphasis added nonetheless buttressed conclusion finding separately event unauthorized shifting often constituted infringement fair use measured sony underlying evidence analysis evidence us shows grokster passes sony test whether company product capable substantial commercially significant noninfringing uses one thing petitioners hereinafter mgm expert declared current files available grokster infringing likely infringing see app decl ingram olkin cf ante opinion leaves number files near apparently noninfringing figure similar authorized uses vcr faced sony sony witnesses explained nature noninfringing files grokster network without detailed quantification files include authorized copies music artists wilco janis ian pearl jam dave matthews john mayer others see app decl aram sinnreich wilco lesson already adopted artists still signed major labels decl patricia hoekman locating numerous audio recordings authorized swapping decl daniel rung describing grokster partnership company hosts music thousands independent artists free electronic books works various online publishers including project gutenberg see decl gregory newby numerous authorized public domain project gutenberg ebooks made available grokster project gutenberg welcomes widespread sharing using software products since assist us meeting objectives decl sinnreich public domain authorized software winzip decl hoekman decl john busher licensed music videos television movie segments distributed via digital video packaging permission copyright holder decl sean mayers nature lawfully swapped files reasonable infer quantities current lawful use roughly approximate issue sony least mgm offered evidence sufficient survive summary judgment plausibly demonstrate significant quantitative difference see ante opinion see also brief motion picture studio recording company petitioners referring least total use services see ante ginsburg concurring sure quantitative terms uses account small percentage total number uses grokster product true sony characterized relatively limited authorized copying market substantial made clear well sony amount material presently available lawful copying actually copied significant see certainly true case importantly sony also used word capable asking whether product capable substantial noninfringing uses language analysis suggest figure like fixed time might well prove insufficient figure serves adequate foundation reasonable prospect expanded legitimate uses time see ibid noting significant potential future authorized copying language also indicates appropriateness looking potential future uses product determine capability record reveals significant future market noninfringing uses software software permits exchange sort digital file whether file contain copyrighted material uncopyrighted information stored swappable form seems likely inference lawful sharing become increasingly prevalent see app decl brewster kahle internet archive welcomes redistribution authorized films community users decl busher sales figures per month networks increase future acoustica trialware widely distributed networks decl sinnreich happening legitimate noninfringing uses coming include swapping research information initial purpose many networks public domain films owned prelinger archive historical recordings digital educational materials stored internet archive digital photos ourpictures example starting service shareware freeware linux certain windows software secure licensed music movie files intent mediaworks example protects licensed content sent across networks news broadcasts past present bbc creative archive lets users rip mix share bbc audio video files including podcasts may distributed software manner free open content works collected creative commons one search creative commons material streamcast see brief distributed computing industry association amicus curiae merges new dynamism public domain chi rev find nothing record suggests course events continue flow naturally consequence character software taken together foreseeable development internet information technology cf ante opinion discussing significant benefits technology may noninfringing uses develop software rental industry unmentioned sony developed vcr foreseeable development uses taken together estimated noninfringing material sufficient meet sony standard sony considered record following trial facts asserted mgm summary judgment filings lead believe outcome trial different lower courts reached conclusion course grokster may want develop noninfringing uses sony standard seeks protect groksters world event may well liable today holding development technology generally grokster desires respect beside point ii real question believe whether record evidence satisfies sony interpreted standard set forth case courts appeals considered matter one proposed interpreting sony strictly case product might failed standard aimster copyright litigation defendant failed show service ever used purpose infringe copyrights emphasis added see matthew bender west pub require noninfringing uses predominant merely found predominant therefore provided analysis sony boundaries see ante ginsburg concurring see also records napster discussing sony communication network productions vault quaid software cf dynacore holdings philips ca fed see also doe gte person may liable contributory infringer product service sells slight legal use instead real question whether modify sony standard mgm requests interpret sony strictly believe justice ginsburg approach practice compare ante concurring insufficient evidence case present lawful uses reasonable prospect substantial noninfringing uses develop time sony basing conclusion likely existence substantial market authorized copying upon general declarations survey data common sense said sony sought strike balance copyright holder legitimate demand effective merely symbolic protection statutory monopoly rights others freely engage substantially unrelated areas commerce thus determine whether modification strict interpretation sony needed ask whether mgm shown sony incorrectly