Cengage Advantage Books: Foundations of the Legal Environment of Business 3rd Edition by Marianne Jennings

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Gottfrid Svartholm Warg, Peter Sunde, Fredrik Neij, and Carl Lundstrom are four Swedish lads who operated the Pirate Bay website. Pirate Bay allowed its users to have free access to copyrighted movies and music. The site had 22 million users and was based in Sweden, a signatory country to an agreement among countries for enforcement of each other's copyright laws. When the Swedish government brought criminal copyright charges against Pirate Bay, the four lads said that they were just promoting free information, that they did not actually "host" any of the copyrighted materials, and that they did not profit from the exchange of music and films. "We earn $1,000,000 per year from advertising placed on the site, not from users." Is there copyright infringement? What laws apply?