Tag Archives: BMG

ISP Questions Impartiality of Judges in Copyright Troll Cases

Post Syndicated from Andy original https://torrentfreak.com/isp-questions-impartiality-of-judges-in-copyright-troll-cases-180602/

Following in the footsteps of similar operations around the world, two years ago the copyright trolling movement landed on Swedish shores.

The pattern was a familiar one, with trolls harvesting IP addresses from BitTorrent swarms and tracing them back to Internet service providers. Then, after presenting evidence to a judge, the trolls obtained orders that compelled ISPs to hand over their customers’ details. From there, the trolls demanded cash payments to make supposed lawsuits disappear.

It’s a controversial business model that rarely receives outside praise. Many ISPs have tried to slow down the flood but most eventually grow tired of battling to protect their customers. The same cannot be said of Swedish ISP Bahnhof.

The ISP, which is also a strong defender of privacy, has become known for fighting back against copyright trolls. Indeed, to thwart them at the very first step, the company deletes IP address logs after just 24 hours, which prevents its customers from being targeted.

Bahnhof says that the copyright business appeared “dirty and corrupt” right from the get go, so it now operates Utpressningskollen.se, a web portal where the ISP publishes data on Swedish legal cases in which copyright owners demand customer data from ISPs through the Patent and Market Courts.

Over the past two years, Bahnhof says it has documented 76 cases of which six are still ongoing, 11 have been waived and a majority 59 have been decided in favor of mainly movie companies. Bahnhof says that when it discovered that 59 out of the 76 cases benefited one party, it felt a need to investigate.

In a detailed report compiled by Bahnhof Communicator Carolina Lindahl and sent to TF, the ISP reveals that it examined the individual decision-makers in the cases before the Courts and found five judges with “questionable impartiality.”

“One of the judges, we can call them Judge 1, has closed 12 of the cases, of which two have been waived and the other 10 have benefitted the copyright owner, mostly movie companies,” Lindahl notes.

“Judge 1 apparently has written several articles in the magazine NIR – Nordiskt Immateriellt Rättsskydd (Nordic Intellectual Property Protection) – which is mainly supported by Svenska Föreningen för Upphovsrätt, the Swedish Association for Copyright (SFU).

“SFU is a member-financed group centered around copyright that publishes articles, hands out scholarships, arranges symposiums, etc. On their website they have a public calendar where Judge 1 appears regularly.”

Bahnhof says that the financiers of the SFU are Sveriges Television AB (Sweden’s national public TV broadcaster), Filmproducenternas Rättsförening (a legally-oriented association for filmproducers), BMG Chrysalis Scandinavia (a media giant) and Fackförbundet för Film och Mediabranschen (a union for the movie and media industry).

“This means that Judge 1 is involved in a copyright association sponsored by the film and media industry, while also judging in copyright cases with the film industry as one of the parties,” the ISP says.

Bahnhof’s also has criticism for Judge 2, who participated as an event speaker for the Swedish Association for Copyright, and Judge 3 who has written for the SFU-supported magazine NIR. According to Lindahl, Judge 4 worked for a bureau that is partly owned by a board member of SFU, who also defended media companies in a “high-profile” Swedish piracy case.

That leaves Judge 5, who handled 10 of the copyright troll cases documented by Bahnhof, waiving one and deciding the remaining nine in favor of a movie company plaintiff.

“Judge 5 has been questioned before and even been accused of bias while judging a high-profile piracy case almost ten years ago. The accusations of bias were motivated by the judge’s membership of SFU and the Swedish Association for Intellectual Property Rights (SFIR), an association with several important individuals of the Swedish copyright community as members, who all defend, represent, or sympathize with the media industry,” Lindahl says.

Bahnhof hasn’t named any of the judges nor has it provided additional details on the “high-profile” case. However, anyone who remembers the infamous trial of ‘The Pirate Bay Four’ a decade ago might recall complaints from the defense (1,2,3) that several judges involved in the case were members of pro-copyright groups.

