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I wonder if copyright holders will file a lot more of these notices (100X? 1000X?) since they will presumably be cheaper and seen as less threatening.

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Indeed. Does a penalty for filing a false notice (accusation) of infringement exist? What's the process for adjudicating disputes?

I don't think there's any penalty for false accusations of copyright infringement. Likewise, nobody needs to pay for falsely accusing you of anything unless you sue them for defamation.

If your ISP actually cuts off your internet after 6 false accusations, you might want to take them to the courts. EFF will probably love to take on such a suit. Unfortunately, very few people have the financial means or guts to sue the RIAA/MPAA and follow through with it.

I think judges can order the accuser to pay the legal fees of the accused at least.

You'll probably need to win the lawsuit before the judge can order something like that.

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