So as I understand it DOJ doesn’t back up. It is up to the court whether it takes this ruling into consideration or not. I have no idea how US law system works so I might be telling shit.

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No that's about right. The judge can now choose to side with TC's motion to reconsider dismissal based on the sanctions reversal, or side with the gov to continue the case. The gov's argument still basically boils down to holding the developers of a tool responsible for how the tool is used. She first seemed to have a good grip of the consequences, see her comparison to WhatsApp: But then did a fairly surprising 180 in a following oral ruling: