Grokster Shuts Down

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The P2P file sharing company Grokster will be shutting down according to settlement announced in Buiness Week.

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."