The highest US court said it would hear the appeal from the music and entertainment industries, which up to now have been thwarted in their efforts to shut down so-called Peer-to-Peer (P2P) networks such as Grokster, StreamCast and Kazaa.
A ruling is expected next year in a case closely-watched for its implications on emerging technology and efforts to crack down on Internet piracy of music and films.
Two federal courts have already ruled that the P2P networks are not liable for copyright violations by users, citing a precedent from the 1984 "Betamax" case that cleared the way for videocassette recorders to be used without makers being responsible for copyright violations.
The Electronic Frontier Foundation (EFF), which represents the P2P firms, said the case gives the Supreme Court the opportunity to set a precedent allowing technological innovation.
"The copyright law principles set out in the Sony Betamax case have served innovators, copyright industries and the public well for 20 years," said Fred von Lohmann of EFF.
"We at EFF look forward to the Supreme Court reaffirming the applicability of Betamax in the twenty-first century."
The courts up to now have accepted the argument dating back to the 1980s case involving Sony Betamax recorders that a technology cannot be shut down, like Sony's videocassette recorders, if some users make illegal copies of copyrighted works.
The recording and motion picture industries argued that holding the firms responsible is needed to crack down on rampant piracy over the Internet.
"We are pleased by today's Supreme Court decision" to hear the case, said Dan Glickman, president of the Motion Picture Association of America.
"By taking this case the court has the ability to address the legal liability of companies that abuse and profit from technologies whose primary use is to illegally redistribute copyrighted materials."
Mitch Bainwol, chairman and chief executive of the Recording Industry Association of America (RIAA), also welcomed the Supreme Court review.
"Bad actors who have hijacked a legitimate technology for illegitimate means must be held accountable," he said in a statement.
"Without strong rules of the road there will never be a level playing field for the multitude of legitimate online music services trying to do the right thing."
© 2004 Agence France-Presse
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