While there were plenty of calls to consider them biased, in May 2010 the Supreme Court ruled otherwise, a fact Bahnhof recognizes.

“Judge 5 was never sentenced for bias by the court, but regardless of the court’s decision this is still a judge who shares values and has personal connections with [the media industry], and as if that weren’t enough, the judge has induced an additional financial aspect by participating in events paid for by said party,” Lindahl writes.

“The judge has parties and interest holders in their personal network, a private engagement in the subject and a financial connection to one party – textbook characteristics of bias which would make anyone suspicious.”

The decision-makers of the Patent and Market Court and their relations.

The ISP notes that all five judges have connections to the media industry in the cases they judge, which isn’t a great starting point for returning “objective and impartial” results. In its summary, however, the ISP is scathing of the overall system, one in which court cases “almost looked rigged” and appear to be decided in favor of the movie company even before reaching court.

In general, however, Bahnhof says that the processes show a lack of individual attention, such as the court blindly accepting questionable IP address evidence supplied by infamous anti-piracy outfit MaverickEye.

“The court never bothers to control the media company’s only evidence (lists generated by MaverickMonitor, which has proven to be an unreliable software), the court documents contain several typos of varying severity, and the same standard texts are reused in several different cases,” the ISP says.

“The court documents show a lack of care and control, something that can easily be taken advantage of by individuals with shady motives. The findings and discoveries of this investigation are strengthened by the pure numbers mentioned in the beginning which clearly show how one party almost always wins.

“If this is caused by bias, cheating, partiality, bribes, political agenda, conspiracy or pure coincidence we can’t say for sure, but the fact that this process has mainly generated money for the film industry, while citizens have been robbed of their personal integrity and legal certainty, indicates what forces lie behind this machinery,” Bahnhof’s Lindahl concludes.

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

Reddit Repeat Infringer Policy Shuts Down Megalinks Piracy Sub

Post Syndicated from Andy original https://torrentfreak.com/reddit-repeat-infringer-policy-shuts-down-megalinks-piracy-sub-180430/

Without doubt, Reddit is one of the most popular sites on the entire Internet. At the time of writing it’s the fourth most visited site in the US with 330 million users per month generating 14 billion screenviews.

The core of the site’s success is its communities. Known as ‘sub-Reddits’ or just ‘subs’, there are currently 138,000 of them dedicated to every single subject you can think of and tens of thousands you’d never considered.

Even though they’re technically forbidden, a small but significant number are dedicated to piracy, offering links to copyright-infringing content hosted elsewhere. One of the most popular is /r/megalinks, which is dedicated to listing infringing content (mainly movies and TV shows) uploaded to file-hosting site Mega.

Considering its activities, Megalinks has managed to stay online longer than most people imagined but following an intervention from Reddit, the content indexing sub has stopped accepting new submissions, which will effectively shut it down.

In an announcement Sunday, the sub’s moderators explained that following a direct warning from Reddit’s administrators, the decision had been taken to move on.

“As most of you know by now, we’ve had to deal with a lot of DMCA takedowns over the last 6 months. Everyone knew this day would come, eventually, and its finally here,” they wrote.

“We received a formal warning from Reddit’s administration 2 days ago, and have decided to restrict new submissions for the safety of the subreddit.”

The message from Reddit’s operators makes it absolutely clear that Reddit isn’t the platform to host what amounts to a piracy links forum.

“This is an official warning from Reddit that we are receiving too many copyright infringement notices about material posted to your community. We will be required to ban this community if you can’t adequately address the problem,” the warning reads.

Noting that Redditors aren’t allowed to post content that infringes copyrights, the administrators say they are required by law to handle DMCA notices and that in cases where infringement happens on multiple occasions, that needs to be handled in a more aggressive manner.

“The law also requires us to issue bans in cases of repeat infringement. Sometimes a repeat infringement problem is limited to just one user and we ban just that person. Other times the problem pervades a whole community and we ban the community,” the admins continue.

