I would say the argument went a little better for Grokster than I would have expected it to. Not to the point where I’d actually predict victory for them, but to my mind at least, the questions Grokster got were not as difficult as those MGM got.
The big issue that the Justices were wrestling with, it seemed to me, is what the standard ought to be for deciding whether services like Grokster can be secondarily liable for their users’ copyright infringement. The Justices did not sound especially satisfied with either MGM’s or the government’s answers to this question.