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It's interesting to see that hotfile.com is completely off the radar for the SFL project. Being previously one the worst offenders, after series of legal battles in US, they employed several methods to prevent copyright infringements, and seem to have no problems at the moment. It means that there are indeed legal models for a classic(focused on sharing files, and not storing like dropbox) file locker operations. Just kill repetitive infringement accounts, react on DMCA complaints quickly, and prevent reported files from being uploaded again by storing and comparing md5-hashes.
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