Tag Archives: Advertising

16-Year-Old Boy Arrested for Running Pirate TV Service

Post Syndicated from Andy original https://torrentfreak.com/16-year-old-boy-arrested-for-running-pirate-tv-service-171211/

After more than a decade and a half in existence, public pirate sites, services, and apps remain a thorn in the side of entertainment industry groups who are determined to close them down.

That trend continued last week when French anti-piracy group ALPA teamed up with police in the Bordeaux region to raid and arrest the founder and administrator of piracy service ARTV.

According to the anti-piracy group, the ARTV.watch website first appeared during April 2017 but quickly grew to become a significant source of streaming TV piracy. Every month the site had around 150,000 visitors and in less than eight months amassed 800,000 registered users.

“Artv.watch was a public site offering live access to 176 free and paid French TV channels that are members of ALPA: Canal + Group, M6 Group, TF1 Group, France Télévision Group, Paramount, Disney, and FOX. Other thematic and sports channels were broadcast,” an ALPA statement reads.

This significant offering was reportedly lucrative for the site’s operator. While probably best taken with a grain of salt, ALPA estimates the site generated around 3,000 euros per month from advertising revenue. That’s a decent amount for anyone but even more so when one learns that ARTV’s former operator is just 16 years old.

“ARTV.WATCH it’s over. ARTV is now closed for legal reasons. Thank you for your understanding! The site was indeed illegal,” a notice on the site now reads.

“Thank you all for this experience that I have acquired in this project. And thanks to you who have believed in me.”

Closure formalities aside, ARTV’s founder also has a message for anyone else considering launching a similar platform.

“Notice to anyone wanting to do a site of the same kind, I strongly advise against it. On the criminal side, the punishment can go up to three years of imprisonment and a 300,000 euro fine. If [individual] complaints of channels (or productions) are filed against you, it will be more complicated to determine,” ARTV’s owner warns.

ALPA says that in addition to closing down the site, ARTV’s owner also deactivated the site’s Android app, which had been available for download on Google Play. The anti-piracy group adds that this action against IPTV and live streaming was a first in France.

For anyone who speaks French, the 16-year-old has published a video on YouTube talking about his predicament.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Epic Games Settles First Copyright Case Against Fortnite Cheater

Post Syndicated from Ernesto original https://torrentfreak.com/epic-games-settles-first-copyright-case-against-fortnite-cheater-171201/

Frustrated by thousands of cheaters who wreak havoc in Fortnite’s “Battle Royale,” game publisher Epic Games decided to take several of them to court.

One of the defendants is Minnesota resident Charles Vraspir, a.k.a. “Joreallean,”

The game publisher accused him of copyright infringement and breach of contract, by injecting unauthorized computer code in order to cheat.

According to Epic’s allegations, Vraspir was banned at least nine times but registered new accounts to continue his cheating. In addition, he was also suspected of having written code for the cheats.

“Defendant’s cheating, and his inducing and enabling of others to cheat, is ruining the game playing experience of players who do not cheat,” Epic games wrote.

While the complaint included all the elements for an extensive legal battle, both sides chose to resolve the case without much of a fight. Yesterday, they informed the court that a settlement had been reached.

Epic Games’ counsel asked the court to enter the agreement as well as a permanent injunction, which both have agreed on.

The proposed injunction, signed today, forbids Vraspir from carrying out any copyright infringements in the future, to destroy all cheats, and to never cheat again.

Among other things, he is prohibited from “creating, writing, developing, advertising, promoting, and/or distributing anything that infringes Epic’s works now or hereafter protected by any of Epic’s copyrights.”

While there is no mention of a settlement fee or fine, Vraspir will have to pay $5,000 if he breaches the agreement.

From the injunction

Based on the swift settlement, it can be assumed that Epic Games is not aiming to bankrupt the cheaters. Instead, it’s likely that the company wants to set an example and deter others from cheating in the future.

In addition to the settlement, Epic Games also responded to the mother of the 14-year-old cheater who was sued in a separate case. After we first covered the news last week it was quickly picked up by mainstream media, and it hasn’t gone unnoticed by the game publisher either.

The mother accused Epic of taking a minor to court and making his personal info known to the public.

In a response this week, the company notes that it had no idea of the age of the defendant when it filed the complaint. In addition, Epic notes that by handing over his full name and address in the unredacted letter, she exposed her son.

The rules dictate that filings mentioning an individual known to be a minor should use the minor’s initials only, not the full name as the mother did. While the mother may have waived this protection with her letter, Epic says it will stick to the initials going forward.

“Although there is an argument that by submitting the Letter to the Court containing Defendant’s name and address, Defendant’s mother waived this protection […] we plan to include only Defendant’s initials or redact his name entirely in all future filings with the Court, including this letter.”

Given the quick settlement in the Vraspir case, it’s likely that the case against the 14-year-old boy will also be resolved without much additional damage. That is, if both sides can come to an agreement.

A copy of the stipulation and injunction is available here (pdf). The reply to the mother can be found here (pdf).

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

European Commission Steps Up Fight Against Online Piracy

Post Syndicated from Ernesto original https://torrentfreak.com/european-commission-steps-up-fight-against-online-piracy-171130/

The European Commission has had copyright issues at the top of its agenda for a while, resulting in several controversial proposals.

This week it presented a series of new measures to ensure that copyright holders are well protected, targeting both online piracy and counterfeit goods.

“Today we boost our collective ability to catch the ‘big fish’ behind fake goods and pirated content which harm our companies and our jobs – as well as our health and safety in areas such as medicines or toys,” Commissioner Elżbieta Bieńkowska announced.

The Commission notes that it’s stepping up the fight against counterfeiting and piracy. However, many of the proposals are not entirely new for those who follow anti-piracy issues around the globe.

One of the main goals is to focus on the people who facilitate copyright infringement, such as pirate site operators, and try to cut their revenue streams.

“The Commission seeks to deprive commercial-scale IP infringers of the revenue flows that make their criminal activity lucrative – this is the so-called ‘follow the money’ approach which focuses on the ‘big fish’ rather than individuals,” they write.

Instead of using legislation to reach this goal, the Commission prefers to continue its support for voluntary agreements between copyright holders and third-party services. This includes deals with advertising and payment services to cut their ties with pirate sites.

“Such agreements can lead to faster action against counterfeiting and piracy than court actions,” the Commission writes.

Another tool to fight piracy appears on the agenda for the first time. The European Commission notes that it will also support the quest for new anti-piracy initiatives, including the use of blockchain technology.

“Supporting industry-led initiatives to combat IP infringements, including work on Memoranda of Understanding and exploring the potential of new technologies such as blockchain to combat IP infringements in supply chains,” the suggestion reads.

No concrete examples were given but earlier this week, European Parliament member Brando Benifei wrote an article on the issue in Euractiv.

Benifei mentions that blockchain technology can help independent artists collect royalty payments without the need for middlemen. In a similar vein, blockchains can also be used to track the unauthorized distribution of works.

In addition to broadening the anti-piracy horizon, the European Commission also released a new guidance on how the current IPR Enforcement Directive (IPRED) should be interpreted, taking into account various recent developments, including landmark EU Court of Justice rulings.

The guidance explains how and when it’s appropriate to issue website blocking orders, for example. In general, blocking injunctions are warranted when they are proportional and aimed at preventing concrete infringements.

The comprehensive guidance also covers the issue of filtering. Interestingly, the Commission clarifies that third-party services can’t be required to “install and operate excessively broad, unspecific and expensive filtering systems.”

This appears to run counter to the mandatory piracy filters that were suggested as part of the copyright reform proposal.

However, the Commission notes that in some specific cases, hosting providers (e.g. YouTube) can be ordered to monitor uploads. This is in line with a recent communication which recommended that online services should implement measures to automatically detect and remove suspected illegal content.

While the new plans continue down the path of stronger copyright protections, not all rightsholders are happy. IFPI is glad that the main problems are highlighted, but would have liked to have seen more concrete plans.

“We are disappointed that despite the European Commission recognizing the need to modernize IPRED and years of evidence gathering, today’s result is merely guidance to EU Member State governments. Soft law does not give right holders the tools they need to take effective action against pirate services,” IFPI writes.

On the other side of the divide, opposition to the previously announced EU copyright reform plans continues as well. Earlier today a group of over 80 organizations urged EU member states to speak out against several controversial copyright proposals, including the upload filter.

“The signatories warn the Member states that the discussion around the Copyright Directive are on the verge of causing irreparable damage to our fundamental rights and freedoms, our economy and competitiveness, our education and research, our innovation and competition, our creativity and our culture,” they say.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Your Holiday Cybersecurity Guide

Post Syndicated from Robert Graham original http://blog.erratasec.com/2017/11/your-holiday-cybersecurity-guide.html

Many of us are visiting parents/relatives this Thanksgiving/Christmas, and will have an opportunity to help our them with cybersecurity issues. I thought I’d write up a quick guide of the most important things.

1. Stop them from reusing passwords

By far the biggest threat to average people is that they re-use the same password across many websites, so that when one website gets hacked, all their accounts get hacked.
To demonstrate the problem, go to haveibeenpwned.com and enter the email address of your relatives. This will show them a number of sites where their password has already been stolen, like LinkedIn, Adobe, etc. That should convince them of the severity of the problem.

They don’t need a separate password for every site. You don’t care about the majority of website whether you get hacked. Use a common password for all the meaningless sites. You only need unique passwords for important accounts, like email, Facebook, and Twitter.

Write down passwords and store them in a safe place. Sure, it’s a common joke that people in offices write passwords on Post-It notes stuck on their monitors or under their keyboards. This is a common security mistake, but that’s only because the office environment is widely accessible. Your home isn’t, and there’s plenty of places to store written passwords securely, such as in a home safe. Even if it’s just a desk drawer, such passwords are safe from hackers, because they aren’t on a computer.

Write them down, with pen and paper. Don’t put them in a MyPasswords.doc, because when a hacker breaks in, they’ll easily find that document and easily hack your accounts.

You might help them out with getting a password manager, or two-factor authentication (2FA). Good 2FA like YubiKey will stop a lot of phishing threats. But this is difficult technology to learn, and of course, you’ll be on the hook for support issues, such as when they lose the device. Thus, while 2FA is best, I’m only recommending pen-and-paper to store passwords. (AccessNow has a guide, though I think YubiKey/U2F keys for Facebook and GMail are the best).

2. Lock their phone (passcode, fingerprint, faceprint)
You’ll lose your phone at some point. It has the keys all all your accounts, like email and so on. With your email, phones thieves can then reset passwords on all your other accounts. Thus, it’s incredibly important to lock the phone.