“This is our formal warning about repeat infringement in this community. Over the past three months we’ve had to remove material from the community in response to copyright notices 60 times. That’s an unusually high number taking into account the community’s size.

The warning suggests ways to keep infringing content down but in a sub dedicated to piracy, they’re all completely irrelevant. It also suggests removing old posts to ensure that Reddit doesn’t keep getting notices, but that would mean deleting pretty much everything. Backups exist but a simple file is a poor substitute for a community.

So, with Reddit warning that without change the sub will be banned, the moderators of /r/megalinks have decided to move on to a new home. Reportedly hosted ‘offshore’, their new forum already has more than 9,800 members and is likely to grow quickly as the word spreads.

A month ago, the /r/megaporn sub-Reddit suffered a similar fate following a warning from Reddit’s admins. It successfully launched a new external forum which is why the Megalinks crew decided on the same model.

“[A]fter seeing how /r/megaporn approached the same situation, we had started working on an offshore forum a week ago in anticipation of the ban. This allows us to work however we want, without having to deal with Reddit’s policies and administration,” the team explain.

Ever since the BMG v Cox case went bad ways for the ISP in 2015, repeat infringer policies have become a very hot topic in the US. That Reddit is now drawing a line in the sand over a relatively small number of complaints (at least compared to other similar platforms) is clear notice that Reddit and blatant piracy won’t be allowed to walk hand in hand.

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

How Many Piracy Warnings Would Get You to Stop?

Post Syndicated from Andy original https://torrentfreak.com/how-many-piracy-warnings-would-get-you-to-stop-180422/

For the past several years, copyright holders in the US and Europe have been trying to reach out to file-sharers in an effort to change their habits.

Whether via high-profile publicity lawsuits or a simple email, it’s hoped that by letting people know they aren’t anonymous, they’ll stop pirating and buy more content instead.

Traditionally, most ISPs haven’t been that keen on passing infringement notices on. However, the BMG v Cox lawsuit seems to have made a big difference, with a growing number of ISPs now visibly warning their users that they operate a repeat infringer policy.

But perhaps the big question is how seriously users take these warnings because – let’s face it – that’s the entire point of their existence.

There can be little doubt that a few recipients will be scurrying away at the slightest hint of trouble, intimidated by the mere suggestion that they’re being watched.

Indeed, a father in the UK – who received a warning last year as part of the Get it Right From a Genuine Site campaign – confidently and forcefully assured TF that there would be no more illegal file-sharing taking place on his ten-year-old son’s computer again – ever.

In France, where the HADOPI anti-piracy scheme received much publicity, people receiving an initial notice are most unlikely to receive additional ones in future. A December 2017 report indicated that of nine million first warning notices sent to alleged pirates since 2012, ‘just’ 800,000 received a follow-up warning on top.

The suggestion is that people either stop their piracy after getting a notice or two, or choose to “go dark” instead, using streaming sites for example or perhaps torrenting behind a decent VPN.

But for some people, the message simply doesn’t sink in early on.

A post on Reddit this week by a TWC Spectrum customer revealed that despite a wealth of readily available information (including masses in the specialist subreddit where the post was made), even several warnings fail to have an effect.

“Was just hit with my 5th copyright violation. They halted my internet and all,” the self-confessed pirate wrote.

There are at least three important things to note from this opening sentence.

Firstly, the first four warnings did nothing to change the user’s piracy habits. Secondly, Spectrum presumably had enough at five warnings and kicked in a repeat-infringer suspension, presumably to avoid the same fate as Cox in the BMG case. Third, the account suspension seems to have changed the game.

Notably, rather than some huge blockbuster movie, that fifth warning came due to something rather less prominent.

“Thought I could sneak in a random episode of Rosanne. The new one that aired LOL. That fast. Under 24 hours I got shut off. Which makes me feel like [ISPs] do monitor your traffic and its not just the people sending them notices,” the post read.

Again, some interesting points here.

Any content can be monitored by rightsholders but if it’s popular in the US then a warning delivered via an ISP seems to be more likely than elsewhere. However, the misconception that the monitoring is done by ISPs persists, despite that not being the case.

