The United States Ninth Circuit Court of Appeals rejected a RIAA appeal of last year's court decision that the software is legal.  The Court also sagely told the entertainment industry to bugger off:

"The Copyright Owners urge a re-examination of the law in the light of what they believe to be proper public policy, expanding exponentially the reach of the doctrines of contributory and vicarious copyright infringement," the Court wrote. "Not only would such a renovation conflict with binding precedent, it would be unwise. Doubtless, taking that step would satisfy the Copyright Owners' immediate economic aims. However, it would also alter general copyright law in profound ways with unknown ultimate consequences outside the present context."

"Further, as we have observed, we live in a quicksilver technological environment with courts ill-suited to fix the flow of internet innovation. The introduction of new technology is always disruptive to old markets, and particularly to those copyright owners whose works are sold through well-established distribution mechanisms. Yet, history has shown that time and market forces often provide equilibrium in balancing interests, whether the new technology be a player piano, a copier, a tape recorder, a video recorder, a personal computer, a karaoke machine, or an MP3 player. Thus, it is prudent for courts to exercise caution before restructuring liability theories for the purpose of addressing specific market abuses, despite their apparent present magnitude."

COURT RULING
http://www.ca9.uscourts.gov/ca9/newopinions.nsf/E9CE41F2E90CC8D788256EF400822372/$file/0355894.pdf?openelement

NEWS
http://news.com.com/Judges+rule+file-sharing+software+legal/2100-1032_3-5316570.html
http://www.latimes.com/business/la-081904filesharing_lat,1,5092441.story?coll=la-home-headlines
http://www.theregister.co.uk/2004/08/19/p2p_lives_on/
http://www.linuxelectrons.com/article.php/2004081915014848
http://arstechnica.com/news/posts/20040819-4117.html

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