Meet Digiprotect, the pirate tracking company that earned its marks tracking down ‘adult’ pirates, but branched out to protecting the works of all sorts of copyright holders. Over the years the company has perfected its pirate tracking tactics to guarantee maximum profits.

Although most companies operating in the same realm try to fly under the radar as much as possible, Digiprotect’s account manager Thomas Hein is more vocal about their business strategies. In an interview he gave a while ago he explains how his company leases copyrights so they can trap potential downloaders.

“We get the legal rights from the companies to distribute these movies to stores, and with these rights we can sue illegal downloaders. Then we take legal action in every country possible, concentrating on the places where such action will be profitable,” Hein says.

So Digiprotect acquires the right to distribute movies, music or games from the rights holders, which they then share on various P2P networks. All they have to do is wait for people to take the bait. If someone tries to download the file they collect the IP-address and initiate legal action through one of their befriended law firms.

That is, if it’s profitable, otherwise Digiprotect can’t afford to protect the copyright holder’s rights, as Hein explains.

“No one working for DigiProtect has a fixed salary. If we make money, everybody makes money. If we don’t, nobody does. This means the lawyers, sales people and customers. It’s all about how much money can be recouped and then sharing it.”

Indeed, it’s all about the money.

“Our success rate is high enough to make good money for everybody,” Hein says, “and it’s also high enough to deter people from stealing content in the future. But we have to be careful about the amount of damages we ask for.”

So how does one go about making ‘good money’? Apparently it’s not only important where you sue people, but also the amount of damages you claim.

“We try to find a figure that covers our costs and pays money to our licensors, which is usually around 500 Euro ($700). Other firms are going for huge amounts of money, and the judges don’t like it. If the judges feel you’re being greedy, they won’t rule in your favor.”

Yes, you’re reading it right. The damage figures are not based on any actual losses, they are carefully calculated to guarantee maximum profits for all parties, except the alleged pirate of course. We can’t help but wonder who the real thieves are here…

Article from: TorrentFreak, check out our new blog at FreakBits.

Recently their efforts to make money from alleged pirates was picked up by the mainstream press, because an elderly couple was incorrectly accused by them of pirating an Atari game, Test Drive Unlimited. It is of course a stereotype to think that people over fifty don’t play games, but with the help of consumer magazine, Which? Computing, the lawyers were forced to drop the case.

If anything, this suggests that the evidence they gather for use against alleged sharers is not as strong as it should be. In fact, this is not the first time that a case has dropped before it went to court. Apparently, the lawyers that represent the various copyright holders will only make their case when they have a sure win – that is, when the defendants fail to show up. Others who dig in their heels and refuse to pay learn that the consequences aren’t nearly as bad as the law firm would have everyone believe.

Meanwhile, thousands of UK citizens are receiving letters in which they are accused of downloading music, games or more recently, adult entertainment. In these letters, they are asked to pay a few hundred pounds, or else they are threatened with the prospect of being dragged through court, where the fine – if the law firm is to be believed – will be multiplied several times over.

There aren’t any precise figure on how many alleged pirates have paid up, but based on earlier comments from the law firm itself, it’s believed to be between 40 and 60%. It’s not unthinkable that some copyright owners are making more from this type of pirate-chasing than they do from sales of their actual products. Quite an innovative business model actually, especially since in many cases it guarantees a revenue stream for sub-standard products that otherwise simply wouldn’t sell.

But now, according to The Register, computer game manufacturer Atari has had enough, as they have canceled their collaboration with Davenport Lyons and Logistep. Exactly why is open to speculation, but it is difficult to find a single positive article about the activities of these companies, particularly when recent and rather more potentially embarrassing actions are taken into consideration. It’s not surprising that they choose to distance themselves from the operation.

In a comment to El Reg, Atari said that it will “always retain and reserve the right to protect our intellectual property from illegal copying and piracy.” An interesting comment, since cashing in on alleged piracy happens after the offense, and has nothing to do with protection. However, this statement seems more of an attempt to show that this withdrawal doesn’t indicate that Atari is going soft on piracy.

Of course, copyright holders have every right to protect their material, or even make up for the losses they claim to suffer. Whether it is the right thing to do is questionable though, especially when the tactics are as aggressive as they are in these cases.

The complete lack of transparency in respect of the evidence gathering techniques just makes matters worse, and every negative aspect is compounded when people like Simon Davies of Privacy International speak about facets of the operation in very unfavorable terms. “This is appalling, it breaches a number of fundamental human rights,” he said. “They risk bringing the law into disrepute – just because lawyers can do something it doesn’t mean that they should.”

A great example of where copyright has gone wrong has emerged recently. In a leaked contract between DigiProtect (copyright protection outfit) and Evil Angel (content producer), the copyright was actually transferred in order for DigiProtect to make it available on filesharing networks.

