mikesd81 writes "C|Net reports that a lawsuit filed by TorrentSpy against the MPAA, accusing it of intercepting the company's private e-mails, was tossed out of court this week. Even though a U.S District judge ruled that the MPAA broke no rules, the MPAA does admit it paid $15,000 to obtain private e-mails belonging to TorrentSpy executives. The MPAA's acknowledgment is significant because it comes at a time when the group is trying to limit illegal file sharing by imploring movie fans to act ethically and resist the temptation to download pirated movies. From the article: 'Ethically, it's pretty clear that reading other people's e-mail is wrong,' said Lorrie Cranor, an associate research professor and Internet privacy expert at Carnegie Mellon University. 'Being offered someone else's e-mails by a third party should have been a red flag.' TorrentSpy is appealing the decision." This is just not a good week for those guys.