I'm a little dizzy right now but I found some more Kelly vs Arriba links of interest here at netcopyrightlaw.com

Kelly v Arriba Soft Kelly Wins...
Five Years And Kelly Won! "Judgement shall be entered in favor of Plaintiff LESLIE A. KELLY, and individual and d/b/a LES KELLY PUBLICATIONS, LES KELLY ENTERPRISES, and SHOW ME THE GOLD and against Defendant ARRIBA SOFT CORPORATION, aka DITTO.COM in the sum of $345,000.00, plus reasonable attorney's fees in the sum of $6,068.20. s/Gary L. Taylor, UNITED STATES DISTRICT COURT JUDGE" March 18, 2004 After Five Years, A Big Win For Copyright Owners Everywhere. The Net Is Truly Not Free! Click here for details!

I hope I didn't misunderstand anything, but from here it looks like Gawker is carrying an outdated PDF and following a ruling that was later overturned. Feel free to correct me if I'm wrong.

there's worse..... it involves a tub and a girl but I can't even think of that without wanting to bleach my eyeballs. Now that's evil!

Thats what I was thinking. I even tried to upload some boob-shots (well, goatse actually, I'm mean that way) but it seems they were never approved. Oh poo!