I have two problems with this:
1) Google is a search engine linking to pages on the internet. If one or more of those pages is violating copyright it is neither Google's fault, nor Google's responsibility to police this. The result is that my information resource is depleted, and little has been done to stop the copyright infringement.
2) KaZaA, regardless of what Sherman Networks might say, is primarily used for the purpose of copyright infringement.
Anyway, the 'cease & desist' letter is amusingly ineffectual for two reasons:
1) Other sites had already appeared on Google containing the very same copyright infringing program ("KaZaA lite").
2) Google posted the above link to Sherman Network's 'cease & desist' letter, which contains all of the links they didn't want us to see in the first place.