This is really unfortunate (Kathie Dickerson, Coshocton Tribune).
This is the kind of overzealous copyright enforcement I am worried will become a common occurrence in the future; it's why I don't support copyrights in general.
To summarize, the MPAA (movie making industry lobby) has shut down an entire town's wifi because of a single illegally downloaded movie.
I don't support such illegal downloads. I also don't support the myriad restrictions on movie files, but I don't support illegally downloading a movie for free if a fee is charged. People will pay a fee if they feel like the product is worth it. Those that don't but still acquire the movie are stealing; it is in fact the same as eating an apple that isn't yours (though that's where the idea-property analogy ends).
Yet, why should an entire town have to suffer for a single isolated online theft? Should a national grocery store chain (by analogy with the MPAA's nationwide presence) close down one of its stores just because the store owner realizes that a single item has been taken (say, a candy next to the check-out counter) without being paid for? That would be ruinous for the townspeople.
Please, if you find yourself in a situation like this, ask the MPAA, RIAA, or whatever to stop.
This story has also been reported on BoingBoing and Slashdot; you can read more there.