Apple has made this especially easy with fingerprints (and now faceprints), so there’s little excuse not to lock the phone.

Note that Apple iPhones are the most secure. I give my mother my old iPhones so that they will have something secure.

My mom demonstrates a problem you’ll have with the older generation: she doesn’t reliably have her phone with her, and charged. She’s the opposite of my dad who religiously slaved to his phone. Even a small change to make her lock her phone means it’ll be even more likely she won’t have it with her when you need to call her.

3. WiFi (WPA)
Make sure their home WiFi is WPA encrypted. It probably already is, but it’s worthwhile checking.

The password should be written down on the same piece of paper as all the other passwords. This is importance. My parents just moved, Comcast installed a WiFi access point for them, and they promptly lost the piece of paper. When I wanted to debug some thing on their network today, they didn’t know the password, and couldn’t find the paper. Get that password written down in a place it won’t get lost!

Discourage them from extra security features like “SSID hiding” and/or “MAC address filtering”. They provide no security benefit, and actually make security worse. It means a phone has to advertise the SSID when away from home, and it makes MAC address randomization harder, both of which allows your privacy to be tracked.

If they have a really old home router, you should probably replace it, or at least update the firmware. A lot of old routers have hacks that allow hackers (like me masscaning the Internet) to easily break in.

4. Ad blockers or Brave

Most of the online tricks that will confuse your older parents will come via advertising, such as popups claiming “You are infected with a virus, click here to clean it”. Installing an ad blocker in the browser, such as uBlock Origin, stops most all this nonsense.

For example, here’s a screenshot of going to the “Speedtest” website to test the speed of my connection (I took this on the plane on the way home for Thanksgiving). Ignore the error (plane’s firewall Speedtest) — but instead look at the advertising banner across the top of the page insisting you need to download a browser extension. This is tricking you into installing malware — the ad appears as if it’s a message from Speedtest, it’s not. Speedtest is just selling advertising and has no clue what the banner says. This sort of thing needs to be blocked — it fools even the technologically competent.

uBlock Origin for Chrome is the one I use. Another option is to replace their browser with Brave, a browser that blocks ads, but at the same time, allows micropayments to support websites you want to support. I use Brave on my iPhone.
A side benefit of ad blockers or Brave is that web surfing becomes much faster, since you aren’t downloading all this advertising. The smallest NYtimes story is 15 megabytes in size due to all the advertisements, for example.

5. Cloud Backups
Do backups, in the cloud. It’s a good idea in general, especially with the threat of ransomware these days.

In particular, consider your photos. Over time, they will be lost, because people make no effort to keep track of them. All hard drives will eventually crash, deleting your photos. Sure, a few key ones are backed up on Facebook for life, but the rest aren’t.
There are so many excellent online backup services out there, like DropBox and Backblaze. Or, you can use the iCloud feature that Apple provides. My favorite is Microsoft’s: I already pay $99 a year for Office 365 subscription, and it comes with 1-terabyte of online storage.

6. Separate email accounts
You should have three email accounts: work, personal, and financial.

First, you really need to separate your work account from personal. The IT department is already getting misdirected emails with your spouse/lover that they don’t want to see. Any conflict with your work, such as getting fired, gives your private correspondence to their lawyers.

Second, you need a wholly separate account for financial stuff, like Amazon.com, your bank, PayPal, and so on. That prevents confusion with phishing attacks.

Consider this warning today:

If you had split accounts, you could safely ignore this. The USPS would only your financial email account, which gets no phishing attacks, because it’s not widely known. When your receive the phishing attack on your personal email, you ignore it, because you know the USPS doesn’t know your personal email account.

Phishing emails are so sophisticated that even experts can’t tell the difference. Splitting financial from personal emails makes it so you don’t have to tell the difference — anything financial sent to personal email can safely be ignored.

7. Deauth those apps!

Twitter user @tompcoleman comments that we also need deauth apps.
Social media sites like Facebook, Twitter, and Google encourage you to enable “apps” that work their platforms, often demanding privileges to generate messages on your behalf. The typical scenario is that you use them only once or twice and forget about them.
A lot of them are hostile. For example, my niece’s twitter account would occasional send out advertisements, and she didn’t know why. It’s because a long time ago, she enabled an app with the permission to send tweets for her. I had to sit down and get rid of most of her apps.
Now would be a good time to go through your relatives Facebook, Twitter, and Google/GMail and disable those apps. Don’t be a afraid to be ruthless — they probably weren’t using them anyway. Some will still be necessary. For example, Twitter for iPhone shows up in the list of Twitter apps. The URL for editing these apps for Twitter is https://twitter.com/settings/applications. Google link is here (thanks @spextr). I don’t know of simple URLs for Facebook, but you should find it somewhere under privacy/security settings.
Update: Here’s a more complete guide for a even more social media services.
https://www.permissions.review/

8. Up-to-date software? maybe

I put this last because it can be so much work.

You should install the latest OS (Windows 10, macOS High Sierra), and also turn on automatic patching.

But remember it may not be worth the huge effort involved. I want my parents to be secure — but no so secure I have to deal with issues.

For example, when my parents updated their HP Print software, the icon on the desktop my mom usually uses to scan things in from the printer disappeared, and needed me to spend 15 minutes with her helping find the new way to access the software.
However, I did get my mom a new netbook to travel with instead of the old WinXP one. I want to get her a Chromebook, but she doesn’t want one.
For iOS, you can probably make sure their phones have the latest version without having these usability problems.

Conclusion

You can’t solve every problem for your relatives, but these are the more critical ones.

Danes Deploy ‘Disruption Machine’ to Curb Online Piracy

Post Syndicated from Ernesto original https://torrentfreak.com/danes-deploy-disruption-machine-to-curb-online-piracy-171119/

Over the years copyright holders have tried a multitude of measures to curb copyright infringement, with varying levels of success.

By now it’s well known that blocking or even shutting down a pirate site doesn’t help much. As long as there are alternatives, people will simply continue to download or stream elsewhere.

Increasingly, major entertainment industry companies are calling for a broader and more coordinated response. They would like to see ISPs, payment processors, advertisers, search engines, and social media companies assisting in their anti-piracy efforts. Voluntarily, or even with a legal incentive, if required.

In Denmark, local anti-piracy group RettighedsAlliancen has a similar goal and they are starting to make progress. The outfit is actively building a piracy “disruption machine” that tackles the issue from as many sides as it can.

The disruption machine is built around an Infringing Website List (IWL), which is not related to a similarly-named initiative from the UK police. This list is made up of pirate sites that have been found to facilitate copyright infringement by a Danish court.

“The IWL is a part of the disruption machine that RettighedsAlliancen has developed in collaboration with many stakeholders in the online community,” the group’s CEO Maria Fredenslund tells TorrentFreak.

The stakeholders include major ISPs, but also media companies, MasterCard, Google, and Microsoft. With help from the local government they signed a Memorandum of Understanding. Their goal is to make the internet a safe and legitimate platform for consumers and businesses while limiting copyright infringement and associated crime.

MoU signees

There are currently twelve court orders on which the list is based and two more are expected to come in before the end of the year. As a result, approximately 600 pirate sites are on the IWL, making them harder to find.

Every time a new court order is handed down, RettighedsAlliancen distributes an updated list to their the network of stakeholders.

“Currently, all major ISPs in Denmark have agreed to implement the IWL in their systems based on a joint Code of Conduct. This means that all the ISPs jointly will block their customers access to infringing services thus amplifying the impact of a blocking order by magnitudes,” Fredenslund explains.

Thus far ISPs are actively blocking 100 pirate sites, resulting in significant traffic drops. The rest of the list has yet to be implemented.

The IWL is also used in the online advertising industry, where several major advertising brokers have signed a joint agreement not to show advertising on these sites. This shuts off part of the revenue streams to pirate sites which, in theory, should make them less profitable.

A similar approach is being taken by major payment providers, who are preventing known pirate sites from processing transactions through their services. Every company has its own measures, but the overlapping goal is to frustrate pirate sites and reduce copyright infringement.

The Disruption Machine

It’s interesting to see that Google is listed as a partner since they don’t support general website blockades. However, Google said that it would demote sites on the IWL in its search results.

While these are all positive developments, according to the anti-piracy group, it’s just the start. RettighedsAlliancen also believes other tools and services could join in. Browser plugins could use the IWL to identify illegal sites, for example, and the options are endless.

“Likewise, large companies, institutions, and public authorities are also well-suited to implement the IWL in their local networks. For example, to prevent students from accessing illegal content while at school or university,” Fredenslund says.

“Looking further ahead, social media platforms such as Facebook are used to a great extent to consume content online and it is therefore obvious that they should also incorporate the IWL in their systems to prevent their users from harm and preventing copyright infringement.”

This model is not completely unique, of course. We’ve seen several elements being implemented in other countries as well, and copyright holders have been pushing voluntary agreements for quite some time now.

What’s new, however, is that it’s clearly defined as a strategy by the Danish group. And by labeling the strategy as a “disruption machine” it already sounds effective, which is part of the job.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Spanish Police Arrest Seven in Pirate Sports Streaming Crackdown

Post Syndicated from Andy original https://torrentfreak.com/spanish-police-arrest-seven-in-pirate-sports-streaming-crackdown-171111/

While most large broadcasters around the world now offer comprehensive sports packages to their customers, subscriptions are often quite expensive.

This has led to the proliferation of pirate services, each dedicated to bringing live sports to the masses at massively reduced prices or even completely free.

As a result, it’s now possible to watch almost any sport from a pirate source, whether that’s via a website, an augmented Kodi setup, or a premium IPTV provider. Today, however, there’s one less pirate service available after a series of raids in Spain.

According to the National Police, raids took place in Madrid, Alicante, Albacete, Gandía, and the Valencian cities of Xátiva and Antequera this week. In total, seven people were arrested for illegally broadcasting football matches.

Unusually in such cases, the suspects are alleged to have offered matches via a number of mechanisms, including direct download, streaming, subscription streaming, and peer-to-peer distribution. This, the police say, allowed them to have the broadest possible access to the market.

The group’s servers were scattered around the world; some located in Spain, others in France, with the remainder in the United States and Canada.

The investigation began in 2016 following a complaint from La Liga, the top professional association in Spanish football. The group alleged that a total of 13 websites were illegally offering lists of links which enabled visitors to access content to which it holds the exclusive rights.