ISPs do not monitor users’ file-sharing activity, anti-piracy companies do. They can grab an IP address the second someone enters a torrent swarm, or even connects to a tracker. It happens in an instant, at a time of their choosing. Quickly jumping in and out of a torrent is no guarantee and the fallacy of not getting caught due to a failure to seed is just that – a fallacy.

But perhaps the most important thing is that after five warnings and a disconnection, the Reddit user decided to take action. Sadly for the people behind Rosanne, it’s not exactly the reaction they’d have hoped for.

“I do not want to push it but I am curious to what happens 6th time, and if I would even be safe behind a VPN,” he wrote.

“Just want to learn how to use a VPN and Sonarr and have a guilt free stress free torrent watching.”

Of course, there was no shortage of advice.

“If you have gotten 5 notices, you really should of learnt [sic] how to use a VPN before now,” one poster noted, perhaps inevitably.

But curiously, or perhaps obviously given the number of previous warnings, the fifth warning didn’t come as a surprise to the user.

“I knew they were going to hit me for it. I just didn’t think a 195mb file would do it. They were getting me for Disney movies in the past,” he added.

So how do you grab the attention of a persistent infringer like this? Five warnings and a suspension apparently. But clearly, not even that is a guarantee of success. Perhaps this is why most ‘strike’ schemes tend to give up on people who can’t be rehabilitated.

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

Rightscorp: Revenue From Piracy Settlements Down 48% in 2017

Post Syndicated from Andy original https://torrentfreak.com/rightscorp-revenue-from-piracy-settlements-down-48-in-2017-171125/

For the past several years, anti-piracy outfit Rightscorp has been trying to turn piracy into profit. The company monitors BitTorrent networks, captures IP addresses, then attempts to force ISPs to forward cash settlement demands to its subscribers.

Unlike other companies operating in the same area, Rightscorp has adopted a “speeding fine” type model, where it asks for $20 to $30 to make a supposed lawsuit go away, instead of the many hundreds demanded by its rivals. To date, this has resulted in the company closing more than 230,000 cases of infringement.

But despite the high numbers, the company doesn’t seem to be able to make it pay. Rightscorp’s latest set of financial results covering the three months ended September 30, 2017, show how bad things have got on the settlement front.

During the period in question, Rightscorp generated copyright settlement revenues of $45,848, an average of just $15,282 per month. That represents a decrease of 67% when compared to the $139,834 generated during the same period in 2016.

When looking at settlement revenues year to date, Rightscorp generated $184,362 in 2017, a decrease of 48% when compared to $354,160 generated during the same nine-month period in 2016.

But as bleak as these figures are, things get much worse. Out of these top-line revenues, Rightscorp has to deal with a whole bunch of costs before it can put anything into its own pockets. For example, in exchange for the right to pursue pirates, Rightscorp agrees to pay around 50% of everything it generates from settlements back to copyright holders.

So, for the past three months when it collected $45,848 from BitTorrent users, it must pay out $22,924 to copyright holders. Last year, in the same period, it paid them $69,143. For the year to date (nine months ended September 30, 2017), the company paid $92,181 to copyright holders, that’s versus $174,878 for the same period last year.

Whichever way you slice it, Rightscorp settlement model appears to be failing. With revenues from settlements down by almost half thus far this year, one has to question where this is all going, especially with BitTorrent piracy volumes continuing to fall in favor of other less traceable methods such as streaming.

However, Rightscorp does have a trick up its sleeve that is helping to keep the company afloat. As previously reported, the company has amassed a lot of intelligence on pirate activity which clearly has some value to copyright holders.

That data is currently being utilized by both BMG and the RIAA, who are using it as evidence in copyright liability lawsuits filed against ISPs Cox and Grande Communications, where each stand accused of failing to disconnect repeat infringers.

This selling of ‘pirate’ data is listed by Rightscorp in its financial reports as “consulting services” and thus far at least, it’s proving to be a crucial source of income.

