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January 21, 2005 9:09 AM PST

Supreme Court sets date for file-sharing case

The U.S. Supreme Court has set a date for oral arguments in a closely watched case that could decide whether file-sharing networks are legal to operate or not. The case will be heard on March 29, the justices said Thursday.

In 2001, companies represented by the Motion Picture Association of America and the Recording Industry Association of America sued Grokster and Morpheus parent StreamCast Networks alleging copyright violations but have lost in the lower courts. A decision from the Supreme Court is expected by early July 2005.

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