While it's a win, it does not solve any of the base legal concepts being fought over. TorrentSpy was caught destroying evidence in the case and hiding evidence during the discovery process. Because of this the judge ruled against TorrentSpy and stopped the case. Here is the first line of the judge’s ruling.

"The Court, having terminated this case as a sanction for Defendants’ misconduct and having entered default, now renders final judgment as to all claims of Plaintiffs against Defendant Valence Media LLC."

Because TorrentSpy destroyed evidence the judge ruled against them for “willful inducement of copyright infringement, contributory copyright infringement, and vicarious copyright infringement.”.

When one party destroys evidence the judge can then throw out all the evidence they provide, and only accept the evidence from the opposing party. Judges get very, very upset when you destroy evidence!