In a rather surprising decision, considering the previous history of such cases, Morpheus/Grokster and Streamcast won against the RIAA in the district court. Basically, the « substantial non-infringing uses » of the Betamax case were let out for the first time in many years. The control criterias used against Napster were not applicable to decentralized systems, hence no contributory infringement.
The DMCA already bypasses the Betamax decision, but this case did not involve circunvention devices. Note that the judge did not seem particulary sympathetic to the defendants in the decision:
The Court is not blind to the possibility that Defendants may have intentionally structured their businesses to avoid secondary
liability for copyright infringement, while benefitting financially from the illicit draw of their wares. [...], additional legislative guidance may be well-counseled.
I’d except the decision to stand but not the law…