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Wait is this for real? Liability works like this? I rent a storage unit -- does that mean I can send the owners of the storage company to jail if I put drugs in my unit?
It's more like you had a storage unit, and let people do whatever they want with it, but it's implied it's used for illegal activity. And then you have full control to stop or prevent them from doing illegal activities, and choose not to.
"The mere fact of placing a copy on a shared directory in a computer where that copy can be accessed via a P2P service does not amount to distribution."
I know that is a Canadian ruling and the US might have a different take. Just saying that is a realistic interpretation.
If it's determined there's liability, maybe. I don't know about jail but a victims family absolutely could sue in civil court in the US.
I don't know about specifics but there are absolutely cases and laws around determining when and if a storage company in this case should have known. Also for things like kids breaking into your derelict building and hurting themselves and a million other things.
Don't ask me to get into whether the laws around establishing liability are correct or ethical, I barley know any details in my own country let alone others (and what international treaties apply). But you asked a question and the answer is: it depends but, yes, sometimes.