Tag Archives: Law

Kim Dotcom Loses Megaupload Domain Names, Gets “Destroyed” Gaming Chair Back

Post Syndicated from Ernesto original https://torrentfreak.com/kim-dotcom-loses-megaupload-domain-names-gets-destroyed-gaming-chair-back-180117/

Following the 2012 raid on Megaupload and Kim Dotcom, U.S. and New Zealand authorities seized millions of dollars in cash and other property, located around the world.

Claiming the assets were obtained through copyright and money laundering crimes, the U.S. government launched separate civil cases in which it asked the court to forfeit bank accounts, servers, domain names, and other seized possessions of the Megaupload defendants.

One of these cases was lost after the U.S. branded Dotcom and his colleagues as “fugitives”.The defense team appealed the ruling, but lost again, and a subsequent petition at the Supreme Court was denied.

Following this lost battle, the U.S. also moved to conclude a separate civil forfeiture case, which was still pending at a federal court in Virginia.

The assets listed in this case are several bank accounts, including several at PayPal, as well as 60 servers Megaupload bought at Leaseweb. What has the most symbolic value, however, are the domain names that were seized, including Megaupload.com, Megaporn.com and Megavideo.com.

Mega’s domains

This week a U.S. federal court decided that all claims of Kim Dotcom, his former colleague Mathias Ortman, and several Megaupload-related companies should be stricken. A default was entered against them on Tuesday.

The same fugitive disentitlement argument was used in this case. This essentially means that someone who’s considered to be a fugitive from justice is not allowed to get relief from the judicial system he or she evades.

“Claimants Kim Dotcom and Mathias Ortmann have deliberately avoided prosecution by declining to enter or reenter the United States,” Judge Liam O’Grady writes in his order to strike the claims.

“Because Claimant Kim Dotcom, who is himself a fugitive under Section 2466, is the Corporate Claimants’ controlling shareholder and, in particular, because he signed the claims on behalf of the corporations, a presumption of disentitlement applies to the corporations as well.”

As a result, the domain names which once served 50 million users per day, are now lost to the US Government. The court records list 18 domains in total, which were registered through Godaddy, DotRegistrar, and Fabulous.

Given the legal history, the domains and other assets are likely lost for good. However, Megaupload defense lawyer Ira Rothken is not giving up yet.

“We are still evaluating the legal options in a climate where Kim Dotcom is being labeled a fugitive in a US criminal copyright case even though he has never been to the US, is merely asserting his US-NZ extradition treaty rights, and the NZ High Court has ruled that he and his co-defendants did not commit criminal copyright infringement under NZ law,” Rothken tells TorrentFreak.

There might be a possibility that assets located outside the US could be saved. Foreign courts are more open to defense arguments, it seems, as a Hong Kong court previously ordered the US to return several assets belonging to Kim Dotcom.

The Hong Kong case also brought some good news this week. At least, something that was supposed to be positive. On Twitter, Dotcom writes that two containers with seized assets were returned, but in a “rotten and destroyed” state.

“A shipment of 2 large containers just arrived in New Zealand. This is how all my stuff looks now. Rotten & destroyed. Photo: My favorite gaming chair,” Dotcom wrote.

According to Dotcom, the US Government asked him to pay for ‘climate controlled’ storage for more than half a decade to protect the seized goods. However, judging from the look of the chair and the state of some other belongings, something clearly went wrong.

Rotten & destroyed

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Game night 2: Detention, Viatoree, Paletta

Post Syndicated from Eevee original https://eev.ee/blog/2018/01/16/game-night-2-detention-viatoree-paletta/

Game night continues with:

  • Detention
  • Viatoree
  • Paletta

These are impressions, not reviews. I try to avoid major/ending spoilers, but big plot points do tend to leave impressions.

Detention

longish · inventory horror · jan 2017 · lin/mac/win · $12 on steam · website

Inventory horror” is a hell of a genre.

I think this one came from a Twitter thread where glip asked for indie horror recommendations. It’s apparently well-known enough to have a Wikipedia article, but I hadn’t heard of it before.

I love love love the aesthetic here. It’s obviously 2Dish from a side view (though there’s plenty of parallax in a lot of places), and it’s all done with… papercraft? I think of it as papercraft. Everything is built out of painted chunks that look like they were cut out of paper. It’s most obvious when watching the protagonist move around; her legs and skirt swivel as she walks.

Less obvious are the occasional places where tiny details repeat in the background because a paper cutout was reused. I don’t bring that up as a dig on the art; on the contrary, I really liked noticing that once or twice. It made the world feel like it was made with a tileset (albeit with very large chunky tiles), like it’s slightly artificial. I’m used to seeing sidescrollers made from tiles, of course, but the tiles are usually colorful and cartoony pixel art; big gritty full-color tiles are unusual and eerie.

And that’s a good thing in a horror game! Detention’s setting is already slightly unreal, and it’s made all the moreso by my Western perspective: it takes place in a Taiwanese school in the 60’s, a time when Taiwan was apparently under martial law. The Steam page tells you this, but I didn’t even know that much when we started playing, so I’d effectively been dropped somewhere on the globe and left to collect the details myself. Even figuring out we were in Taiwan (rather than mainland China) felt like an insight.

Thinking back, it was kind of a breath of fresh air. Games can be pretty heavy-handed about explaining the setting, but I never got that feeling from Detention. There’s more than enough context to get what’s going on, but there are no “stop and look at the camera while monologuing some exposition” moments. The developers are based in Taiwan, so it’s possible the setting is plenty familiar to them, and my perception of it is a complete accident. Either way, it certainly made an impact. Death of the author and whatnot, I suppose.

One thing in particular that stood out: none of the Chinese text in the environment is directly translated. The protagonist’s thoughts still give away what it says — “this is the nurse’s office” and the like — but that struck me as pretty different from simply repeating the text in English as though I were reading a sign in an RPG. The text is there, perfectly legible, but I can’t read it; I can only ask the protagonist to read it and offer her thoughts. It drives home that I’m experiencing the world through the eyes of the protagonist, who is their own person with their own impression of everything. Again, this is largely an emergent property of the game’s being designed in a culture that is not mine, but I’m left wondering how much thought went into this style of localization.

The game itself sees you wandering through a dark and twisted version of the protagonist’s school, collecting items and solving puzzles with them. There’s no direct combat, though some places feature a couple varieties of spirits called lingered which you have to carefully avoid. As the game progresses, the world starts to break down, alternating between increasingly abstract and increasingly concrete as we find out who the protagonist is and why she’s here.

The payoff is very personal and left a lasting impression… though as I look at the Wikipedia page now, it looks like the ending we got was the non-canon bad ending?! Well, hell. The bad ending is still great, then.

The whole game has a huge Silent Hill vibe, only without the combat and fog. Frankly, the genre might work better without combat; personal demons are more intimidating and meaningful when you can’t literally shoot them with a gun until they’re dead.

FINAL SCORE: 拾

Viatoree

short · platformer · sep 2013 · win · free on itch

I found this because @itchio tweeted about it, and the phrase “atmospheric platform exploration game” is the second most beautiful sequence of words in the English language.

The first paragraph on the itch.io page tells you the setup. That paragraph also contains more text than the entire game. In short: there are five things, and you need to find them. You can walk, jump, and extend your arms straight up to lift yourself to the ceiling. That’s it. No enemies, no shooting, no NPCs (more or less).

The result is, indeed, an atmospheric platform exploration game. The foreground is entirely 1-bit pixel art, save for the occasional white pixel to indicate someone’s eyes, and the background is only a few shades of the same purple hue. The game becomes less about playing and more about just looking at the environmental detail, appreciating how much texture the game manages to squeeze out of chunky colorless pixels. The world is still alive, too, much moreso than most platformers; tiny critters appear here and there, doing some wandering of their own, completely oblivious to you.

The game is really short, but it… just… makes me happy. I’m happy that this can exist, that not only is it okay for someone to make a very compact and short game, but that the result can still resonate with me. Not everything needs to be a sprawling epic or ask me to dedicate hours of time. It takes a few tiny ideas, runs with them, does what it came to do, and ends there. I love games like this.

That sounds silly to write out, but it’s been hard to get into my head! I do like experimenting, but I also feel compelled to reach for the grandiose, and grandiose experiment sounds more like mad science than creative exploration. For whatever reason, Viatoree convinced me that it’s okay to do a small thing, in a way that no other jam game has. It was probably the catalyst that led me to make Roguelike Simulator, and I thank it for that.

Unfortunately, we collected four of the five macguffins before hitting upon on a puzzle we couldn’t make heads or tails of. After about ten minutes of fruitless searching, I decided to abandon this one unfinished, rather than bore my couch partner to tears. Maybe I’ll go take another stab at it after I post this.

FINAL SCORE: ●●●●○

Paletta

medium · puzzle story · nov 2017 · win · free on itch

Paletta, another RPG Maker work, won second place in the month-long Indie Game Maker Contest 2017. Nice! Apparently MOOP came in fourth in the same jam; also nice! I guess that’s why both of them ended up on the itch front page.

The game is set in a world drained of color, and you have to go restore it. Each land contains one lost color, and each color gives you a corresponding spell, which is generally used for some light puzzle-solving in further lands. It’s a very cute and light-hearted game, and it actually does an impressive job of obscuring its RPG Maker roots.

The world feels a little small to me, despite having fairly spacious maps. The progression is pretty linear: you enter one land, talk to a small handful of NPCs, solve the one puzzle, get the color, and move on. I think all the areas were continuously connected, too, which may have thrown me off a bit — these areas are described as though they were vast regions, but they’re all a hundred feet wide and nestled right next to each other.

