It’s no surprise that file-hosting site Hotfile dumped the premium accounts of many of its customers because of allegations of illegal file-sharing. It’s not shocking that Hotfile dumped all of these users’ files, offered no notice, and no explanation outside of the promise of an explanation via email.

What stood out to me is that Hotfile seems to have conveniently forgotten the money they owed some of these members from rewards programs, acting as if alleged copyright infringement somehow releases them from their financial obligations. This is akin to tenants assuming they no longer owe money because the landlord was accused of tax evasion. In short: while Hotfile and other file-hosting sites have to kowtow to rightsholders to some extent, there remains an ethical, upright way to address file-sharing. Dumping customer data, and skirting debts under the guise of abiding by copyright is not the way.

The jury remains out on whether any of the accused will still receive their rewards program funds (some earned more than $1,000 still uncollected), but I would hazard to guess the Hotfile will claim that a violation of their license agreement equates to forfeiture of rewards money.

This highlights a fundamental problem in an age where everyone is a copyright criminal. People end up losing rights that have nothing to do with copyright, such as being paid money they’ve earned, when the inevitable and sporadic letter of the law is applied. Imagine an establishment hiring a band under the mutual assumption that the band cleared all performance rights (usually the responsibility of the venue, but…). Then an ASCAP snitch comes looking for the venue’s license, ordering them to cease and desist performances unless they buy the proper licenses. The establishment owner could easily fire the band and refuse payment for breech of contract, despite taking no action to ensure they had settled the matter beforehand. Why? Because copyright law is too heavy-handed to prevent all violation. When breaking the law becomes a consequence of any creative act, any act of sharing, or even forwarding an email, no one remains free from copyright criminal status.

Alas, Hotfile acted as so many other companies, only caring about copyright the moment they receive threats. That they used this to avoid paying their debts (along with showing complete disregard for their customers’ data or right to know what happened), foreshadows a shady, bleak reaction to copyright enforcement. One that other companies conspicuously abiding by the law may use in a similar fashion.

Again, the only ones who suffer are consumers. Any file-hosting site knows full well what happens on their servers. But consumers accused of infringement still deserve the money they earned, and some forewarning that their host plans on dumping their data, suspending their accounts, and generally screwing them over for charges that never even made it to court.