“During the three months ended September 30, 2017, we generated revenues of $76,666 from consulting services rendered under service arrangements with prominent trade organizations,” Rightscorp reports.

“Under the agreements, the Company is providing certain data and consultation regarding copyright infringements on such organizations’ respective properties. During the three months ended September 30, 2016, we had no consulting services revenue.”

Year to date, the numbers begin to add up. In the nine months ended September 30, 2017, Rightscorp generated revenues of $224,998 from this facet of their business, that’s versus zero revenue in 2016.

It’s clear that without this “consulting” revenue, Rightscorp would be in an even worse situation than it is today. In fact, it appears that these services, provided to the likes of the RIAA, are now preventing the company from falling into the abyss. All that being said, there’s no guarantee that won’t happen anyway.

To the nine months ended September 30, 2017, Rightscorp recorded a net loss of $1,448,899, which is even more than the $1,380,698 it lost during the same period last year. As a result, the company had just $3,147 left in cash at the end of September. That crisis was eased by issuing 2.5 million shares to an investor for a purchase price just $50,000. But to keep going, Rightscorp will need more money – much more.

“Management believes that the Company will need an additional $250,000 to $500,000 in 2017 to fund operations based on our current operating plans,” it reports, noting that there is “substantial doubt” whether Rightscorp can continue as a going concern.

But despite all the bad news, Rightscorp manages to survive and at least in the short-term, the piracy data it has amassed holds value, beyond basic cash settlement letters. The question is, for how long?

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

Popular Zer0day Torrent Tracker Taken Offline By Mass Copyright Complaint

Post Syndicated from Andy original https://torrentfreak.com/popular-zer0day-torrent-tracker-taken-offline-by-mass-copyright-complaint-171014/

In January 2016, a BitTorrent enthusiast decided to launch a stand-alone tracker, purely for fun.

The Zer0day platform, which hosts no torrents, is a tracker in the purest sense, directing traffic between peers, no matter what content is involved and no matter where people are in the world.

With this type of tracker in short supply, it was soon utilized by The Pirate Bay and the now-defunct ExtraTorrent. By August 2016, it was tracking almost four million peers and a million torrents, a considerable contribution to the BitTorrent ecosystem.

After handling many ups and downs associated with a service of this type, the tracker eventually made it to the end of 2016 intact. This year it grew further still and by the end of September was tracking an impressive 5.5 million peers spread over 1.2 million torrents. Soon after, however, the tracker disappeared from the Internet without warning.

In an effort to find out what had happened, TorrentFreak contacted Zer0day’s operator who told us a familiar story. Without any warning at all, the site’s host pulled the plug on the service, despite having been paid 180 euros for hosting just a week earlier.

“We’re hereby informing you of the termination of your dedicated server due to a breach of our terms of service,” the host informed Zer0day.

“Hosting trackers on our servers that distribute infringing and copyrighted content is prohibited. This server was found to distribute such content. Should we identify additional similar activity in your services, we will be forced to close your account.”

While hosts tend not to worry too much about what their customers are doing, this one had just received a particularly lengthy complaint. Sent by the head of anti-piracy at French collecting society SCPP, it laid out the group’s problems with the Zer0day tracker.

“SCPP has been responsible for the collective management and protection of sound recordings and music videos producers’ rights since 1985. SCPP counts more than 2,600 members including the majority of independent French producers, in addition to independent European producers, and the major international companies: Sony, Universal and Warner,” the complaints reads.

“SCPP administers a catalog of 7,200,000 sound tracks and 77,000 music videos. SCPP is empowered by its members to take legal action in order to put an end to any infringements of the producers’ rights set out in Article L335-4 of the French Intellectual Property Code…..punishable by a three-year prison sentence or a fine of €300,000.”

Noting that it works on behalf of a number of labels and distributors including BMG, Sony Music, Universal Music, Warner Music and others, SCPP listed countless dozens of albums under its protection, each allegedly tracked by the Zer0day platform.

