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This one pretty much comes down to saying that third party services get the same "safe harbor" provisions as ISPs and content hosting services do, and are not liable for infringing content that utilize the service. It's a sensible and straightforward case. Edit: More precisely, they're not...

I would point out that in many ways, Internet distribution is a further evolution of the trend towards becoming more widespread as barriers to entry are reduced. Consider that historically, the *only* way anyone could make a living as an artist was to be sponsored by a rich patron, or later on...