
Many interpret the DMCA law to apply only to material physically stored on ISPs servers and not the actions of their modem, DSL or cable subscribers.
A panel of three judges is taking a look at the case, and examining the minutiae of the DMCA to figure out what the Congress' intentions where when issuing the law. They will also try to decide whether permitting subpoenas when no lawsuit has been filed, agrees with the U.S. Constitution. So far the panel has not commented on Verizon's arguments about DMCA subpoenas endangering privacy and free speech.
Source:
News.com