“It has come to our attention that these music albums are illegally being communicated to the public (made available for download) by various users of the BitTorrent-Network,” the complaint reads.

Noting that Zer0day is involved in the process, the anti-piracy outfit presented dozens of hash codes relating to protected works, demanding that the site stop facilitation of infringement on each and every one of them.

“We have proof that your tracker udp://tracker.zer0day.to:1337/announce provided peers of the BitTorrent-Network with information regarding these torrents, to be specific IP Addresses of peers that were offering without authorization the full albums for download, and that this information enabled peers to download files that contain the sound recordings to which our members producers have the exclusive rights.

“These sound recordings are thus being illegally communicated to the public, and your tracker is enabling the seeders to do so.”

Rather than take the hashes down from the tracker, SCPP actually demanded that Zer0day create a permanent blacklist within 24 hours, to ensure the corresponding torrents wouldn’t be tracked again.

“You should understand that this letter constitutes a notice to you that you may be liable for the infringing activity occurring on your service. In addition, if you ignore this notice, you may also be liable for any resulting infringement,” the complaint added.

But despite all the threats, SCPP didn’t receive the response they’d demanded since the operator of the site refused to take any action.

“Obviously, ‘info hashes’ are not copyrightable nor point to specific copyrighted content, or even have any meaning. Further, I cannot verify that request strings parameters (‘info hashes’) you sent me contain copyrighted material,” he told SCPP.

“Like the website says; for content removal kindly ask the indexing site to remove the listing and the .torrent file. Also, tracker software does not have an option to block request strings parameters (‘info hashes’).”

The net effect of non-compliance with SCPP was fairly dramatic and swift. Zer0day’s host took down the whole tracker instead and currently it remains offline. Whether it reappears depends on the site’s operator finding a suitable web host, but at the moment he says he has no idea where one will appear from.

“Currently I’m searching for some virtual private server as a temporary home for the tracker,” he concludes.

As mentioned in an earlier article detailing the problems sites like Zer0day.to face, trackers aren’t absolutely essential for the functioning of BitTorrent transfers. Nevertheless, their existence certainly improves matters for file-sharers so when they go down, millions can be affected.

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

Six Strikes Piracy Scheme May Be Dead But Those Warnings Keep on Coming

Post Syndicated from Andy original https://torrentfreak.com/six-strikes-piracy-scheme-may-be-dead-but-those-warnings-keep-on-coming-171001/

After at least 15 years of Internet pirates being monitored by copyright holders, one might think that the message would’ve sunk in by now. For many, it definitely hasn’t.

Bottom line: when people use P2P networks and protocols (such as BitTorrent) to share files including movies and music, copyright holders are often right there, taking notes about what is going on, perhaps in preparation for further action.

That can take a couple of forms, including suing users or, more probably, firing off a warning notice to their Internet service providers. Those notices are a little like a speeding ticket, telling the subscriber off for sharing copyrighted material but letting them off the hook if they promise to be good in future.

In 2013, the warning notice process in the US was formalized into what was known as the Copyright Alert System, a program through which most Internet users could receive at least six piracy warning notices without having any serious action taken against them. In January 2017, without having made much visible progress, it was shut down.

In some corners of the web there are still users under the impression that since the “six strikes” scheme has been shut down, all of a sudden US Internet users can forget about receiving a warning notice. In reality, the complete opposite is true.

While it’s impossible to put figures on how many notices get sent out (ISPs are reluctant to share the data), monitoring of various piracy-focused sites and forums indicates that plenty of notices are still being sent to ISPs, who are cheerfully sending them on to subscribers.

Also, over the past couple of months, there appears to have been an uptick in subscribers seeking advice after receiving warnings. Many report basic notices but there seems to be a bit of a trend of Internet connections being suspended or otherwise interrupted, apparently as a result of an infringement notice being received.

“So, over the weekend my internet got interrupted by my ISP (internet service provider) stating that someone on my network has violated some copyright laws. I had to complete a survey and they brought back the internet to me,” one subscriber wrote a few weeks ago. He added that his (unnamed) ISP advised him that seven warnings would get his account disconnected.