“LICENSOR grants DIGIPROTECT the exclusive right to make the movies listed in Appendix 1 worldwide available to the public via remote computer networks, so-called peer-2-peer and internet file sharing networks such as e-Donkey, Kazaa, Bitorrent, etc. for the duration of this agreement.”

So, DigiProtect makes the files available to cash in on the people who attempt to download the files, but not to protect their intellectual property in a way copyright law was put in place for. In fact, this has nothing to do with copyright protection, they are simply exploiting the system. Probably a good thing that Atari got out before it all falls apart.

The question now is how are the other publishers feeling now that Atari has had enough? Since they are based in the UK, the focus now falls on CodeMasters, who are still pursuing people over Colin McRae Dirt, but does the return on the project cancel out the mountains of bad PR it generates? Time will tell.

Article from: TorrentFreak, check out our new blog at FreakBits.

The two, who just turned 30, have a long history of copyright infringement which started back in the ’80’s, with Peter cracking Amiga games and Fredrik copying Commodore64 software. At the time they had never heard of copyright infringement, they were just doing what everybody else did. To the amusement of the audience, Peter said he didn’t think piracy was ‘wrong’ when he was a kid, but now that he’s an adult, he knows it’s not.

Years later, in 2003, they got involved in founding Piratbyrån (The Bureau of Piracy), a pro-piracy organization that was created in response to anti-Piratbyrån. The goal of Piratbyrån was to start a debate on copyright issues, and how they affect society. Until then, most press in Sweden would simply take everything anti-Piratbyrån said for granted.

In the years to come, Piratbyrån started several pro-piracy projects, and the most influential is without a doubt the founding of The Pirate Bay on November 21, 2003. “We needed to have a filesharing network in Sweden, because there was none,” Peter said. “At this time there was one big torrent site, which was called Suprnova, but they mainly had international content. We and Piratbyrån wanted more Swedish and Scandinavian content. So we started a big library, and that is The Pirate Bay.”

Fredrik, who ran one of the earlier versions of the tracker on his laptop, explained that when The Pirate Bay went live, it was hosted in South America. “The Pirate Bay originally started out in Mexico, on a Mexican server where Anakata, the third guy of The Pirate Bay was working at the time,” he said. Anakata hosted the site on a server owned by the company he was working for, but it was soon overloaded since the site grew so rapidly.

The Pirate Bay was initially available in Swedish language only. However, after a year they found out that, although their site was initially targeted at Scandinavians, over 80% of the users came from other parts of the world. In fact, one of the most popular torrents was a Swedish language course. Because of increasing worldwide popularity, The Pirate Bay team completely redesigned the site, which became available in several languages.

The popularity of the site didn’t go unnoticed in Hollywood. Like many other BitTorrent sites, The Pirate Bay also received several takedown notices. However, the way they responded to these was quite unique and some have become news stories in themselves. Threats from the entertainment industry didn’t stop at sending letters. In true Hollywood style, The Pirate Bay admins soon saw private investigators watching their every move.

“They’ve sent private investigators after us, which is really stupid if you do something online,” Peter said. “What are they going to find, that we are sitting behind our computers?” Fredrik added: “I guess the private investigator that went after me in Gothenburg got to see a lot of good bars, a lot of late nights, but probably not a lot of evidence gathering.” Peter then noted that someone from the IFPI was actually at the conference, “still trying to find out what we’re doing.”

Eventually The Pirate Bay got raided, following pressure from Hollywood and the USA. Fredrik recalls the day vividly: “I got a phone call like 10am in the morning, it was Anakata.” He told Fredrik that there were police officers at their office, and asked him to get down to the colocation facility and get rid of the ‘incriminating evidence’, although none of it, whatever it was, was related to The Pirate Bay.

As Fredrik was leaving, he suddenly realized that the problems might be linked to their tracker, so he initiated a full backup of the site. At the colocation facility there were 65 police, some in civilian clothing. Fredrik asked them: “Who are you? What are you doing here?” To which they responded, “Who are YOU? What are you doing here?” After questions back and forth, Fredrik eventually told them his name, and a police officer said, “Oh, we’ve been looking for you.”

During the subsequent questioning, the Pirate Bay trio gave up very little information. Anakata quickly confessed to his crime – of killing the Swedish prime minister when he was 2 years old, but that was all they got. It is up to the court to decide whether the Pirate Bay founders are operating illegally or not. Until then, The Pirate Bay is still up and running, stronger than ever.