Police say the operation was well organized, with matches presented to Internet users with schedules ordered by championships. Revenue was generated via advertising which appeared on the various pages viewed by visitors.

It’s claimed that the sites’ operators also attempted to make their scattered servers harder to find by utilizing intermediary companies, including those that offer server location anonymization services.

Across the country, eight house searches reportedly yielded a trove of evidence, both digital and physical, detailing the pirate operation and the profit obtained from it.

At this early stage, police estimate the “economic benefit” to the defendants from subscriptions and advertising to be in the region of 1.4 million euros, although it’s unclear whether those are actual historic or projected gains.

Following the raids, seven websites were ordered to be blocked and three bank accounts, said to be linked to the pirate operation, were frozen. Police say that the investigation continues so further arrests and website blockades can’t be ruled out.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons

Despite Massive Site-Blocking, Russian Pirate Video Market Doubles

Post Syndicated from Andy original https://torrentfreak.com/despite-massive-site-blocking-russian-pirate-video-market-doubles-171029/

On many occasions, outgoing MPAA chief Chris Dodd has praised countries that have implemented legislation that allows for widespread site-blocking.

In 2014, when the UK had blocked just a few dozen sites, Dodd described the practice as both “balanced and proportionate” while noting that it had made “tremendous progress in tackling infringing websites.” This, the former senator said, made it “one of the most effective anti-piracy measures in the world.”

With many thousands of ‘pirate’ sites blocked across the country, perhaps Dodd should ask the Russians how they’re getting on. Spoiler: Not that great.

According to new research published by Group-IB and reported by Izvestia, Internet pirates have been adapting to their new reality, finding new and stable ways of doing business while growing their turnover.

In fact, according to the ‘Economics of Pirate Sites Report 2016’, they’ve been so successful that the market for Internet pirate video more than doubled in value during 2016, reaching a peak of 3.3 billion rubles ($57.2m) versus just 1.5 billion rubles ($26m) in 2015. Overall Internet piracy in 2016 was valued at a billion rubles more ($74.5m), Group-IB notes.

According to the report, Russian pirates operated with impunity until 2012, at which point the government – under pressure from rightsholders – began introducing tough anti-piracy legislation, which included the blocking of pirate domains. Since then there have been a number of amendments which further tightened the law but pirates have adapted each time, protecting their revenue with new business plans.

Group-IB says that the most successful pirate site in 2016 was Seasonvar.ru, which pulled in a million visitors every day generating just over $3.3m in revenue. Second place was taken by My-hit.org, with almost 400,000 daily visitors generating an annual income of $1.2m. HDrezka.me served more than 315,000 people daily and made roughly the same to take third. Fourth and fifth spots were taken by Kinokrad.co and Baskino.Club.

Overall, it’s estimated that the average pirate video site makes around $156,000 per year via advertising, subscriptions, or via voluntary donations. They’re creative with their money channels too.

According to Maxim Ryabyko, Director General of Association for the Protection of Copyright on the Internet (AZAPO), sites use middle-men for dealing with both advertisers and payment processors, which enables operators to remain anonymous.

Like in the United States, UK and elsewhere in Europe, lists of pirate sites have been drawn up to give advertisers and networks guidance on where not to place their ads. However, plenty of companies aren’t involved in the initiative. When challenged over their ads appearing on pirate sites, some protest that it hasn’t been proven that the sites are acting illegally, so the business will continue.

“There is no negative attitude towards piracy by intermediaries. Their money is not objectionable. Sometimes they say: ‘Go and sue. There will be a court hearing, there will be a decision, and we will draw conclusions then’,” Ryabyko told Izvestia.

Dealing with pirates in the criminal arena isn’t easy either, with key players admitting that the police have other things to concentrate on.

“Law enforcers do not know how to search for pirates, they have other priorities,” says Sergei Semenov of the Film and TV Producers Association.

“Criminal prosecutions in this area are a great strain – single cases require a lot of time for investigation and going to court does not achieve the desired effect. We therefore need to diversify the grounds for bringing people to justice. We need to see how this can be applied.”

One idea is to prosecute pirates for non-payment of taxes. Well, it worked for Al Capone….

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Artists Highlight YouTube Piracy and Poor Payments in New Ad Campaign

Post Syndicated from Ernesto original https://torrentfreak.com/artists-highlight-youtube-piracy-and-poor-payments-in-new-ad-campaign-171026/

YouTube is the world’s leading video and music service and has partnerships with thousands of artists and other publishers around the globe.

While many are happy with the revenue they’re generating from the Google-owned platform, there has been a lot of negative commentary as well.

Several major record labels are complaining about the so-called ‘value gap‘ and the low payouts per streaming view, for example. This view is shared by the Content Creators Coalition (c3), an artist-run advocacy organization for musicians.

The group has just released two new ads calling on the streaming service to give artists more options to prevent piracy while calling on Congress to update the DMCA.

Rehashing the old Apple vs. Microsoft ad theme, the first video depicts an artist who is trying to get pirated content removed from the site. In the ad, YouTube is not particularly helpful, suggesting that pirated content is quickly re-uploaded after it’s removed.

Interestingly, there is no mention of the Content-ID program which many creators successfully use to prevent pirated content from reappearing. The vast majority (98%) of all copyright complaints are currently handled automatically through the Content-ID system.

Takedown Whack-a-Mole?

The second ad complains about poor payments. In this video, the artist gets paid more from all smaller streaming services, even though these generated only a fraction of the views compared to YouTube.

This complaint is not new either. Over the past several years, YouTube has been called out repeatedly for not paying enough. Not only that, the streaming service has also been accused of running a DMCA protection racket, profiting from pirated streams while hiding behind the DMCA’s safe harbor protections.

Pennies?

The Content Creators Coalition says that the advertisements will run on YouTube and other digital platforms as part of a significant new ad buy.

“Google’s YouTube has shortchanged artists while earning billions of dollars of our music. Artists know YouTube can do better,” c3 President and award-winning bassist Melvin Gibbs says.

“So, rather than hiding behind outdated laws, YouTube and Google should work to give artists more control over our music and pay music creators fairly when our songs are played on their platform.”

While these complaints are nothing new for YouTube, they are also intended to rally support from the public and lawmakers.

“Our ads send a message to the executives in Mountain View that artists are fighting back and mobilizing fans to push Congress to update the DMCA and end the legal neglect that has given Big Tech too much power over our work and society,” Gibbs adds.

YouTube itself paints an entirely different picture. The company previously stated that it goes above and beyond what it’s required to do by law, while paying billions to copyright holders.

“Content ID goes beyond a simple ‘notice-and-takedown’ system to provide a set of automated tools that empowers rightsholders to automatically claim their content and choose whether to track, block or monetize it on YouTube,” senior policy counsel Katherine Oyama noted.

“YouTube has paid out over $2 billion to rightsholders who have monetized their content through Content ID since it first launched. In fact, today well over 90% of all Content ID claims across the platform result in monetization.”

This music industry vs YouTube battle is far from over.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

High Court Passes Judgment in Illegal Sky Sports Streaming Case

Post Syndicated from Andy original https://torrentfreak.com/high-court-passes-judgment-in-illegal-sky-sports-streaming-case-171026/

Without doubt, streaming is the hot topic in piracy right now, with thousands of illicit channels, TV shows and movies just a few clicks away.

As widely reported, the legal Kodi software augmented with illicit third-party addons is the preferred way to watch for millions of users. However, if people don’t mind sitting at a desktop machine, there’s also a thriving underbelly of indexing sites and similar platforms offering unauthorized access to infringing content.

According to information released by the Federation Against Copyright Theft, an individual in the UK has just felt the wrath of the High Court for providing content to one such platform.

“On Monday 23 October 2017 a judgment was obtained in the High Court against a Sky customer who had been streaming Sky Sports content illegally online,” FACT reports.

“Mr Yusuf Mohammed, of Bristol, has been ordered to pay legal costs of over £16,000, and to disclose details about the money he made and people he colluded with.”

With FACT releasing no more information, TorrentFreak contacted the anti-piracy group for more details on the case.

“Mohammed shared the Sky Sports stream via a piracy blog,” FACT Director of Communications Alice Skeats told TF.

Although FACT didn’t directly answer our question on the topic, their statement that Mohammed was a Sky customer seems to suggest that he might’ve re-streamed content he previously paid for. When we can clarify this point, we will.

FACT didn’t name the ‘piracy blog’ either, nor did it respond to questions about how many people may have viewed Mohammed’s illegal streams. However, FACT did confirm that he streamed Sky Sports channels so potentially a wide range of sports was made available.

The other interesting factor is the claim that Mohammed made money from his streams. Again, FACT didn’t reveal how that revenue was generated (understandable since the case is ongoing) but it seems likely that advertising played a part, as it often does on pirate platforms.

Whether Mohammed will comply with the High Court’s orders to reveal who he colluded with is something for the future but even if he does, Sky isn’t finished with him yet. According to FACT, Mohammed’s already sizeable costs bill will be augmented with a claim for damages from the satellite broadcaster.

While providing and profiting from illegal streams could easily be considered criminal in the UK, FACT confirmed that the case against Mohammed was brought by Sky and supported by FACT in a civil proceeding alone. That was also the case last week when an individual who shared the Joshua vs Klitschko fight on Facebook apologized to Sky and agreed to pay Sky legal costs.

That’s an option Middlesborough businessman Brian Thompson didn’t enjoy when he was arrested for selling infringing ‘Kodi boxes’ two years ago. He was handed an 18 month suspended prison sentence last Friday, after being prosecuted by his local council.

Thompson won’t have to pay compensation but he still gets a criminal record, which can be a major hindrance when trying to get a job or even something as simple as cost-effective insurance cover. Whether these details will have any effect on other commercial pirates in the UK will remain to be seen but it’s certainly possible that some will begin to think twice.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Lose Yourself: National Party Guilty of Eminem Copyright Infringement

Post Syndicated from Ernesto original https://torrentfreak.com/lose-yourself-national-party-guilty-of-eminem-copyright-infringement-171025/

In recent years, New Zealand has been the center stage of the largest copyright battle in Internet history; the criminal prosecution of Megaupload and several of its former employees.

In 2012, the country’s law enforcement officials helped to bring down the file-sharing site, including a military-style raid on its founder, Kim Dotcom.

While the Megaupload case is still ongoing, a separate copyright battle in New Zealand came to a conclusion this week. In this case, the country’s leading National Party was the accused.

