Downloading movies illegally is a violation of both state laws and federal copyright laws. It is illegal to download them to a computer or other device or to offer such movies for sale. It is a felony under the U.S. Code to download and possess movies in violation of copyright law, and in some states it is also classified as a felony violation of state law. The federal crime is punishable by up to 5 years in prison, a $250,000 fine or both.
Downloading copyrighted material from peer-to-peer networks or illegal websites is almost always considered illegal, regardless of circumstances. Whether you own a legitimate copy of the movie or not, you cannot download a digital copy. As downloading is the actual offense, you can be prosecuted even if you thought you were within your rights to download a digital copy of a film.
With rare exception, downloading movies without paying for them is illegal. It's called piracy, and if caught doing it the penalties can be severe. With piracy on the rise, movie studios and Internet Service Providers (ISPs) are on the offensive to catch those who pirate movies.