In a judicial blow to the entertainment industry, a federal appeals court ruled that makers of two leading file-sharing programs aren't legally liable for the songs, movies, and other copyrighted works their users swap online.
The decision is likely to force the industry to take the more costly and less popular route of going directly after file-swappers.
Jack Valenti, president of the Motion Picture Association of America Inc., said his group is reviewing its next step following Thursday's ruling by the 9th U.S. Circuit Court of Appeals in favor of Grokster Ltd. and StreamCast Networks Inc.
Mitch Bainwol, chairman of the Recording Industry Association of America, said the decision begs the question of whether "digital music will be enjoyed in a fashion that supports the creative process or one that robs it of its future."
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