After the Supreme Courts decision in MGM v Grokster, the liability of the various software companies was sent back to the lower courts to decide – using the tests set up by the Supreme Court who held that “ one who distributes a device with the object of promoting its use to infringe copyright … is liable for the resulting acts of infringement by third parties ”. Streamcast Inc, the creators of the Morpheus P2P file-sharing software, have now been found guilty by a federal judge of encouraging millions of users to exchange songs illegally. The company faces potential damages of $150,000 per track shared:,1,1852347.story?coll=la-headlines-business /