As always, there are a lot of plans for the future, and Peter and Fredrik briefly discussed some. One of the most interesting plans is to encrypt tracker connections, so anti-piracy organizations can’t spy on their users. We will probably hear more about that in the future. The keynote speech by Peter and Fredrik was streamed from a mobile phone last night, and we embedded the recording below. The sound quality is far from optimal, but it’s watchable. The talk starts at 13m 00s

Article from: TorrentFreak, check out our new blog at FreakBits.

Here at TorrentFreak we’re getting very tired at the frequency we have to keep reporting on the Swiss anti-piracy company, Logistep. The way they operate is simple: they use a modified Shareaza client to enter BitTorrent swarms to collect data, which they sell to lawyers who use the information to discover the identity of alleged file-sharers, who they then threaten with legal action which can be made to go away – for a fee. A simple “Pay Up or Else”, no different to the recent case where they were working with CodeMasters. As we said before, Logistep’s system is unlicensed and unapproved by any official independent or government organization. Put simply, anyone could gather this data from the internet and claim that it’s accurate.

Logistep are now working with a new ally – lawyers ‘kuw’ in Germany who according to a Gulli report are representing certain producers in the adult industry to track and ‘fine’ BitTorrent users they accuse of sharing their material. After further research, ‘kuw’ appear to be emboldened after they worked with Logistep at the start of 2007 in tracking down hundreds of people who allegedly shared the game ‘Gothic3‘ and forcing many of them to pay up.

Those unlucky enough to find themselves in the crosshairs of kuw and Logistep will receive a letter. In it will be the usual legal speak, with lots of implied things and veiled threats designed to frighten. The bottom line is a demand for cash to make this issue disappear – 250 euros to be precise. 135 euros goes to ‘KUW’ for lawyers costs while 115 euros goes to the copyright owner of the movie/video clip in question by way of damages. KUW lawyers are claiming that they only target people who have already downloaded at least 30% of the movie.

Most, if not all people receiving these type of letters in previous UK cases have had no further action taken against them when they refuse to pay up.

In what appears to be a quickening shift in the porn industry to take legal action against sharers, Jon B., Vice President at porn company Red Light District (who hides his real ID because his family doesn’t know what he does) told the LA Times: “What’s happening in the industry is an unacceptable amount of theft.”

While claiming that 35% of his profits are lost to file-sharing, Jon B. described the futility of going after websites as the sheer numbers are too much to cope with. Instead, Red Light District is deciding whether to go after individual sharers, as is the case with RIAA, MPAA and Logistep-type actions.

“If it scares them enough, if it can take away 20% of the illegal downloads, we’ll be doing the best that we can,” he added.

During the next 24 hours we will publish an interview with a prominent figure involved in these cases, in which we will investigate Logistep’s dubious practices around Europe. Stay tuned.

Thanks to _bc

Article from: TorrentFreak, check out our new blog at FreakBits.

“Never work with children or animals” said WC Fields. TorrentFreak takes a chance:

TF. Hi Hannah! How old are you?

- I’m 10 in 12 days

TF. What sort of music are you listening to right now?

Sean Kingstone, Shayne Ward and High School Musical 2

TF. Where did you first get into music?

- On the music channels, on MTV.

TF. When did you get a PC?

- People had computers but I couldn’t go on them but my Dad bought me one last year. I have internet.

TF. What do you do on the internet?

- MSN, talking to friends and cousins, games and dressing-up games [dolls]

TF. When did you first start using the internet to get music?

- My cousin showed me YouTube and then LimeWire and I was like “whoa cool!”

TF. What was cool about it?

- Because you can put anything in and it will come up and you don’t actually pay for it. Well you have to pay for the internet and LimeWire comes with the internet but you have to pay for that so LimeWire isn’t really free.

TF. Ok…I see….Do you get music from anywhere else?

- My cousin gets it from BEBO. She copies it from other people’s pages and puts it on her own.

TF. Do you think it’s ok to copy the music?

- Yes it’s ok because she only does it to make her page better.

TF. So you’re sure that it’s ok to copy it? What do you think about copying?

- I suppose it’s not ok to copy but people copied it off her site so she just copies theirs. It’s like, you’re copying my t-shirt so i’m copying you on shoes.

TF. Ok, so a bit like copying school work?….Hmm….ok, let’s talk about copying on the computer again. When you started using LimeWire, did anyone ever mention that if you did certain things you might be breaking some laws?

- Why would they put it [music] on the internet and invent mp3 players if it was against the law?

TF. Confusing isn’t it?….You mentioned you like Sean Kingstone – what if I told you that Sean Kingstone’s boss might send you a letter asking for money because you shared his album on LimeWire? What would you say to him?

- W.E! [whatever!]

TF. Come on, play along with me. What would you say if he did?

- I’d say “tooooo strict!” and anyway he can’t make me do anything. He’s not the boss of me, he’s the boss of Sean Kingstone.

