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While not directly related to video games, this case may have some applicability to the game world, given the convergence of service providers and MMOs (think Linden Labs). In a solid win for the service providers/content providers (think YouTube or MySpace, or Second Life!), a federal appeals court has largely rejected Perfect 10's claim that a service provider violated laws by linking to sites that improperly posted its images. The March 29, 2007, decision from the Ninth Circuit Court of Appeals affirmed the lower court's ruling that CCBill "reasonanly implemented" a noninfringement policy under the DMCA, and was therefore not liable for widespread copyright infringement by numerous web sites that it linked to.

The case is Perfect 10 v. CCBill, __ F.3d __ (9th Cir. March 29, 2007).

Read more here.
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