French police have reportedly arrested three Frenchmen accused of activities in Liberty Land, a music and movie file-sharing site.

The popular Liberty Land website was set up in September 2009 and has over 800,000 users.

The action was taken after a music copyright protection body found the location of a contributor at Rennes.

Chief of the Rennes gendarmerie leading the year-old investigation Jean-Philippe Vidal said three men aged between 25 and 30 were arrested in Marseille, near Le Havre and in the Paris suburb of Montreuil.

Vidal added that they were charged with organised counterfeiting.

He said the site generated "a lot of money" probably up to $285,300 through advertising banners.

The three accused, who now face jail sentences of up to 5 years and fines of $700,000, have been released pending a trial.

Liberty Land is currently down.