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China Says Cracked Apple AirDrop to Identify Message Sources
(www.bloomberg.com)
This is a most excellent place for technology news and articles.
No they did lose it, I believe. As part of the trial a judge ruled that scanning physical copies and lending out one digital copy per physical copy scanned was illegal. They were operating in a legal grey area, then as soon as they came out of that grey area they lost it. That's why I think they should have settled out of court.
They were sued for lending unlimited copies, fought it, then ended up being told they couldn't lend any copies without a license.