The MPAA argues that Hotfile is a piracy haven where more than 90% of all downloads are copyright infringing.
http://www.bbc.co.uk/news/technology-17300225
Panama-based Hotfile has claimed safe harbour protections under the Digital Millennium Copyright Act.
These offer sites immunity if they take down illegal material when asked and protect services such as YouTube from being forced offline if a member uploads someone else's video.
https://www.scribd.com/doc/84379991/Mpaa-Hotfile-Summary
DEFENDANTS CANNOT PROVE ENTITLEMENT TO DMCA SAFE HARBOR.?