File sharing happens when people who are hooked up to the Net use file-sharing programs to copy files between each other. The moral issues come mostly from the concern that proponents of file sharing may infringe copyright laws. This can happen if the content of a file being shared is covered by such laws.
File sharing isn't always illegal, whether or not the works being shared are covered by copyright. As an example, some artists may decide to support freeware, shareware, open-source, or anti-copyright, and disciple the use of file sharing as a free marketing tool. Just about all shareware, freeware, and open source software could be shared as much as the end user wishes, depending on the End User Disclaimer for that explicit bit of software. Content in the public domain can also freely be shared.
The entire thing has been a sideshow to a sideshow to a main event that way back turned into a circus, but the participation of groups like the FSF shows just how much attention the case is getting. With Professor Nesson set to debate in court that file-sharing is only fair use, the case has believed a significance way beyond that of most such court actions, and everybody wants an opportunity to be heard.
Rather than arguing that accused file-swapper Joel Tenenbaum didn't do it, Nesson is saying that Nesson did not do anything inaccurate because sharing files with your "friends" over the web isn't really a crime, and is covered under well-established Fair Use laws. Additionally , according to Nesson, the aggrieved party in a file-copying case isn't entitled to any damages anyway.
Nesson's strategy is incredibly bold -- should he achieve success in this novel defense, it will essentially, de-criminalize P2P file-sharing forever.