I love playing with color as a concept, and I wish the game had run further with it somehow. Rescuing a color does add some color back to the world, but at times it seemed like the color that reappeared was somewhat arbitrary? It’s not like you rescue green and now all the green is back. Thinking back on it now, I wonder if each rescued color actually changed a fixed set of sprites from gray to colorized? But it’s been a month (oops) and now I’m not sure.

I’m not trying to pick on the authors for the brevity of their jam game and also first game they’ve ever finished. I enjoyed playing it and found it plenty charming! It just happens that this time, what left the biggest impression on me was a nebulous feeling that something was missing. I think that’s still plenty important to ponder.

FINAL SCORE: ❤️💛💚💙💜

BitTorrent Client Transmission Suffers Remote Takeover Vulnerability

Post Syndicated from Ernesto original https://torrentfreak.com/bittorrent-client-transmission-suffers-remote-takeover-vulnerability-180116/

With millions of active users, Transmission is one of the most used BitTorrent clients around, particularly for Mac users.

The application has been around for more than a decade and has a great reputation. However, as with any other type of software, it is not immune to vulnerabilities.

One rather concerning flaw was made public by Google vulnerability researcher Tavis Ormandy a few days ago. The flaw allows outsiders to gain access to Transmission via DNS rebinding. This ultimately allows attackers to control the BitTorrent client and execute custom code.

Ormandy has published a patch, which was also shared with the private Transmission security list at the end of November. Transmission, however, has yet to address the issue in an update.

The relatively slow response was the reason why Ormandy decided to make it public before Project Zero’s usual 90-day window expired, Ars highlights. This allows other projects to address the vulnerability right away.

“I’m finding it frustrating that the transmission developers are not responding on their private security list,” Google’s vulnerability researcher writes. “I’ve never had an opensource project take this long to fix a vulnerability before, so I usually don’t even mention the 90 day limit if the vulnerability is in an open source project.”

A member of the Transmission developer team informed Ars that they will address this ASAP, noting that the issue only affects users who have remote control enabled with the default password. This means that people who disable it or change their password can easily ‘patch’ it until the official update comes out.

Interestingly, this isn’t the last BitTorrent related vulnerability Ormandy plans to expose. According to one of his tweets on the matter, this is just the “first of a few remote code execution flaws in various popular torrent clients.”

Judging from a message the researcher sent late November, uTorrent is on the list as well. Apparently, the company’s security email address wasn’t set up correctly at the time, so BitTorrent inventor Bram Cohen has been acting as a forwarding service.

uTorrent?

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Early Challenges: Managing Cash Flow

Post Syndicated from Gleb Budman original https://www.backblaze.com/blog/managing-cash-flow/

Cash flow projection charts

This post by Backblaze’s CEO and co-founder Gleb Budman is the eighth 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
  7. The Decision on Transparency
  8. Early Challenges: Managing Cash Flow

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

Running out of cash is one of the quickest ways for a startup to go out of business. When you are starting a company the question of where to get cash is usually the top priority, but managing cash flow is critical for every stage in the lifecycle of a company. As a primarily bootstrapped but capital-intensive business, managing cash flow at Backblaze was and still is a key element of our success and requires continued focus. Let’s look at what we learned over the years.

Raising Your Initial Funding

When starting a tech business in Silicon Valley, the default assumption is that you will immediately try to raise venture funding. There are certainly many advantages to raising funding — not the least of which is that you don’t need to be cash-flow positive since you have cash in the bank and the expectation is that you will have a “burn rate,” i.e. you’ll be spending more than you make.

Note: While you’re not expected to be cash-flow positive, that doesn’t mean you don’t have to worry about cash. Cash-flow management will determine your burn rate. Whether you can get to cash-flow breakeven or need to raise another round of funding is a direct byproduct of your cash flow management.

Also, raising funding takes time (most successful fundraising cycles take 3-6 months start-to-finish), and time at a startup is in short supply. Constantly trying to raise funding can take away from product development and pursuing growth opportunities. If you’re not successful in raising funding, you then have to either shut down or find an alternate method of funding the business.

Sources of Funding

Depending on the stage of the company, type of company, and other factors, you may have access to different sources of funding. Let’s list a number of them:

Customers

Sales — the best kind of funding. It is non-dilutive, doesn’t have to be paid back, and is a direct metric of the success of your company.

Pre-Sales — some customers may be willing to pay you for a product in beta, a test, or pre-pay for a product they’ll receive when finished. Pre-Sales income also is great because it shares the characteristics of cash from sales, but you get the cash early. It also can be a good sign that the product you’re building fills a market need. We started charging for Backblaze computer backup while it was still in private beta, which allowed us to not only collect cash from customers, but also test the billing experience and users’ real desire for the service.

Services — if you’re a service company and customers are paying you for that, great. You can effectively scale for the number of hours available in a day. As demand grows, you can add more employees to increase the total number of billable hours.

Note: If you’re a product company and customers are paying you to consult, that can provide much needed cash, and could provide feedback toward the right product. However, it can also distract from your core business, send you down a path where you’re building a product for a single customer, and addict you to a path that prevents you from building a scalable business.

Investors

Yourself — you likely are putting your time into the business, and deferring salary in the process. You may also put your own cash into the business either as an investment or a loan.

Angels — angels are ideal as early investors since they are used to investing in businesses with little to no traction. AngelList is a good place to find them, though finding people you’re connected with through someone that knows you well is best.

Crowdfunding — a component of the JOBS Act permitted entrepreneurs to raise money from nearly anyone since May 2016. The SEC imposes limits on both investors and the companies. This article goes into some depth on the options and sites available.

VCs — VCs are ideal for companies that need to raise at least a few million dollars and intend to build a business that will be worth over $1 billion.

Debt

Friends & Family — F&F are often the first people to give you money because they are investing in you. It’s great to have some early supporters, but it also can be risky to take money from people who aren’t used to the risks. The key advice here is to only take money from people who won’t mind losing it. If someone is talking about using their children’s college funds or borrowing from their 401k, say ‘no thank you’ — even if they’re sure they want to loan you money.

Bank Loans — a variety of loan types exist, but most either require the company to have been operational for a couple years, be able to borrow against money the company has or is making, or be able to get a personal guarantee from the founders whereby their own credit is on the line. Fundera provides a good overview of loan options and can help secure some, but most will not be an option for a brand new startup.

Grants

Government — in some areas there is the potential for government grants to facilitate research. The SBIR program facilitates some such grants.

At Backblaze, we used a number of these options:

• Investors/Yourself
We loaned a cumulative total of a couple hundred thousand dollars to the company and invested our time by going without a salary for a year and a half.
• Customers/Pre-Sales
We started selling the Backblaze service while it was still in beta.
• Customers/Sales
We launched v1.0 and kept selling.
• Investors/Angels
After a year and a half, we raised $370k from 11 angels. All of them were either people whom we knew personally or were a strong recommendation from a mutual friend.
• Debt/Loans
After a couple years we were able to get equipment leases whereby the Storage Pods and hard drives were used as collateral to secure the lease on them.
• Investors/VCs
Ater five years we raised $5m from TMT Investments to add to the balance sheet and invest in growth.

The variety and quantity of sources we used is by no means uncommon.

GAAP vs. Cash

Most companies start tracking financials based on cash, and as they scale they switch to GAAP (Generally Accepted Accounting Principles). Cash is easier to track — we got paid $XXXX and spent $YYY — and as often mentioned, is required for the business to stay alive. GAAP has more subtlety and complexity, but provides a clearer picture of how the business is really doing. Backblaze was on a ‘cash’ system for the first few years, then switched to GAAP. For this post, I’m going to focus on things that help cash flow, not GAAP profitability.

Stages of Cash Flow Management

All-spend

In a pure service business (e.g. solo proprietor law firm), you may have no expenses other than your time, so this stage doesn’t exist. However, in a product business there is a period of time where you are building the product and have nothing to sell. You have zero cash coming in, but have cash going out. Your cash-flow is completely negative and you need funds to cover that.

Sales-generating

Starting to see cash come in from customers is thrilling. I initially had our system set up to email me with every $5 payment we received. You’re making sales, but not covering expenses.

Ramen-profitable

But it takes a lot of $5 payments to pay for servers and salaries, so for a while expenses are likely to outstrip sales. Getting to ramen-profitable is a critical stage where sales cover the business expenses and are “paying enough for the founders to eat ramen.” This extends the runway for a business, but is not completely sustainable, since presumably the founders can’t (or won’t) live forever on a subsistence salary.

Business-profitable

This is the ultimate stage whereby the business is truly profitable, including paying everyone market-rate salaries. A business at this stage is self-sustaining. (Of course, market shifts and plenty of other challenges can kill the business, but cash-flow issues alone will not.)

Note, I’m using the word ‘profitable’ here to mean this is still on a cash-basis.

Backblaze was in the all-spend stage for just over a year, during which time we built the service and hadn’t yet made the service available to customers. Backblaze was in the sales-generating stage for nearly another year before the company was barely ramen-profitable where sales were covering the company expenses and paying the founders minimum wage. (I say ‘barely’ since minimum wage in the SF Bay Area is arguably never subsistence.) It took almost three more years before the company was business-profitable, paying everyone including the founders market-rate.

Cash Flow Forecasting

When raising funding it’s helpful to think of milestones reached. You don’t necessarily need enough cash on day one to last for the next 100 years of the company. Some good milestones to consider are how much cash you need to prove there is a market need, prove you can build a product to meet that need, or get to ramen-profitable.

