"In less than two years Hotfile has become one of the 100 most trafficked sites in the world. That is a direct result of the massive digital theft that Hotfile promotes. Everyday Hotfile is responsible for the theft of thousands of MPAA member companies' movies and TV shows - including movies still playing in theaters - many of which are stolen repeatedly, thousands of times a day, every single day," said Daniel Mandil, General Counsel & Chief Content Protection Officer for the MPAA. "The theft taking place on Hotfile is unmistakable. Their files are indeed hot, as in stolen. It's wrong and it must stop."
MPAA's members claim that download hubs like Hotfile bear no resemblance to legitimate online locker services, since they openly discourage use of its system for personal storage. "Hotfile's business model encourages users to upload files containing illegal copies of motion pictures and TV shows to its servers and to third-party sites, so unlimited users can download the stolen content ? in many cases tens of thousands of times," MPAA said in a statement.
Hotfile profits by charging a monthly fee to users who download content from its servers. Hotfile also operates a scheme that rewards users for uploading the most popular files.
Hotfile is operated by Anton Titov, a foreign national residing in Florida. The studios are suing Hotfile and Titov for "direct infringement for unlawfully distributing copyrighted works, inducement of infringement, contributory infringement and vicarious infringement, for actively promoting, enabling and profiting from their users' copyright infringement." A civil lawsuit has been filed in U.S. District Court in the Southern District of Florida for damages and injunctive relief for violations under the United States Copyright Act of 1976.
A copy of the Hotfile complaint can be found here.