In 2014 the party of former Prime Minister and Kim Dotcom nemesis John Key was sued for copyright infringement by Eminem’s publisher Eight Mile Style. In an advertising spot for the General Election campaign, the party used a song heavily inspired by the track “Lose Yourself.” A blatant copyright infringement, they argued.

This week the High Court agreed with the publisher ruling that the ad indeed infringed on their copyright. The National Party must now pay a total of $600,000 (415,000 USD) including damages and interest, NZ Herald reports.

Recognizing the irony, Kim Dotcom swiftly took the matter to Twitter. He launched a poll asking who’s guilty of copyright infringement, him or the National Party? The results are, as expected, in his favor.

Lose Yourself?

Dotcom sees the matter as something the old government is responsible for and he has more faith in the current leadership.

“All I can say is that the irony of this is hilarious and that Karma has finally caught up with the corrupt !former! National government. Honest people are now running New Zealand and the courts will be busy dealing with the crimes committed by the last government,” Dotcom informs us.

The National Party didn’t simply use the song without paying for it. They actually sought professional advice before starting the campaign and licensed a track called Eminem Esque, which is the one they used in the ad.

While the party hoped to avoid more expensive licensing fees by using the knock-off song, the High Court ruled that the similarities between Lose Yourself and Eminem Esque are so significant that it breached copyright.

And indeed, the music used in the ad campaign below is quite similar to the original Eminem track.

National Party president Peter Goodfellow is disappointed with the outcome and stresses that the party did not act flagrantly and properly licensed the song that was used.

“The music was licensed with one of New Zealand’s main industry copyright bodies, the Australasian Mechanical Copyright Owners Society. Being licensed and available for purchase, and having taken advice from our suppliers, the party believed the purchase was legal.”

The fact that the Party sought advice and licensed the knock-off track was taken into account. The High Court didn’t award any additional damages, but nonetheless, the copyright infringement claims stuck.

The other camp was more positive about the outcome. Adam Simpson, who represented Eminem’s publisher, described the ruling as a win for musicians and a warning to those who infringe on their rights.

“The ruling clarifies and confirms the rights of artists and songwriters. It sets a major precedent in New Zealand and will be influential in Australia, the UK and elsewhere,” Simpson said.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

MP3 Stream Rippers Are Not Illegal Sites, EFF Tells US Government

Post Syndicated from Ernesto original https://torrentfreak.com/mp3-stream-rippers-are-not-illegal-sites-eff-tells-us-government-171021/

Free music is easy to find nowadays. Just head over to YouTube and you can find millions of tracks including many of the most recent releases.

While some artists happily share their work, the major record labels don’t want tracks to leak outside YouTube’s ecosystem. For this reason, they want YouTube to MP3 rippers shut down.

Earlier this month, the RIAA sent its overview of “notorious markets” to the Office of the US Trade Representative (USTR), highlighting several of these sites and asking for help.

“The overall popularity of these sites and the staggering volume of traffic it attracts evidences the enormous damage being inflicted on the U.S. record industry,” the RIAA wrote, calling out Mp3juices.cc, Convert2mp3.net, Savefrom.net, Ytmp3.cc, Convertmp3.io, Flvto.biz, and 2conv.com as the most popular offenders.

This position is shared by many other music industry groups. They see stream ripping as the largest piracy threat online. After shutting down YouTube-MP3, they hope to topple other sites as well, ideally with the backing of the US Government.

However, not everyone shares the belief that stream ripping equals copyright infringement.

In a rebuttal, the Electronic Frontier Foundation (EFF) informs the USTR that the RIAA is trying to twist the law in its favor. Not all stream ripping sites are facilitating copyright infringement by definition, the EFF argues.

“RIAA’s discussion of ‘stream-ripping’ websites misstates copyright law. Websites that simply allow users to extract the audio track from a user-selected online video are not ‘illegal sites’ and are not liable for copyright infringement, unless they engage in additional conduct that meets the definition of infringement,” the EFF writes.

Flvto

While some people may use these sites to ‘pirate’ tracks there are also legitimate purposes, the digital rights group notes. Some creators specifically allow others to download and modify their work, for example, and in other cases ripping can be seen as fair use.

“There exists a vast and growing volume of online video that is licensed for free downloading and modification, or contains audio tracks that are not subject to copyright,” the EFF stresses.

“Moreover, many audio extractions qualify as non-infringing fair uses under copyright. Providing a service that is capable of extracting audio tracks for these lawful purposes is itself lawful, even if some users infringe.”

The fact that these sites generate revenue from advertising doesn’t make them illegal either. While there are some issues that could make a site liable, such as distributing infringing content to third parties, the EFF argues that many of the sites identified by the RIAA are not clearly involved in such activities.

Instead of solely relying on the characterizations of the RIAA, the US Government should judge these sites independently, in accordance with the law.

“USTR must apply U.S. law as it is, not as particular industry organizations wish it to be. Accordingly, it is inappropriate to describe ‘stream-ripping’ sites as engaging in or facilitating infringement. That logic would discourage U.S. firms from providing many forms of useful, lawful technology that processes or interacts with copyrighted work in digital form, to the detriment of U.S. trade,” the EFF concludes.

It is worth highlighting that most sites the RIAA mentioned specifically advertise themselves as YouTube converters. While this violates YouTube’s Terms of Service, something the streaming platform isn’t happy with, it doesn’t automatically classify them as infringing services.

Ideally, the RIAA and other music industry group would like YouTube to shut down these sites but if that doesn’t happen, more lawsuits may follow in the future. Then, the claims from both sides can be properly tested in court.

The full EFF response is available here (pdf). In addition to the stream ripping comments, the digital rights group also defends CDN providers such as Cloudflare, reverse proxies, and domain registrars from MPAA and RIAA piracy complaints.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

UK ‘Pirate’ Kodi Box Seller Handed a Suspended Prison Sentence

Post Syndicated from Andy original https://torrentfreak.com/uk-pirate-kodi-box-seller-handed-a-suspended-prison-sentence-171021/

After being raided by police and Trading Standards in 2015, Middlesbrough-based shopkeeper Brian ‘Tomo’ Thompson found himself in the spotlight.

Accused of selling “fully-loaded” Kodi boxes (those with ‘pirate’ addons installed), Thompson continued to protest his innocence.

“All I want to know is whether I am doing anything illegal. I know it’s a gray area but I want it in black and white,” he said last September.

Unlike other cases, where copyright holders took direct action, Thompson was prosecuted by his local council. At the time, he seemed prepared to martyr himself to test the limits of the law.

“This may have to go to the crown court and then it may go all the way to the European court, but I want to make a point with this and I want to make it easier for people to know what is legal and what isn’t,” he said. “I expect it go against me but at least I will know where I stand.”

In an opinion piece not long after this statement, we agreed with Thompson’s sentiment, noting that barring a miracle, the Middlesbrough man would indeed lose his case, probably in short order. But Thompson’s case turned out to be less than straightforward.

Thompson wasn’t charged with straightforward “making available” under the Copyrights, Designs and Patents Acts. If he had, there would’ve been no question that he’d been breaking law. This is due to a European Court of Justice decision in the BREIN v Filmspeler case earlier this year which determined that selling fully loaded boxes in the EU is illegal.

Instead, for reasons best known to the prosecution, ‘Tomo’ stood accused of two offenses under section 296ZB of the Copyright, Designs and Patents Act, which deals with devices and services designed to “circumvent technological measures”. It’s a different aspect of copyright law previously applied to cases where encryption has been broken on official products.

“A person commits an offense if he — in the course of a business — sells or lets for hire, any device, product or component which is primarily designed, produced, or adapted for the purpose of enabling or facilitating the circumvention of effective technological measures,” the law reads.

‘Tomo’ in his store

In January this year, Thompson entered his official ‘not guilty’ plea, setting up a potentially fascinating full trial in which we would’ve heard how ‘circumvention of technological measures’ could possibly relate to streaming illicit content from entirely unprotected far-flung sources.

Last month, however, Thompson suddenly had a change of heart, entering guilty pleas against one count of selling and one count of advertising devices for the purpose of enabling or facilitating the circumvention of effective technological measures.

That plea stomped on what could’ve been a really interesting trial, particularly since the Federation Against Copyright Theft’s own lawyer predicted it could be difficult and complex.

As a result, Thompson appeared at Teeside Crown Court on Friday for sentencing. Prosecutor Cameron Crowe said Thompson advertised and sold the ‘pirate’ devices for commercial gain, fully aware that they would be used to access infringing content and premium subscription services.

Crowe said that Thompson made around £40,000 from the devices while potentially costing Sky around £200,000 in lost subscription fees. When Thompson was raided in June 2015, a diary revealed he’d sold 159 devices in the previous four months, sales which generated £17,000 in revenue.

After his arrest, Thompson changed premises and continued to offer the devices for sale on social media.

Passing sentence, Judge Peter Armstrong told the 55-year-old businessman that he’d receive an 18-month prison term, suspended for two years.

“If anyone was under any illusion as to whether such devices as these, fully loaded Kodi boxes, were illegal or not, they can no longer be in any such doubt,” Judge Armstrong told the court, as reported by Gazette Live.

“I’ve come to the conclusion that in all the circumstances an immediate custodial sentence is not called for. But as a warning to others in future, they may not be so lucky.”

Also sentenced Friday was another local seller, Julian Allen, who sold devices to Thompson, among others. He was arrested following raids on his Geeky Kit businesses in 2015 and pleaded guilty this July to using or acquiring criminal property.

But despite making more than £135,000 from selling ‘pirate’ boxes, he too avoided jail, receiving a 21-month prison sentence suspended for two years instead.

While Thompson’s and Allen’s sentences are likely to be portrayed by copyright holders as a landmark moment, the earlier ruling from the European Court of Justice means that selling these kinds of devices for infringing purposes has always been illegal.

Perhaps the big surprise, given the dramatic lead up to both cases, is the relative leniency of their sentences. All that being said, however, a line has been drawn in the sand and other sellers should be aware.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

How to Compete with Giants

Post Syndicated from Gleb Budman original https://www.backblaze.com/blog/how-to-compete-with-giants/

How to Compete with Giants

This post by Backblaze’s CEO and co-founder Gleb Budman is the sixth in a series about entrepreneurship. You can choose posts in the series from the list below:

  1. How Backblaze got Started: The Problem, The Solution, and the Stuff In-Between
  2. Building a Competitive Moat: Turning Challenges Into Advantages
  3. From Idea to Launch: Getting Your First Customers
  4. How to Get Your First 1,000 Customers
  5. Surviving Your First Year
  6. How to Compete with Giants

Use the Join button above to receive notification of new posts in this series.

