Blog Post

Grokster To Shut Down; Brand To Survive

Updated: P2P network Grokster, which was implicated in the landmark MGM-vs-Grokster case, is shutting down operations to settle the piracy case.

The settlement, supposed to be made public to a judge later today in LA, bans Grokster from participating directly or indirectly in the theft of copyrighted files and requires the company to stop giving away its software.

A notice on its site says that “Grokster hopes to have a safe and legal service available soon”…

Updated: The AP story says that the Grokster’s brand will survive. A new fee-based version of its software, which will permit only legal downloads, will be available within 60 days from a new parent organization…this may mean that the rumors on its buyout by legal P2P service Mashboxx might be true.

HollywoodReporter: The settlement includes a permanent injunction prohibiting infringement, directly or indirectly, of any of the plaintiffs’ copyrighted works. This includes the immediate cessation of the distribution of the Grokster client application, and the cessation of operation of the Grokster system and software, according to a music industry release.

Updated: The full release from RIAA is here

Related: Grokster in Talks To Be Acquired By Mashboxx; Labels May Drop Claims