Grouper Networks Inc. released an updated version of its free multimedia publishing application on Wednesday, adding expanded capabilities for creating, editing and sharing video files and other content.

Dubbed Grouper 2.0, the latest iteration of the company's Web-based multimedia publishing application promises a range of new features for working with video, still images and audio clips.

Specifically, the company said that it has added the ability to download files directly off of digital video cameras onto its site where they can view, edit and publish the content, and then forward their films to other people using its peer-to-peer network.

Mill Valley, Calif.-based Grouper's video file sharing service is based on what the company identifies as a hybrid technology that combines online streaming capabilities with a distributed back end infrastructure.

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The approach allows Grouper users to download their streaming video clips to many different types of devices beyond just PCs, including portable media players such as Apple Inc.'s video iPod and Sony Corp.'s PSP.

Using the free service, consumers can store an unlimited number of personal videos on Grouper's Web site and download them using the new application, regardless of length or file size.

Grouper is one of a growing number of companies looking to create legal file-sharing alternatives for consumers that offer many of the same distribution benefits as their illegal counterparts without generating concerns over copyright infringement.

In June, the U.S. Supreme Court unanimously ruled that file-sharing networks could be held liable if they induce users into violating copyright laws.

To keep its customers from using its service to share copyrighted materials in an unlawful manner, the company's multimedia application prevents the distribution of protected music or video files and limits the number of people with whom its users can share their content.

Using the service, Grouper users can also publish their videos on social networking sites such as MySpace and Friendster, and find other content being shared on its network using search terms and RSS feeds.

In addition to introducing its updated publishing tools, Grouper announced that it has secured financing from T-Ventures, a subsidiary of German communications giant Deutsche Telekom, to bring its video sharing service to Europe.