PS: I do not believe it is ethical to engage in activities that directly undercut an artist's ability to profit (or a corporation to profit by proxy via the artist). I believe this site does and should take a stand against such activites. I have written out some rules that expound upon acceptable and unacceptable activities using language as specific and clear as I can muster.
(Sorry if any admins feel like I am stepping on their toes. I haven't checked to see exactly how what I have written compares to any existing written rules, but clearly there is some confusion that could stand to be better delineated. To this end I have spent a big chunk of time today brainstorming all of this. I hope it is received constructively.)
1) No individual or entity shall copy or obtain materials that are not yet published but are actively in the process of becoming published without the express permission of the creating and/or publishing party. (This was what most got the bittorent site, Oink, in trouble. This also solves the debate above that sparked this thread).
2) No individual or entity shall copy or obtain copied copyrighted materials without first making reasonable effort to obtain legal copies, should one exist.
3) No private individual or entity shall profit from the copy or distribution of copyrighted material without first having a distribution agreement with the copyright holder. Nor shall any private individual or entity indirectly profit from the advertisement of said material.
4) An individual or entity may copy, alter, and freely share copyrighted material so long as these other rules have been met and so long as such individual or entity does not advocate or explicitly intend for any 3rd party obtainee to be in violation of these rules (just as an individual could purchase a painting and then deface or destroy it if he/she so chose).
5) An individual or entity sharing or obtaining copyrighted material that is in violation of these rules bears the sole responsibility for their actions, and shall not hold the other party liable or any intermediary individuals or entities such as Fanedit.org.