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Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd.

United States District Court for the Central District of California

243 F. Supp. 2d 1073 (2003)

Facts

Niklas Zennström (defendant) and Janus Friis (defendant) developed FastTrack networking technology, which was used to power three file-sharing networks: Grokster, Ltd. (defendant), Streamcast Networks, Inc. (defendant), and Kazaa BV (defendant). The FastTrack technology was owned by Zennström’s company, Joltid, Ltd. Kazaa BV, which was launched by Friis, transferred ownership of key assets, including the Kazaa.com domain and Kazaa desktop software, to a newly formed company, Sharman Networks, Ltd. (Sharman) (defendant). Joltid then granted Sharman a license to use and sublicense FastTrack. Zennström, Friis, and their business enterprises were all based outside the United States, though large numbers of Americans downloaded the Kazaa application. Files shared on the system included copyrighted content. Metro-Goldwyn-Mayer Studios, Inc. (MGM) (plaintiff) brought a copyright-infringement suit in the United States District Court for the Central District of California. In attempting to establish that Sharman engaged in contacts with California, MGM asserted that approximately two million Californians had downloaded Kazaa. Sharman moved to dismiss, arguing that the court lacked personal jurisdiction.

Rule of Law

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Issue

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Holding and Reasoning (Wilson, J.)

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