Michael Weiss, CEO of StreamCast Networks, developer of Morpheus, said that Streamcast is talking with the entertainment industry to settle their lawsuit.

The Supreme Court in May 2005 created a new theory of active inducement for technology providers. The Court said there was sufficient evidence of possible guilt for defendants Streamcast and Grokster to be sued. The case was returned to Federal court for trial. Grokster has settled with the recording industry. A settlement by Streamcast would end the case. There would be no definitive trial on the matter.

Weiss said "We can take a look at another four years of legal battles and spending millions of dollars on both sides, [but] is that where I want to spend the next four years of my life? It's better to focus the company's energy on creating new technologies."