Sounds bad, but a quick google of the news gives a different picture.

According to http://en.wikipedia.org/wiki/Winny , and ABC News Australia, the developer was arrested for "suspected conspiracy to commit copyright violation." http://www.abc.net.au/news/newsitems/s1105174.htm

So, looks like p2p development is still as legal as http development, and they got him on a different matter.