Unfortunately the U.S. Supreme Court declined to hear an appeal from an internet user who was accused of sharing 30 mp3's. Turns out he was sharing songs by "Green Day, Nirvana, The Smashing Pumpkins, and others", and obviously these struggling bands were financially devastated by his file sharing.
So we're living in a world where this is somehow sane, and will not harm freedom of thought on the internet. Basically, it's "you better hope your computer doesn't get compromised and used to share music, or this could happen to you". Which in the end for a lot of folks is "better just to stay off the internet".
It's a "chilling effect", in other words.