The ToU agreement on the SRA function is there so that some dumbass like me can’t go spam takedown notices on every single file they host. It is there so Hotfile doesn’t have to deal with griefing deviants.

We know that abusing the tool is not enough legally for Hotfile to disallow Warner from using the tool (i.e. allowing copyrighted Warner material to freely be up- and downloaded on their servers). The question is how Hotfile is then supposed to go about policing copyright holders who are using the tool improperly.

I would think that a judge (assuming he is seeing this the way we are) could fine Warner for each infraction. At the same time, there may be precedent set that allows Hotfile to fine abusers of their system, before they are allowed to use it again.

I had considered that as well.

The case perhaps shouldn’t be between Hotfile and Warner, but between Warner and the copyright holders of those non-Warner works.

Hopefully this case will show us what kind of deal websites have in place for DMCA functionality.

There’s a positive side to this that I don’t think anyone’s commented on. Rights holders are always saying filelocker companies should monitor the uploads and remove all infringing content. The filelocker companies are saying, “that’s impossible”. We can’t possibly monitor everything that’s been uploaded.”

In this case, Hotfile gave Warner Brothers the job of monitoring Hotfile content and removing whatever belonged to Warner Brothers. I suspect what happened is not that Warner Brothers intentionally removed content that wasn’t theirs. Rather, they tried their best to monitor and remove Warner Brothers’ content, and found out what everybody knows– there is no way for anyone to efficiently and accurately find and remove infringing content.

This lawsuit’s biggest benefit, I suspect, will be to demonstrate to the Courts that even the best intentioned filelocker service cannot monitor and remove all infringing content. If Warner Brothers can’t even do it with their own material, why should others be able to?