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And then they send DMCAs to your hosting company and you get your hosting account suspended. Yeah, gotta fix the system...

In my experience, it's easier to explain to your hosting company than to a company with no meaningful mechanism for appeal. The system definitely needs to be fixed - I'm just proposing practical solutions in the interim. It seems unlikely to me that these problems will be fixed any time soon since fixing them would run counter to the agenda of those with the resources to lobby politicians.

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