Another user, who named his ISP as Comcast, reported receiving a notice after downloading a game using BitTorrent. He was warned that the alleged infringement “may result in the suspension or termination of your Service account” but what remains unclear is how many warnings people can receive before this happens.

For example, a separate report from another Comcast user stated that one night of careless torrenting led to his mother receiving 40 copyright infringement notices the next day. He didn’t state which company the notices came from but 40 is clearly a lot in such a short space of time. That being said and as far as the report went, it didn’t lead to a suspension.

Of course, it’s possible that Comcast doesn’t take action if a single company sends many notices relating to the same content in a small time frame (Rightscorp is known to do this) but the risk is still there. Verizon, it seems, can suspend accounts quite easily.

“So lately I’ve been getting more and more annoyed with pirating because I get blasted with a webpage telling me my internet is disconnected and that I need to delete the file to reconnect, with the latest one having me actually call Verizon to reconnect,” a subscriber to the service reported earlier this month.

A few days ago, a Time Warner Cable customer reported having to take action after receiving his third warning notice from the ISP.

“So I’ve gotten three notices and after the third one I just went online to my computer and TWC had this page up that told me to stop downloading illegally and I had to click an ‘acknowledge’ button at the bottom of the page to be able to continue to use my internet,” he said.

Also posting this week, another subscriber of an unnamed ISP revealed he’d been disconnected twice in the past year. His comments raise a few questions that keep on coming up in these conversations.

“The first time [I was disconnected] was about a year ago and the next was a few weeks ago. When it happened I was downloading some fairly new movies so I was wondering if they monitor these new movie releases since they are more popular. Also are they monitoring what I am doing since I have been caught?” he asked.

While there is plenty of evidence to suggest that old content is also monitored, there’s little doubt that the fresher the content, the more likely it is to be monitored by copyright holders. If people are downloading a brand new movie, they should expect it to be monitored by someone, somewhere.

The second point, about whether risk increases after being caught already, is an interesting one, for a number of reasons.

Following the BMG v Cox Communication case, there is now a big emphasis on ISPs’ responsibility towards dealing with subscribers who are alleged to be repeat infringers. Anti-piracy outfit Rightscorp was deeply involved in that case and the company has a patent for detecting repeat infringers.

It’s becoming clear that the company actively targets such people in order to assist copyright holders (which now includes the RIAA) in strategic litigation against ISPs, such as Grande Communications, who are claimed to be going soft on repeat infringers.

Overall, however, there’s no evidence that “getting caught” once increases the chances of being caught again, but subscribers should be aware that the Cox case changed the position on the ground. If anecdotal evidence is anything to go by, it now seems that ISPs are tightening the leash on suspected pirates and are more likely to suspend or disconnect them in the face of repeated complaints.

The final question asked by the subscriber who was disconnected twice is a common one among people receiving notices.

“What can I do to continue what we all love doing?” he asked.

Time and time again, on sites like Reddit and other platforms attracting sharers, the response is the same.

“Get a paid VPN. I’m amazed you kept torrenting without protection after having your internet shut off, especially when downloading recent movies,” one such response reads.

Nevertheless, this still fails to help some people fully understand the notices they receive, leaving them worried about what might happen after receiving one. However, the answer is nearly always straightforward.

If the notice says “stop sharing content X”, then recipients should do so, period. And, if the notice doesn’t mention specific legal action, then it’s almost certain that no action is underway. They are called warning notices for a reason.

Also, notice recipients should consider the part where their ISP assures them that their details haven’t been shared with third parties. That is the truth and will remain that way unless subscribers keep ignoring notices. Then there’s a slim chance that a rightsholder will step in to make a noise via a lawyer. At that point, people shouldn’t say they haven’t been warned.

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

Rightscorp Bleeds Another Million, Borrows $200K From Customer BMG

Post Syndicated from Andy original https://torrentfreak.com/rightscorp-bleeds-another-million-borrows-200k-from-customer-bmg-170819/

Anti-piracy outfit Rightscorp is one of the many companies trying to turn Internet piracy into profit. The company has a somewhat novel approach but has difficulty balancing the books.

