In MGM v.Grokster the U.S.Supreme Court in 2005 unanimously held that

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The U.S. Supreme Court in the MGM v. Grokster case held that Grokster could be held liable for consumers' infringing downloads, as they actively encouraged and facilitated copyright infringement. The court rejected the argument that the technology was capable of substantial noninfringing uses and ruled that the intent of the distributors was relevant in determining liability. The decision clarified the legal framework for copyright infringement liability in the digital age. Neither B, C, nor D are accurate summaries of the court's decision.

In MGM VGrokster the U