Definition - What does Grokster mean?
In 2005, the United States Supreme Court rules against Grokster in a suit filed by MGM Studios, a ruling that essentially made Grokster's brand of file sharing illegal. Grokster shut down operations as a result.
Techopedia explains Grokster
During the course of the hearing, it was discovered that most of the files transmitted through Grokster were indeed violating copyright protection rules. Although Grokster maintained that it was not responsible for any restricted file sharing or downloads and that no files passed through the organization's systems, the company was found liable for inducing copyright infringement.
However, copyright protectionists had not won the battle, as P2P file sharing continues to grow.