Grokster and StreamCast Networks won today in the 9th U.S. Circuit Court of Appeals which ruled that the companies do not have any liability for users who illegally trade songs, movies and other copyrighted material.

The Judges made notice of the fact that these companies do not have centralized servers like Napster had before it was shut down. Entertainment and copyright lawyers hoped to overturn the 2 companies' previous court victory in April 2003.

Judge Sidney R. Thomas writes: "The technology has numerous other uses, significantly reducing the distribution costs of public domain and permissively shared art and speech, as well as reducing the centralized control of that distribution."