Judge Delays Ruling in File-Swapping Case

A federal judge on Monday weighed arguments, but postponed ruling in a contentious hearing over the fate of the popular Morpheus and Grokster file-swapping networks.

Both sides in the copyright infringement lawsuit -- filed against the networks by Hollywood studios, major record labels and music publishers -- asked U.S. District Judge Stephen Wilson to rule in the case that has emerged as a key legal fight in the post-Napster world.

Attorneys for movie studios and record labels asked that the companies behind Grokster and Morpheus be found guilty of massive copyright infringement. Representatives for Grokster Ltd. and Streamcast Networks Inc., which distributes the Morpheus file-swapping software, asked that the case be dismissed so they can grow their businesses.

The networks let users find and copy music and movies stored on each other’s computers, often in violation of copyright laws.

“I have to go and rethink” the case, Wilson told a packed courtroom, after listening to more than two hours of arguments.

Wilson proposed submitting a “speaking order” and requesting comments from both sides about specific questions within the order. The judge did not say when, or even if, he would issue such a document.

“The fact that the judge is weighing the matter is very encouraging for us,” Streamcast Chief Executive Steve Griffin said. “It’s clearly a complicated case.”

It’s also complicated by another question before Wilson -- whether Sharman Networks Ltd., operator of the popular online file-sharing network Kazaa, should be included in the case.

In October 2001 the entertainment industry sued the Dutch software company that was distributing the Kazaa software and licensing the technology to Streamcast and Grokster. The company later said it was broke and licensed the technology to Vanuatu-based Sharman, which also took over the Kazaa Web site and brand name.

The labels, studios and music publishers moved in July to add Sharman and LEF Interactive, an Australian management company led by Sharman Chief Executive Nicola Hemming, to the lawsuit. But Sharman and LEF asked Wilson to dismiss on the grounds that U.S. courts lack jurisdiction.