In a judgement that has been in stasis for quite some time, a court has sided with a group of film directors in ruling that a company called CleanFlicks, which edited bad language and nudity out of popular films to enable family viewing, was engaged in copyright infringement. I haven't read the judgement yet, so don't have the details but I expect this one will be bouncing round the usual corners of the blogosphere.
Update: The Salt Lake Tribune, appropriately, has the story Utah film sanitizers ordered to cut it. Thanks to Michael Geist for the link.
Update 2: Ed Felten as usual has a worthwhile commentary as does Tim Lee.