Last week we learned that subscribers attempting to pay their UnoTelly subscription using PayPal were no longer able to make payments using the service.

The move was completed quietly and may have gone unnoticed if it weren’t for an email sent out by UnoTelly founder, Nicholas Lin to users who had paid their UnoTelly subscription using PayPal at some stage.

Unfortunately, we were unable to get comment from PayPal regarding this matter on Friday but we have now received a statement from the company which you can view below.

“As a global payments company, we have to comply with laws set by governments and regulatory agencies. PayPal does not permit the use of its service for transactions that infringe copyrights or other proprietary rights.

This policy extends to services that unlawfully facilitate infringement by intentionally enabling access to copyrighted television shows or movies in places where distribution of the content is not authorized by the copyright owners.

In line with this policy, PayPal has recently discontinued service to certain businesses that actively promote their services as a means to circumvent copyright restrictions and violate intellectual property laws.

We apologize for any disappointment this may cause our users.”

Look, we can’t run around saying how terrible PayPal is if its simply upholding its terms and conditions.

We had a look, and it does indeed forbid the use of PayPal for services “that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction.”

The fact is that using UnoTelly to access the Netflix US catalogue, or any other foreign Netflix library from South Africa does violate copyright and licensing agreements.

Could you imagine the uproar if PayPal was allowing payments to a vendor who was selling stolen items? Somehow we think PayPal would be the hero of the day for stopping those types of payments.

With that said, you can still use UnoTelly, you’ll just need to update your payment terms.

[Source – PayPal] [Image NC by 2.0 – Arnold Chao]