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Actually LWD could be in a much trickier situation. Since they host the cloud storage we all use, and will control the CM even if they won't directly be able to keep us from being able to swap XML files amongst ourselves, they could be subject to receiving DMCA take down notices.
As a hosting site, much like youtube or the like, once they are made aware that infringing material is on their server they are obligated to determine whether it is actually infringing and if so to take it down. If they don't they lose their protections under the DMCA and become just as liable for the infringement as the person who posted it.
my Realm Works videos
https://www.youtube.com/channel/UCZU...4DwXXkvmBXQ9Yw
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