From my reading of this, the company wants to prevent themselves from being used to distribute pirate content. That is assuming they are set up similar to drop

From my reading of this, the company wants to prevent themselves from being used to distribute pirate content. That is assuming they are set up similar to dropbox, where you can email out a URL leading to a file on your online backup copy. (Note, I'm not making a judgement on if they are in the right or not -- just an observation).