I think you took the wrong message here,
The OP states that the copyright feature is making parts (or maybe even all?) of your created level to be available to EVERYBODY, but they just can't edit them. Thus, if a guy makes a level, he can make upload it but not allow other people to perhaps take a chunk of his level, copy and paste it, and then say it's their work.
Restricting them means that you can select a few people who you want the level to be available to, not to ban one person from downloading. A more likely scenario would be that you have a couple of people working together and making one level over the PSN. By putting the level on PSN and restricting it (and thus, making it private), only the intended people can download and work on their respective areas of the level or at least that's my interpretation.
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