The news that video-sharing site Veoh have won their copyright case could set a precedent for similar sites, according to a host of bloggers today.

In a legal analysis by the Electric Frontier Foundation, Fred von Lohmann writes: “the ruling should be required reading for the executives of every ‘Web 2.0’ business that relies on ‘user-generated content.”

On Wednesday a US District court judge ruled that the site qualified for protection under the Digital Millennium Copyright Act (DMCA) and could not be sued for copyright infringement.

The adult video site Io Group were suing on grounds that Veoh violated its copyright in 2006 when the site showed user-uploaded clips from 10 of the company’s films. However, Veoh was found to have complied with DMCA guidelines.