Another free MP3 downloading service goes dark. Grokster has agreed to cease operations as the result of a settlement with federal authorities. The AP reports Grokster, Ltd. will also pay $50 million to settle allegations of intellectual property theft.
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.Certainly, this keeps new users from acquiring Grokster software, but existing users are not affected, apparently. People who already have the software will be able to continue using it to share files, assuming they are not bothered by the illegality of the practice and assuming they don't have to rely on the Grokster site as an interface.
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."
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."
As for Grokster's bluster about introducing a new legal, fee-based service... well, good luck with that. I doubt iTunes is sweating much.
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