Two things to consider:

1) Unit Economics (COGS)

If your product is 100% software, this may not be relevant. Once software is built it costs effectively nothing to deliver the product to one customer or one million customers. However, in most businesses there is some incremental cost to provide the product. If you’re selling a hardware device, perhaps you sell it for $100 but it costs you $50 to make it. This is called “COGS” (Cost of Goods Sold).

Many products rely on cloud services where the costs scale with growth. That model works great, but it’s still important to understand what the costs are for the cloud service you use per unit of product you sell.

Support is often done by the founders early-on in a business, but that is another real cost to factor in and estimate on a per-user basis. Taking all of the per unit costs combined, you may charge $10/month/user for your service, but if it costs you $7/month/user in cloud services, you’re only netting $3/month/user.

2) Operating Expenses (OpEx)

These are expenses that don’t scale with the number of product units you sell. Typically this includes research & development, sales & marketing, and general & administrative expenses. Presumably there is a certain level of these functions required to build the product, market it, sell it, and run the organization. You can choose to invest or cut back on these, but you’ll still make the same amount per product unit.

Incremental Net Profit Per Unit

If you’ve calculated your COGS and your unit economics are “upside down,” where the amount you charge is less than that it costs you to provide your service, it’s worth thinking hard about how that’s going to change over time. If it will not change, there is no scale that will make the business work. Presuming you do make money on each unit of product you sell — what is sometimes referred to as “Contribution Margin” — consider how many of those product units you need to sell to cover your operating expenses as described above.

Calculating Your Profit

The math on getting to ramen-profitable is simple:

(Number of Product Units Sold x Contribution Margin) - Operating Expenses = Profit

If your operating expenses include subsistence salaries for the founders and profit > $0, you’re ramen-profitable.

Improving Cash Flow

Having access to sources of cash, whether from selling to customers or other methods, is excellent. But needing less cash gives you more choices and allows you to either dilute less, owe less, or invest more.

There are two ways to improve cash flow:

1) Collect More Cash

The best way to collect more cash is to provide more value to your customers and as a result have them pay you more. Additional features/products/services can allow this. However, you can also collect more cash by changing how you charge for your product. If you have a subscription, changing from charging monthly to yearly dramatically improves your cash flow. If you have a product that customers use up, selling a year’s supply instead of selling them one-by-one can help.

2) Spend Less Cash

Reducing COGS is a fantastic way to spend less cash in a scalable way. If you can do this without harming the product or customer experience, you win. There are a myriad of ways to also reduce operating expenses, including taking sub-market salaries, using your home instead of renting office space, staying focused on your core product, etc.

Ultimately, collecting more and spending less cash dramatically simplifies the process of getting to ramen-profitable and later to business-profitable.

Be Careful (Why GAAP Matters)

A word of caution: while running out of cash will put you out of business immediately, overextending yourself will likely put you out of business not much later. GAAP shows how a business is really doing; cash doesn’t. If you only focus on cash, it is possible to commit yourself to both delivering products and repaying loans in the future in an unsustainable fashion. If you’re taking out loans, watch the total balance and monthly payments you’re committing to. If you’re asking customers for pre-payment, make sure you believe you can deliver on what they’ve paid for.

Summary

There are numerous challenges to building a business, and ensuring you have enough cash is amongst the most important. Having the cash to keep going lets you keep working on all of the other challenges. The frameworks above were critical for maintaining Backblaze’s cash flow and cash balance. Hopefully you can take some of the lessons we learned and apply them to your business. Let us know what works for you in the comments below.

The post Early Challenges: Managing Cash Flow appeared first on Backblaze Blog | Cloud Storage & Cloud Backup.

Tickbox Clearly Promotes and Facilitates Piracy, Hollywood Tells Court

Post Syndicated from Ernesto original https://torrentfreak.com/tickbox-clearly-promotes-and-facilitates-piracy-hollywood-tells-court-180115/

The rising popularity of piracy streaming boxes has turned into Hollywood’s main piracy concern in recent months.

While the hardware and media players such as Kodi are not a problem, sellers who ship devices with unauthorized add-ons turn them into fully-fledged piracy machines.

According to the Alliance for Creativity and Entertainment (ACE), an anti-piracy partnership comprised of Hollywood studios, Netflix, Amazon, and more than two dozen other companies, Tickbox TV is one of these bad actors.

Last year, ACE filed a lawsuit against the Georgia-based company, which sells set-top boxes that allow users to stream a variety of popular media. The Tickbox devices use the Kodi media player and comes with instructions on how to add various add-ons.

According to ACE, these devices are nothing more than pirate tools, allowing buyers to stream copyright-infringing content. The coalition, therefore, asked the court for a permanent injunction to remove all infringing add-ons from previously sold devices.

Tickbox maintained its innocence, however. The company informed the court that its box is a simple computer like any other, which is perfectly legal.

According to Tickbox, they don’t have anything to do with the infringing “Themes” that users can select on their device. These themes feature several addons that link to infringing content.

This explanation doesn’t sit well with the movie companies, which submitted a reply to the court late last week. They claim that Tickbox is deliberately downplaying their own role, as they are the ones who decided to make these themes accessible through their boxes.

“TickBox falsely claims that the presence of these ‘Themes’ on TickBox devices ‘have nothing to do with Defendant’,” ACE’s reply reads.

“To the contrary, TickBox intentionally chooses which ‘Themes’ to include on its ‘Select your Theme’ menu for the TickBox TV interface, and TickBox pushes out automatic software updates to its customers’ TickBox TV devices.”

The movie companies also dispute Tickbox’s argument that they don’t induce copyright infringement because their device is “simply a small computer” that has many legitimate uses.

This liability question isn’t about whether Tickbox stores any infringing material or runs pirate streams through their servers, they counter. It’s about the intended use and how Tickbox promotes its product.

“TickBox’s liability arises based on its advertising and promoting TickBox TV as a tool for infringing use, and from designing and including software on the device that encourages access to infringing streams from third-party sources.”

ACE notes that, unlike Tickbox claims, the current case shows a lot of parallels with previous landmark cases including Grokster and Fung [isoHunt].

The isoHunt website didn’t store and infringing material, nor was it crucial in the torrent piracy ecosystem. However, it was liable because the operator willingly facilitated copyright infringing activity. This is what Tickbox does too, according to ACE.

“TickBox ‘competes’ with legitimate services by telling customers that they can access the same content available from legitimate distributors ‘ABSOLUTELY FREE’ and that customers therefore ‘will find that you no longer need those subscriptions’.”

The movie companies therefore ask the court to issue the requested injunction. They want all existing devices to be impounded and Tickbox should, through an update, remove infringing addons from already sold devices.

Tickbox argued that this would require them to “hack into” their customers’ boxes and delete content. ACE, however, says that this is a simple update and nothing different from what the company has done in the past.

“The proposed injunction would merely obligate TickBox to make good on its halfhearted and ineffective efforts to do what it claims to have already done: remove Kodi builds with illicit addons from TickBox TV,” ACE writes.

“As demonstrated by TickBox’s own, repeated software updates since the filing of Plaintiffs’ Complaint, TickBox has the means and ability to easily and remotely change what options users see and can access on their TickBox TVs.”

After having heard the arguments from both sides, it’s now up to the California federal court to decide who’s right.

The current case should set an important precedent. In addition to Tickbox, ACE also filed a similar lawsuit against Dragon Box. Clearly, the coalition is determined to get these alleged pirate devices off the market.

A copy of ACE’s reply is available here (pdf).

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

US Govt Brands Torrent, Streaming & Cyberlocker Sites As Notorious Markets

Post Syndicated from Andy original https://torrentfreak.com/us-govt-brands-torrent-streaming-cyberlocker-sites-as-notorious-markets-180115/

In its annual “Out-of-Cycle Review of Notorious Markets” the office of the United States Trade Representative (USTR) has listed a long list of websites said to be involved in online piracy.

The list is compiled with high-level input from various trade groups, including the MPAA and RIAA who both submitted their recommendations (1,2) during early October last year.

With the word “allegedly” used more than two dozen times in the report, the US government notes that its report does not constitute cast-iron proof of illegal activity. However, it urges the countries from where the so-called “notorious markets” operate to take action where they can, while putting owners and facilitators on notice that their activities are under the spotlight.

“A goal of the List is to motivate appropriate action by owners, operators, and service providers in the private sector of these and similar markets, as well as governments, to reduce piracy and counterfeiting,” the report reads.

“USTR highlights the following marketplaces because they exemplify global counterfeiting and piracy concerns and because the scale of infringing activity in these marketplaces can cause significant harm to U.S. intellectual property (IP) owners, consumers, legitimate online platforms, and the economy.”

The report begins with a page titled “Issue Focus: Illicit Streaming Devices”. Unsurprisingly, particularly given their place in dozens of headlines last year, the segment focus on the set-top box phenomenon. The piece doesn’t list any apps or software tools as such but highlights the general position, claiming a cost to the US entertainment industry of $4-5 billion a year.

Torrent Sites

In common with previous years, the USTR goes on to list several of the world’s top torrent sites but due to changes in circumstances, others have been delisted. ExtraTorrent, which shut down May 2017, is one such example.

As the world’s most famous torrent site, The Pirate Bay gets a prominent mention, with the USTR noting that the site is of “symbolic importance as one of the longest-running and most vocal torrent sites. The USTR underlines the site’s resilience by noting its hydra-like form while revealing an apparent secret concerning its hosting arrangements.

