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Grouper, Groups, and File Sharing

Here’s the L.A. Times story on Grouper, a file sharing technology that caps the size of file sharing “groups” at 30 members. The story quotes various content industry lawyers and representatives to the usual (uninformed) effect — i.e., there is no such thing as lawful unlicensed copying (even read Section 107?); there is no friends-and-family exception to copyright law (ever read the definition of “public” performance and display in Section 101)?