if thats the case how do they know you are downloading copyrighted content?
Because of the torrent specific data? They download illegal torrent X, and any one seeding that, encrypted or not are uploading illegal packets. Its not a case of 'you could be a peer, and uploading something else which isnt illegal'
Encyrption protects you from your ISP knowing if its legit or not (well, if they snoop do packet inspection), these companies just connect to the tracker and see whos doing what...
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