From a quick read of that, it appears that Mp3tunes lost the case, had a huge damages award made against them, as happens a lot, and the overall damages were deemed excessive and reduced to $750k.
I haven't actually read the case, but from the summaries I've seen it sounds like MP3Tunes won on the parts that matter when it comes to whether or not one can legally run a music locker service without permission from the copyright owners.
In particular is said that the DMCA safe harbor is available to such services, and that deduplication is not a problem.
MP3Tunes did not adequately deal with DMCA takedown requests so didn't get full safe harbor protection leaving them liable for some user's uploads. Also MP3Tunes' founder had infringing songs stored and they got nailed for those.
> According to Capitol Records, Inc. v. MP3Tunes, LLC, this is absolutely OK in the eyes of the law