“The Pirate Bay has allegedly had more than a dozen domains hosted in various countries around the world, applies a reverse proxy service, and uses a hosting provider in Vietnam to evade further enforcement action,” the USTR notes.

Other torrent sites singled out for criticism include RARBG, which was nominated for the listing by the movie industry. According to the USTR, the site is hosted in Bosnia and Herzegovina and has changed hosting services to prevent shutdowns in recent years.

1337x.to and the meta-search engine Torrentz2 are also given a prime mention, with the USTR noting that they are “two of the most popular torrent sites that allegedly infringe U.S. content industry’s copyrights.” Russia’s RuTracker is also targeted for criticism, with the government noting that it’s now one of the most popular torrent sites in the world.

Streaming & Cyberlockers

While torrent sites are still important, the USTR reserves considerable space in its report for streaming portals and cyberlocker-type services.

4Shared.com, a file-hosting site that has been targeted by dozens of millions of copyright notices, is reportedly no longer able to use major US payment providers. Nevertheless, the British Virgin Islands company still collects significant sums from premium accounts, advertising, and offshore payment processors, USTR notes.

Cyberlocker Rapidgator gets another prominent mention in 2017, with the USTR noting that the Russian-hosted platform generates millions of dollars every year through premium memberships while employing rewards and affiliate schemes.

Due to its increasing popularity as a hosting and streaming operation, Openload.co (Romania) is now a big target for the USTR. “The site is used frequently in combination with add-ons in illicit streaming devices. In November 2017, users visited Openload.co a staggering 270 million times,” the USTR writes.

Owned by a Swiss company and hosted in the Netherlands, the popular site Uploaded is also criticized by the US alongside France’s 1Fichier.com, which allegedly hosts pirate games while being largely unresponsive to takedown notices. Dopefile.pk, a Pakistan-based storage outfit, is also highlighted.

On the video streaming front, it’s perhaps no surprise that the USTR focuses on sites like FMovies (Sweden), GoStream (Vietnam), Movie4K.tv (Russia) and PrimeWire. An organization collectively known as the MovShare group which encompasses Nowvideo.sx, WholeCloud.net, NowDownload.cd, MeWatchSeries.to and WatchSeries.ac, among others, is also listed.

Unauthorized music / research papers

While most of the above are either focused on video or feature it as part of their repertoire, other sites are listed for their attention to music. Convert2MP3.net is named as one of the most popular stream-ripping sites in the world and is highlighted due to the prevalence of YouTube-downloader sites and the 2017 demise of YouTube-MP3.

“Convert2MP3.net does not appear to have permission from YouTube or other sites and does not have permission from right holders for a wide variety of music represented by major U.S. labels,” the USTR notes.

Given the amount of attention the site has received in 2017 as ‘The Pirate Bay of Research’, Libgen.io and Sci-Hub.io (not to mention the endless proxy and mirror sites that facilitate access) are given a detailed mention in this year’s report.

“Together these sites make it possible to download — all without permission and without remunerating authors, publishers or researchers — millions of copyrighted books by commercial publishers and university presses; scientific, technical and medical journal articles; and publications of technological standards,” the USTR writes.

Service providers

But it’s not only sites that are being put under pressure. Following a growing list of nominations in previous years, Swiss service provider Private Layer is again singled out as a rogue player in the market for hosting 1337x.to and Torrentz2.eu, among others.

“While the exact configuration of websites changes from year to year, this is the fourth consecutive year that the List has stressed the significant international trade impact of Private Layer’s hosting services and the allegedly infringing sites it hosts,” the USTR notes.

“Other listed and nominated sites may also be hosted by Private Layer but are using
reverse proxy services to obfuscate the true host from the public and from law enforcement.”

The USTR notes Switzerland’s efforts to close a legal loophole that restricts enforcement and looks forward to a positive outcome when the draft amendment is considered by parliament.

Perhaps a little surprisingly given its recent anti-piracy efforts and overtures to the US, Russia’s leading social network VK.com again gets a place on the new list. The USTR recognizes VK’s efforts but insists that more needs to be done.

Social networking and e-commerce

“In 2016, VK reached licensing agreements with major record companies, took steps to limit third-party applications dedicated to downloading infringing content from the site, and experimented with content recognition technologies,” the USTR writes.

“Despite these positive signals, VK reportedly continues to be a hub of infringing activity and the U.S. motion picture industry reports that they find thousands of infringing files on the site each month.”

Finally, in addition to traditional pirate sites, the US also lists online marketplaces that allegedly fail to meet appropriate standards. Re-added to the list in 2016 after a brief hiatus in 2015, China’s Alibaba is listed again in 2017. The development provoked an angry response from the company.

Describing his company as a “scapegoat”, Alibaba Group President Michael Evans said that his platform had achieved a 25% drop in takedown requests and has even been removing infringing listings before they make it online.

“In light of all this, it’s clear that no matter how much action we take and progress we make, the USTR is not actually interested in seeing tangible results,” Evans said in a statement.

The full list of sites in the Notorious Markets Report 2017 (pdf) can be found below.

– 1fichier.com – (cyberlocker)
– 4shared.com – (cyberlocker)
– convert2mp3.net – (stream-ripper)
– Dhgate.com (e-commerce)
– Dopefile.pl – (cyberlocker)
– Firestorm-servers.com (pirate gaming service)
– Fmovies.is, Fmovies.se, Fmovies.to – (streaming)
– Gostream.is, Gomovies.to, 123movieshd.to (streaming)
– Indiamart.com (e-commerce)
– Kinogo.club, kinogo.co (streaming host, platform)
– Libgen.io, sci-hub.io, libgen.pw, sci-hub.cc, sci-hub.bz, libgen.info, lib.rus.ec, bookfi.org, bookzz.org, booker.org, booksc.org, book4you.org, bookos-z1.org, booksee.org, b-ok.org (research downloads)
– Movshare Group – Nowvideo.sx, wholecloud.net, auroravid.to, bitvid.sx, nowdownload.ch, cloudtime.to, mewatchseries.to, watchseries.ac (streaming)
– Movie4k.tv (streaming)
– MP3VA.com (music)
– Openload.co (cyberlocker / streaming)
– 1337x.to (torrent site)
– Primewire.ag (streaming)
– Torrentz2, Torrentz2.me, Torrentz2.is (torrent site)
– Rarbg.to (torrent site)
– Rebel (domain company)
– Repelis.tv (movie and TV linking)
– RuTracker.org (torrent site)
– Rapidgator.net (cyberlocker)
– Taobao.com (e-commerce)
– The Pirate Bay (torrent site)
– TVPlus, TVBrowser, Kuaikan (streaming apps and addons, China)
– Uploaded.net (cyberlocker)
– VK.com (social networking)

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Pirate Streaming on Facebook is a Seriously Risky Business

Post Syndicated from Andy original https://torrentfreak.com/pirate-streaming-on-facebook-is-a-seriously-risky-business-180114/

For more than a year the British public has been warned about the supposed dangers of Kodi piracy.

Dozens of headlines have claimed consequences ranging from system-destroying malware to prison sentences. Fortunately, most of them can be filed under “tabloid nonsense.”

That being said, there is an extremely important issue that deserves much closer attention, particularly given a shift in the UK legal climate during 2017. We’re talking about live streaming copyrighted content on Facebook, which is both incredibly easy and frighteningly risky.

This week it was revealed that 34-year-old Craig Foster from the UK had been given an ultimatum from Sky to pay a £5,000 settlement fee. The media giant discovered that he’d live-streamed the Anthony Joshua v Wladimir Klitschko fight on Facebook and wanted compensation to make a potential court case disappear.

While it may seem initially odd to use the word, Foster was lucky.

Under last year’s Digital Economy Act, he could’ve been jailed for up to ten years for distributing copyright-infringing content to the public, if he had “reason to believe that communicating the work to the public [would] cause loss to the owner of the copyright, or [would] expose the owner of the copyright to a risk of loss.”

Clearly, as a purchaser of the £19.95 pay-per-view himself, he would’ve appreciated that the event costs money. With that in mind, a court would likely find that he would have been aware that Sky would have been exposed to a “risk of loss”. Sky claim that 4,250 people watched the stream but the way the law is written, no specific level of loss is required for a breach of the law.

But it’s not just the threat of a jail sentence that’s the problem. People streaming live sports on Facebook are sitting ducks.

In Foster’s case, the fight he streamed was watermarked, which means that Sky put a tracking code into it which identified him personally as the buyer of the event. When he (or his friend, as Foster claims) streamed it on Facebook, it was trivial for Sky to capture the watermark and track it back to his Sky account.

Equally, it would be simplicity itself to see that the name on the Sky account had exactly the same name and details as Foster’s Facebook account. So, to most observers, it would appear that not only had Foster purchased the event, but he was also streaming it to Facebook illegally.

It’s important to keep something else in mind. No cooperation between Sky and Facebook would’ve been necessary to obtain Foster’s details. Take the amount of information most people share on Facebook, combine that with the information Sky already had, and the company’s anti-piracy team would have had a very easy job.

Now compare this situation with an upload of the same stream to a torrent site.

While the video capture would still contain Foster’s watermark, which would indicate the source, to prove he also distributed the video Sky would’ve needed to get inside a torrent swarm. From there they would need to capture the IP address of the initial seeder and take the case to court, to force an ISP to hand over that person’s details.

Presuming they were the same person, Sky would have a case, with a broadly similar level of evidence to that presented in the current matter. However, it would’ve taken them months to get their man and cost large sums of money to get there. It’s very unlikely that £5,000 would cover the costs, meaning a much, much bigger bill for the culprit.

