Page "MGM Studios, Inc. v. Grokster, Ltd." Paragraph 13

The decision has been hailed by several SCOTUS correspondents as striking a fair balance between the need to respect the copyrights of artists, and the benefits of allowing and promoting technological innovation.

Indeed, the decision does seem to leave sufficient leeway for developers in creating new products, as it establishes guidelines to compliance with existing copyright law, and holds liable the distributors rather than developers for copyright infringement.

Conversely, others have criticized the new test for its apparent vagueness, contending that it permits financially powerful organizations such as the RIAA and MPAA to effectively hinder development of new technology by active pursuit of litigation against the developers and distributors.