Cease and desist
Has your library ever received a "cease and desist" letter threatening you with fines because a patron used the library's internet connection to download something illegally? How did you respond?
Before you do anything, take a look at the ALA Washington Office's Digital Dispatch post, "My conversation with a copyright troller."
Many thanks to Cheryl Becker and her post, "Illegal Downloads and Libraries–This is Important!" (an excellent short summary of this topic which steered me to the Digital Dispatch post).
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