Well buddy that what happening to a lot of folks out there. Many are complaining about this situation. But the fact of the matter is you all did violate the TOS by sharing file that are copyrighted. However HF and others have turned a blind eye till now but it seems they are getting a lot of pressure to take measures against it.
Feb 9, 2011 NEW YORK (Reuters) – Five Hollywood studios are suing a website that streams movies, accusing it of copyright infringement on a "massive scale". Disney Enterprises Inc, Twentieth Century Fox Film Corp, Universal City Studios Productions, Columbia Pictures Industries and Warner Bros Entertainment Inc on Tuesday filed suit against Hotfile Corp and Hotfile manager Anton Titov, according to documents filed with the United States District Court, Southern District of Florida Miami Division. The Hollywood studios say that Panamanian Hotfile actively encourages users to upload and disseminate copyrighted content, and pays them to do so. They say that Hotfile has profited from the arrangement. "Hotfile profits from this theft by charging a monthly fee to users who download content from its servers. Hotfile also operates an incentive scheme that rewards users for uploading the most popular files -- which are almost exclusively copyrighted works. Hotfile profits richly while paying nothing to the studios for their stolen content," the Motion Picture Association of America Inc said in a separate statement. In less than two years of operation, Hotfile has become one of the most heavily-trafficked sites on the Internet, according to the filing. The studios are seeking damages and injunctive relief, according to the filing. Source: http://news.yahoo.com/s/nm/20110209/media_nm/us_hollywood_lawsuit
copyright isn't a thing that was invented last week ;-) - it existed long before the internet. RS fighted for a long time not to be the bad guy and ultimately it lost the battle. And it seems HF is the next on the list. However they both have two things in common: the have their HQ in countries that are well known to fight for copyright holders. Wouldn't be surprised if other firms that are located in the EU or USA will join them.