Or, confident that Foster was behind the leak based on the watermark alone, Sky could’ve gone straight to the police. That never ends well.

The bottom line is that while live-streaming on Facebook is simplicity itself, people who do it casually from their own account (especially with watermarked content) are asking for trouble.

Nailing Foster was the piracy equivalent of shooting fish in a barrel but the worrying part is that he probably never gave his (or his friend’s…) alleged infringement a second thought. With a click or two, the fight was live and he was staring down the barrel of a potential jail sentence, had Sky not gone the civil route.

It’s scary stuff and not enough is being done to warn people of the consequences. Forget the scare stories attempting to deter people from watching fights or movies on Kodi, thoughtlessly streaming them to the public on social media is the real danger.

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

ISP: We’re Cooperating With Police Following Pirate IPTV Raid

Post Syndicated from Andy original https://torrentfreak.com/isp-were-cooperating-with-police-following-pirate-iptv-raid-180113/

This week, police forces around Europe took action against what is believed to be one of the world’s largest pirate IPTV networks.

The investigation, launched a year ago and coordinated by Europol, came to head on Tuesday when police carried out raids in Cyprus, Bulgaria, Greece, and the Netherlands. A fresh announcement from the crime-fighting group reveals the scale of the operation.

It was led by the Cypriot Police – Intellectual Property Crime Unit, with the support of the Cybercrime Division of the Greek Police, the Dutch Fiscal Investigative and Intelligence Service (FIOD), the Cybercrime Unit of the Bulgarian Police, Europol’s Intellectual Property Crime Coordinated Coalition (IPC³), and supported by members of the Audiovisual Anti-Piracy Alliance (AAPA).

In Cyprus, Bulgaria and Greece, 17 house searches were carried out. Three individuals aged 43, 44, and 53 were arrested in Cyprus and one was arrested in Bulgaria.

All stand accused of being involved in an international operation to illegally broadcast around 1,200 channels of pirated content to an estimated 500,000 subscribers. Some of the channels offered were illegally sourced from Sky UK, Bein Sports, Sky Italia, and Sky DE. On Thursday, the three individuals in Cyprus were remanded in custody for seven days.

“The servers used to distribute the channels were shut down, and IP addresses hosted by a Dutch company were also deactivated thanks to the cooperation of the authorities of The Netherlands,” Europol reports.

“In Bulgaria, 84 servers and 70 satellite receivers were seized, with decoders, computers and accounting documents.”

TorrentFreak was previously able to establish that Megabyte-Internet Ltd, an ISP located in the small Bulgarian town Petrich, was targeted by police. The provider went down on Tuesday but returned towards the end of the week. Responding to our earlier inquiries, the company told us more about the situation.

“We are an ISP provider located in Petrich, Bulgaria. We are selling services to around 1,500 end-clients in the Petrich area and surrounding villages,” a spokesperson explained.

“Another part of our business is internet services like dedicated unmanaged servers, hosting, email servers, storage services, and VPNs etc.”

The spokesperson added that some of Megabyte’s equipment is located at Telepoint, Bulgaria’s biggest datacenter, with connectivity to Petrich. During the raid the police seized the company’s hardware to check for evidence of illegal activity.

“We were informed by the police that some of our clients in Petrich and Sofia were using our service for illegal streaming and actions,” the company said.

“Of course, we were not able to know this because our services are unmanaged and root access [to servers] is given to our clients. For this reason any client and anyone that uses our services are responsible for their own actions.”

TorrentFreak asked many more questions, including how many police attended, what type and volume of hardware was seized, and whether anyone was arrested or taken for questioning. But, apart from noting that the police were friendly, the company declined to give us any additional information, revealing that it was not permitted to do so at this stage.

What is clear, however, is that Megabyte-Internet is offering its full cooperation to the authorities. The company says that it cannot be held responsible for the actions of its clients so their details will be handed over as part of the investigation.

“So now we will give to the police any details about these clients because we hold their full details by law. [The police] will find [out about] all the illegal actions from them,” the company concludes, adding that it’s fully operational once more and working with clients.

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

Epic Games Sues Cheater Over ‘Stealing’ Fortnite V-Bucks

Post Syndicated from Ernesto original https://torrentfreak.com/epic-games-sues-cheater-over-stealing-fortnite-v-bucks-180112/

Last fall, Epic Games released Fortnite’s free-to-play “Battle Royale” game mode for the PC and other platforms, generating massive interest among gamers.

This also included thousands of cheaters, many of whom were subsequently banned. Epic Games then went a step further by taking several cheaters to court for copyright infringement.

While the initial targets were people who coded, used or promoted cheats to gain a clear competitive advantage, this week Epic sued a different type of cheater. In a complaint filed at a California Federal court, the game publisher accuses a New Zealander of creating an exploit that allows users to get free V-bucks.

V-bucks are the game’s currency and can be bought through an online store, starting at $9.99. The virtual coins allow players to purchase skins for their characteras well as other game tools.

According to Epic, people who create and use these kinds of free-money exploits are stealing from the game publisher.

“Players who search for and promote exploits ruin the game experience for others and undermine the integrity of Fortnite. Players who use exploits to avoid paying for items in Fortnite are stealing from Epic,” the complaint reads.

V-bucks

The alleged perpetrator is identified as Yash Gosai, who’s a resident of Auckland, New Zealand. Epic believes that Gosai developed the exploit which was then promoted through YouTube.

“On information and belief, Gosai developed an exploit for Fortnite’s Battle Royale mode that enables players to obtain V-bucks without paying for them. Gosai created and posted a video on YouTube to advertise, promote and demonstrate the exploit,” the complaint reads.

While the game company managed to get the video taken down, they’re not done with the New Zealander. They accuse Gosai of copyright infringement, breach of contract, as well as conversion.

“Defendant’s videos demonstrating the exploit infringe Epic’s copyrights in Fortnite by copying, reproducing, preparing derivative works from, and/or displaying Fortnite
publicly without Epic’s permission, the company writes.

Epic asks the court for damages and wants the defendant to destroy all Fortnite copies and any related works.

As mentioned before, this is not the first lawsuit Epic has filed against a cheater. Thus far, it has reached at least three settlements behind closed doors. Minnesota resident Charles Vraspir signed an agreement early December. Philip Josefsson from Sweden and Artem Yakovenko from Russia followed soon after.

A copy of the complaint against Gosai is available here (pdf).

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Coalition Against Piracy Launches Landmark Case Against ‘Pirate’ Android Box Sellers

Post Syndicated from Andy original https://torrentfreak.com/coalition-against-piracy-launches-landmark-case-against-pirate-android-box-sellers-180112/

In 2017, anti-piracy enforcement went global when companies including Disney, HBO, Netflix, Amazon and NBCUniversal formed the Alliance for Creativity and Entertainment (ACE).

Soon after the Coalition Against Piracy (CAP) was announced. With a focus on Asia and backed by CASBAA, CAP counts many of the same companies among its members in addition to local TV providers such as StarHub.

From the outset, CAP has shown a keen interest in tackling unlicensed streaming, particularly that taking place via illicit set-top boxes stuffed with copyright-infringing apps and add-ons. One country under CAP’s spotlight is Singapore, where relevant law is said to be fuzzy at best, insufficient at worst. Now, however, a line in the sand might not be far away.

According to a court listing discovered by Singapore’s TodayOnline, today will see the Coalition Against Piracy’s general manager Neil Kevin Gane attempt to launch a pioneering private prosecution against set-top box distributor Synnex Trading and its client and wholesale goods retailer, An-Nahl.

Gane and CAP are said to be acting on behalf of four parties, one which is TV giant StarHub, a company with a huge interest in bringing media piracy under control in the region. It’s reported that they have also named Synnex Trading director Jia Xiaofen and An-Nahl director Abdul Nagib as defendants in their private criminal case after the parties failed to reach a settlement in an earlier process.

Contacted by TodayOnline, an employee of An-Nahl said the company no longer sells the boxes. However, Synnex is reportedly still selling them for S$219 each ($164) plus additional fees for maintenance and access to VOD. The company’s Facebook page is still active with the relevant offer presented prominently.

The importance of the case cannot be understated. While StarHub and other broadcasters have successfully prosecuted cases where people unlawfully decrypted broadcast signals, the provision of unlicensed streams isn’t specifically tackled by Singapore’s legislation. It’s now a major source of piracy in the region, as it is elsewhere around the globe.

Only time will tell how the process will play out but it’s clear that CAP and its members are prepared to invest significant sums into a prosecution for a favorable outcome. CAP believes that the supply of the boxes falls under Section 136 (3A) of the Copyright Act but only time will tell.

Last December, CAP separately called on the Singapore government to not only block ‘pirate’ streaming software but also unlicensed streams from entering the country.

“Within the Asia-Pacific region, Singapore is the worst in terms of availability of illicit streaming devices,” said CAP General Manager Neil Gane. “They have access to hundreds of illicit broadcasts of channels and video-on-demand content.”

CAP’s 21 members want the authorities to block the software inside devices that enables piracy but it’s far from clear how that can be achieved.

Update: The four companies taking the action are confirmed as Singtel, Starhub, Fox Network, and the English Premier League

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Europol Hits Huge 500,000 Subscriber Pirate IPTV Operation

Post Syndicated from Andy original https://torrentfreak.com/europol-hits-huge-500000-subscriber-pirate-iptv-operation-180111/

Live TV is in massive demand but accessing all content in a particular region can be a hugely expensive proposition, with tradtional broadcasting monopolies demanding large subscription fees.

