Check out the story straight from the EFF website.
They even quote a silly discussion on goblin law from a Harry Potter book in their court papers equating UMG to the repulsive mythical creatures.

Mortiis on his hog.
(I don't know if he is Goblin, Elf, or Orc, but I do know that he is bad ass.
By the way, 90% of ALL CDs belong in the garbage, therefore 90% of promo CDs belong in the garbage as well. Can this really be considered 'unauthorized distribution', a.k.a. piracy?

Another interesting factoid I came across while looking into this was the list of labels owned by UMG. It is impressive, and depressing, all at the same time. List of UMG labels
A quick round up includes:
Interscope, Geffen, A&M, Polydor, Delicious Vinyl, Def Jam, Island, Mercury, Rough Trade, Universal, Motown, and Decca.
And on top of all that, UMG is owned by Univeral Movie Studios, which is owned by Vivendi, which is owned by NBC, which is owned by GE. Thomas Edison founded GE and we all know that he was a ruthless bastard who electrocuted an elephant in public to try sell his DC power to us and discredit Tesla's AC power. What a prick.