[Ernest_at_the_Beach]

The argument is that even if a defendant has never copied or distributed a file illegally, the fact that he or she possesses a computer with a shared-files folder on it that contains copyrighted files "made available" over an Internet connection, this in and of itself constitutes infringement of the "distribution" rights of the sound recording copyright holder under Section 106(3) of the Copyright Act.

[darkwing104]

In other words, if it on your Hard Drive you are automatically a distributor.

[steve-b]

The argument is that even if a defendant has never copied or distributed a file illegally, the fact that he or she possesses a computer with a shared-files folder on it that contains copyrighted files "made available" over an Internet connection

The lawyer who brought this suit should be sanctioned for barratry and/or simple incompetence.

The usual reason for placing files in a shared-files folder is to make them available to other machines on one's local network (e.g. storing files on the main computer in one room and accessing them from a laptop in another room via a wireless connection).