For millions around the world, this ‘problem’ can be easily circumvented. Pirate IPTV operations, which supply thousands of otherwise subscription channels via the Internet, are on the increase. They’re accessible for just a few dollars, euros, or pounds per month, slashing bills versus official providers on a grand scale.

This week, however, police forces around Europe coordinated to target what they claim is one of the world’s largest illicit IPTV operations. The investigation was launched last February by Europol and on Tuesday coordinated actions were carried out in Cyprus, Bulgaria, Greece, and the Netherlands.

Three suspects were arrested in Cyprus – two in Limassol (aged 43 and 44) and one in Larnaca (aged 53). All are alleged to be part of an international operation to illegally broadcast around 1,200 channels of pirated content worldwide. Some of the channels offered were illegally sourced from Sky UK, Bein Sports, Sky Italia, and Sky DE

If initial reports are to be believed, the reach of the IPTV service was huge. Figures usually need to be taken with a pinch of salt but information suggests the service had more than 500,000 subscribers, each paying around 10 euros per month. (Note: how that relates to the alleged five million euros per year in revenue is yet to be made clear)

Police action was spread across the continent, with at least nine separate raids, including in the Netherlands where servers were uncovered. However, it was determined that these were in place to hide the true location of the operation’s main servers. Similar ‘front’ servers were also deployed in other regions.

The main servers behind the IPTV operation were located in Petrich, a small town in Blagoevgrad Province, southwestern Bulgaria. No details have been provided by the authorities but TF is informed that the website of a local ISP, Megabyte-Internet, from where pirate IPTV has been broadcast for at least the past several months, disappeared on Tuesday. It remains offline this morning.

The company did not respond to our request for comment and there’s no suggestion that it’s directly involved in any illegal activity. However, its Autonomous System (AS) number reveals linked IPTV services, none of which appear to be operational today. The ISP is also listed on sites where ‘pirate’ IPTV channel playlists are compiled by users.

According to sources in Cyprus, police requested permission from the Larnaca District Court to detain the arrested individuals for eight days. However, local news outlet Philenews said that any decision would be postponed until this morning, since one of the three suspects, an English Cypriot, required an interpreter which caused a delay.

In addition to prosecutors and defense lawyers, two Dutch investigators from Europol were present in court yesterday. The hearing lasted for six hours and was said to be so intensive that the court stenographer had to be replaced due to overwork.

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Yet Another FBI Proposal for Insecure Communications

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/yet_another_fbi.html

Deputy Attorney General Rosenstein has given talks where he proposes that tech companies decrease their communications and device security for the benefit of the FBI. In a recent talk, his idea is that tech companies just save a copy of the plaintext:

Law enforcement can also partner with private industry to address a problem we call “Going Dark.” Technology increasingly frustrates traditional law enforcement efforts to collect evidence needed to protect public safety and solve crime. For example, many instant-messaging services now encrypt messages by default. The prevent the police from reading those messages, even if an impartial judge approves their interception.

The problem is especially critical because electronic evidence is necessary for both the investigation of a cyber incident and the prosecution of the perpetrator. If we cannot access data even with lawful process, we are unable to do our job. Our ability to secure systems and prosecute criminals depends on our ability to gather evidence.

I encourage you to carefully consider your company’s interests and how you can work cooperatively with us. Although encryption can help secure your data, it may also prevent law enforcement agencies from protecting your data.

Encryption serves a valuable purpose. It is a foundational element of data security and essential to safeguarding data against cyber-attacks. It is critical to the growth and flourishing of the digital economy, and we support it. I support strong and responsible encryption.

I simply maintain that companies should retain the capability to provide the government unencrypted copies of communications and data stored on devices, when a court orders them to do so.

Responsible encryption is effective secure encryption, coupled with access capabilities. We know encryption can include safeguards. For example, there are systems that include central management of security keys and operating system updates; scanning of content, like your e-mails, for advertising purposes; simulcast of messages to multiple destinations at once; and key recovery when a user forgets the password to decrypt a laptop. No one calls any of those functions a “backdoor.” In fact, those very capabilities are marketed and sought out.

I do not believe that the government should mandate a specific means of ensuring access. The government does not need to micromanage the engineering.

The question is whether to require a particular goal: When a court issues a search warrant or wiretap order to collect evidence of crime, the company should be able to help. The government does not need to hold the key.

Rosenstein is right that many services like Gmail naturally keep plaintext in the cloud. This is something we pointed out in our 2016 paper: “Don’t Panic.” But forcing companies to build an alternate means to access the plaintext that the user can’t control is an enormous vulnerability.

Netflix, Amazon and Hollywood Sue Kodi-Powered Dragon Box Over Piracy

Post Syndicated from Ernesto original https://torrentfreak.com/netflix-amazon-and-hollywood-sue-kodi-powered-dragon-box-over-piracy-180111/

More and more people are starting to use Kodi-powered set-top boxes to stream video content to their TVs.

While Kodi itself is a neutral platform, sellers who ship devices with unauthorized add-ons give it a bad reputation.

In recent months these boxes have become the prime target for copyright enforcers, including the Alliance for Creativity and Entertainment (ACE), an anti-piracy partnership between Hollywood studios, Netflix, Amazon, and more than two dozen other companies.

After suing Tickbox last year a group of key ACE members have now filed a similar lawsuit against Dragon Media Inc, which sells the popular Dragon Box. The complaint, filed at a California federal court, also lists the company’s owner Paul Christoforo and reseller Jeff Williams among the defendants.

According to ACE, these type of devices are nothing more than pirate tools, allowing buyers to stream copyright infringing content. That also applies to Dragon Box, they inform the court.

“Defendants market and sell ‘Dragon Box,’ a computer hardware device that Defendants urge their customers to use as a tool for the mass infringement of the copyrighted motion pictures and television shows,” the complaint, picked up by HWR, reads.

The movie companies note that the defendants distribute and promote the Dragon Box as a pirate tool, using phrases such as “Watch your Favourites Anytime For FREE” and “stop paying for Netflix and Hulu.”

Dragon Box

When users follow the instructions Dragon provides they get free access to copyrighted movies, TV-shows and live content, ACE alleges. The complaint further points out that the device uses the open source Kodi player paired with pirate addons.

“The Dragon Media application provides Defendants’ customers with a customized configuration of the Kodi media player and a curated selection of the most popular addons for accessing infringing content,” the movie companies write.

“These addons are designed and maintained for the overarching purpose of scouring the Internet for illegal sources of copyrighted content and returning links to that content. When Dragon Box customers click those links, those customers receive unauthorized streams of popular motion pictures and television shows.”

One of the addons that are included with the download and installation of the Dragon software is Covenant.

This addon can be accessed through a preinstalled shortcut which is linked under the “Videos” menu. Users are then able to browse through a large library of curated content, including a separate category of movies that are still in theaters.

In theaters

According to a statement from Dragon owner Christoforo, business is going well. The company claims to have “over 250,000 customers in 50 states and 4 countries and growing” as well as “374 sellers” across the world.

With this lawsuit, however, the company’s future has suddenly become uncertain.

The movie companies ask the California District for an injunction to shut down the infringing service and impound all Dragon Box devices. In addition, they’re requesting statutory damages which can go up to several million dollars.

At the time of writing the Dragon Box website is still in on air and the company has yet to comment on the allegations.

A copy of the complaint is available here (pdf).

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

Susan Landau’s New Book: Listening In

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2018/01/susan_landaus_n.html

Susan Landau has written a terrific book on cybersecurity threats and why we need strong crypto. Listening In: Cybersecurity in an Insecure Age. It’s based in part on her 2016 Congressional testimony in the Apple/FBI case; it examines how the Digital Revolution has transformed society, and how law enforcement needs to — and can — adjust to the new realities. The book is accessible to techies and non-techies alike, and is strongly recommended.

And if you’ve already read it, give it a review on Amazon. Reviews sell books, and this one needs more of them.

Judge Issues Devastating Order Against BitTorrent Copyright Troll

Post Syndicated from Ernesto original https://torrentfreak.com/judge-issues-devastating-order-bittorrent-copyright-troll-180110/

In recent years, file-sharers around the world have been pressured to pay significant settlement fees, or face legal repercussions.

These so-called “copyright trolling” efforts have been a common occurrence in the United States since the turn of the last decade.

Increasingly, however, courts are growing weary of these cases. Many districts have turned into no-go zones for copyright trolls and the people behind Prenda law were arrested and are being prosecuted in a criminal case.

In the Western District of Washington, the tide also appears to have turned. After Venice PI, a copyright holder of the film “Once Upon a Time in Venice”, sued a man who later passed away, concerns were raised over the validity of the evidence.

Venice PI responded to the concerns with a declaration explaining its data gathering technique and assuring the Court that false positives are out of the question.

That testimony didn’t help much though, as a recently filed minute order shows this week. The order applies to a dozen cases and prohibits the company from reaching out to any defendants until further notice, as there are several alarming issues that have to be resolved first.

One of the problems is that Venice PI declared that it’s owned by a company named Lost Dog Productions, which in turn is owned by Voltage Productions. Interestingly, these companies don’t appear in the usual records.

“A search of the California Secretary of State’s online database, however, reveals no registered entity with the name ‘Lost Dog’ or ‘Lost Dog Productions’,” the Court notes.

“Moreover, although ‘Voltage Pictures, LLC’ is registered with the California Secretary of State, and has the same address as Venice PI, LLC, the parent company named in plaintiff’s corporate disclosure form, ‘Voltage Productions, LLC,’ cannot be found in the California Secretary of State’s online database and does not appear to exist.”

In other words, the company that filed the lawsuit, as well as its parent company, are extremely questionable.

