I'd say you are correct. The problem I see in this situation is that Hotfile alleges WB has an incentive to remove content: the removed content seems to get rep

I'd say you are correct. The problem I see in this situation is that Hotfile alleges WB has an incentive to remove content: the removed content seems to get replaced with a link of WB's choosing in an effort to sell media. Keep the automatic "take down" (which should be flipping a bit in your database that hides the content) and flag the replacement content for human review. Without a thumbs up from the human, WB gets no referral link. P.S. The human reviewer really can't put things back up even if they notice it's Linux kernel source code. That puts Hotfile back in the legal hot seat.