balanced copyright interests particular sony interpret worked protect new technology modification strict interpretation significantly weaken protection new necessary benefits outweigh weakening first question easiest answer sony rule interpret provided entrepreneurs needed assurance shielded copyright liability bring valuable new technologies market sony rule clear clarity allows develop new products capable substantial noninfringing uses know ex ante distribution product yield massive monetary liability time helps deter distributing products real function specifically intended copyright infringement deterrence holding today reinforces adding weapon copyright holder legal arsenal sony rule strongly technology protecting rule deliberately makes difficult courts find secondary liability new technology issue establishes law impose copyright liability upon distributors technologies engage unauthorized copying unless product question used almost exclusively infringe copyrights unless actively induce infringements today describe sony thereby recognizes copyright laws intended discourage control emergence new technologies including perhaps especially help disseminate information ideas broadly efficiently thus sony rule shelters vcrs typewriters tape recorders photocopiers computers cassette players compact disc burners digital video recorders players internet search engines software sony rule shelter descramblers even one theoretically use descrambler noninfringing way compare communication supra developer liable advertising television signal descrambler vault supra primary use infringing substantial noninfringing use sony rule forward looking confine scope static snapshot product current uses thereby threatening technologies undeveloped future markets rather vcr example makes clear product market evolve dramatically time sony referring capacity substantial noninfringing uses recognizes fact sony word capable refers plausible simply theoretical likelihood uses come pass fact anchors sony practical reality cf aimster supra sony rule mindful limitations facing judges matters technology concerned judges specialized technical ability answer questions present future technological feasibilility commercial viability technology professionals engineers venture capitalists may radically disagree answers may differ depending upon whether one focuses upon time product development time distribution consider example question whether devices added grokster software filter infringing files mgm tells us easy enough several amici produce sell filtering technology see brief motion picture studio petitioners brief audible magic et al amicus curiae grokster says easy efficient solution event several apparently disinterested computer science professors agree see brief respondents brief computer science professors amicus curiae account judge credit sony says judge necessarily decide given nature sony rule surprising last years relatively contributory infringement suits based product distribution theory brought technology providers small handful federal appellate cases perhaps fewer two dozen district cases last years found nothing briefs record shows sony failed achieve objective second difficult question whether modified sony rule strict interpretation significantly weaken law ability protect new technology justice ginsburg approach require defendants produce considerably concrete evidence presented earn sony shelter heavier evidentiary demand especially dramatic balancing modifications mgm government seek believe undercut protection sony offers require defendants provide example detailed evidence say business plans profitability estimates projected technological modifications forth doubtless make life easier copyrightholder plaintiffs simultaneously increase legal uncertainty surrounds creation development new technology capable put infringing uses inventors entrepreneurs garage dorm room corporate lab boardroom fear many cases endure costly extensive trials create produce distribute sort information technology used copyright infringement often left guessing upon later review product uses decide necessarily rough estimates amounted sufficient evidence way predict courts weigh respective values infringing noninfringing uses determine efficiency advisability technological changes assess product potential future markets price wrong guess even involves effort assess technical commercial viability large statutory damages less per infringed work additional risk uncertainty mean consequent additional chill technological development third question whether positive copyright impact outweigh loss find difficult three doubt intrusive sony test generally provide greater revenue security copyright holders harder conclude gains copyright swings exceed losses technology roundabouts one thing law disfavors equating two different kinds gain loss rather leans favor protecting technology sony makes clear producer technology permits unlawful copying engage unlawful copying fact makes attachment copyright liability creation production distribution technology exceptional thing see courts must circumspect construing copyright laws preclude distribution new technologies moreover sony law time fact imposes serious burden upon copyright holders like mgm show need change current rules game including strict interpretation test see brief motion picture studio petitioners sony protect products primary principal use infringing event evidence available view make sufficiently strong case change say doubt basic need protect copyrighted material infringement constitution stresses vital role copyright plays advancing useful arts art cl one disputes reward author artist serves induce release public products creative genius paramount pictures deliberate unlawful copying less unlawful taking property theft see criminal copyright infringement copyright infringement predicate act racketeer influenced corrupt organizations act money laundering includes receipt proceeds copyright infringement highly general principles tell us balance interests issue sony whether sony standard needs