File-sharing service RapidShare has been dealt a blow by a German court and faces severe penalties if it fails to take appropriate measures against the uploading of copyrighted content by its users. The Düsseldorf Regional Court ruled against RapidShare last week in a case brought on by the German version of the RIAA, GEMA. GEMA hailed the decision as a huge victory, and concluded that RapidShare could face shutdown if it's unable to comply.
It's a decent article by Jacqui Cheng. You can read the rest of it over at arstechnica.com