Sorry, but you're wrong on both counts. For one, it's just not true that movie studios make their money from individuals. Theme parks aside, they are almost en

Sorry, but you're wrong on both counts. For one, it's just not true that movie studios make their money from individuals. Theme parks aside, they are almost entirely B2B. Think about it, have you ever bought a film directly from Universal Studios (for instance)? No. You have always gone through a theater or a retailer (online or physical). That is to say, you have done business with a commercial distributor who could not sell to you without making a deal with Universal. And one thing you won't find on the Universal Studios site is e-commerce. Here, see for yourself - they don't do business with individuals. http://www.universalpictures.com/ http://www.universalpictures.com/ Also, companies that "profit from piracy" cannot simply move offshore when they're major companies that depend on the American market for a very large part of their revenue. If they, or a subsidiary, are incorporated here, then they can be sued in US court. Sure, a pirate site could operate from wherever, but how could they attract enough Blue Chip advertising revenue to cover their bandwidth if the advertiser knew they could get sued for allowing their ads to run on a pirate site? That's the whole point of E&O. It forces distributors to do business only with legitimate producers, while purging producers who expose underwriters to liability. By placing advertisers in the line of fire, it forces them to do business with legitimate ad networks only (i.e. ones that don't depend on pirated content), while driving illegitimate ad-supported networks into commercial oblivion.