Grokster Networks has ceded to a unanimous Supreme Court decision made four months ago that using its software to make copies of copyrighted files is illegal and has halted all downloads of its P2P client from their website under a settlement with entertainment companies. Grokster3G, a "safe and legal" P2P application by Grokster, is currently in development though no details have been announced. However, as Grokster does not use a central server, those who have downloaded Grokster software in the past can continue to use the network to search for and copy the files of other users at the risk of being sued.

With Monday's settlement, "I don't think, practically speaking, we're expecting to see much impact in the peer-to-peer landscape," said Eric Garland, BigChampagne's chief executive. "People moved on from tools like Grokster some time ago."

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