The copyright holders have not issued any takedown notices so far

Jul 6, 2010 14:45 GMT  ·  By

Internet piracy is as rampant as it has ever been and millions of people turn to peer to peer networks or various sites to get their hands on the movies, music or software that they want. The phenomenon is complex, but one of the big reasons people turn to file sharing is the convenience and not necessarily the price. That is to say, many illegal file sharers would pay if it was easy enough for them to do it.

Most old school companies haven’t provided the alternatives that customers want and are, in fact, fighting vigorously to limit their choice. That said, at least some companies have managed to adapt to the new environment and generate some revenue in process. Unfortunately, that doesn’t always mean what you’d expect.

One way copyright holders groups have been making money online is by threatening to sue everyone that might have downloaded an illegal copy if a movie, for example. The practice has recently made its way into the US, where the producers of the Oscar winning movie Hurt Locker are suing 5,000 people for their downloads.

The move has all the makings of a classic shakedown scenario. Users receive notification letters informing them that they are being accused of illegally downloading the movie and that they can choose to pay for a ‘settlement’ to handle the business out of court. The system works because most people choose the settlement option as they don’t want to be dragged into a potentially expensive lawsuit.

Still, the production company and the US Copyright Group that is representing them say that all of this has to do with file sharing and how it’s destroying the movie industry. Incidentally Hurt Locker has been a box office flop. Yet, so far, the actual illegal downloading of the film continues undeterred.What’s more, there appears to be absolutely no DMCA takedown notices issued to sites providing torrent files of the movie. Last month alone, the movie was downloaded 200,000 times, Torrent Freak reports. It’s as if the copyright holders want to have the movie downloaded as many times as possible, unlikely as that may seem.