Judge: An IP-Address Doesn’t Identify a Person (or BitTorrent Pirate)

In terms of non-contractual terms, perhaps a film company for example could argue the subscriber was under a duty of care but again this is unlikely to stick.

Generally speaking, I think it would depend on a case by case basis and it would always be open to the subscriber to argue that although the IP address was linked to them, they were not responsible for the infringing activities. This would be determined on the evidence in each case therefore.

In Egypt three speeding tickets means jail time (if I remember correctly), only not for the driver but for the owner. IMO that's just sick.

I think in a practical sense this is never going to happen. If you lend someone your car you are responsible and will get sued if they kill someone. The type of lawsuit and even criminal charges might depend on whether you knew of their capacity at the time to commit a crime or fitness to drive. Important distinction with cars and guns. With both you know they can be dangerous. (In the case of a gun you know even more so obviously.) There is not the same widespread knowledge or even possibility with the internet for harm along the lines of death because of use of an internet connection. Although I'm sure it's happened a few times (harassment or planning terrorism.)

As far as the requirement to lock down a network that also is not going to happen as you well know in a world that chooses "football" or "123456" for a password not to mention key loggers and viruses. Simply not the same as keeping your gun in a gun safe or knowing your neighbor is drunk and shouldn't drive your car.

"and if our laws demanded that this be do-able even by somebody's mom, then I think manufacturers would address that usability problem."

I think there is quite the demand from users to not have constant viruses, infections and hacking of computer networks (as well as embarrassment to both the software and hardware industries and to high profile websites.) Do you really think that this can be achieved with "beyond a reasonable doubt" standards so that someone's mom can have secure wifi in her house? I don't. I get calls every day from people who type domain names into the google search box instead of the browser bar.

Analogies such as these should be avoided because you're falling in the same "you won't download a car" trap.

Say, if someone comes to my party and uses a kitchen knife to commit a crime, what is the degree of my responsibility?

If the corp is opened in a place that offers nominee owners or directors even better. Although there are most certainly legal ways that someone could figure out who to sue, in a mass lawsuit it would simply not pay to put the effort in to pierce the corporate veil of any individual when there were 1500 other targets.

Despite what others have said you've made a good point to always keep in mind as an entrepreneur. Something that you are legally obligated to do by contract is very often not worth the time for the other party to file a lawsuit over. If you rely on attorneys this is not something they always will make you aware of. (My points are based upon surviving many many years in business both with and w/o contracts.)