Perhaps your business is competing in a brand new space free from established competitors. Most of us, though, start companies that compete with existing offerings from large, established companies. You need to come up with a better mousetrap — not the first mousetrap.

That’s the challenge Backblaze faced. In this post, I’d like to share some of the lessons I learned from that experience.

Backblaze vs. Giants

Competing with established companies that are orders of magnitude larger can be daunting. How can you succeed?

I’ll set the stage by offering a few sets of giants we compete with:

  • When we started Backblaze, we offered online backup in a market where companies had been offering “online backup” for at least a decade, and even the newer entrants had raised tens of millions of dollars.
  • When we built our storage servers, the alternatives were EMC, NetApp, and Dell — each of which had a market cap of over $10 billion.
  • When we introduced our cloud storage offering, B2, our direct competitors were Amazon, Google, and Microsoft. You might have heard of them.

What did we learn by competing with these giants on a bootstrapped budget? Let’s take a look.

Determine What Success Means

For a long time Apple considered Apple TV to be a hobby, not a real product worth focusing on, because it did not generate a billion in revenue. For a $10 billion per year revenue company, a new business that generates $50 million won’t move the needle and often isn’t worth putting focus on. However, for a startup, getting to $50 million in revenue can be the start of a wildly successful business.

Lesson Learned: Don’t let the giants set your success metrics.

The Advantages Startups Have

The giants have a lot of advantages: more money, people, scale, resources, access, etc. Following their playbook and attacking head-on means you’re simply outgunned. Common paths to failure are trying to build more features, enter more markets, outspend on marketing, and other similar approaches where scale and resources are the primary determinants of success.

But being a startup affords many advantages most giants would salivate over. As a nimble startup you can leverage those to succeed. Let’s breakdown nine competitive advantages we’ve used that you can too.

1. Drive Focus

It’s hard to build a $10 billion revenue business doing just one thing, and most giants have a broad portfolio of businesses, numerous products for each, and targeting a variety of customer segments in multiple markets. That adds complexity and distributes management attention.

Startups get the benefit of having everyone in the company be extremely focused, often on a singular mission, product, customer segment, and market. While our competitors sell everything from advertising to Zantac, and are investing in groceries and shipping, Backblaze has focused exclusively on cloud storage. This means all of our best people (i.e. everyone) is focused on our cloud storage business. Where is all of your focus going?

Lesson Learned: Align everyone in your company to a singular focus to dramatically out-perform larger teams.

2. Use Lack-of-Scale as an Advantage

You may have heard Paul Graham say “Do things that don’t scale.” There are a host of things you can do specifically because you don’t have the same scale as the giants. Use that as an advantage.

When we look for data center space, we have more options than our largest competitors because there are simply more spaces available with room for 100 cabinets than for 1,000 cabinets. With some searching, we can find data center space that is better/cheaper.

When a flood in Thailand destroyed factories, causing the world’s supply of hard drives to plummet and prices to triple, we started drive farming. The giants certainly couldn’t. It was a bit crazy, but it let us keep prices unchanged for our customers.

Our Chief Cloud Officer, Tim, used to work at Adobe. Because of their size, any new product needed to always launch in a multitude of languages and in global markets. Once launched, they had scale. But getting any new product launched was incredibly challenging.

Lesson Learned: Use lack-of-scale to exploit opportunities that are closed to giants.

3. Build a Better Product

This one is probably obvious. If you’re going to provide the same product, at the same price, to the same customers — why do it? Remember that better does not always mean more features. Here’s one way we built a better product that didn’t require being a bigger company.

All online backup services required customers to choose what to include in their backup. We found that this was complicated for users since they often didn’t know what needed to be backed up. We flipped the model to back up everything and allow users to exclude if they wanted to, but it was not required. This reduced the number of features/options, while making it easier and better for the user.

This didn’t require the resources of a huge company; it just required understanding customers a bit deeper and thinking about the solution differently. Building a better product is the most classic startup competitive advantage.

Lesson Learned: Dig deep with your customers to understand and deliver a better mousetrap.

4. Provide Better Service

How can you provide better service? Use your advantages. Escalations from your customer care folks to engineering can go through fewer hoops. Fixing an issue and shipping can be quicker. Access to real answers on Twitter or Facebook can be more effective.

A strategic decision we made was to have all customer support people as full-time employees in our headquarters. This ensures they are in close contact to the whole company for feedback to quickly go both ways.

Having a smaller team and fewer layers enables faster internal communication, which increases customer happiness. And the option to do things that don’t scale — such as help a customer in a unique situation — can go a long way in building customer loyalty.

Lesson Learned: Service your customers better by establishing clear internal communications.

5. Remove The Unnecessary

After determining that the industry standard EMC/NetApp/Dell storage servers would be too expensive to build our own cloud storage upon, we decided to build our own infrastructure. Many said we were crazy to compete with these multi-billion dollar companies and that it would be impossible to build a lower cost storage server. However, not only did it prove to not be impossible — it wasn’t even that hard.

One key trick? Remove the unnecessary. While EMC and others built servers to sell to other companies for a wide variety of use cases, Backblaze needed servers that only Backblaze would run, and for a single use case. As a result we could tailor the servers for our needs by removing redundancy from each server (since we would run redundant servers), and using lower-performance components (since we would get high-performance by running parallel servers).

What do your customers and use cases not need? This can trim costs and complexity while often improving the product for your use case.

Lesson Learned: Don’t think “what can we add” to what the giants offer — think “what can we remove.”

6. Be Easy

How many times have you visited a large company website, particularly one that’s not consumer-focused, only to leave saying, “Huh? I don’t understand what you do.” Keeping your website clear, and your product and pricing simple, will dramatically increase conversion and customer satisfaction. If you’re able to make it 2x easier and thus increasing your conversion by 2x, you’ve just allowed yourself to spend ½ as much acquiring a customer.

Providing unlimited data backup wasn’t specifically about providing more storage — it was about making it easier. Since users didn’t know how much data they needed to back up, charging per gigabyte meant they wouldn’t know the cost. Providing unlimited data backup meant they could just relax.

Customers love easy — and being smaller makes easy easier to deliver. Use that as an advantage in your website, marketing materials, pricing, product, and in every other customer interaction.

Lesson Learned: Ease-of-use isn’t a slogan: it’s a competitive advantage. Treat it as seriously as any other feature of your product

7. Don’t Be Afraid of Risk

Obviously unnecessary risks are unnecessary, and some risks aren’t worth taking. However, large companies that have given guidance to Wall Street with a $0.01 range on their earning-per-share are inherently going to be very risk-averse. Use risk-tolerance to open up opportunities, and adjust your tolerance level as you scale. In your first year, there are likely an infinite number of ways your business may vaporize; don’t be too worried about taking a risk that might have a 20% downside when the upside is hockey stick growth.

Using consumer-grade hard drives in our servers may have caused pain and suffering for us years down-the-line, but they were priced at approximately 50% of enterprise drives. Giants wouldn’t have considered the option. Turns out, the consumer drives performed great for us.

Lesson Learned: Use calculated risks as an advantage.

8. Be Open

The larger a company grows, the more it wants to hide information. Some of this is driven by regulatory requirements as a public company. But most of this is cultural. Sharing something might cause a problem, so let’s not. All external communication is treated as a critical press release, with rounds and rounds of editing by multiple teams and approvals. However, customers are often desperate for information. Moreover, sharing information builds trust, understanding, and advocates.

I started blogging at Backblaze before we launched. When we blogged about our Storage Pod and open-sourced the design, many thought we were crazy to share this information. But it was transformative for us, establishing Backblaze as a tech thought leader in storage and giving people a sense of how we were able to provide our service at such a low cost.

Over the years we’ve developed a culture of being open internally and externally, on our blog and with the press, and in communities such as Hacker News and Reddit. Often we’ve been asked, “why would you share that!?” — but it’s the continual openness that builds trust. And that culture of openness is incredibly challenging for the giants.

Lesson Learned: Overshare to build trust and brand where giants won’t.

9. Be Human

As companies scale, typically a smaller percent of founders and executives interact with customers. The people who build the company become more hidden, the language feels “corporate,” and customers start to feel they’re interacting with the cliche “faceless, nameless corporation.” Use your humanity to your advantage. From day one the Backblaze About page listed all the founders, and my email address. While contacting us shouldn’t be the first path for a customer support question, I wanted it to be clear that we stand behind the service we offer; if we’re doing something wrong — I want to know it.

To scale it’s important to have processes and procedures, but sometimes a situation falls outside of a well-established process. While we want our employees to follow processes, they’re still encouraged to be human and “try to do the right thing.” How to you strike this balance? Simon Sinek gives a good talk about it: make your employees feel safe. If employees feel safe they’ll be human.

If your customer is a consumer, they’ll appreciate being treated as a human. Even if your customer is a corporation, the purchasing decision-makers are still people.

Lesson Learned: Being human is the ultimate antithesis to the faceless corporation.

Build Culture to Sustain Your Advantages at Scale

Presumably the goal is not to always be competing with giants, but to one day become a giant. Does this mean you’ll lose all of these advantages? Some, yes — but not all. Some of these advantages are cultural, and if you build these into the culture from the beginning, and fight to keep them as you scale, you can keep them as you become a giant.

Tesla still comes across as human, with Elon Musk frequently interacting with people on Twitter. Apple continues to provide great service through their Genius Bar. And, worst case, if you lose these at scale, you’ll still have the other advantages of being a giant such as money, people, scale, resources, and access.

Of course, some new startup will be gunning for you with grand ambitions, so just be sure not to get complacent. 😉

The post How to Compete with Giants appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

“Pirate Sites Generate $111 Million In Ad Revenue a Year”

Post Syndicated from Ernesto original https://torrentfreak.com/pirate-sites-generate-111-million-in-ad-revenue-a-year-171005/

In recent years various copyright holder groups have adopted a “follow-the-money” approach in the hope of cutting off funding to so-called pirate sites.

The Trustworthy Accountability Group (TAG) is one of the organizations that helps to facilitate these efforts. TAG coordinates an advertising-oriented Anti-Piracy Program for the advertising industry and has signed up dozens of large companies across various industries.

Today they released a new report, titled “Measuring Digital Advertising Revenue to Infringing Sites,” which shows the impact of these efforts.

The study, carried out by Ernst and Young, reveals that the top 672 piracy sites still generate plenty of revenue. A whopping $111 million per year, to be precise. But it may have been twice as much without the industry’s interventions.

