Supposedly, the The Pirate Bay guys were found guilty in their recent trial in Sweden, and, supposedly, they got sentenced to a year in prison and had to pay $4.5 million in damages.
But back in the parallel universe which happens to be the real world, they've appealed the verdict and could probably keep doing so for the next few years. So in the meantime they need to keep busy, and what better way to do this than start a new user driven video portal to take on YouTube, called, predictably, Video Bay, allowing users to post and share video clips without having to worry about copyright violations. Seems reasonable. It's not like they need to attract any more legal interest or anything.