Thousands of DVDs worth about £1.5 million have been seized in dawn raids at five addresses.
Most of the film titles, such as Spiderman, have only just hit screens, while others have not even reached cinemas yet.
Fifteen officers swooped on the addresses in Hastings following six weeks planning the operation, codenamed Producer.
Five people, three men and two women from the Hastings area, were arrested and released on police bail until September.
The operation was launched after a year-long investigation by the Federation Against Copyright Theft (Fact) into internet sites selling DVDs, videos and software.
In addition to the DVDs, tapes, laptops, hard drives and mobile phones were seized.
Several police vans were needed to take the items away.
The DVDs were still being logged but it is thought as many as 20,000 were seized.
Spencer Mott, director of operations for Fact, said: "Most of the DVDs have been produced in South-East Asia and been sent all over the world from these addresses."
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