While the above is a reason for concern, it’s just the tip of the iceberg. The Court not only points out administrative errors, but it also has serious doubts about the evidence collection process. This was carried out by the German company MaverickEye, which used the tracking technology of another German company, GuardaLey.

GuardaLey CEO Benjamin Perino, who claims that he coded the tracking software, wrote a declaration explaining that the infringement detection system at issue “cannot yield a false positive.” However, the Court doubts this statement and Perino’s qualifications in general.

“Perino has been proffered as an expert, but his qualifications consist of a technical high school education and work experience unrelated to the peer-to-peer file-sharing technology known as BitTorrent,” the Court writes.

“Perino does not have the qualifications necessary to be considered an expert in the field in question, and his opinion that the surveillance program is incapable of error is both contrary to common sense and inconsistent with plaintiff’s counsel’s conduct in other matters in this district. Plaintiff has not submitted an adequate offer of proof”

It seems like the Court would prefer to see an assessment from a qualified independent expert instead of the person who wrote the software. For now, this means that the IP-address evidence, in these cases, is not good enough. That’s quite a blow for the copyright holder.

If that wasn’t enough the Court also highlights another issue that’s possibly even more problematic. When Venice PI requested the subpoenas to identify alleged pirates, they relied on declarations from Daniel Arheidt, a consultant for MaverickEye.

These declarations fail to mention, however, that MaverickEye has the proper paperwork to collect IP addresses.

“Nowhere in Arheidt’s declarations does he indicate that either he or MaverickEye is licensed in Washington to conduct private investigation work,” the order reads.

This is important, as doing private investigator work without a license is a gross misdemeanor in Washington. The copyright holder was aware of this requirement because it was brought up in related cases in the past.

“Plaintiff’s counsel has apparently been aware since October 2016, when he received a letter concerning LHF Productions, Inc. v. Collins, C16-1017 RSM, that Arheidt might be committing a crime by engaging in unlicensed surveillance of Washington citizens, but he did not disclose this fact to the Court.”

The order is very bad news for Venice PI. The company had hoped to score a few dozen easy settlements but the tables have now been turned. The Court instead asks the company to explain the deficiencies and provide additional details. In the meantime, the copyright holder is urged not to spend or transfer any of the settlement money that has been collected thus far.

The latter indicates that Venice PI might have to hand defendants their money back, which would be pretty unique.

The order suggests that the Judge is very suspicious of these trolling activities. In a footnote there’s a link to a Fight Copyright Trolls article which revealed that the same counsel dismissed several cases, allegedly to avoid having IP-address evidence scrutinized.

Even more bizarrely, in another footnote the Court also doubts if MaverickEye’s aforementioned consultant, Daniel Arheidt, actually exists.

“The Court has recently become aware that Arheidt is the latest in a series of German declarants (Darren M. Griffin, Daniel Macek, Daniel Susac, Tobias Fieser, Michael Patzer) who might be aliases or even fictitious.

“Plaintiff will not be permitted to rely on Arheidt’s declarations or underlying data without explaining to the Court’s satisfaction Arheidt’s relationship to the above-listed declarants and producing proof beyond a reasonable doubt of Arheidt’s existence,” the court adds.

These are serious allegations, to say the least.

If a copyright holder uses non-existent companies and questionable testimony from unqualified experts after obtaining evidence illegally to get a subpoena backed by a fictitious person….something’s not quite right.

A copy of the minute order, which affects a series of cases, is available here (pdf).

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

RuTracker Reveals Innovative Plan For Users to Subvert ISP Blocking

Post Syndicated from Andy original https://torrentfreak.com/rutracker-reveals-innovative-plan-for-users-to-subvert-isp-blocking-180110/

As Russia’s largest torrent site and one that earned itself a mention in TF’s list of most popular torrent sites 2018, RuTracker is continuously under fire.

The site has an extremely dedicated following but Russia’s telecoms watchdog, spurred on by copyright holders brandishing court rulings, does everything in its power to ensure that people can’t access the site easily.

As a result, RuTracker’s main domains are blocked by all ISPs, meaning that people have to resort to VPNs or the many dozens of proxy and mirror sites that have been set up to facilitate access to the popular tracker.

While all of these methods used to work just fine, new legislation that came into force during October means that mirror and proxy sites can be added to block lists without copyright holders having to return to court. And, following legislation introduced in November, local VPN services are forbidden from providing access to blocked sites.

While RuTracker has always insisted that web blockades have little effect on the numbers of people sharing content, direct traffic to their main domains has definitely suffered. To solve this problem and go some way towards mitigating VPN and proxy bans, the site has just come up with a new plan to keep the torrents flowing.

The scheme was quietly announced, not on RuTracker’s main forum, but to a smaller set of users on local site Leprosorium. The idea was that a quieter launch there would allow for controlled testing before a release to the masses. The project is called My.RuTracker and here’s how it works.

Instead of blocked users fruitlessly trying to find public circumvention methods that once seen are immediately blocked, they are invited to register their own domains. These can be single use, for the person who registers them, but it’s envisioned that they’ll be shared out between friends, family, and online groups, to better make use of the resource.

Once domains are registered, users are invited to contact a special user account on the RuTracker site (operated by the site’s operators) which will provide them with precise technical details on how to set up their domain (.ru domains are not allowed) to gain access to RuTracker.

“In response, after a while (usually every other day), a list of NS-addresses will be sent to the registrar’s domain settings. Under this scheme, the user domain will be redirected to the RuTracker site via a dynamic IP address: this will avoid blocking the torrent tracker for a particular IP address,” the scheme envisages.

According to local news resource Tjournal, 62 personal mirrors were launched following the initial appeal, with the operators of RuTracker now planning to publicly announce the project to their community. As more are added, the site will keep track of traffic from each of the personal “mirrors” for balancing the load on the site.

At least in theory, this seems like a pretty innovative scheme. Currently, the authorities rely on the scale and public awareness of a particular proxy or mirror in order to earmark it for blocking. This much more decentralized plan, in which only small numbers of people should know each domain, seems like a much more robust system – at least until the authorities and indeed the law catches up.

And so the cat-and-mouse game continues.

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

Media Giant Can Keep Seized Ad Revenue From Pirate Sites

Post Syndicated from Ernesto original https://torrentfreak.com/media-giant-can-keep-seized-ad-revenue-from-pirate-sites-180109/

For several decades the MPAA and RIAA have been the prime anti-piracy groups in the United States.

While that may be true, there’s another player making a massive impact, while getting barely any press.

ABS-CBN, the largest media and entertainment company in the Philippines, has filed a series of lawsuits against pirate sites in the US, with the popular streaming portal Fmovies as the biggest target.

The company has already won several cases with damages ranging from a few hundred thousand to millions of dollars. However, the associated injunctions in these cases are perhaps even more significant.

We previously covered how ABS-CBN managed to get court orders to seize domain names, without the defendants getting actively involved. This is also the case in a recent lawsuit where a Florida federal court signed a broad injunction targeting more than two dozen sites that offered the company’s content.

The websites, including abscbn-teleserye.com, dramascools.com, tvnijuan.org, pinoydailyshows.com and weeklywarning.org, may not be known to a broad audience but their domain names have all been suspended, linking to a takedown message instead.

What’s most interesting, however, is that the advertising revenues of these sites were previously frozen. This was done to ensure that ABS-CBN would at least get some money if the defendants failed to respond, a strategy that seems to have paid off.

After the targeted site owners failed to respond, ABS-CBN requested a default judgment with damages for trademark and copyright infringement.

U.S. District Court Judge Cecilia Altonaga has now signed the order, awarding the media company over a million dollars in statutory trademark infringement damages. In addition, several of the sites must also pay copyright infringement damages.

Damages

The default judgment also orders associated registrars and registries to hand over the domain names to ABS-CBN. Thus far several domains have been seized already, but some foreign companies have not complied, most likely because they fall outside the US jurisdiction.

The most interesting part of the order, however, is that Judge Altonaga grants ABS-CBN the previously seized advertising revenues.

“All funds currently restrained by the advertising services, networks, and/or platforms […], pursuant to the temporary restraining order and preliminary injunction in this action are to be immediately (within five business days) transferred to Plaintiffs in partial satisfaction of the monetary judgment entered herein against each Defendant,” the Judge writes.

List of sites and their ad-networks

The sites in question used advertising services from a variety of well-known networks, including Google Adsense, MGID, Popads, AdsKeeper, and Bidvertiser. None of these companies responded in court after the initial seizure order, suggesting that they did not object.

This is the first time, to our knowledge, that a copyright holder has been granted advertising revenue from pirate sites in this manner. While it’s not known how much revenue the sites were making, there is bound to be some.

This could be a common legal tactic going forward because, generally speaking, it is very hard to get money from defaulting defendants who are relatively anonymous, or living in a foreign jurisdiction. By going after the advertisers, copyright holders have a good chance of securing some money, at least.

A copy of the default judgment is available here (pdf) and all affected websites are listed below.

– abscbn-teleserye.com
– astigvideos.com
– cinepinoy.lol
– cinepinoy.ag
– pinoyflix.ag
– pinoyflix.lol
– cinezen.me
– dramascools.com
– dramasget.com
– frugalpinoytv.org
– lambingan.cn
– pinoylambingan.ph
– lambingan.io
– lambingans.net
– latestpinoymovies.com
– pinasnews.net
– pinastvreplay.com
– pinoybay.ch
– pinoychannel.me
– pinoydailyshows.com
– pinoyplayback.net
– pinoytvshows.net
– pinoytv-shows.net
– rondownload.net
– sarapmanood.com
– tambayanshow.net
– thelambingan.com
– tvnijuan.org
– tvtambayan.org
– vianowpe.com
– weeklywarning.org
– weeklywarning.com

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

Tech Companies Meet EC to Discuss Removal of Pirate & Illegal Content

Post Syndicated from Andy original https://torrentfreak.com/tech-companies-meet-ec-to-discuss-removal-of-pirate-illegal-content-180109/

Thousands perhaps millions of pieces of illegal content flood onto the Internet every single day, a problem that’s only increasing with each passing year.

