Streamcast (Morpheus) case follows Grokster

Streamcast, maker of popular P2P application Morpheus, lost in court against the RIAA. The judge followed the precedent from the MGM v Grokster decision last spring - a company that induces infringement may be liable even if they have no central server. The majority of Streamcast's brethren have either settled with the RIAA and folded up, or else are converting to legit services. Limewire is the exception - they are counter-suing the RIAA for antitrust violations because they claim they tried to go legit but could not get the same deal as iMesh.