For example, Person A wants to distribute a copy of a CD or something. They upload the file to Dropbox normally. They then use Dropship to create something describing that file, which they then publish. Persons B and C download that descriptor and feed it to Dropship, which tricks Dropbox into thinking that they also own copies of the file. Dropbox then lets Person B and Person C download the file that Person A wanted to distribute, and mission accomplished.
It's all very clever. I like it.