Streamcast sure is keeping its lawyers busy these days. Just after going after Skype and its founders for charges dating all the way back to the early days of Kazaa, it appears that the company has now decided to go to court with the recording industry, rather than settle with it. This is actually a much bigger deal than it may seem. When the Supreme Court ruled on a tiny aspect of the case between Streamcast and the entertainment industry, it only said that file sharing companies could face liability if they somehow promoted copyright infringement (the so called "induce" test). As we noted at the time, if these firms could show they were not specifically promoting the use of their software to violate copyrights, they could be perfectly fine under the law. Of course, many people missed the specifics on that, and simply ran with the theme that the entertainment industry "won." The entertainment industry, of course, did nothing to discourage that viewpoint, and even started pretending the Supreme Court flat out said that file sharing was illegal -- something they didn't even come close to saying. Still, many of the file sharing platforms saw the writing on the wall and shut down or settled. Streamcast even went down that route, and said they were close to settling until one of the RIAA law firms began "seeking revenge, retaliation and retribution," rather than just coming up with an agreeable settlement. So, now, Streamcast says they've dropped settlement talks completely. Even more interesting is that they clearly recognize just how little the Supreme Court ruling really changed, as they say it doesn't make a difference. They plan on making the case that they didn't "induce" anyone to infringe on copyrights.
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