Streamcast not liable under the circumstances that

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StreamCast not liable under the circumstances that “the software was capable of substantial noninfringing uses,” and both companies “did not materially contribute to their users’ infringement because it was the users themselves.” The decision was determined based on precedent of the Sony v. Universal City case regarding VCR’s. Issue: Was the Sony case misapplied? Are Grokster Ltd., and StreamCast Networks liable based on evidence of intent? Were both companies liable under the inducement theory? Holding: The Supreme court re-examined the Sony case and found that it did not seek to evaluate evidence of intent. Thus, the court found that “one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties.” Unprotected by the Sony case, both Grokster and StreamCast were found liable.
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