TABLE OF CONTENTS
TABLE OF AUTHORITIES ......................................................................................................... iv
CITATION LEGEND ................................................................................................................... vii
INTRODUCTION ...........................................................................................................................1
FACTUAL BACKGROUND ..........................................................................................................3
A.
How Hotfile Works. .................................................................................................3
B.
Hotfile’s Business Model. ........................................................................................5
C.
Hotfile’s Affiliate Program Openly Induces Copyright Infringement. ....................5
D.
Hotfile’s Business is Unlawful File Distribution, Not File Storage. .......................8
E.
Hotfile Is Used Overwhelmingly For Copyright Infringement. ..............................9
F.
Defendants Actively and Knowingly Foster Copyright Infringement. ..................10
1.
Defendants Turned a Blind Eye to Repeat Copyright Infringers. ..............10
2.
Defendants Sought Out Users Who Would Upload Infringing Files. ...........................................................................................................123.
Defendants Helped Users Engage in Specific Acts of Infringement. ........13
4.
Defendants Had Actual Knowledge of Specific Infringing Files. .............13
5.
Defendants Used Copyrighted Content to Illustrate How to Use Hotfile. .......................................................................................................15
6.
Defendants Had Knowledge from Multiple Additional Sources. ..............15
G.
Defendants Failed to Consider Standard “Filtering” Technology. ........................16
H.
Plaintiffs Suffer Substantial Harm from Defendants’ Piracy. ...............................17
LEGAL STANDARD ....................................................................................................................17
ARGUMENT .................................................................................................................................17
I.
DEFENDANTS CANNOT PROVE ENTITLEMENT TO DMCA SAFE HARBOR. ....18
A.
Defendants Failed to Reasonably Implement a Repeat Infringer Policy. ..............19
Case 1:11-cv-20427-KMW Document 322 Entered on FLSD Docket 03/05/2012 Page 2 of 51