legality question with multiple users

I am currently running the program with about 10 users who have each contributed portions of the total music available and before I go extending the circle of friends I would like to know if anybody has a handle on if I am potentially getting myself into legal issues regarding file sharing (a la Napster) or if it's considered a "private" sharing network and that makes it not a legal problem.
I know that if I disable downloading then it's legit since there are many sites offering streaming from multiple users.
any help appreciated
Thanks!
I know that if I disable downloading then it's legit since there are many sites offering streaming from multiple users.
any help appreciated
Thanks!