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It's not illegal, you just can't claim the benefits of the limited liability section if you don't register a copyright agent and respond to DMCA notices.

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The DMCA is a law. Not following the rules of OCILLA is not acting according to law, which is identified by the word illegal. Illegal has nothing to do with criminality.

Sorry, but no. The DMCA simply says "A service provider shall not be liable...if the conditions set forth...are met". It does not compel ISPs to make those conditions true. They're not "not acting according to law" by not actively creating the circumstances in which the DMCA provides the limitation of liability.

http://www.copyright.gov/legislation/hr2281.pdf

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