First, the Court failed to apply the appropriate standard for injunctive relief and second, the Court mistakenly found that myVidster’s users infringed Flava Work’s copyrights. Fortunately, the Seventh Circuit agreed.
My favorite quote is this one, from Judge Posner “a Flava Works employee embezzling corporate funds may be stealing and reducing the company’s income, but he is not infringing copyright. A person who sneaks into a movie theater to watch a copyrighted movie — like one who bypasses the Flava Works paywall by watching embedded videos on myVidster — isn’t infringing, either. Stealing a book from a bookstore and reading it “is a bad thing to do,” says Judge Posner, but again it is not copyright infringement. Considering how companies have abused copyright law for years to squelch competition and silence unflattering speech, this recognition is a major one.”
See on www.eff.org