Recording Industry Nazis Closing in on the Internet

Grokster Ltd., a leading developer of Internet file-sharing software popular for stealing songs and movies online, agreed Monday to shut down operations to settle a landmark piracy case filed by Hollywood and the music industry, The Associated Press has learned.
The surprise settlement permanently bans Grokster from participating directly or indirectly in the theft of copyrighted files and requires the company to stop giving away its software, according to people familiar with the agreement. They spoke on condition of anonymity because settlement details were to be disclosed to a federal judge later in the day in Los Angeles.
Grokster's Web site was changed to display a message that its file- sharing service was illegal and no longer available. "There are legal services for downloading music and movies," the message said. "This service is not one of them."