“Digital ad revenue linked to infringing content was estimated at $111 million last year, the majority of which (83 percent) came from non-premium advertisers,” TAG writes.

“If the industry had not taken aggressive steps to reduce piracy, those pirate site operators would have potentially earned an additional $102-$177 million in advertising revenue, depending on the breakdown of premium and non-premium advertisers.”

Pirate revenue estimates

Taking more than $100 million away from pirate sites is pretty significant, to say the least.

It, therefore, comes as no surprise that the news is paired with positive comments from various industry insiders as well as US Congressman Adam Schiff, who co-chairs the International Creativity and Theft Prevention Caucus.

“The study recently completed by Ernst and Young on behalf of TAG shows that those efforts are bearing fruit, and that voluntary efforts by advertisers and agencies kept well over $100 million out of the pockets of pirate sites last year alone,” Schiff says.

While TAG and their partners pat themselves on the back, those who take a more critical look at the data will realize that their view is rather optimistic. There is absolutely no evidence that TAG’s efforts are responsible for the claimed millions that were kept from pirate sites.

In fact, most of these millions never ended up in the pockets of these websites to begin with.

The $102 million that pirate sites ‘didn’t get’ is simply the difference between premium and non-premium ads. In other words, the extra money these sites would have made if they had 100% premium ads, which is a purely hypothetical situation.

Long before TAG existed pirate sites were banned by a lot of premium advertising networks, including Google AdSense, and mostly serving lower tier ads.

The estimated CPM figures (earnings per 1,000 views) are rather optimistic too. TAG puts these at $2.50 for non-premium ads. We spoke to several site owners who said these were way off. Even pop-unders in premium countries make less than a dollar, we were told.

Site owners are not the only ones that have a much lower estimate. An earlier copyright industry-backed study, published by Digital Citizens Alliance (DCA), put the average CPM of these pirate site ads at $0.30, which is miles away from the $2.50 figure.

In fact, the DCA study also put the premium ads at $0.30, because these often end up as leftover inventory at pirate sites, according to experts.

“Based on MediaLink expertise and research with advertising industry members, the assumption is that where premium ads appear they are delivered programmatically by exchanges to fulfill the dregs of campaigns. As such, rates are assumed to be the same for premium and non-premium ads,” the DCA report noted.

In the TAG report, the estimate for premium ads is a bit higher, $5 per 1000 views. Video ads may be higher, but these only represent a tiny fraction of the total.

While TAG’s efforts will no doubt make a difference, it’s good to keep the caveats above in mind. Their claim that that the ad industry’s anti-piracy efforts have “cut pirate ad revenue in half” is misleading, to say the least.

That doesn’t mean that all numbers released by the organization should be taken with a grain of salt. The TAG membership rates below are 100% accurate.

TAG membership fees

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

MPAA Reports Pirate Sites, Hosts and Ad-Networks to US Government

Post Syndicated from Ernesto original https://torrentfreak.com/mpaa-reports-pirate-sites-hosts-and-ad-networks-to-us-government-171004/

Responding to a request from the Office of the US Trade Representative (USTR), the MPAA has submitted an updated list of “notorious markets” that it says promote the illegal distribution of movies and TV-shows.

These annual submissions help to guide the U.S. Government’s position towards foreign countries when it comes to copyright enforcement.

What stands out in the MPAA’s latest overview is that it no longer includes offline markets, only sites and services that are available on the Internet. This suggests that online copyright infringement is seen as a priority.

The MPAA’s report includes more than two dozen alleged pirate sites in various categories. While this is not an exhaustive list, the movie industry specifically highlights some of the worst offenders in various categories.

“Content thieves take advantage of a wide constellation of easy-to-use online technologies, such as direct download and streaming, to create infringing sites and applications, often with the look and feel of legitimate content distributors, luring unsuspecting consumers into piracy,” the MPAA writes.

According to the MPAA, torrent sites remain popular, serving millions of torrents to tens of millions of users at any given time.

The Pirate Bay has traditionally been one of the main targets. Based on data from Alexa and SimilarWeb, the MPAA says that TPB has about 62 million unique visitors per month. The other torrent sites mentioned are 1337x.to, Rarbg.to, Rutracker.org, and Torrentz2.eu.

MPAA calls out torrent sites

The second highlighted category covers various linking and streaming sites. This includes the likes of Fmovies.is, Gostream.is, Primewire.ag, Kinogo.club, MeWatchSeries.to, Movie4k.tv and Repelis.tv.

Direct download sites and video hosting services also get a mention. Nowvideo.sx, Openload.co, Rapidgator.net, Uploaded.net and the Russian social network VK.com. Many of these services refuse to properly process takedown notices, the MPAA claims.

The last category is new and centers around piracy apps. These sites offer mobile applications that allow users to stream pirated content, such as IpPlayBox.tv, MoreTV, 3DBoBoVR, TVBrowser, and KuaiKa, which are particularly popular in Asia.

Aside from listing specific sites, the MPAA also draws the US Government’s attention to the streaming box problem. The report specifically mentions that Kodi-powered boxes are regularly abused for infringing purposes.

“An emerging global threat is streaming piracy which is enabled by piracy devices preloaded with software to illicitly stream movies and television programming and a burgeoning ecosystem of infringing add-ons,” the MPAA notes.

“The most popular software is an open source media player software, Kodi. Although Kodi is not itself unlawful, and does not host or link to unlicensed content, it can be easily configured to direct consumers toward unlicensed films and television shows.”

Pirate streaming boxes

There are more than 750 websites offering infringing devices, the Hollywood group notes, adding that the rapid growth of this problem is startling. Interestingly, the report mentions TVAddons.ag as a “piracy add-on repository,” noting that it’s currently offline. Whether the new TVAddons is also seen a problematic is unclear.

The MPAA also continues its trend of calling out third-party intermediaries, including hosting providers. These companies refuse to take pirate sites offline following complaints, even when the MPAA views them as blatantly violating the law.

“Hosting companies provide the essential infrastructure required to operate a website,” the MPAA writes. “Given the central role of hosting providers in the online ecosystem, it is very concerning that many refuse to take action upon being notified…”

The Hollywood group specifically mentions Private Layer and Netbrella as notorious markets. CDN provider CloudFlare is also named. As a US-based company, the latter can’t be included in the list. However, the MPAA explains that it is often used as an anonymization tool by sites and services that are mentioned in the report.

Another group of intermediaries that play a role in fueling piracy (mentioned for the first time) are advertising networks. The MPAA specifically calls out the Canadian company WWWPromoter, which works with sites such as Primewire.ag, Projectfreetv.at and 123movies.to

“The companies connecting advertisers to infringing websites and inadvertently contribute to the prevalence and prosperity of infringing sites by providing funding to the operators of these sites through advertising revenue,” the MPAA writes.

The MPAA’s full report is available here (pdf). The USTR will use this input above to make up its own list of notorious markets. This will help to identify current threats and call on foreign governments to take appropriate action.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

The Data Tinder Collects, Saves, and Uses

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2017/09/the_data_tinder.html

Under European law, service providers like Tinder are required to show users what information they have on them when requested. This author requested, and this is what she received:

Some 800 pages came back containing information such as my Facebook “likes,” my photos from Instagram (even after I deleted the associated account), my education, the age-rank of men I was interested in, how many times I connected, when and where every online conversation with every single one of my matches happened…the list goes on.

“I am horrified but absolutely not surprised by this amount of data,” said Olivier Keyes, a data scientist at the University of Washington. “Every app you use regularly on your phone owns the same [kinds of information]. Facebook has thousands of pages about you!”

As I flicked through page after page of my data I felt guilty. I was amazed by how much information I was voluntarily disclosing: from locations, interests and jobs, to pictures, music tastes and what I liked to eat. But I quickly realised I wasn’t the only one. A July 2017 study revealed Tinder users are excessively willing to disclose information without realising it.

“You are lured into giving away all this information,” says Luke Stark, a digital technology sociologist at Dartmouth University. “Apps such as Tinder are taking advantage of a simple emotional phenomenon; we can’t feel data. This is why seeing everything printed strikes you. We are physical creatures. We need materiality.”

Reading through the 1,700 Tinder messages I’ve sent since 2013, I took a trip into my hopes, fears, sexual preferences and deepest secrets. Tinder knows me so well. It knows the real, inglorious version of me who copy-pasted the same joke to match 567, 568, and 569; who exchanged compulsively with 16 different people simultaneously one New Year’s Day, and then ghosted 16 of them.

“What you are describing is called secondary implicit disclosed information,” explains Alessandro Acquisti, professor of information technology at Carnegie Mellon University. “Tinder knows much more about you when studying your behaviour on the app. It knows how often you connect and at which times; the percentage of white men, black men, Asian men you have matched; which kinds of people are interested in you; which words you use the most; how much time people spend on your picture before swiping you, and so on. Personal data is the fuel of the economy. Consumers’ data is being traded and transacted for the purpose of advertising.”

Tinder’s privacy policy clearly states your data may be used to deliver “targeted advertising.”

It’s not Tinder. Surveillance is the business model of the Internet. Everyone does this.

Surviving Your First Year

Post Syndicated from Gleb Budman original https://www.backblaze.com/blog/startup-stages-surviving-your-first-year/

Surviving Your First Year

This post by Backblaze’s CEO and co-founder Gleb Budman is the fifth in a series about entrepreneurship. You can choose posts in the series from the list below:

  1. How Backblaze got Started: The Problem, The Solution, and the Stuff In-Between
  2. Building a Competitive Moat: Turning Challenges Into Advantages
  3. From Idea to Launch: Getting Your First Customers
  4. How to Get Your First 1,000 Customers
  5. Surviving Your First Year

Use the Join button above to receive notification of new posts in this series.

In my previous posts, I talked about coming up with an idea, determining the solution, and getting your first customers. But you’re building a company, not a product. Let’s talk about what the first year should look like.

The primary goals for that first year are to: 1) set up the company; 2) build, launch, and learn; and 3) survive.

Setting Up the Company

The company you’re building is more than the product itself, and you’re not going to do it alone. You don’t want to spend too much time on this since getting customers is key, but if you don’t set up the basics, there are all sorts of issues down the line.

startup idea board

Find Your Co-Founders & Determine Roles

You may already have the idea, but who do you need to execute it? At Backblaze, we needed people to build the web experience, the client backup application, and the server/storage side. We also needed someone to handle the business/marketing aspects, and we felt that the design and user experience were critical. As a result, we started with five co-founders: three engineers, a designer, and me for the business and marketing.

