NiteShdw.com was sued by MPAA member companies Paramount Pictures, Twentieth Century Fox and Universal Studios on February 23, 2006, for encouraging "massive online piracy." NiteShdw.com was a BitTorrent indexer secifically oriented towards science fiction material.

The MPAA's decision to pursue this BitTorrent site was unexpected; as compared to other sites named in the lawsuit NiteShdw.com was much smaller and relatively unknown. Yet its inclusion with other United States' based sites such as isoHunt ensures the decision to operate a BitTorrent indexing/tracking site is a risky business.

Feeling the law is still untested, TorrentSpy and isoHunt have formed a legal alliance in an effort challenge the complaint - however NiteShdw.com has entered settlement negotiations with the MPAA. Similar to the RIAA's lawsuits against individuals, the complaint recipient has the option to challenge the complaint in court or settle at a discount.

For NiteShwd.com's, the MPAA made an apparent settlement offer of $10,000. Considering the resourcefulness of donation buttons, this offer may appear attractive. However NiteShwd.com reports that a stipulation in the settlement contract prohibits the use of any such donation money, and any money collected through such means will be confiscated by the MPAA.

"Ongoing discussions with the MPAA's lawyers are not going well," stated the administrator of NiteShdw.com. "They are demanding a monetary settlement of at least $10,000, which amounts to nearly a half year of income.

"In addition, a clause in the proposed settlement takes away my right to ask for donations to pay for a defense or settlement fund. Under the proposed agreement, any donations I receive through NiteShdw.com would be confiscated by the MPAA and would not be applied to the total monetary damages I would owe."

It's clear the MPAA is not particularly interested in money as they are in expressing BitTorrent that is other than BitTorrent®©™ is no longer an attractive market.

This story is filed in these Slyck News categories
Entertainment Industry :: MPAA
Legal/Courtroom :: BitTorrent Lawsuits

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