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A federal appeals court has ruled that file-sharing software, such as Grokster, does not infringe on the copyright of entertainment providers. In its ruling, the court noted that new technology always disrupts established markets but that "time and market forces" often balance the interests of the various players. MGM has appealed to the U.S. Supreme Court, which has agreed to hear the case. (MGM et al v. Grokster, U.S. Court of Appeals for the Ninth Circuit, No. 03-55894, 2004)

A federal appeals court has ruled that file-sharing software, such as Grokster, does not infringe on the copyright of entertainment providers. In its ruling, the court noted that new technology always disrupts established markets but that "time and market forces" often balance the interests of the various players. MGM has appealed to the U.S. Supreme Court, which has agreed to hear the case. (MGM et al v. Grokster, U.S. Court of Appeals for the Ninth Circuit, No. 03-55894, 2004)

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