The Legal Landscape After MGM v. Grokster, Part 2: Understanding the Impact on Innovation.

The article comments on the effect of the inducement ruling of the U.S. Supreme Court in Grokster Ltd. The Grokster inducement rule only seeks to penalize those entrepreneurs who demonstrate a desire to have their devices put to infringing uses through affirmative acts that encourage infringement. While Grokster created a new form of copyright liability and positioned it as an exception to the Sony Corp. safe harbor, it positioned that standard as applicable in limited circumstances. One could conclude that the rule created in Grokster is a rather sage approach to the reality of peer-to-peer environments.