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MPAA Sues Hotfile for 'Staggering' Copyright Infringement
The lawsuit, filed by the MPAA against Hotfile, is on behalf of 20th Century Fox, Universal Studios, Columbia Pictures, and Warner Brothers. "The MPAA argues that Hotfile not only encourages its users to upload illegal content, but actively discourages them from uploading files for personal use, because the site offers incentives for users to upload the most popular files (which invariably end up being copyrighted movies). And because the site charges membership fees before people can download the content uploaded by others, the MPAA says Hotfile 'profits richly while paying nothing to the studios' for the bootleg files."
Reading the brief they've filed, it's pretty apparent that they're stretching quite a ways. The only evidence of HotFile encouraging users to upload pirated content to their servers is that HotFile encourages users to upload files which are a) heavily downloaded by others and b) large. The MPAA is asking the courts to assume that large, heavily-downloaded files must be illegal content. They make a big deal in their brief of being scandalized by the fact that HotFile is not a service for people to store their own files, as if that's the only legal thing that a website which allows people to upload files can be. That might somehow bolster their case if HotFile was claiming to be an on-line locker service, but there's no reason to believe that they will make any such claim. The MPAA also accuse HotFile of having, prepare to be shocked, an affiliate program.
It's not just that the brief they've filed doesn't contain a smoking gun: it doesn't even assert that one exists. They're accusing HotFile of being what it is: a site which facilitates the distribution of large files to a wide audience and asking the courts to declare any site which does that to automatically be illegal despite full compliance with the DMCA and no evidence that they induced users to engage in piracy. I certainly hope that the courts don't do that because it would set a terrible precedent and effectively rewrite the law to amend the safe harbor clause of the DMCA to say "except for big files which a lot of people download because those must be pirated".
Mostly, though, what all this shows is that the *AA groups are going to have to reach farther and farther. They pretty much got to write the DMCA, but now it turns out that even it doesn't go far enough for them. The problem is that they didn't foresee that sites like HotFile (ad/subscription-supported large-file distribution sites which are completely content-ignorant and have no search or index mechanism) could exist. Now that they do, they want them gone. The reason that these sites can exist and be profitable is that bandwidth and storage costs have fallen so low that a peer-to-peer model is no longer necessary. As bandwidth and storage gets cheaper and cheaper, newer types of sites will be used for piracy too. Next will probably be sites which allow you to host your own blog or other website. As storage becomes cheaper, their maximum allowed file size will reach a point where you can slap a movie up on your blog without violating the maximum file size. Once that happens, the MPAA is going to want those sites gone too. Any site or program which allows ordinary, anonymous users to host and distribute large files (for some definition of large), is going to be on their hit list.
I'm no particular fan of piracy, but you can't remove the sites which allow people to distribute pirated files for free without also removing the sites which allow artists to distribute their own albums and music videos for free because those are the same sites. The long-range eventuality of the plan the MPAA is following will be a total lock-down on any means of widely distributing large files. That's too high a price to pay for stamping out piracy.