Article from ZDNet:
Hollywood dodged a second bullet in a burgeoning battle over online film distribution Thursday, quickly shutting down an Iran-based Web site that had sold access to copyrighted films over the Internet for $1 apiece.
Tehran-based Film88.com registered its Web site in April, and the company had briefly operated a video-on-demand site renting a long list of Hollywood hits such as "Star Wars" for viewing on PCs. Though Film88.com was being operated from a country with unfriendly U.S. relations, its content ran from servers based in the Netherlands. The MPA, the international arm of the Motion Picture Association of America, worked with its Internet service provider in the Netherlands to turn the site off. ISPs in the Netherlands recognize international intellectual-property laws.
Film88 is at least the second Internet video-on-demand site to spring up in recent months. The MPA in February worked with the Taiwanese authorities and its hosted ISP to get rid of Movie88.com, which also streamed feature films to consumer desktops for $1 each. This year the association, which represents seven major Hollywood studios, has sent 40,000 letters to ISPs hosting what it deems rogue operators, compared with 50,000 letters for all of last year.