EFF has won its Grokster case in the Ninth Circuit Court of Appeals -- this is the case that establishes that if you make truly decentralized P2P software -- like Gnutella -- you can't be held liable for any copyright infringement that takes place on their networks. This is the "Betamax principle," from the famous Supreme Court case that established that Sony wasn't responsible for any infringement that its customers undertook with their VCRs.
The Studios' argument was that people who make P2P software should be obliged to build it in such a way as to make it easy to police -- i.e. not on Gnutella-like lines -- an idea so sickeningly dumb that it's a tremendous relief that the court refused to buy it.
Awesome, awesome news. It's reassuring to hear that the courts can see reason down in Crazy Yankee -land. Hopefully this will deflate the INDUCE act a little as well.
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