Rapidshare under the copyright law of Germany, specifically § 101 Anspruch auf Auskunft, shared user information with copyright holders of users who uploaded infringing content.  Although German law allows for the sharing of personally identifiable information to copyright holders, you have to think about the rights of internet users around the world.

Currently, under my inspection, RapidShare does not have a privacy policy.  Even in their Terms of Use, there is no disclosure as to what RapidShare can and cannot do with respect to personally identifiable information collected from users of the interent.  Personally Identifiable Information is considered things like username, passwords, IP addresses, and any other identifiable information collected either at the time of creation of an account or at the moment a user access the website.

In the United States, depending on the type of service a user is given access to is indicative of the rules and laws that service has to follow when providing user information under subpoena.  Some laws require you to notify the user prior to sharing the information.  Others require you to get a court order or at a minimum a subpoena.  Your privacy policy may indicate what you have to do in general.

In the EU, a big question arises as to who RapidShare is sharing their information with and where the user is a resident of.  Other laws may apply depending on the location of the requesting entity.  The EU regulates very strictly how and what information can be shared and how.

A word to the wise...be careful when using RapidShare....USER BEWARE!