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Submission + - File sharing is illegal, but what about lending?

An anonymous reader writes: We all know that making copyrighted material available for download is illegal in most countries. But suppose I wrote an application that would make it possible for me (and others) to *lend* (legally acquired) media files to other people. Every file would only be usable by one person at a time (including the original owner), making the whole thing effectively equivalent to handing over the physical media. Do you think that would still be illegal, and if so, why?
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File sharing is illegal, but what about lending?

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There is no likelihood man can ever tap the power of the atom. -- Robert Millikan, Nobel Prize in Physics, 1923

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