The exact same legal precedent could be used to seize hotmail.com for all the spam, scams, and viruses floating through it. I am willing to bet the judge was handed a 2 foot tall stack of papers with technical gibberish which she of course, didn't read, but had complete assurance from these slimy Microsoft lawyers that they knew what they were doing. If any other company tried the same move, the judge would dismiss it instantly. But of course, the law can't operate the same way for a 16 person company vs. a 100,000+ person company.
I think this clip fairly accurately summarizes the ordeal: https://www.youtube.com/watch?v=8vxEimC3HME