Hmm ...this is really interesting, I didn't know about 'Hollywood built on piracy' story at all. I did some research and found this interesting comment in one of the articles, which does seem to make sense.

"The proponents of this myth seem to want to suggest an analogy: Hollywood was built by “outlaws”; now Hollywood has become the incumbent, seeking to stop the next generation of “outlaws”. But this is a false equivalence. The Pirate Bay (or Megaupload, etc.) isn’t producing its own movies. Recognizing exclusive rights to a creative work doesn’t prohibit anyone from creating their own works. Stopping someone from offering copies, especially complete, verbatim copies, of a work is not anti-competitive."

from : http://www.copyhype.com/2012/05/was-hollywood-built-on-pirac...