Page 717 - "The programmers of a copyright-resistant P2P network must balance an interest in avoiding legal liability against the competing interests of ensuring performance on a mass scale, maintaining system stability, and fostering network trust."
Developers had liability at all times.
You cannot make an illegal contract nor an illegal term in a license
An illegal term in a contract is "Void ab initio" - it never existed.
That is a separate issue - but a law is lawful until a court states it is not