Dicey indeed. They were playing very fast and loose with 17 USC 512(c)(1)(a)(ii), if not the takedown provisions themselves. The nature of their service makes

Dicey indeed. They were playing very fast and loose with 17 USC 512(c)(1)(a)(ii), if not the takedown provisions themselves. The nature of their service makes no distinction between the recipients, regardless of link to the file, and the only difference is which uploader would get points (or whatever reward they had). Its really hard not to give the impression that there weren't just looking the other way. Sites like (IIRC) hotfile.com completly blacklist the md5, even preventing re-upload of files if the get a DMCA takedown. If a trial goes forward, I expect to see some case law made clarifying this area.