Essentially, Rightscorp operates like other so-called copyright-trolling operations, in that it monitors alleged offenders on BitTorrent networks, tracks them to their ISPs, then attempts to extract a cash settlement. Rightscorp does this by sending DMCA notices with settlement agreements attached, in the hope that at-this-point-anonymous Internet users break cover in panic. This can lead to a $20 or $30 ‘fine’ or in some cases dozens of multiples of that.

But despite settling hundreds of thousands of these cases, profit has thus far proven elusive, with the company hemorrhaging millions in losses. The company has just filed its results for the first half of 2017 and they contain more bad news.

In the six months ended June 2017, revenues obtained from copyright settlements reached just $138,514, that’s 35% down on the $214,326 generated in the same period last year. However, the company did manage to book $148,332 in “consulting revenue” in the first half of this year, a business area that generated no revenue in 2016.

Overall then, total revenue for the six month period was $286,846 – up from $214,326 last year. While that’s a better picture in its own right, Rightscorp has a lot of costs attached to its business.

After paying out $69,257 to copyright holders and absorbing $1,190,696 in general and administrative costs, among other things, the company’s total operating expenses topped out at $1,296,127 for the first six months of the year.

To make a long story short, the company made a net loss of $1,068,422, which was more than the $995,265 loss it made last year and despite improved revenues. The company ended June with just $1,725 in cash.

“These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued,” the company’s latest statement reads.

This hanging-by-a-thread narrative has followed Rightscorp for the past few years but there’s information in the latest accounts which indicates how bad things were at the start of the year.

In January 2016, Rightscorp and several copyright holders, including Hollywood studio Warner Bros, agreed to settle a class-action lawsuit over intimidating robo-calls that were made to alleged infringers. The defendants agreed to set aside $450,000 to cover the costs, and it appears that Rightscorp was liable for at least $200,000 of that.

Rightscorp hasn’t exactly been flush with cash, so it was interesting to read that its main consumer piracy settlement client, music publisher BMG, actually stepped in to pay off the class-action settlement.

“At December 31, 2016, the Company had accrued $200,000 related to the settlement of a class action complaint. On January 7, 2017, BMG Rights Management (US) LLC (“BMG”) advanced the Company $200,000, which was used to pay off the settlement. The advance from BMG is to be applied to future billings from the Company to BMG for consulting services,” Rightscorp’s filing reads.

With Rightscorp’s future BMG revenue now being gobbled up by what appears to be loan repayments, it becomes difficult to see how the anti-piracy outfit can make enough money to pay off the $200,000 debt. However, its filing notes that on July 21, 2017, the company issued “an aggregate of 10,000,000 shares of common stock to an investor for a purchase price of $200,000.” While that amount matches the BMG debt, the filing doesn’t reveal who the investor is.

The filing also reveals that on July 31, Rightscorp entered into two agreements to provide services “to a holder of multiple copyrights.” The copyright holder isn’t named, but the deal reveals that it’s in Rightscorp’s best interests to get immediate payment from people to whom it sends cash settlement demands.

“[Rightscorp] will receive 50% of all gross proceeds of any settlement revenue received by the Client from pre-lawsuit ‘advisory notices,’ and 37.5% of all gross proceeds received by the Client from ‘final warning’ notices sent immediately prior to a lawsuit,” the filing notes.

Also of interest is that Rightscorp has offered not to work with any of the copyright holders’ direct competitors, providing certain thresholds are met – $10,000 revenue in the first month to $100,000 after 12 months. But there’s more to the deal.

Rightscorp will also provide a number of services to this client including detecting and verifying copyright works on P2P networks, providing information about infringers, plus reporting, litigation support, and copyright protection advisory services.

For this, Rightscorp will earn $10,000 for the first three months, rising to $85,000 per month after 16 months, valuable revenue for a company fighting for its life.

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