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But Kevin McDonald, vice president of the Group for the South Fork, said the question posed at a land-use seminar he attended in Southampon this fall was, "Why would anybody do any of this legally if so much of it has already happened illegally?" He was alluding to the hundreds of illegal share houses in the Hamptons.
Mr. Osborne said the village was already watching two houses closely this summer as possible illegal share houses.
David Gilmartin, the town attorney for Southampton, said there were probably hundreds of illegal share houses throughout the town.
In 2003 the head of SK Group, a telecoms, oil-refining and construction conglomerate, was convicted of illegal share swaps designed to keep the group in family control.
"Our big issues are going to go to the illegal share houses because they're intended to be rowdy," Mr. Heaney said.
Mr Rajaratnam is accused of operating a network of informers that provided him with illegal share tips between 2003 and 2009 in one of the biggest insider-trading cases in history; 26 traders and executives have been charged.
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But it is the smaller, rowdier, "quality of life" offenses that some longtime residents and lawmakers say has made the area seem slightly out of control at times, exacerbated this year by illegal share-houses and an expanding array of night spots catering to what appears to be a growing number of visitors.
In addition, USENET has facilitated the illegal sharing of copyrighted material, such as software, music, and movies.
These obligations, aimed at inhibiting illegal sharing of copyrighted material and created by the 2010 Digital Economy Act, include sending warning letters to those suspected of illegal sharing, as well as logging the activities of repeat offenders.
But together these good laws and outmoded ones have forced much of the city's housing population underground, into illegal shares and jerry-built apartments.
But he said the ruling should be a warning to sites that were trying to profit, in part, by marketing their service as one that allowed illegal sharing.
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