According to the Spanish law, sites that link to websites aren’t illegal, whereas the sites that host the illegal material themselves are illegal. The music rights group, Sociedad General de Autores y Editores (SGAE) found out the hard way when they tried to sue a website that contained links to such websites.
This looks like a major win for the file sharing community and a heavy blow to the music and film industry, but there’s no telling if the European Union will be intervening (its laws can be used to bring such sites down in Spain) or if Spain will be passing new laws to make the sites illegal. We’ll just have to see how this plays out.