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You're breaking the law regardless. It's still copyright infringement if you've got copyrighted music on an independent network.
The thing with encryption and tunneling is that you can disguise one thing as another. I could send a locked and well encrypted .rar that says "Original Manuscript" that's actually, I dunno, the Iron Man movie or something, and no one on the network could really tell. They'd have to criminalize the entire internet, and that'd be a hell of a lot tougher than this "it's fur teh piracy" bullshit.
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