http://www.slyck.com
These lawsuits have been going on for a couple years now, but most people have learned the secrets of getting around being caught. Limit the amount of files you share (under 1000 doesn't attract attention to your computer) and avoid using file-sharing networks that keep track of your activity (Kazaa).
People have been sued and the worst I heard was a fine of 2 or 3 grand with the computer's hard drive being confiscated. A while back I heard Verizon was trying to block the RIAA and MPAA from using DMCA requests to get the names of their curstomers that were illegally trading files, but I think Verizon eventually lost that battle.
Decentralized bit torrent and irc are the safest spots right now, but not many people are smart enough to use them still...
RUgreek