[yAnonymous]

>3. Hiding your IP while torrenting (note that this is relevant only in the US)

This is relevant in most of Europe and unlike in the U.S., a C/D letter can easily cost you somewhere between 300 and 1000€.

[appleflaxen]

why is there a cost associated with it?

[yAnonymous]

They threaten to take it to court and that would cost much more. You'll also have to deal with a lot of bureaucratic crap along the way that has very short deadlines and can cause a lot of trouble if you don't meet them, so they kindly allow you to pay to make it all go away...

[tP5n]

because they can and a lawyer will cost you more. actually, i know a lawyer who paid upfront to avoid the threat of a lawsuit.