"The company doesn’t reveal how it works, but they appear to be flooding clients with fake information, masquerading as legitimate peers."

"For a month Pirate Pay’s technology protected the film “Vysotsky. Thanks to God, I’m alive,” (distributed by The Walt Disney Studios Sony Pictures Releasing company) with moderate success."

Sounds likely to me

See also (unrelated): http://en.wikipedia.org/wiki/Russian_Woodpecker

It's probably based on the problem of malicious clients in the network consensus problem. It states that if more than a third of all clients are malicious it is not possible to come to a consensus.

The solution would be to have a trust of clients. Where every clients vouches for another. The most important thing is that it has to use certificates, if not you get the following problem.

I am client 'c'. I heard from client 'a' that client 'b' is dirty. So I tell this to client 'd', but the truth is I'm lying. However now the problem is: Is 'a' lying about 'b' or am I ('c') lying about 'a'? However having the messages signed by the clients solves this problem.

So, Microsoft is funding botnet operator to DDoS P2P network? It is legal? What if tomorrow Apple will fund botnet operator to DDoS Microsoft?