On Friday, the Federal Communications Committee ruled by a vote of 3-2 that Comcast Corporation violated its users’ internet access rights, and ordered Comcast to stop cutting off large file transfers to users employing peer-to-peer file sharing software.

The FCC did not impose a fine, however they released an order stating that Comcast is to, within 30 days of the order’s release, disclose the details of their “discriminatory network management” and to submit a compliance plan in which they must detail how they intend to cease these practices by the end of the year. The plan must also be disclosed to its users.

Comcast did not agree with the FCC ruling, stating that the FCC’s network neutrality principles are statements of policy and not enforceable rules, and they have appealed the FCC’s ruling today with the D.C. Circuit Court of Appeal, hiring a lineup of “heavy” law firms to present their case, such as Wiley Rein LLP, the Washington, D.C. law firm whose partners include former FCC Chairman Richard Wiley. The case is being handled by the firm’s partner Helgi Walker who used to be an associate council to President Bush in his first term, and also was a chief of staff for an FCC commissioner.

It’s clear that the case is important to Comcast, and whichever way the decision swings, it will set an important precedent: if the courts concur with Comcast, soon other ISP may follow in enforcing network policy as they see fit, resulting in the decline of file-sharing programs. If on the other hand the courts agree with the FCC, then ISPs may resort to increasing prices for perceived bandwidth hogs, in lieu of other measures; this could spell a price increase for internet services in general.

Whatever the result, this is a history making case, one we’ll be sure to watch, and report back to you on.