While I don't condone the actual piracy that occurs over the Internet, wacking this guy who created the GUI for a way to decode the Content Scrambling System with a criminal lawsuit when he himself did nothing wrong (to the best of my knowledge) is wrong itself.
However, several of the comments in the Slashdot article mention that the saga isn't over yet. There are still a few more layers of the legal system the prosecution can appeal to before they hit Norway's version of the Supreme Court. It was also mentioned that new laws have since gone into effect that would make it nearly impossible to avoid a guilty sentence on these issues.
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