Washington-based adware vendor Zango has been in the spotlight in recent days for cooperating with web sites that serve pirated movies and TV shows online. There have been calls to sue Zango — but such a step could open a can of worms.

The whole story all started with a post on the FaceTime Security Labs Blog last week about Movietvonline.com, which forces Windows-using visitors to install Zango’s adware application in order to access a catalog of bootlegged video streams and downloads. FaceTime followed up with reports about several other sites doing the same thing; install Zango, get access to Hollywood blockbusters and TV show episodes.

Security researcher Ben Edelman told Computerworld earlier this week that he believes Zango is violating the DMCA by cooperating with sites like Movietvonline.com and that Hollywood would win a court case against Zango. “I think this would be a pretty good one to pursue, because Zango is profiting directly from the infringement,” he added. While the idea of Hollywood suing an adware company sounds enticing, is the case really that clear-cut? And what kind of implications could a successful Hollywood lawsuit have for other advertisers in the online video space? Continue reading on Newteevee.com.

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