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Hotfile Settles With MPAA, Drops Countersuit Against Warner Bros

After winning the right to use the term perjury in regards to Warner Bros abuse of the DMCA takedown procedure, and successfully blocking the MPAA from using the term "piracy" at their trial, Hotfile settled out of court with the MPAA today (mere days before the trial was scheduled to begin). As part of the deal, they are dropping their countersuit against Warner Bros, paying $80 million, and halting all operations immediately. The Hotfile website has been replaced by an MPAA message. From Torrent Freak: "The settlement deal was rubber stamped by the U.S. District Court for the Southern District of Florida, ... The MPAA is happy with the outcome which it says will help to protect the rights of copyright holders on the Internet. 'This judgment by the court is another important step toward protecting an Internet that works for everyone,' MPAA boss Chris Dodd says."

5 of 88 comments (clear)

  1. surprising by Trepidity · · Score: 4, Interesting

    The most surprising thing to me here is that Hotfile was profitable enough to have $80 million.

  2. Re:Perjury! Piracy! What? by Bacon+Bits · · Score: 4, Interesting

    This is a civil trial. Perjury is a criminal offense, and prosecution must be brought by the state.

    --
    The road to tyranny has always been paved with claims of necessity.
  3. Re:Whoah there! by Anonymous Coward · · Score: 5, Interesting

    I've had people commit perjury against me in court. Judge didn't do shit. I was able to prove that they had forged a "sworn testimony" against me from a 3rd party by showing that the dates that it was dated outside the scope of when that 3rd party would have had any dealings or knowledge about the case. All the judge did was dismiss that single piece of evidence. You can get away with perjury all you want because judges don't care (they're used to being lied to) and juries will almost NEVER convict someone of perjury -- so good luck getting a DA to prosecute. There is no real defense for an honest man in court against a dishonest man.

  4. Jurisdiction by Adrian+Lopez · · Score: 5, Interesting

    How does a US federal court gain jurisdiction over a company located in Panama?

    A ruling prior to this settlement held that Hotfile could be subject to vicarious liability for failing to comply with the DMCA (they allegedly ignored a bunch of DMCA takedown requests and failed to shut down a bunch of accounts despite repeat infringements), but the DMCA is US law, not Panama law. Unless copyright is somehow a special case (due to, say, international agreements), I fail to see why Hotfile should be subject to US copyright law anymore than US companies should be subject to Chinese or Iranian censorship laws.

    What gives?

    --
    "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
  5. MPAA message wrong (surprise) by Anonymous Coward · · Score: 4, Interesting

    The MPAA message says that a federal court found Hotfile liable. The court didn't find anything because the parties settled before trial began. It seems a little disingenuous, but perfectly within the normal bounds of the MPAA playbook, to blatantly lie like that.