It is possible, well not fined but sued for distributing copyright material

There are ways to protect yourself from these things happening, but still not guaranteed.

This site has filtering software called PeerGuaurdian2 to download for free. It will keep well known anti P2P IP's from entering your system

http://phoenixlabs.org

Don't share too many files at a time

Also don't stay connected 24 hours a day

Also search the forum for other ways. Use the search option (words like Legal Illegal RIAA MPAA)