an extract from HWZ
Section 136 states following:-
136. (1) A person who at a time when copyright subsists in a work
(a) makes for sale or hire;
(b) sells or lets for hire, or by way of trade offers or exposes for sale or hire; or
(c) by way of trade exhibits in public,
any article which he knows, or ought reasonably to know, to be an infringing copy of the work shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 for the article or for each article in respect of which the offence was committed or $100,000, whichever is the lower, or to imprisonment for a term not exceeding 5 years or to both.
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confirm many people will be saved.
You Download and watch yourself. You did not;
A) Distribute
B) Sell for Profit
c) Display or project in public.
in short... anyone who receive the letter SHOULD not pay and lawyers should know that this case is full of loopholes and this is one of them.