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People world wide are using free hosting services (like rapidshare, imageshack, youtube) to host/share various digital materials, while most of them dosen't have any license to do that. That user uploaded content is making big troubles/losses to movie/music industry. Same is with adult industry.
There are sites (spamfreexxx.com for eg) where you can find links to download copyrighted contents or even full porn DVDs.
I know this area well and I think that this is just the beginning of the lawsutis.
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