Of course not every role needs to be filled by a co-founder. You can hire employees for positions as well. But think through the strategic skills you’ll need to launch and consider co-founders with those skill sets.

Too many people think they can just “work together” on everything. Don’t. Determine roles as quickly as possible so that it’s clear who is responsible for what work and which decisions. We were lucky in that we had worked together and thus knew what each person would do, but even so we assigned titles early on to clarify roles.

Takeaway:   Fill critical roles and explicitly split roles and responsibilities.

Get Your Legal Basics In Place

When we’re excited about building a product, legal basics are often the last thing we want to deal with. You don’t need to go overboard, but it’s critical to get certain things done.

  1. Determine ownership split. What is the percentage breakdown of the company that each of the founders will own? It can be a tough discussion, but it only becomes more difficult later when there is more value and people have put more time into it. At Backblaze we split the equity equally five ways. This is uncommon. The benefit of this is that all the founders feel valued and “in it together.” The benefit of the more common split where someone has a dominant share is that person is typically empowered to be the ultimate decision-maker. Slicing Pie provides some guidance on how to think about splitting equity. Regardless of which way you want you go, don’t put it off.
  2. Incorporate. Hard to be a company if you’re not. There are various formats, but if you plan to raise angel/venture funding, a Delaware-based C-corp is standard.
  3. Deal With Stock. At a minimum, issue stock to the founders, have each one buy their shares, and file an 83(b). Buying your shares at this stage might be $100. Filing the 83(b) election marks the date at which you purchased your shares, and shows that you bought them for what they were worth. This one piece of paper paper can make the difference between paying long-term capital gains rates (~20%) or income tax rates (~40%).
  4. Assign Intellectual Property. Ask everyone to sign a Proprietary Information and Inventions Assignment (“PIIA”). This document says that what they do at the company is owned by the company. Early on we had a friend who came by and brainstormed ideas. We thought of it as interesting banter. He later said he owned part of our storage design. While we worked it out together, a PIIA makes ownership clear.

The ownership split can be worked out by the founders directly. For the other items, I would involve lawyers. Some law firms will set up the basics and defer payment until you raise money or the business can pay for services out of operations. Gunderson Dettmer did that for us (ask for Bennett Yee). Cooley will do this on a casey-by-case basis as well.

Takeaway:  Don’t let the excitement of building a company distract you from filing the basic legal documents required to protect and grow your company.

Get Health Insurance

This item may seem out of place, but not having health insurance can easily bankrupt you personally, and that certainly won’t bode well for your company. While you can buy individual health insurance, it will often be less expensive to buy it as a company. Also, it will make recruiting employees more difficult if you do not offer healthcare. When we contacted brokers they asked us to send the W-2 of each employee that wanted coverage, but the founders weren’t taking a salary at first. To work around this, make the founders ‘officers’ of the company, and the healthcare brokers can then insure them. (Of course, you need to be ok with your co-founders being officers, but hopefully, that is logical anyway.)

Takeaway:  Don’t take your co-founders’ physical and financial health for granted. Health insurance can serve as both individual protection and a recruiting tool for future employees.

Building, Launching & Learning

Getting the company set up gives you the foundation, but ultimately a company with no product and no customers isn’t very interesting.

Build

Ideally, you have one person on the team focusing on all of the items above and everyone else can be heads-down building product. There is a lot to say about building product, but for this post, I’ll just say that your goal is to get something out the door that is good enough to start collecting feedback. It doesn’t have to have every feature you dream of and doesn’t have to support 1 billion users on day one.

Launch

If you’re building a car or rocket, that may take some time. But with the availability of open-source software and cloud services, most startups should launch inside of a year.

Launching forces a scoping of the feature set to what’s critical, rallies the company around a goal, starts building awareness of your company and solution, and pushes forward the learning process. Backblaze launched in public beta on June 2, 2008, eight months after the founders all started working on it full-time.

Takeaway:  Focus on the most important features and launch.

Learn & Iterate

As much as we think we know about the customers and their needs, the launch process and beyond opens up all sorts of insights. This early period is critical to collect feedback and iterate, especially while both the product and company are still quite malleable. We initially planned on building peer-to-peer and local backup immediately on the heels of our online offering, but after launching found minimal demand for those features. On the other hand, there was tremendous demand from companies and resellers.

Takeaway:  Use the critical post-launch period to collect feedback and iterate.

Surviving

“Live to fight another day.” If the company doesn’t survive, it’s hard to change the world. Let’s talk about some of the survival components.

Consider What You As A Founding Team Want & How You Work

Are you doing this because you hope to get rich? See yourself on the cover of Fortune? Make your own decisions? Work from home all the time? Founder fighting is the number one reason companies fail; the founders need to be on the same page as much as possible.

At Backblaze we agreed very early on that we wanted three things:

  1. Build products we were proud of
  2. Have fun
  3. Make money

This has driven various decisions over the years and has evolved into being part of the culture. For example, while Backblaze is absolutely a company with a profit motive, we do not compromise the product to make more money. Other directions are not bad; they’re just different.

Do you want a lifestyle business? Or want to build a billion dollar business? Want to run it forever or build it for a couple years and do something else?

Pretend you’re getting married to each other. Do some introspection and talk about your vision of the future a lot. Do you expect everyone to work 20 or 100 hours every week? In the office or remote? How do you like to work? What pet peeves do you have?

When getting married each person brings the “life they’ve known,” often influenced by the life their parents lived. Together they need to decide which aspects of their previous lives they want to keep, toss, or change. As founders coming together, you have the same opportunity for your new company.

Takeaway:  In order for a company to survive, the founders must agree on what they want the company to be. Have the discussions early.

Determine How You Will Fund Your Business

Raising venture capital is often seen as the only path, and considered the most important thing to start doing on day one. However, there are a variety of options for funding your business, including using money from savings, part-time work, friends & family money, loans, angels, and customers. Consider the right option for you, your founding team, and your business.

Conserve Cash

Whichever option you choose for funding your business, chances are high that you will not be flush with cash on day one. In certain situations, you actually don’t want to conserve cash because you’ve raised $100m and now you want to run as fast as you can to capture a market — cash is plentiful and time is not. However, with the exception of founder struggles, running out of cash is the most common way companies go under. There are many ways to conserve cash — limit hiring of employees and consultants, use lawyers and accountants sparingly, don’t spend on advertising, work from a home office, etc. The most important way is to simply ensure that you and your team are cash conscious, challenging decisions that commit you to spending cash.

Backblaze spent a total of $94,122 to get to public beta launch. That included building the backup application, our own server infrastructure, the website with account/billing/restore functionality, the marketing involved in getting to launch, and all the steps above in setting up the company, paying for healthcare, etc. The five founders took no salary during this time (which, of course, would have cost dramatically more), so most of this money went to computers, servers, hard drives, and other infrastructure.

Takeaway:  Minimize cash burn — it extends your runway and gives you options.

Slowly Flesh Out Your Team

We started with five co-founders, and thus a fairly fleshed-out team. A year in, we only added one person, a Mac architect. Three months later we shipped a beta of our Mac version, which has resulted in more than 50% of our revenue.

Minimizing hiring is key to cash conservation, and hiring ahead of getting market feedback is risky since you may realize that the talent you need will change. However, once you start getting feedback, think about the key people that you need to move your company forward. But be rigorous in determining whether they’re critical. We didn’t hire our first customer support person until all five founders were spending 20% of their time on it.

Takeaway:  Don’t hire in anticipation of market growth; hire to fuel the growth.

Keep Your Spirits Up

Startups are roller coasters of emotion. There have been some serious articles about founders suffering from depression and worse. The idea phase is exhilarating, then there is the slog of building. The launch is a blast, but the week after there are crickets.

On June 2, 2008, we launched in public beta with great press and hordes of customers. But a few months later we were signing up only about 10 new customers per month. That’s $50 new monthly recurring revenue (MRR) after a year of work and no salary.

On August 25, 2008, we brought on our Mac architect. Two months later, on October 26, 2008, Apple launched Time Machine — completely free and built-in backup for all Macs.

There were plenty of times when our prospects looked bleak. In the rearview mirror it’s easy to say, “well sure, but now you have lots of customers,” or “yes, but Time Machine doesn’t do cloud backup.” But at the time neither of these were a given.

Takeaway:  Getting up each day and believing that as a team you’ll figure it out will let you get to the point where you can look in the rearview mirror and say, “It looked bleak back then.”

Succeeding in Your First Year

I titled the post “Surviving Your First Year,” but if you manage to, 1) set up the company; 2) build, launch, and learn; and 3) survive, you will have done more than survive: you’ll have truly succeeded in your first year.

The post Surviving Your First Year appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Founder of Fan-Made Subtitle Site Convicted for Copyright Infringement

Post Syndicated from Ernesto original https://torrentfreak.com/founder-of-subtitle-site-convicted-for-copyright-infringement-170914/

Every day millions of people enjoy fan-made subtitles. They help foreigners understand English-speaking entertainment and provide the deaf with a way to comprehend audio.

Quite often these subtitles are used in combination with pirated files. This is a thorn in the side to copyright holder groups, who see this as a threat to their business.

In Sweden, Undertexter was one of the leading subtitle resources for roughly a decade. The site allowed users to submit their own translated subtitles for movies and TV shows, which were then made available to the public.

In the summer of 2013, this reign came to an end after the site was pulled offline. Following pressure from Hollywood-based movie companies, police raided the site and seized its servers.

The raid and subsequent criminal investigation came as a surprise to the site’s founder, Eugen Archy, who didn’t think he or the site’s users were offering an illegal service.

“The people who work on the site don’t consider their own interpretation of dialog to be something illegal, especially when we’re handing out these interpretations for free,” he said at the time.

The arrest made it clear that the authorities disagreed. The Undertexter founder was prosecuted for distributing copyright-infringing subtitles, risking a possible prison sentence. While Archy was found guilty this week, luckily for him he remains a free man.

The Attunda District Court sentenced the now 32-year-old operator to probation. In addition, he has to pay 217,000 Swedish Kroner ($27,000), which will be taken from the advertising and donation revenues he collected through the site.

While there were millions of subtitles available on Undertexter, only 74 movies were referenced by the prosecution. These were carefully selected to ensure a strong case it seems, as many of the titles weren’t commercially available in Sweden at the time.

During the trial, the defense had argued that the fan-made subtitles are not infringing since movies are made up of video and sound, with subtitles being an extra. However, the court disagreed with this line of reasoning, the verdict shows.

