In the opinion, she endorsed the idea of high statutory damages as a means to deter future copyright infringement rather than a system based on the actual economic damages to the plaintiff resulting from the defendant's infringement.
File-sharing defendants have begun to challenge the statutory damage scheme that awards copyright holders up to $150,000 per willful infringement. In music downloading cases, that could translate to $150,000 per song.
In the case of Joel Tenenbaum, Charles Nesson - famed Harvard professor and Tenenbaum's attorney - has argued that the statutory damage scheme violates the US Constitution's protections against excessive and/or arbitrary civil damages awards.
If the case ever makes it to the Supreme Court, I would expect Sotomayor to disagree with Nesson's arguments, although it's possible that her stance has softened over the past eleven years.
If not, though, don't expect Sotomayor's position on copyright infringement damages to upset President Obama or the Senate Republicans: The Obama administration has submitted documents in the Tenenbaum case that echo the Bush administration's position in favor of the statutory damage scheme.
High-Court Nominee Mirrors Industry Copyright Stance (Wired's Threat Level)
Obama Sides With RIAA, Supports $150,000 Fine per Music Track (Wired's Threat Level)