How do you handle sites that fish/stream (whatever you call it) music and software from third party sites like Rapidshare and esnipes. I have ran into several clients who's bandwidth went crazy and I was puzzled at first because there was literally no data stored besides some 10MB worth of data on our server but they seemed to be fishing or streaming over 20GB day of copyright material. has this become a problem for allot of hosts?
If they are streaming copyrighted material without permission from the copyright owner I would notify them that they need to stop or they face termination.
Your ToS should reference such issues as copyright and illegal content and how you handle it.
In my experience customers who do what you are mentioning are not real customers and generally when you tell them that they can no longer do that, they will move on to another host and exploit it as long as they can.
This is certainly a problem that all web hosts face, especially free web hosts. The best course of action you can take is to notify the account owner of their TOS transgression and request that they cease the streaming activity. Then, if they don't stop, suspend their account.
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