While the copyright holders may have hoped for a heftier punishment, the ruling confirms that fan-made subtitles can be seen as copyright infringements. Prosecutor Henrik Rasmusson is satisfied with the outcome, IDG reports, but he will leave the option to appeal open for now.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

New UK IP Crime Report Reveals Continued Focus on ‘Pirate’ Kodi Boxes

Post Syndicated from Andy original https://torrentfreak.com/new-uk-ip-crime-report-reveals-continued-focus-on-pirate-kodi-boxes-170908/

The UK’s Intellectual Property Office has published its annual IP Crime Report, spanning the period 2016 to 2017.

It covers key events in the copyright and trademark arenas and is presented with input from the police and trading standards, plus private entities such as the BPI, Premier League, and Federation Against Copyright Theft, to name a few.

The report begins with an interesting statistic. Despite claims that many millions of UK citizens regularly engage in some kind of infringement, figures from the Ministry of Justice indicate that just 47 people were found guilty of offenses under the Copyright, Designs and Patents Act during 2016. That’s down on the 69 found guilty in the previous year.

Despite this low conviction rate, 15% of all internet users aged 12+ are reported to have consumed at least one item of illegal content between March and May 2017. Figures supplied by the Industry Trust for IP indicate that 19% of adults watch content via various IPTV devices – often referred to as set-top, streaming, Android, or Kodi boxes.

“At its cutting edge IP crime is innovative. It exploits technological loopholes before they become apparent. IP crime involves sophisticated hackers, criminal financial experts, international gangs and service delivery networks. Keeping pace with criminal innovation places a burden on IP crime prevention resources,” the report notes.

The report covers a broad range of IP crime, from counterfeit sportswear to foodstuffs, but our focus is obviously on Internet-based infringement. Various contributors cover various aspects of online activity as it affects them, including music industry group BPI.

“The main online piracy threats to the UK recorded music industry at present are from BitTorrent networks, linking/aggregator sites, stream-ripping sites, unauthorized streaming sites and cyberlockers,” the BPI notes.

The BPI’s website blocking efforts have been closely reported, with 63 infringing sites blocked to date via various court orders. However, the BPI reports that more than 700 related URLs, IP addresses, and proxy sites/ proxy aggregators have also been rendered inaccessible as part of the same action.

“Site blocking has proven to be a successful strategy as the longer the blocks are in place, the more effective they are. We have seen traffic to these sites reduce by an average of 70% or more,” the BPI reports.

While prosecutions against music pirates are a fairly rare event in the UK, the Crown Prosecution Service (CPS) Specialist Fraud Division highlights that their most significant prosecution of the past 12 months involved a prolific music uploader.

As first revealed here on TF, Wayne Evans was an uploader not only on KickassTorrents and The Pirate Bay, but also some of his own sites. Known online as OldSkoolScouse, Evans reportedly cost the UK’s Performing Rights Society more than £1m in a single year. He was sentenced in December 2016 to 12 months in prison.

While Evans has been free for some time already, the CPS places particular emphasis on the importance of the case, “since it provided sentencing guidance for the Copyright, Designs and Patents Act 1988, where before there was no definitive guideline.”

The CPS says the case was useful on a number of fronts. Despite illegal distribution of content being difficult to investigate and piracy losses proving tricky to quantify, the court found that deterrent sentences are appropriate for the kinds of offenses Evans was accused of.

The CPS notes that various factors affect the severity of such sentences, not least the length of time the unlawful activity has persisted and particularly if it has done so after the service of a cease and desist notice. Other factors include the profit made by defendants and/or the loss caused to copyright holders “so far as it can accurately be calculated.”

Importantly, however, the CPS says that beyond issues of personal mitigation and timely guilty pleas, a jail sentence is probably going to be the outcome for others engaging in this kind of activity in future. That’s something for torrent and streaming site operators and their content uploaders to consider.

“[U]nless the unlawful activity of this kind is very amateur, minor or short-lived, or in the absence of particularly compelling mitigation or other exceptional circumstances, an immediate custodial sentence is likely to be appropriate in cases of illegal distribution of copyright infringing articles,” the CPS concludes.

But while a music-related trial provided the highlight of the year for the CPS, the online infringement world is still dominated by the rise of streaming sites and the now omnipresent “fully-loaded Kodi Box” – set-top devices configured to receive copyright-infringing live TV and VOD.

In the IP Crime Report, the Intellectual Property Office references a former US Secretary of Defense to describe the emergence of the threat.

“The echoes of Donald Rumsfeld’s famous aphorism concerning ‘known knowns’ and ‘known unknowns’ reverberate across our landscape perhaps more than any other. The certainty we all share is that we must be ready to confront both ‘known unknowns’ and ‘unknown unknowns’,” the IPO writes.

“Not long ago illegal streaming through Kodi Boxes was an ‘unknown’. Now, this technology updates copyright infringement by empowering TV viewers with the technology they need to subvert copyright law at the flick of a remote control.”

While the set-top box threat has grown in recent times, the report highlights the important legal clarifications that emerged from the BREIN v Filmspeler case, which found itself before the European Court of Justice.

As widely reported, the ECJ determined that the selling of piracy-configured devices amounts to a communication to the public, something which renders their sale illegal. However, in a submission by PIPCU, the Police Intellectual Property Crime Unit, box sellers are said to cast a keen eye on the legal situation.

“Organised criminals, especially those in the UK who distribute set-top boxes, are aware of recent developments in the law and routinely exploit loopholes in it,” PIPCU reports.

“Given recent judgments on the sale of pre-programmed set-top boxes, it is now unlikely criminals would advertise the devices in a way which is clearly infringing by offering them pre-loaded or ‘fully loaded’ with apps and addons specifically designed to access subscription services for free.”

With sellers beginning to clean up their advertising, it seems likely that detection will become more difficult than when selling was considered a gray area. While that will present its own issues, PIPCU still sees problems on two fronts – a lack of clear legislation and a perception of support for ‘pirate’ devices among the public.

“There is no specific legislation currently in place for the prosecution of end users or sellers of set-top boxes. Indeed, the general public do not see the usage of these devices as potentially breaking the law,” the unit reports.

“PIPCU are currently having to try and ‘shoehorn’ existing legislation to fit the type of criminality being observed, such as conspiracy to defraud (common law) to tackle this problem. Cases are yet to be charged and results will be known by late 2017.”

Whether these prosecutions will be effective remains to be seen, but PIPCU’s comments suggest an air of caution set to a backdrop of box-sellers’ tendency to adapt to legal challenges.

“Due to the complexity of these cases it is difficult to substantiate charges under the Fraud Act (2006). PIPCU have convicted one person under the Serious Crime Act (2015) (encouraging or assisting s11 of the Fraud Act). However, this would not be applicable unless the suspect had made obvious attempts to encourage users to use the boxes to watch subscription only content,” PIPCU notes, adding;

“The selling community is close knit and adapts constantly to allow itself to operate in the gray area where current legislation is unclear and where they feel they can continue to sell ‘under the radar’.”

More generally, pirate sites as a whole are still seen as a threat. As reported last month, the current anti-piracy narrative is that pirate sites represent a danger to their users. As a result, efforts are underway to paint torrent and streaming sites as risky places to visit, with users allegedly exposed to malware and other malicious content. The scare strategy is supported by PIPCU.

“Unlike the purchase of counterfeit physical goods, consumers who buy unlicensed content online are not taking a risk. Faulty copyright doesn’t explode, burn or break. For this reason the message as to why the public should avoid copyright fraud needs to be re-focused.

“A more concerted attempt to push out a message relating to malware on pirate websites, the clear criminality and the links to organized crime of those behind the sites are crucial if public opinion is to be changed,” the unit advises.

But while the changing of attitudes is desirable for pro-copyright entities, PIPCU says that winning over the public may not prove to be an easy battle. It was given a small taste of backlash itself, after taking action against the operator of a pirate site.

“The scale of the problem regarding public opinion of online copyright crime is evidenced by our own experience. After PIPCU executed a warrant against the owner of a streaming website, a tweet about the event (read by 200,000 people) produced a reaction heavily weighted against PIPCU’s legitimate enforcement action,” PIPCU concludes.

In summary, it seems likely that more effort will be expended during the next 12 months to target the set-top box threat, but there doesn’t appear to be an abundance of confidence in existing legislation to tackle all but the most egregious offenders. That being said, a line has now been drawn in the sand – if the public is prepared to respect it.

The full IP Crime Report 2016-2017 is available here (pdf)

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

YouTube-MP3 Settles With RIAA, Site Will Shut Down

Post Syndicated from Ernesto original https://torrentfreak.com/youtube-mp3-settles-with-riaa-site-will-shut-down-170904/

With millions of visitors per day, YouTube-MP3.org is one of the most visited websites on the Internet.

The site allows its visitors to convert YouTube videos to MP3 files, which they can then listen to where and whenever they want. The music industry sees such “stream ripping” sites as a serious threat to its revenues, worse than traditional pirate sites.

In an attempt to do something about it, a coalition of record labels, represented by the RIAA, took YouTube-MP3 to court last year.

A complaint filed in a California federal court accused the site’s operator of various types of copyright infringement. In addition, the labels accused the site of circumventing YouTube’s copying protection mechanism, violating the DMCA.

“Through the promise of illicit delivery of free music, Defendants have attracted millions of users to the [YouTube-MP3] website, which in turn generates advertising revenues for Defendants,” the labels complained.

Today, a year later, both parties have settled their differences. While there haven’t been many updates in the court docket, a recent filing states that both parties have agreed to a settlement.

The details of the deal are not public, but YouTube-MP3 is willing to take all the blame. In a proposed final judgment, both parties ask the court to rule in favor of the labels on all counts of the complaint. In addition, the site’s owner Philip Matesanz agreed to pay a settlement amount.

On all counts

In addition to the order, a proposed injunction will prohibit the site’s operator from “knowingly designing, developing, offering, or operating any technology or service that allows or facilitates the practice commonly known as “streamripping,” or any other type of copyright infringement for that matter.

This injunction, which RIAA and YouTube-MP3 both agreed on, also states that the site’s domain name will be handed over to one of the record labels.

“Defendants are ordered to transfer the domain name www.youtube-mp3.org to the Plaintiff identified in, and in accordance with the terms of, the confidential Settlement Agreement among the parties,” it reads.

If the owner refuses to comply, the registrar will be ordered to sign over the domain name, which means that there’s no escaping.

While the court has yet to sign the proposed judgment and injunction (pdf), it is clear that YouTube-MP3 has thrown in the towel and will shut down. At the time of writing the site remains online, but this likely won’t be for long.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.