The United States Supreme Court in June unanimously ruled that individuals or companies that actively encourage copyright infringement by the users of their service can be held responsible for their users' conduct. Having established a clear principle of law, the Supreme Court returned the case to the federal District Court for the Central District of California for final resolution. Rather than continue the litigation, Grokster will discontinue its current business operations, effective immediately. Grokster has agreed to have the court enter a judgment and permanent injunction against it and in favor of plaintiffs.
Grokster plans to reopen with a legal service.
Wired: Grokster Goes Down