Take it one step further. With Bittorrent you're rarely in a position to transfer the entire file to one person, especially on popular torrents like newly released movies. What you're really doing is uploading small chunks of the film to different people, something that everyone here has no trouble understanding but seems to be a hopelessly complicated concept for much of the older generation.
Now the question is, what does copyright apply to? The entire film or all the little bits that make up the film? I don't think any sane person could claim it's the latter, because practically that would make every sequence of bits someone's intellectual property. Even if we couple that idea with a context how do we legally define the context? The name of the file those bits are a part of? And what happens if I encrypt or compress those bits? What if I mix them with bits from other sources? There's just no way to make this definition work. So if I'm not distributing the film in its entirety, if I'm not even distributing large parts of it to the same people, then I think you could argue that distributing it over Bittorrent doesn't violate any IP laws.
Lets say I have a counterfeit bag, some expensive designer one. If I sell that bag to someone, or even give it to someone, I've distributed counterfeit goods. But if I cut that bag up into hundreds of little pieces of fabric, then distribute those pieces to hundreds of different people, have I broken a law? What if I do this 10 times with 10 bags, over thousands of people, have I distributed 10 bags to people? I don't think so. Even if you could reassemble those pieces into an original bag I still haven't given a bag to any one person.
Even
the law itself defines infringement to be "any secondary transmission by a cable system that
embodies a performance or a display of a work which is actionable as an act of infringement". How can anyone claim a small segment of the billions of bits that make up a movie embodies it? Without the rest of it, they're nothing. Even if you argue that a person could extract a single frame from them, then a simple encryption pass would turn them into truly random noise. At least, until you have the whole file to decrypt.
Sure it's all technicalities, but isn't that what law is?