settles with MPAA for $80 million but closes anyway

The notice on

Yet another file hosting sharing service has closed its doors, possibly due to a ruling from the United States federal court. The Motion Picture Association of America (MPAA) had allowed it to continue to operate under strict conditions after they had reached a settlement with for $80 million in damages.

The website is still accessible, although only for the above notice announcing the closure. Access to user account files has been disabled, and of course the ability to upload files.

In February 2011 the MPAA filed a lawsuit against Hotfile demanding up to half a billion dollars in damages. The longstanding battle between Hotfile and the MPAA was scheduled to go to trial again on Monday, but according to TorrentFreak the MPAA accepted a settlement of $80 million yesterday on the condition it starts using filtering techniques to prevent copyright infringement. 

A few hours after the settlement was reached the site closed down, and has since failed to reply to customers or requests for information on the closure.

The MPAA has been very successful in its fight against file hosts with MegaUpload being perhaps the 'poster child' for the actions against similar companies; in the wake of the MegaUpload raids and subsequent closure, many file hosts opted to preemptively close their doors in fear of similar raids being carried out at their data centers and homes. 

It's unclear if the closure was a result of the MPAA lawsuit, or a separate incident.

Source: TorrentFreak | Image: Hotfile

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These cases always confuse me as its user-created content, hot file didn't put the illegal content on their site. Its like suing ford because mexican drug cartels were caught in F250s with tons of cocaine, so Ford made a kickback from them!!

Hotfile owns the servers, not the customer (as with a car) and the MPAA and others had issue with Hotfile HOSTING copyrighted material and making it accessible to others, they also profited from HOSTING illegal content. It's not hard to understand

0sit0 said,
so if the car is leased they can sue the bank?

If someone rented a car from a rental company, filled it with drugs then returned the car to the rental company who, knowing it is full of drugs, then rented it out to someone else so they could collect the drugs, the rental car company would be culpable.

The issue with these file sharing sites is that a quick check on a search engine will tell you they are hosting some dodgy content. While they may not be the ones uploading the content, they are making it available to other people.

The hard part is understanding how hotfile and other companies can legally go about being in the 'know' of what the uploader has uploaded, as its illegal for them to monitor/copy/hash every file everyone uploads, nevermind the ridiculous amount of additional CPU power and software to accomplish it. I believe DotCom pointed this out in the MegaUpload defense. I don't think anyone would agree with putting UPS out of business, but silk road has proven drugs are successfully shipped through them on a daily basis...

Good riddance! I hate it when i go to download something and it's hosted on one of these rubbish sites with 100s of ads and popups, delays and limits to get you to pay, no thanks.

Breaking news: 12 new file sharing sites have appeared since the Hotfile shutdown and are doing just fine at this time with no end in sight...

I guess will no longer have to be a banned word on a forum I run, we are always getting spammed by bots hosting warez on hotfile. I always did wonder if it was hotfile themselves as we never had any problems with other 1 click file hosters.