At first I thought the June 27 decision by the Supreme Court in MGM v. Grokster wasn't as bad as it looked. Companies developing technology that can be used for file-sharing can do so legally as long as it is not their intention to let people use it in illegal ways. At least that's the way I interpreted it... But Larry Lessig (who else...?) explains why it really is a bad decision.
"By making it a process that goes through the courts, you've just increased the legal uncertainty around innovation substantially and created great opportunities to defeat legitimate competition. You've shifted an enormous amount of power to those who oppose new types of competitive technologies. Even if in the end, you as the innovator are right, you still spent your money on lawyers instead of on marketing or a new technology."