Sony Hack Reveals MPAA's Big '$80 Million' Settlement With Hotfile Was a Lie

An anonymous reader writes with this excerpt from Tech Dirt: For years, we've pointed out that the giant 'settlements' that the MPAA likes to announce with companies it declares illegal are little more than Hollywood-style fabrications. Cases are closed with big press releases throwing around huge settlement numbers, knowing full well that the sites in question don't have anywhere near that kind of money available. At the end of 2013, it got two of these, with IsoHunt agreeing to 'pay' $110 million and Hotfile agreeing to 'pay' $80 million. In both cases, we noted that there was no chance that those sums would ever get paid. And now, thanks to the Sony hack, we at least know the details of the Hotfile settlement. TorrentFreak has been combing through the emails and found that the Hotfile settlement was really just for $4 million, and the $80 million was just a bogus number agreed to for the sake of a press release that the MPAA could use to intimidate others.

Comments

"Just" four million?

[93 Escort Wagon]

That's still not exactly chump change...

Re:"Just" four million?

[bsolar]

It might not make a difference to you but it evidently made a difference for Sony, otherwise they would have just publicised the correct amount. Since Sony decided to publicise a higher amount it's clear they somehow believed the correct amount was too low for the press release.

Re:"Just" four million?

[AK Marc]

To a $100M company, $4M is payable. $80M is bankruptcy. If they scare away people from becoming the next mega, then they "win". So lie about the settlement, to try to discourage others. It's not about extracting money, but scaring people. You aren't on their radar. $5m is more than you'll make in your life. But Kim Dotcom is their target. People who took on the media companies, made money, and all that. They want to scare people away from being the next Kim.

Re: "Just" four million?

[smittyoneeach]

And if you up the debt to $18Tr, you're the Federal Government.

Re: "Just" four million?

[Anonymous Coward]

There is the saying in finance, if you owe the bank a hundred thousand dollars, the bank owns you, but if you owe the bank a hundred million dollars, you own the bank.

Alternatively:

If you owe the bank a thousand dollars and can't pay, you have a problem. If you owe the bank a billion dollars and can't pay, the bank has a problem.

Re:"Just" four million?

[gstoddart]

A lie, used to establish the basis of precedent, and to continue to act as if you are "winning".

No, not chump change at all. The kind of "not chump change" that should get you RICO charges. Because this is about as "corrupt organization" as you can get.

Nothing the *AAs have ever told us about copyright is based in fact, and they've used those lies to bully laws into existence which favor them. It's really time to start applying actual criminal charges to these organizations. Because they really are corrupt oligarchies who demand influence over the law.

Some of these clowns need serious jail time. And every politician who is paid for by them has sold us up the river to enrich themselves.

So, just fucking great, we have huge multinationals lying in public, and paying the politicians to get what they want.

Magic!

[Kaenneth]

The real Hollywood Magic is in the accounting departments.

Put Your Money Where Your Mouth Is

[Frosty Piss]

Sony Hack Reveals MPAA's Big '$80 Million' Settlement With Hotfile Was a Lie

What do you expect from a mafia-style organization? And yet most Slashdotters tacitly support this though purchases of "media" while bleating how oppressed they are by these giant media companies. I hear "show it through your dollars" here all the time, but in actual prctice, it isn't happening, just think about all the bleating about xBox being down? I don't own an xBox, though I play plenty of great PC games... Well, I guess it works my way since I'm mostly into "first person shooters" rather than multi-play, but really? Put your money where your mouth is? Maybe?

I guess I'm not a good example since I haven't been to a theatre in many years... Seen a few good movies, though, and none of them involved the Joker or Blue People, or whatever...

That aside

[Sycraft-fu]

There are always limits to what they can take. Depending on the state you live in various assets are protected, and only so much of your income can be taken for payment. They don't get to just take everything you own and demand all your money. You will find it is usually things like your primary residence, primary vehicle, and so on are protected, and the limit of monthly payment is a certain percentage of after tax income.

So while a big judgement sucks and can effect you in various ways, it isn't a life ending "you are forever in debt and can never keep a dollar" event.

Re:Well, duh

[Anonymous Coward]

Why are so many commentators constantly in need of surprises these days? Life generally too exciting?

I, personally, like to have my opinions based in fact. I like to change my opinions when facts show otherwise. I like to consider my opinions correct when the facts match up to what I thought all along. Reading a news story that confirms an opinion is just as important as reading a news story that indicates I might be wrong.

Sony vs NKVD

[PopeRatzo]

I believe that Sony is a bigger threat to me and my welfare than North Korea and the NKVD.

Re:Inquiring minds want to know

[gl4ss]

it was meant to affect shareholder value, value of future negotiations and all manner of other things.

further, it was meant to be used as a number to throw around when trying to extort money from other sites. like, when negotiating with isohunt say that the other site paid 80 million bucks and vice versa.

basically.. at the core of things.. it was fraud.

not just on one level but on many levels. all the mpaa member companies should be held accountable for that fraud... but guess if they are? fuck no..