From http://abcnews.go.com/Technology/wireStory?id=1290252
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WASHINGTON Nov 7, 2005 — Grokster Ltd., which lost a Supreme Court fight over file-sharing software popular for stealing songs and movies online, agreed Monday to shut down and pay $50 million to settle piracy complaints by Hollywood and the music industry.

The surprise settlement permanently bans Grokster from participating, directly or indirectly, in the theft of copyrighted files and requires the company to stop giving away its software, according to court papers.

Executives indicated plans to launch a legal, fee-based "Grokster 3G" service before year's end under a new parent company, believed to be Mashboxx of Virginia Beach, Va. Mashboxx, headed in part by former Grokster president Wayne Rosso, already has signed a licensing agreement with Sony BMG Music Entertainment.

"It is time for a new beginning," Grokster said in a statement issued from its corporate headquarters in the West Indies.

Grokster's Web site was changed Monday to say its existing file-sharing service was illegal and no longer available. "There are legal services for downloading music and movies," the message said. "This service is not one of them."

In Los Angeles on Monday, U.S. District Court Judge Stephen Wilson reviewed the settlement but did not comment on it. A lawyer for Grokster, Michael Page, said he believed the company would have prevailed at trial but could not afford a protracted legal battle.

The head of the Recording Industry Association of America, Mitch Bainwol, described the settlement as "a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere."

It was unclear whether Grokster can afford to pay the $50 million in damages required under the agreement. The head of the Motion Picture Association of America, Dan Glickman, said the entertainment industry will demand full payment unless Grokster satisfies all its obligations under the settlement.

Grokster's brand will survive. The new fee-based version of its software will be available within 60 days, according to one executive involved in the deal. This executive spoke only on condition of anonymity because the sale of Grokster's assets is pending.

"a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere."

Crack smoker, obviously.

no gdZiemann, just more RIAA spin

Once again, it's not about who's right or wrong...it's about who has enough money to outlast the other in court battles. The MPAA/RIAA win out in that contest pretty much every time.

It is likely that when Grokster opens it's doors in the next 60 days, Grokster will license the RIAA's record and movie labels that enable filesharing of music and movies.

Therefore, I think that Grokster should provide an open market that allows consumers to upload movies, music, and eventually, video games over the internet, and then everyone else will buy the game from that site.

And furthermore, I hope that editing tools come out, allowing me to edit and copy copy protected files, whether it's from online downloads or extracted from copy protected CDs.

"And furthermore, I hope that editing tools come out, allowing me to edit and copy copy protected files, whether it's from online downloads or extracted from copy protected CDs."

Hope springs eternal from the human heart.

I'm not holding my breath, plus I currently have other options available to assure my rights of use in this increasingly skewed digital world we find ourselves in.

Well, there is one thing no DRM or copy protection can or ever will be able to prevent the use of, and that's a mixing board. Luckily, I work at a radio station and we have those in abundance. Though I have also noticed that opening and resaving files in Adobe Audition also seems to get by copy protection. The tools are already here!

I'd also like to note that I don't own any CDs with DRM, so i've not yet had to do this, though it might be fun to test these methods if I did.

Since it was Mitch Bainwol making the "chapter ending on a high note" comment, we all know what his word is worth. He only opens his mouth to change feet. And when a foot isn't in his mouth, he is doing nothing but LYING.

"It is likely that when Grokster opens it's doors in the next 60 days, Grokster will license the RIAA's record and movie labels that enable filesharing of music and movies."

Don't hold your breath. What you'll more likely find is licensing that enables sales of "illegal" music and movies.

Plenty left.

So they shutdown grokster but the grokster applications and open source clones are still moving arround and working hapily! so what did the RIAA achieve? NOTHING!

"a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere."

The hight note is that they are going down each day a little more!

I think we should extort back the money they extorted to 3000 inocents NOW! before they dissapear!

"It was unclear whether Grokster can afford to pay the $50 million in damages required under the agreement."

Sounds to me like the RIAA set the damages a little high so they can dictate prices for the new Grokster. Anyone want to bet they set prices at $2.99 a song? So it'll come down to "Gallon of gas or the new Santana song."

And they wonder why iTunes is doing so well.

"a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere."

Yup, now the techies can start work on the next generation p2p that the RIAA can't track, which music fans will ultimately download allowing consumers to choose how and when they pay for their music.

And don't get me started on that whole 3G thing. Sounds like they're taking a note from NetZero - which, btw, should be made to change their name since NetZero is from the days when they offered free access - with the whole thing. I can see the ads now "Download music as if you were on broadband! Get the full 56K out of your dial-up modem!"

Either that or they'll use the Napster "Own nothing, have everything" model.

And here we have yet another example of the United States forcing its laws on those living in other countries. So really, Grokster has been banned from offering its software in the US. Maybe it's a good thing then, that they went under. Seems no one at corporate was smart enough to realize the same thing I just mentioned.

Looks to me the RIAA's agenda is going according to plan.

Folks, at this point I am about ready to say that your typical kazaa/grokster type p2p should be completely avoided. The RIAA actually gets the bulk of the benefit from the existence of p2p's easy file transfers ...allows them to get "built up" to the point where they are broadly used by potential consumers ...then the RIAA ends up owning/controlling them lock-stock and barrel (such as with Napster nowadays)

If this is the fate of the traditional p2p apps, what good are they?

Get your music from TRUELY legitimate souces. Dmusic and other similar independent music sites are your BEST bet (...OR even directly from the artist's own website!)

To hell with p2p. I coulda been a very cool concept, but in reality, it's worthless to anyone but the RIAA/MPAA.

We don't NEED p2p if that's the way it's gonna be.