Sites like ninja video and others that have been shut down by the government were not viewed as illegal for a while because they simply hosted or linked to the videos that were illegally taken, but recently the gov't is no longer buying that argument and are shutting them down because while they did not illegal take the videos, they are aiding in their distribution. If Wal-mart decides to show the full version of a movie that is out in theaters without the owners' permission, the police are not going to arrest all the shoppers in the walmart at the time. Copyright includes the rights to manufacture, produce and distribute your work, not watch it. It's not necessarily illegal (in terms of copyright infringement) to watch, it's illegal to post the content as your own. People don't know what they're talking about.
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