HQ let me shed some info. First APIC are very good friends of mine. They do check and double check before writing to any copyright infringer. Yes, the host has some limited liability, but not much. And believe me a host Free or paid will not mess around with legal owners of content. If they write to us, (I get 5 a week on Lightning Free) We will delete the persons account ASAP.
The person who Knowingly, Willingly, and Wontonly, put the pics up, is the one they are after, and will prosecute, not the host. I also work with Playboys lawyers, and a bunch of others.. Dont post any pics that you dont have permission to use, thats pretty simple.
------------------
Smile and Be Happy
http://www.lightningfree.com