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A ruling handed down yesterday by Germany's highest court represents a blow to rightsholders in their quest to clamp down on illicit file-sharing. The court ruled that the parents of a teenager who had made available more than 1,100 songs on file-sharing networks can not be held responsible for their son's infringements, nor be required to monitor or hinder his online activities.

The Court ruled that the parents had met their parental obligations when they informed their child of "basic do's and don'ts" including that file-sharing copyrighted content online is illegal. Furthermore, the Court ruled that the parents were not required to monitor their child's online activities nor install special software to restrict his online behavior. This would only be required should the parents have "reasonable grounds" to presume that their child would engage in infringing activities online.

Jammie Thomas-Rasset

the first US file-sharer to take her RIAA-initiated lawsuit all the way to a trial and a verdict back in 2007. Five years, three trials, and one appeal later, she owes $222,000 to the recording industry for sharing songs on the Kazaa file-sharing network, but she doesn't plan to quit fighting.

Thomas-Rasset will follow Joel Tenenbaum, the second US resident to take his file-sharing case that far. Tenenbaum—who reached the Supreme Court first because he had only one jury trial instead of three—tried to convince the justices that they should take his case to stop the music label plan to create, in his lawyer's words, "an urban legend so frightening to children using the Internet, and so frightening for parents and teachers of students using the Internet, that they will somehow reverse the tide of the digital future." The Supremes showed no interest, denying Tenenbaum's petition back in May.

The software, known as PC Rental Agent, was developed by Pennsylvania-based DesignerWare. It was licensed by more than 1,617 rent-to-own stores in the US, Canada, and Australia to report the physical location of rented PCs. A feature known as Detective Mode also allowed licensees to surreptitiously monitor the activities of computer users. Managers of rent-to-own stores could use the feature to turn on webcams so anyone in front of the machine would secretly be recorded. Managers could also use the software to log keystrokes and take screen captures.

In some cases, webcam activations captured images of children, individuals not fully clothed, and people engaged in sexual activities, the complaint alleged. Rental agreements never disclosed the information that was collected, FTC lawyers said.

PC Rental Agent also had the capability to display fake registration pages for Microsoft Windows, Internet Explorer, Microsoft Office, and Yahoo Messenger. When customers entered their names, addresses, and other personal information in the forms, the data was sent to DesignerWare servers and then e-mailed to the rent-to-own licensees.