Hotlinking is when you directly use (e.g. embed/display/link) a file (such as an image, movie, audio file, flash animation, or any other digital asset) that is hosted on another site.

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How is anti-hotlinking done?

In website terms, hotlinking is the use of a linked object, often an image, from one site into a web page belonging to a second site. The second site is said to have an inline link to the site ...
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Hotlinking: what is it, and why shouldn't people do it?

What exactly is hotlinking? And why do people say you shouldn't do it?