opinion

Is File Sharing Theft?

The language we use to frame digital piracy matters, and the real problem is that 20th century notions of theft simply don’t apply. Copying content one did not create is not the same zero-sum game as stealing, because the owner still has his original content. And now, entire generations of “Netizens” draw a sharp moral distinction between file sharing and theft. A March 2012 op-ed in the New York Times posits that “we should recognize that the criminal law is least effective – and least legitimate – when it is at odds with widely held moral intuitions.”

So, do we adjust the law to align with the commonly held values of the majority?

As an industry, we need to re-tune our moral compass and find common ground to work together toward fair distribution of intellectual property and creative content.

Judge Richard Posner’s August 2012 7th U.S. Circuit Count of Appeals ruling in favor of the “leeching” tube site MyVidter, overturned a temporary injunction brought by Flava Works which claimed that the tube site was guilty of stealing copyrighted content (what we commonly refer to as infringement.) Posner took the position that linking to stolen files already stored elsewhere (perhaps illegally) does not constitute content theft. And he went further, to equate this activity with sneaking into a theater through the back door to watch a film without buying a ticket; immoral activity he acknowledges, but not theft.

Trouble is, MyVidster and other leeching tube sites that don’t actually store content on their servers are not simply “sharing” files. They are engaged in illegal distribution of content they are not licensed to distribute. They are holding that back door to the theater open and inviting everyone in. And their business model is based on the sale of advertising and the sale of traffic – both of which depend on the number of eyeballs and clicks they generate displaying content that does not belong to them. The Electronic Frontier Foundation applauded Posner’s ruling in favor of MyVidster in part because the temporary injunction put an undue burden on the tube site and its operations as a small company that might not survive such an obstacle to its day-to-day operations. But the EFF did not address the relative size and financial strength of the two opponents in this case; FlavaWorks.com with an Alexa traffic rating of just over 300,000 in the US, and MyVidster.com whose traffic is 300 times greater at a rating of just over 1,000.

This problem is compounded in our industry by the advertising and traffic piece of this puzzle. Several of my high-profile adult clients make ad buys in large blocks where the various placements of their banners are not specified, and often those banners end up on leeching tube sites, running right next to a video player that’s streaming unlicensed (read stolen) content, sometimes content owned by the advertiser themselves. To make matters even worse, some tube sites that promote unlicensed distribution of adult industry content are themselves subsidiaries of larger corporations who produce original content and then seek to carefully protect its distribution. And in the most predatory of business practices, some companies promote illegal distribution of adult content and profit from it on tube sites, increasing their own treasure while robbing the original producer of his. And then they swoop down and buy the weakened studio for a fraction of what was its value before they raided it. Worse yet, some of these predatory companies are awarded industry accolades for their philanthropy when infinitesimal fractions of the profits they generate through questionable activities like these are donated to support the popular cause of the day.

Our notions of theft, our concept of intellectual property, and the way we talk about these issues really does matter. As an industry, we need to re-tune our moral compass and find common ground to work together toward fair distribution of intellectual property and creative content. And we need to change attitudes about copying and sharing – to draw a sharp distinction for the public between the free distribution of information and political speech online, and the distribution of original, digital entertainment content that must be paid for.

Peter Phinney is co-owner of Porn Guardian.

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 Articles

opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
opinion

From Compliance to Confidence: The Future of Safety in Adult Platforms

In numerous countries and U.S. states, laws now require platforms to prevent minors from accessing age-inappropriate material. But the need for safeguarding doesn’t end with age verification. Today’s online landscape also places adult companies at uniquely high risk for inadvertently facilitating exploitation, abuse or reputational harm, or of being accused of doing so.

Andy Lulham ·
opinion

What Adult Businesses Need to Know About Florida's Age Verification Law

The rise and proliferation of age verification laws has changed the landscape for the online adult industry. A recent and compelling example is the state of Florida, where Attorney General James Uthmeier has filed multiple complaints against major platforms as well as affiliates accused of violating the state’s AV law.

Corey D. Silverstein ·
opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
Show More