A peer-to-peer connection is established by a receiving computer with a sending computer on which a desired file is located. The sending computer encrypts the file using a track key specifically generated for this particular file transfer. Once encrypted, the encrypted file is preferably obfuscated. An application server sends a public key specific to the receiving computer to the sending computer. The sending computer encrypts the track key using the public key associated with the receiving computer, and the sending computer sends the encrypted track key and the encrypted file to the receiving computer. The receiving computer stores the received encrypted track key and the received encrypted file as a secured file on the receiving computer. When a file is transferred, associated business rules are also transferred to the receiving computer. Business rules act to restrict the extent to which a file is read, copied, or distributed.

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