modification certain key points information lacking unmodified sony lead significant diminution amount quality creative work produced since copyright basic objective creation revenue objectives means end underlying copyright question see twentieth century music aiken creative work encouraged rewarded private motivation must ultimately serve cause promoting broad public availability literature music arts answer far clear unauthorized copying likely diminishes industry revenue though clear much compare liebowitz downloads annihilate record industry evidence far june http internet materials visited june available clerk case file file sharing caused decline music sales press release informa media group report citing music internet ed estimating total lost sales music industry range billion annually http oberholzer strumpf effect file sharing record sales empirical analysis mar academic study concluding file sharing statistically significant effect purchases average album mcguire study threat music sales mar http discussing mixed evidence extent related production actually resultingly declined remains uncertain though good reason believe decline substantial see madden pew internet american life project artists musicians internet http nearly musicians believe file sharing minor threat threat creative industries benkler sharing nicely shareable goods emergence sharing modality economic production yale much actual flow revenue artists performances sources stable even assuming complete displacement cd market distribution silly think music cultural form without human society existed cease world illegal file swapping importantly copyright holders least potentially tools available reduce piracy abate whatever threat poses creative production today opinion makes clear copyright holder may proceed technology provider provable specific intent infringe kind describes present ante opinion services like grokster may well liable inducement theory addition copyright holder always legal authority bring traditional infringement suit one wrongfully copies indeed since september recording industry association america riaa filed thousands suits people sharing copyrighted material walker new movement hits universities get legal music washington post mar suits provided copyright holders damages served teaching tool making clear much file sharing done without permission unlawful apparently real significant deterrent effect see rainie madden hess mudd pew internet project comscore media metrix data memo state music downloading online pp apr number people downloading files fell peak roughly million roughly million year following first suits current downloaders report downloading fewer files suits madden rainie pew internet project data memo music video downloading moves beyond march number downloaders inched continues rest well peak level groennings note costs benefits recording industry litigation individuals berkeley technology see evangelista downloading music movie files popular ever san francisco chronicle mar referring continuing tide rampant copyright infringement noting riaa says believes campaign lawsuits public education least contained problem copyright holders may develop new technological devices help curb unlawful infringement new technology called digital digital fingerprint ing encode within file information author copyright scope date fingerprints help expose infringers riaa reveals method madness wired news http besek laws copyright report kernochan center law media arts colum arts technology encryption potentially restrict users ability make digital copy see borland tripping rippers http see brief bridgemar services amicus curiae arguing service providers easily block unlawful swapping time advances technology discouraged unlawful copying making lawful copying downloading music copyright holder permission cheaper easier achieve several services sell music less per song example charges consequently many consumers initially attracted convenience flexibility services like grokster migrating lawful paid services services copying permission enjoy little cost even greater convenience flexibility without engaging unlawful swapping see wu code law rev noting prevalence technological problems unpaid swapping sites dean tilts toward legitimacy wired news http madden rainie march data memo supra percentage current downloaders used paid services rose year number using free services fell thus lawful music downloading services charge customer downloading music pay royalties copyright holder continued grow produce substantial revenue see brief internet law faculty amici curiae bruno digital entertainment piracy fight shows encouraging signs mar available lexis news library billboard file consumers worldwide purchased times number digital tracks purchased global digital music market million expected double press release informa media report supra global digital revenues likely exceed billion ashton international federation phonographic industry predicts downloads hit mainstream music week legal music sites portable players helping transform digital music market everyday consumer experience advanced types networks also started develop drawing part lessons grokster finally sony recognized legislative option remains available courts less well suited congress task accommodat ing fully varied permutations competing interests inevitably implicated new technology sony see audio home recording act stat adding ch protecting innovation art preventing piracy hearing senate comm judiciary sess july know whether developments similar alternatives prove sufficient reasonably certain given existence strong demonstrated need modifying sony interpreting sony standard strictly yet shown fact along added risks modification strict interpretation impose upon technological innovation leads conclusion maintain sony reading standard read read requires affirmance ninth circuit determination relevant aspects sony question reasons disagree justice ginsburg agree join opinion footnotes networks disadvantages well searches networks may reach uncover available files