"Still want to watch YOLO or Pegasus 2 online for free?" Pop-ups promising just that are the glossy front of a black-industry chain that builds pirate sites, sells ready-made CMS templates and splits advertising revenue. In 2024 the People's Court of Dongyang, Zhejiang, delivered criminal and civil verdicts against Lu Mou-qian and two accomplices for infringing the copyrights of Spring-Festival films. The message: stream hits illegally and you face prison, fines and damages – no exceptions.
1. Case File: 120,000 Films, 1.48 M Yuan in Ad Money – an Empire Built on Piracy
From May 2020 Lu bought domains, servers and a movie-portal CMS, then launched several unlicensed streaming sites. Without permission from right-holders such as Beijing Light & Shadow Film Co., he deep-linked more than 120,000 titles including YOLO and Pegasus 2 and let the public watch them free. Between April 2022 and February 2024 he earned 1.48 M yuan by placing gambling and risqué ads. Co-defendants Ji Mou-shi and Fang Mou-shi, knowing the sites were illegal, sold him templates and maintenance services for 6,990 yuan.
2. Judgment: Criminal + Civil "Double Kill"
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Principal Lu: crime of copyright infringement – four years' imprisonment, 1.5 M yuan fine, 880,000 yuan compensation to right-holders.
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Accomplice Fang: one year (suspended 18 months), 16,000 yuan fine.
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Accomplice Ji: ten months (suspended 14 months), 10,000 yuan fine.
All illegal gains and crime tools confiscated. No appeal; verdict final.
3. Judicial Highlights: Dongyang's "Three-in-One" IP Model
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Criminal crack-down: four-year term, the heaviest yet in similar cases, based on "huge illegal gains".
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Fast civil pay-out: five right-holder companies received 880,000 yuan in the attached civil action, concluded in the same trial.
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Administrative co-operation: cyber-space, copyright and police agencies seized domains and severed links during the investigation, hitting the whole chain.
4. Industry Pain Points: Pirate Sites' "Three Lows" & "Three Highs"
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Low tech bar: CMS template + crawler links = site up in half a day.
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Low running cost: overseas server rental <100 yuan/month, domains hop constantly.
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Low user alert: "free access to the whole net" lures price-sensitive viewers.
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High traffic bonus: Spring-Festival titles double search hits and ad CPM overnight.
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High stealth: people, goods and money kept separate; fourth-party payments launder cash.
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High enforcement hurdle: infringing files sit on overseas CDNs; notice-and-takedown cycles are slow.
5. Shock-Waves: Three Hammers for the Piracy Trade
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"Ad revenue = illegal gains": court counted the entire 1.48 M yuan ad income as crime proceeds, uprooting profit.
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"Accessories liable too": template sellers and tech supporters were treated as joint offenders; "technology is neutral" defence rejected.
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"Civil damages inside criminal case": right-holders paid without extra litigation, cutting time and cost.
6. Compliance Guide: Self-Help for Platforms, Advertisers and Tech Suppliers
Film / short-video platforms
Advertisers & ad networks
Server / domain firms
Right-holders
7. Conclusion: The End of "Free Movies" Is a Cell and a Fine
Dongyang's sentence – four years, 1.5 M yuan fine and 880,000 yuan damages – tells the market: film innovation deserves respect, and viewers' convenience must not rest on law-breaking. Next time you click "free blockbusters", remember: your traffic feeds the pirate's ad share, while the law buys their ticket to a prison cell. Protecting copyright keeps the biggest spectacles on the big screen and stops creative passion from being stolen.
