Numerous sources including Reuters, the NYTimes, and CNet have reported that Sharman Networks, the makers of P2P file sharing software have been found guilty in an Australian (home of Sherman) of promoting copyright infringement. Snippets from the CNet article:
Justice Murray Wilcox of Australia's Federal Court ruled largely in favor of music labels, including Universal, Sony, Warner and Festival Mushroom, which had argued that the Kazaa software--owned by Australian-based Sharman Networks--was used to undertake copyright infringement on a massive scale. The labels had also targeted United States-based Altnet, which provides a search technology for Kazaa and is a close partner of Sharman....
Kazaa can remain in operation, Wilcox said, if the software maker meets either of two conditions. First, "non-optional key-word filter technology" would need to be included in current versions of the software received by new users and in future versions of the software and if "maximum pressure" was exerted on existing users to upgrade to a new version containing the technology. The other option was that the Altnet search software--called TopSearch--be restricted to providing lists of non-copyright-infringing works.