search requests may transmitted every computer network may redundant copies popular files creator software incentive minimize storage bandwidth consumption costs borne every user network relevant difficult control content files available retrieval behavior users studios recording companies songwriters music publishers filed separate suits defendants consolidated district subsequent versions morpheus released record made case apparently rely gnutella technology called neonet developments us evidence grokster streamcast previously operated supernodes compiled indexes files available nodes connected evidence pertaining previous versions defendants software us affect conclusions event comparison evidence introduced plaintiffs records napster showed files available napster filesharing network copyrighted grokster founder contends answering often read fully app record makes clear streamcast developed promotional materials whether released public even advertisements released public show encouragement infringe illuminate streamcast purposes mutual exclusivity values overstated however one hand technological innovators including writing filesharing computer programs may wish effective copyright protections work see wu code law rev streamcast urged associate get technology written intellectual property protected app hand widespread distribution creative works improved technologies may enable synthesis new works generate audiences emerging artists see eldred ashcroft stevens dissenting van houweling distributive values copyright texas rev brief sovereign artists et al amici curiae stated sony america universal city studios lines direct infringement contributory infringement vicarious liability clearly drawn easoned analysis sony plaintiffs contributory infringement claim necessarily entails consideration arguments case law may also forwarded labels indeed parties rely upon arguments authority support respective positions issue contributory infringement quoting universal city studios sony supp cd cal present case mgm argued vicarious liability theory allows imposition liability defendant profits directly infringement right ability supervise direct infringer even defendant initially lacks knowledge infringement see shapiro bernstein green dreamland ball room shapiro bernstein resolve case based inducement theory need analyze separately mgm vicarious liability theory patent act exemption liability distribute staple article commerce extend induce patent infringement inducement codified patent law ibid course absence evidence intent unable find contributory infringement liability merely based failure take affirmative steps prevent infringement device otherwise capable substantial noninfringing uses holding tread close sony safe harbor grokster streamcast contend theory liability based conduct properly rulings trial appellate courts dealt present versions software past acts allegedly encouraged infringement assisted known acts infringement brief respondents see also contention misapprehends basis potential liability encouraging particular consumer infringe copyright give rise secondary liability infringement results inducement liability goes beyond distribution product give rise liability evidence shows distributor intended encouraged product used infringe case culpable act merely encouragement infringement also distribution tool intended infringing use see kalem harper brothers communication network productions records abdallah supp cd cal footnotes justice breyer finds sony america universal city studios clear rule permitting contributory liability copyright infringement based distribution product product used almost exclusively infringe copyrights post cf sony recognizing copyright holder legitimate demand effective merely symbolic protection sony read contains clear test courts appeals unanimously recognized justice breyer clear rule compare records napster vidence actual knowledge specific acts infringement required hold computer system operator liable contributory copyright infringement aimster copyright litigation hen supplier offering product service noninfringing well infringing uses estimate respective magnitudes uses necessary finding contributory infringement balancing costs benefits necessary case substantial noninfringing uses present prospective see also matthew bender west pub applied sony test prevent copyright holders leveraging copyrights original work control distribution products might used incidentally infringement substantial noninfringing uses rationale applies products substantial predominant noninfringing uses tools research members agree moreover appeals misapplied sony least extent read decision limit secondary liability category quite beyond circumstances case applied ante grokster streamcast appeals view entitled summary judgment unless mgm show software companies knowledge specific acts infringement failed act knowledge standard held mgm meet justice breyer finds support summary judgment motley collection declarations survey conducted expert retained mgm post survey identified files available grokster copyrighted works owned controlled plaintiffs files works likely copyrighted app remaining files enough information form reasonable conclusions either files even consisted whether infringing app even assuming justice breyer sony absolved sony contributory liability solely basis use betamax authorized post summary judgment inevitably appropriate sony stressed plaintiffs owned well copyrighted television programming found based trial testimony representatives four major sports leagues individuals authorized consent copyrighted broadcasts similar percentage program copying authorized plaintiffs allegedly control copyrights material exchanged grokster streamcast software app district appear relied comparable testimony authorized copying copyright holders district conclusion laintiffs dispute defendants software used used substantial noninfringing purposes supp cd cal accord say least dubious courts mgm continuously disputed conclusion brief motion picture studio recording company petitioners brief mgm etc app