Illegal Downloads Don't Equal Lost Sales, Judge Rules

HOLLYWOOD, Calif. — A federal judge has decided that one illegal download doesn’t correspond to one lost sale.

In the criminal copyright case U.S. vs. Dove, U.S. District Judge James P. Jones ruled that when seeking restitution for files downloaded through peer-to-peer software, companies couldn’t argue that one illegally downloaded song cost them exactly one legally sold song.

This case involves the music and mainstream movie industries, but Jones’ decision has the potential to affect all industries that traffic in digital downloads, including adult. The defendant in the case, Daniel Dove, had originally been found guilty of criminal copyright infringement. Dove got busted for running a peer-to-peer network called Elite Torrents. At his original conviction, Jones sentenced Dove to 18 months in prison and a $20,000 fine ($10,000 for each of his counts of copyright infringement).

But the plantiff companies wanted more. The RIAA and Liongate Entertainment asked the judge to penalize Dove for each of the individual files trafficked on his site. All told, if Jones had agreed with the RIAA and Lionsgate, Dove would have owed them more than $22 million.

In the opinion, Jones wrote that to equate each illegal download with one lost sale is a faulty assumption.

"Those who download movies and music for free would not necessarily purchase those movies and music at the full purchase price," he wrote. "[A]lthough it is true that someone who copies a digital version of a sound recording has little incentive to purchase the recording through legitimate means, it does not necessarily follow that the downloader would have made a legitimate purchase if the recording had not been available for free."

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

BranditScan Rolls Out 'UrLinks' Platform Feature

BranditScan has introduced its new UrLinks homepage feature for creators.

UK Outlaws Content Featuring Choking, Adults Portraying Children

The U.K.’s Crime and Policing Bill received final passage in Parliament on Monday, including provisions criminalizing depictions of “non-fatal strangulation” as well as sexual content in which adults portray children.

Island Conference Joins ASACP as Media Sponsor

Island Conference has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

Elly Clutch, Girthmasterr to Host 2026 XMA Creator Awards

XBIZ is pleased to announce Elly Clutch and Girthmasterr as co-hosts of the 2026 XMA Creator Awards, presented by premium creator platform Fansly.

FSC: TAKE IT DOWN Act Provisions Take Effect May 19

The Free Speech Coalition has issued a reminder notice that the notice-and-removal requirements of the federal TAKE IT DOWN Act will go into effect on May 19.

Venus Berlin Joins ASACP as Media Sponsor

Venus Berlin has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

XBIZ Miami's Host Hotel Sold Out; Additional Hotel Added

Guest rooms at XBIZ Miami’s exclusive conference venue, Goodtime Hotel in South Beach, are now completely sold out.

Penthouse Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of Penthouse World Media in a case against a website using an infringing domain.

'Collective Corruption' Relaunches Through PAYSITE

Fetish and BDSM membership site Collective Corruption has relaunched through PAYSITE.

RocketGate Taps Joël Drapeau for Senior Account Executive Role

Payment processing company RocketGate has hired industry veteran Joël Drapeau as its new account executive for business development and client relations.

Show More