In the early days of the Internet very little was done to combat the problem but with the rise of social media and millions of citizens using it to publish whatever they like – not least terrorist propaganda and racist speech – governments around the world are beginning to take notice.

Of course, running parallel is the multi-billion dollar issue of intellectual property infringement. Eighteen years on from the first wave of mass online piracy and the majority of popular movies, TV shows, games, software and books are still available to download.

Over the past couple of years and increasingly in recent months, there have been clear signs that the EU in particular wishes to collectively mitigate the spread of all illegal content – from ISIS videos to pirated Hollywood movies – with assistance from major tech companies.

Google, YouTube, Facebook and Twitter are all expected to do their part, with the looming stick of legislation behind the collaborative carrots, should they fail to come up with a solution.

To that end, five EU Commissioners – Dimitris Avramopoulos, Elżbieta Bieńkowska, Věra Jourová, Julian King and Mariya Gabriel – will meet today in Brussels with representatives of several online platforms to discuss progress made in dealing with the spread of the aforementioned material.

In a joint statement together with EC Vice-President Andrus Ansip, the Commissioners describe all illegal content as a threat to security, safety, and fundamental rights, demanding a “collective response – from all actors, including the internet industry.”

They note that online platforms have committed significant resources towards removing violent and extremist content, including via automated removal, but more needs to be done to tackle the issue.

“This is starting to achieve results. However, even if tens of thousands of pieces of illegal content have been taken down, there are still hundreds of thousands more out there,” the Commissioners writes.

“And removal needs to be speedy: the longer illegal material stays online, the greater its reach, the more it can spread and grow. Building on the current voluntary approach, more efforts and progress have to be made.”

The Commission says it is relying on online platforms such as Google and Facebook to “step up and speed up their efforts to tackle these threats quickly and comprehensively.” This should include closer cooperation with law enforcement, sharing of information with other online players, plus action to ensure that once taken down, illegal content does not simply reappear.

While it’s clear that that the EC would prefer to work collaboratively with the platforms to find a solution to the illegal content problem, as expected there’s the veiled threat of them being compelled by law to do so, should they fall short of their responsibilities.

“We will continue to promote cooperation with social media companies to detect and remove terrorist and other illegal content online, and if necessary, propose legislation to complement the existing regulatory framework,” the EC warns.

Today’s discussions run both in parallel and in tandem with others specifically targeted at intellectual property abuses. Late November the EC presented a set of new measures to ensure that copyright holders are well protected both online and in the physical realm.

A key aim is to focus on large-scale facilitators, such as pirate site operators, while cutting 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,” the Commission explained.

This presentation followed on the heels of a proposal last September which had the EC advocating the take-down-stay-down principle, with pirate content being taken down, automated filters ensuring infringement can be tackled proactively, with measures being taken against repeat infringers.

Again, the EC warned that should cooperation with Internet platforms fail to come up with results, future legislation cannot 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

TVAddons and ZemTV Ask Court to Dismiss U.S. Piracy Lawsuit

Post Syndicated from Ernesto original https://torrentfreak.com/tvaddons-and-zemtv-ask-court-to-dismiss-u-s-piracy-lawsuit-180108/

Last year, American satellite and broadcast provider Dish Network targeted two well-known players in the third-party Kodi add-on ecosystem.

In a complaint filed in a federal court in Texas, add-on ZemTV and the TVAddons library were accused of copyright infringement. As a result, both are facing up to $150,000 in damages for each offense.

While the case was filed in Texas, neither of the defendants live there, or even in the United States. The owner and operator of TVAddons is Adam Lackman, who resides in Montreal, Canada. ZemTV’s developer Shahjahan Durrani is even further away in London, UK.

Their limited connection to Texas is reason for the case to be dismissed, according to the legal team of the two defendants. They are represented by attorneys Erin Russel and Jason Sweet, who asked the Court to drop the case late last week.

According to their motion, the Texas District Court does not have jurisdiction over the two defendants.

“Lackman and Durrani have never been residents or citizens of Texas; they have never owned property in Texas; they have never voted in Texas; they have never personally visited Texas; they have never directed any business activity of any kind to anyone in Texas […] and they have never earned income in Texas,” the motion reads.

Technically, defendants can be sued in a district they have never been, as long as they “directed actions” at the state or its citizens.

According to Dish, this is the case here since both defendants made their services available to local residents, among other things. However, the defense team argues that’s not enough to establish jurisdiction in this case.

“Plaintiff’s conclusory allegation that Lackman and Durrani marketed, made available, and distributed ZemTV service and the ZemTV add-on to consumers in the State of Texas and the Southern District of Texas is misleading at best,” the attorneys write.

If the case proceeds this would go against the US constitution, violating the defendants’ due process rights. Whether the infringement claims hold ground or not, Dish has no right to sue, according to the defense.

“Defendants are citizens of Canada and Great Britain and have not had sufficient contacts in the State of Texas for this Court to exercise personal jurisdiction over them. To do so would violate the Due Process Clause of the United States Constitution.”

The Court must now decide whether the case can proceed or not. TorrentFreak reached out to TVAddons but the service wishes to refrain from commenting on the proceeding at the moment.

Previously, TVAddons made it clear that it sees the Dish lawsuit as an attempt to destroy the Kodi addon community. One of the methods of attack it mentioned, was to sue people in foreign jurisdictions.

“Most people don’t have money lying around to hire lawyers in places they’ve never even visited. This means that if a company sues you in a foreign country and you can’t afford a lawyer, you’re screwed even if you did nothing wrong,” TVAddons wrote at the time.

A copy of the motion to dismiss is available here (pdf).

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Sky Hits Man With £5k ‘Fine’ For Pirating Boxing on Facebook

Post Syndicated from Andy original https://torrentfreak.com/sky-hits-man-with-5k-fine-for-pirating-boxing-on-facebook-180108/

When people download content online using BitTorrent, they also distribute that content to others. This unlawful distribution attracts negative attention from rightsholders, who have sued hundreds of thousands of individuals worldwide.

Streaming is considered a much safer method to obtain content, since it’s difficult for content owners to track downloaders. However, the same can’t be said about those who stream content to the web for the benefit of others, as an interesting case in the UK has just revealed.

It involves 34-year-old Craig Foster who received several scary letters from lawyers representing broadcaster Sky. The company alleged that during last April’s bout between Anthony Joshua’s and Wladimir Klitschko, Foster live-streamed the multiple world title fight on Facebook Live.

Financially, this was a major problem for Sky, law firm Foot Anstey LLP told Foster. According to their calculations, at least 4,250 people watched the stream without paying Sky Box Office the going rate of £19.95 each. Tapped into Sky’s computers, the broadcaster concluded that Foster owed the company £85,000.

But according to The Mirror, father-of-one Foster wasn’t actually to blame.

“I’d paid for the boxing, it wasn’t like I was making any money. My iPad was signed in to my Facebook account and my friend just started streaming the fight. I didn’t think anything of it, then a few days later they cut my subscription,” Foster said.

“They’re demanding the names and addresses of all my mates who were round that night but I’m not going to give them up. I said I’d take the rap.”

While Foster says he won’t turn in the culprit, there’s no doubt that the fight stream originated from his Sky account. The TV giant embeds watermarks in its broadcasts which enables it to see who paid for an event, should a copy of one turn up on the Internet.

As we reported last year following the Mayweather v McGregor super-fight, the codes are clearly visible with the naked eye.

Sky watermarks, as seen in the Mayweather v McGregor fight

While taking the rap for someone else’s infringing behavior isn’t something anyone should do lightly, it appears that Scarborough-based Foster did just that.

According to Neil Parkes, who specializes in media litigation, content protection and contentious IP at Foot Anstey, Foster accepted responsibility and agreed to pay a settlement.

“Mr Foster broke the law,” Parkes said. “He has acknowledged his wrongdoing, apologised and signed a legally binding agreement to pay a sum of £5,000 to Sky.”

The Mirror, however, has Foster backtracking. He says he wasn’t given enough time to consider his position and now wants to fight Sky in court.

“It’s heavy-handed. I’ve apologized and told them we were drunk,” Foster said.

“I know streaming the fight was wrong. I didn’t stop my friend but I was watching the boxing. I’m just a bloke who had a few drinks with his friends.”

Unless he can find a law firm willing to fight his corner at a hugely cut-down rate, Foster will find this kind of legal fisticuffs to be a massively expensive proposition, one in which he will start out as the clear underdog.

Not only was Foster’s Sky account the originating source, both his iPad and his Facebook account were used to stream the fight. On top of what appears to be a signed confession, he also promised not to do anything else like this in future. Furthermore, he even agreed to issue an apology that Sky can use in future anti-piracy messages.

Of course, Foster might indeed be a noble gentleman but he should be aware that as a civil matter, this fight would be decided on the balance of probabilities, not beyond reasonable doubt. If the judge decides 51% in Sky’s favor, he suffers a knockout along with a huge financial headache.

No one wants a £5,000 bill but that’s a drop in the ocean compared to the cost implications of losing this case.

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