baalroo is just flat-out wrong, legally and morally. When one owns intelectual property (something protected by copyright or patent), one owns the IDEAS (the contents, the design). When you fix the IDEA into a tangible form (record, book, widget) you own both the IDEA and the tangible thing. When you sell the tangible thing, you give permission to the buyer to use the IDEA fixed into a tangible thing, but do not sell the right to place the IDEA into another tangible thing. The right to fix the IDEA into another tangible thing is a separate right--and it's much more expensive to buy.
And yes, I am a lawyer--20+ years.
Carol Kay was totally justified. If you are the middleman between a thief and someone buying stolen goods, you can't defend yourself by saying "I didn't steal anything, and I didn't buy stolen goods." You are still helping the thief. Similarly, the fact that an illegal torrent exists on someone else's computer isn't a defense if you are providing the means for the torrent-sharers to find one another.