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Yikes
All I can say is, I hope you mailed each of those people you sent a bootleg to a real copy a few days later, along with some money. I understand testing Peerflix anti-fraud, but would not, I hope, abuse the members, nor make them get a negative view of Peerflix because you choose to act badly deliberately within your competitor.
As for senior traders, I can't see myself wanting to do something like that but perhaps some would. Whether it works depends on the volume of fraud. I've seen none in Peerflix myself. If frauds are less than 1 in 50, say, it seems more practical to just make good the frauds from an insurance fund rather than handle the cost of checking out and delaying all disks. If frauds are 1 in 10, checking is needed.