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> They said the money gets forfeited to LOC, not recoverable.

That was not explicitly stated, and the more reasonable interpretation is that the money would be considered as part of the legal fees for the action culminating in the lawsuit, and would therefore be eligible for recovery absent specific legal provisions excluding that possibility.

> People would just file lawsuits instead of sending notices at all.

The DMCA notice procedure would continue to serve the original purpose of serving as an expedited way to get infringing content removed, thereby limiting the damage done while waiting for room on the court's docket. And in cases where the infringer knows they're guilty and doesn't want to contest the takedown, a court would still not have to get involved (except perhaps for being part of the escrow system, but that doesn't waste the judge's time).




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