
In their appeal the P2P companies relied on the Betamax legal doctrine. In 1984 the Supreme Court ruled that Sony was not liable for copyright infringements taking place using their VCRs. The same doctrine applies to CD- and DVD-recordable drives and media, recording software etc.
The entertainment industry has the option to appeal to U.S. Supreme Court.
"We are carefully reviewing our next steps," said Jack Valenti, president of the MPAA.
Source: SingOnSanDiego.com