Its illegal to use MPEGs taken off usenet groups and yahoo sites and I'm pretty sure anyone who does this will likely get your ass raped in court pretty quick, though no doubt some people have managed to get away with it for a period of time.
I know SEG has nailed some people doing this sort of thing and no doubt we will nail a few more sometime in the near future.
What do you mean about vids from other paysites? You mean hotlinking them over to your site by copying their destination in? I would be surprised if you could do that in most cases as people are wise enough to prevent that from happening.
Well a lot of people Lease content from sites like Sweeterotica.com, from Python, from Holio, etc - thats why you see the same content on many sites. We all provide content and feeds to our customers.
Nothing stops you from stealing content you find on newsgroups or on commercial DVDs and putting it into your paysite. But that doesn't mean its either legal or that you will get away with it forever.
All I have to say is if there is no clear owner of something, then you'd best leave it alone if you are doing a commercial site because when you're sitting in court and they ask you to show you that you own it or licensed it from the owner, and you can't prove that you do, you're ass is toast and the law suits are rolling in. Its just like with music - sure you can download a shitload of free music, but if you start taking music owned by other people and selling it on a site, I guarantee you will end up in court sooner or later....content is content whether its adult videos, mp3s, or copyrighted logos. You take it and resell it you're asking for trouble.
Make sure that your content provider is legit as well, if you buy stolen content from a content provider you are not protected by the law just like if you buy a stolen car from someone you are still in possession of stolen property.
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