BOSTON -- It's a fight that could make a great film plot: The movie business chasing pirates who copy new films, sometimes before they even hit the theaters.

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"We lose over $18 billion annually worldwide to piracy and Internet piracy," said Michael Robinson of the Motion Picture Association of America. "It is a growing problem and a growing threat."

The MPAA said 90 percent of pirated films are recorded in movie theaters on seemingly unsophisticated devices.

"That starts an avalanche of piracy that quickly spreads around the world," said Robinson.

Team Five Investigates easily found a list of films that were new in theatres, and available through downloads on the same peer to peer file sharing that shook up the music industry.

Theater owners said they lose $600 million a year in ticket sales to piracy so they train their staff to be on the look out for recording devices. In fact the MPAA offers a $500 reward as an incentive.

"So we are watching. There are eyes everywhere," said National Amusements spokeswoman Wanda Whitson. "This is a state and federal offense."

But the industry isn't just going after people who record the movies.

They're putting downloaders on notice, too. Administrators at U-Mass Amherst told Team Five Investigates that since September, 600 students have received what are called take down notices. They are delivered via the school by the movie studios and their agents.

"They essentially say 'we've noticed this traffic on your network and we want you to issue a warning to the person involved'," said Ed Blaguszewski, a U-Mass spokesman. "We don't share the name of the student, but we cut off the student's Internet access."

Once students agree not to break the law again, they are reconnected. Three strikes and the game gets more serious. The movie studios send early settlement letters demanding money.

"Moms and dads are surprised that their son and daughter has come back home with a note saying you owe us thousands of dollars, please settle, otherwise we might take you to court," said Blaguszewski.

That might get parents attention, but not Boston area students. Most told Team 5 they will continue to download movies. But movie industry executives said not taking it seriously is a mistake.

In 2005 authorities seized more than 81 million pirated movies around the world. Earlier this year in New York City, law enforcement busted a sophisticated camcording ring for intent to distribute 2 1/2 million pirated copies of just 10 movies

And a recent federal crackdown netted seven more arrests. This ring distributed almost 18,000 files that were downloaded more than 2 million times.

And statistics show these movies were likely downloaded by someone 16 to 24 years old.

Blaguszewski said he tries to explain to students there are ethical issues they need to consider.

"It's not like drinking water," he said. "Just because you can get water out of the tap, doesn't mean you can get music or movies out of the tap. You should pay for them."