Not a good day for P2P sharing

A new decision came down that says that even sharing a folder on a P2P network = distribution. Why does this matter? One of the key defenses of most P2P cases is on a part for the copyright code that says you are not infringing unless you distribute. In most cases the definition of distribute has always applied to physical copies. This is most likely a non-precedent setting case, but also shows that the RIAA team is honing their skills to bring more draconian provisions via Congress.