Kazaa must now implement filters to block the sharing of copyrighted content. They must also apply "maximum pressure" to the users of the software to upgrade their software to the filtered version. How the filters will be implemented remains to be seen.
Sharman Networks has announced it will appeal the ruling on some parts.
In June US supreme court saw that Grokster and Morpheus promoted their products as a device for copyright infringement and ruled against them. The European Commission is also preparing a directive that would criminalise indirect copyright infringement.
The complete ruling is available through the Australasian Legal Information Institute.
Sources:
Sydney Morning Herald
ZDNet Australia