File-Sharing Legal in Canada?

Just one day after the IFPI took legal actions against file-sharers in Denmark, Germany, Italy, and Canada (see the breaking news report by Berkman Fellow Urs Gasser), a Canadian federal judge has denied a motion brought by the Canadian Recording Industry Association (CRIA) seeking the identities of 29 customers from five Canadian Internet Service Providers for alleged infringement of copyright laws in online music trading.

The court ruled that the plaintiffs failed to present a prima facie case of infringement.  Further, the ruling indicates that downloading is lawful in Canada and that "the mere fact of placing a copy on a shared directory in a computer where that copy can be accessed via a P2P service does not amount to distribution."  Read the complete decision.  The CRIA is expected to appeal the case.