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ExtraTorrent.cc > Articles > Hotfile Settled with MPAA for $4m

Hotfile Settled with MPAA for $4m

Hotfile Settled with MPAA for $4m

Added: Monday, December 29th, 2014
Category: Recent Headlines Involving File Sharing > Ridiculous Criminal Trials
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2013, www.extratorrent.cc
A year ago, the Motion Picture Association of America announced one of its biggest victories on the file-sharing field: the anti-piracy group won its case against file-hosting service Hotfile, and the latter agreed to a $80m settlement. Now it turns out that this figure was only announced to impress and scare the public, and in reality Hotfile agreed to pay only $4m.


Back in December 2013, Hotfile was defeated by the entertainment industry, and the case resulted in a hefty $80m settlement. In the meantime, the public agreement allowed Hotfile to continue its operations if the service introduces a filtering mechanism, and Hotfile shut down after the settlement was announced. Now it became known that the $80 million figure the MPAA was so proud of was not the the real settlement the file-sharing service agreed to pay.

The recent Sony leak contained an email conversation, where it was confirmed that the real settlement payment from Hotfile was 20 times less the one announced in the press.

The Sony’s official was writing in the email that the movie studios and Hotfile have reached agreement on settlement one week before the trial. The file-sharing service has agreed to pay $4m and has entered into a stipulation to have an $80 million judgment entered and the service shut down. Taking into account the time and effort the case has taken, one may guess that the MPAA and studios actually lost money on the lawsuit. At least it is known that the money was paid to the MPAA in full, despite the doubts of the critics whether the cyberlocker would indeed pay up. During the first weeks of December 2013, the MPAA received $4 million in 3 separate payments.

Now the industry observers point out that this disparity between the public settlement figure and the amount that was really negotiated puts all the previous cases touted by the MPAA in a different light. One may believe that all those huge settlements, for example, $110 million with isoHunt or TorrentSpy, were also on the paper only, and the real payments were times less. Meanwhile, the MPAA doesn’t seem to care whether the Hotfile case resulted in a net loss: everyone knows that the Hollywood group hopes that the huge numbers it announces in press will serve as a deterrent, preventing other services from operating similar portals.

Thanks to TorrentFreak for providing the source of the article.

December 29th, 2014

Posted by: 

Date:  Monday, December 29th, 2014

Comments (3) (please add your comment »)

posted by (2014-12-29 16:44:15)
OnyxShadow avatarWhether it was 4 mil or 80 mil it was still a certified shakedown and nothing more.

posted by Trusted UploaderSite FriendSuperman (2014-12-30 01:46:26)
trialNerror avatarThe jail time would be worth it to look these creeps in the eyes and tell them to go F themselves with a fully charged cattle prod.

posted by (2014-12-30 08:59:33)
Rockman avatarThis proves what we already knew that the M P A A and R I A A

are liers not to be trusted next . .

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