TF. What do you think might happen if you didn’t pay him?

- Nothing. I’m too young to be charged by the government so he can’t charge me.

TF. Would you carry on using LimeWire after he sent the letter?

- Yeah!

TF. Why?

- Because you can get good albums off there. Duh!! My CD’s don’t work in my mp3 player so LimeWire is the only way to do it. I bought High School Musical 2 on CD but it won’t go on my mp3 [player]

TF. How would you make LimeWire better?

- To speak to the person sending the music to make sure they send the right one, sometimes they send stuff that doesn’t even play.

TF. Do you know what a pirate is?

- They have parrots [effects 'arrrrr']

TF. Do you think its legal or illegal to copy a CD or DVD?

- Some men right, they sell you a DVD at the market but when you get home it doesn’t play, that’s illegal.

TF. Why is it illegal?

- Duh!! Because they tell you it works and when you get it home it’s rubbish and jumps in the middle and its a waste of money!

TF. Do you think you should be paying for stuff off LimeWire? You have to buy CD’s from the shop…

- You have to pay for CD’s because they’re actually on a disc not on the computer. My cousin, right, she uses LimeWire when she doesn’t have any money for CDs.

TF. Did you ever download anything by anybody and then go to see them?

- I got stuff by Lee Ryan and Simon Webbe and then I went to see Blue. Why don’t you ask me what my favorite hobby is?

TF. Ok, what’s your favorite hobby?

- Dancing to music, it’s fun!!

Thankyou, Hannah. That’s it! Have a nice birthday!

Article from: TorrentFreak, check out our new blog at FreakBits.

The ‘Eurobarometer’ study covers many aspects of electronic communication used by kids between the ages of 9 and 14 but of course, we’re interested in the internet section and in particular, file-sharing.

When asked how they ‘learned’ how to use the internet, many of the children said they couldn’t remember – an indication of how early in a child’s life computers are introduced these days and summed up nicely by a 9-10 year old boys group from the Netherlands: “There is nothing to learn” and from a group of German boys: “It is in my blood. I am a computer freak.”

Most say that they were shown the basics but went on to teach themselves and other people, including their parents: “My parents do not teach me, I teach them!” (Boys group, 12-14 years, Ireland)

In respect of file-sharing, the 9-10 year old groups didn’t show much interest, the complete opposite of the 12-14 year olds, especially the boys who really enjoyed downloading new games.

It’s obvious from the samples given in the report that those kids questioned in the older groups had some grasp of the law relating to file-sharing. However, the bad news for those planning on enforcing copyright law on them when they become adults is that they don’t really care about it. Right across the European countries questioned, for the kids, awareness of the law didn’t really translate into a concern for operating within it.

Amongst the kids there was generally an attitude of “everyone is doing it, so i’ll do it too”. Add this to the fact that many kids watch their parents file-sharing: “Dad does it all the time” (Girls group, 12-14 years old from Norway), there’s a real challenge for the media companies in trying to get these kids to stop or change habits in the future.

A group of 9-10 year old Belgian girls share the opinions of millions of file-sharers world-wide when they said: “But I do not understand that it is illegal”.

The older boys group (12-14 years) from Denmark said: “It’s illegal, but it does not look like it is illegal” while the girls from the same age group in Belgium proclaimed: “It is wrong but not our fault”.

Almost nailing current perception of European copyright law, the 12-14 year old boys group in Finland claimed “Downloading is illegal, it is not punishable whereas sharing the files is punishable”. It’s generally felt that downloading is not an offense in Europe, where uploading probably is.

The French boys get it totally right when they said: “People download, but if is just for themselves, it is less serious than downloading for burning and reselling”. Indeed, selling copyright material is generally a criminal offense whereas file-sharing is nearly always a civil issue in Europe.

The older boys from the UK could be forgiven for coming to the conclusion they came to: “I don’t really feel guilty. It wouldn’t be on the Internet if it was like really illegal, they wouldn’t have it there”.

The older Czech boys felt that paying for stuff wasn’t necessary: “They have a lot of money ! They don’t need my money”, an opinion shared by the Italians: “I really don’t care, it’s not my problem. Singers and actors are rich enough”.

Having paid their ISP for their internet connection, the 12-14 year old boys from Portugal feel they have done their part: “We pay because we are spending megabits!”

Most of the children when questioned said they intend to carry on downloading and nothing is likely to stop them, however something that continually crops up in the internet part of the report is the concern the children have for downloading a virus. Indeed this is their major concern, although a 9-10 year old boys group from Slovakia had a solution:

“… Just download anti-virus software.”

The report can be downloaded here.

Thanks to Chris Pirillo for the great artwork

Article from: TorrentFreak, check out our new blog at FreakBits.