Not exactly video game related, but our readers tend to also be interested in file-sharing and online music distribution cases, so...

LimeWire was recently found liable for copyright infringement of its users by a Federal court on Tuesday, May 11. As reported by WIRED, LimeWire is potentially on the hook for massive damages, which could cripple or bankrupt the company. Not to mention the court, in its order, found Lime Group's CEO personally liable as well:

VII. Conclusion
For the reasons stated above, the Court (1) DENIES Defendants’ motions to exclude
evidence (D.E. 138, 140, 153, 165, 168);39 (2) GRANTS Plaintiffs’ motion for summary judgment on the claim against LW of inducement of copyright infringement, and DENIES LW’s motion for summary judgment on the claim (D.E. 75, 108); (3) DENIES the parties’ crossmotions for summary judgment on the claim against LW of contributory copyright infringement (D.E. 75, 108); (4) DENIES LW’s motion for summary judgment on the claim of vicarious copyright infringement (D.E. 108); (5) GRANTS Plaintiffs’ motion for summary judgment on their claims against LW of common law copyright infringement and unfair competition, and DENIES Defendants’ motion for summary judgment on these claims (D.E. 75, 101, 108); (6)
GRANTS Plaintiffs’ motions for summary judgment on the claims against Gorton and Lime Group for inducement of copyright infringement, common law infringement, and unfair competition, and DENIES Defendants’ motions for summary judgment on these claims (D.E. 75, 101); (7) DENIES the parties’ motions for summary judgment on the claims against Gorton and Lime Group for contributory copyright infringement and vicarious copyright infringement (D.E. 75, 101); and (8) DENIES Gorton’s and Lime Wire FLP’s motion for summary judgment on the fraudulent conveyance and unjust enrichment claims (D.E. 101).

The case is Arista Records et al. v. Lime Group LLC et al., S.D.N.Y. case 06-cv-5936.

If you use LimeWire, you might not be using it for long...