The case progressed in the Federal Court today, with iiNet barrister Richard Cobden continuing with his closing submissions.

As detailed earlier in the case, after AFACT sent many thousands of copyright infringement notices to iiNet, the ISP responded by sending them to the police. Cobden defended that decision today, claiming that the notices could constitute evidence of copyright crimes.

While the studios had earlier insisted that they would never sanction unlawful investigation methods, ITNews quotes Cobden as saying that in gathering that evidence, it was likely the investigators themselves had also committed offenses, breaching section 132AJ(1) of the Copyright Act.

The barrister said that both investigators committed primary acts of infringement online, and while AFACT had earlier claimed that iiNet users burned copyright material onto DVDs after downloading it, in fact the only evidence of that being done relates to the copies made by AFACT investigators.

Continuing to attack the evidence provided by AFACT and its anti-piracy partner DtecNet, Cobden returned to an earlier assertion that DtecNet investigators did not behave as normal BitTorrent users would. Regular users would allow their torrent client to connect to any peers, but DtecNet filtered out any that weren’t issued with iiNet IP addresses.

ARN quotes Cobden as saying this action was “foolish” as it slowed download times to several days. As we heard earlier in the case, this led to investigators counting the same infringement more than once.

Last week, Cobden argued that AFACT hadn’t provided any evidence that iiNet customers had engaged in copyright infringement as they were only sharing small parts of files (such is the nature of BitTorrent), rather than the “substantial” parts, as required under the law. In order to prove his point, Cobden went on to cite an earlier copyright case.

In 2002, Australian TV station Channel 9 sued Channel 10 citing infringement under the Copyright Act 1968. Channel 10 had broadcast short sections of Channel 9 programs The Today Show, Who Wants to be a Millionaire, Days of Our Lives and Sale of the New Century in their television show called The Panel. The view was that of the 11 segments played, only 3 were long enough to constitute infringement.

As anti-piracy tracking companies such as DtecNet only record an instance of alleged copyright infringement timed to a single second, Cobden is arguing that there is no evidence to prove any “substantial” part of any movie was shared by iiNet users.

Cobden went on to insist that in order to confirm that evidence of infringement provided by AFACT was indeed accurate (before passing notices to their customers), it would be necessary for the ISP to breach copyright.

“If one wanted to check the DtecNet evidence and see on a range of IP addresses supplied by iiNet that infringing material was online, the only way to do it would be to use the BitTorrent client like DtecNet did, construct the parameters of the IP address range, locate the file and compare it to details in the spreadsheets,” said Cobden, as quoted by ITNews.

Cobden said that if iiNet passed unproven infringement notices to its customers, it would face problems if the account holder disputed the claims. After all, iiNet had only AFACT’s word that an infringement had been carried out, but absolutely no proof or other information to have a meaningful discussion on the issue.

It is likely that Cobden will finish his closing submissions next Tuesday 24th. The Internet Industry Association’s application to become a ‘friend of the court’ will be heard on the afternoon of that day, bringing the original date forward by two days.

The case will then end either next Wednesday or Thursday, but readers are advised not to hold their breath for the verdict – it could take several months to arrive.

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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The case continued in the Federal Court, with iiNet barrister Richard Cobden beginning his closing submissions.

Referring to the allegations by AFACT that it detected around 97,000 instances of copyright infringement carried out by iiNet subscribers, Cobden said that there was actually only sufficient evidence to prove that a single subscriber had carried out any. That individual was the mole planted by AFACT and DtecNet to carry out deliberate ‘infringements’ on behalf of the plaintiffs.

iiNet’s protection under Safe Harbor provisions which limit a carrier’s liability under the Copyright Act remained intact, since no infringer had been identified other than AFACT’s own investigator. Since he was authorized by the plaintiffs, he committed no offenses and could not even be accurately categorized as an infringer. On this basis, iiNet did not disconnect him.

Cobden admitted that AFACT’s method of counting infringements indicated that it’s possible that from a sample of 20 iiNet users, on average they could have downloaded two to three movies each in the reported monitoring period of 59 weeks.

“It’s clear from the accounts that ultimately the [infringing] activity is likely to account for a very modest percentage of that user’s activity [and] a very modest percentage of their quota,” said Cobden as reported by ITNews.

Cobden went on to say that this didn’t amount to the “dramatic” amounts of infringement alleged by AFACT, so there was no evidence that this activity drove the uptake of iiNet high-bandwidth accounts from which the ISP profited.

Disconnecting users on such limited numbers of infringements shown on the sample accounts would have been a disproportionate response, he added.

The iiNet barrister also spoke in detail on iiNet’s privacy responsibilities under Section 112E of Australia’s Telecommunications Act, which he said undermined AFACT’s claims that by not complying with its requests it authorized the infringing activities of its subscribers. Detailed information on this key aspect of iiNet’s defense can be found here.

iiNet was never legally obliged to deal with AFACT infringement notices, Cobden told the court, noting that the law concerning copyright “authorization” does not require any ISP to suspend or terminate a customer’s account.

Cobden attacked allegations by AFACT that iiNet’s business model relies on illegal file-sharing, saying that the anti-piracy outfit had a distorted view of the world.

“In many ways the applicants look at everything that iiNet does entirely through the prism of their own concern for copyright infringement,” he said, noting that the company had been in business for many years and had simply kept up with offerings from its rivals Telstra and Optus.

“Once you take that prism away and look at it in terms of business and keeping up-to-date with technologies, and keeping its customers happy, almost every document, internal document, takes on an entirely different reflection,” he added, as quoted by ZDNet.

Cobden said there was zero evidence to back up AFACT allegations that iiNet users burned downloaded material onto CDs and DVDs and distributed them. This, he said, significantly decreased the number of copyright infringements claimed by AFACT.

iiNet’s legal team will continue with their closing submissions next week.

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Ink was downloaded more than 400,000 times last week and ended up in fourth place in our weekly chart of most downloaded movies on BitTorrent, where Zombieland occupied the top spot.

Zombieland co-writer Rhett Reese has been following our most pirated movies chart as well, and thus the online success of his film. “Zombieland currently the most pirated movie on bit torrent. Over one million downloads and counting,” he tweeted a few hours ago.

However, unlike the makers of Ink, Reese is not pleased with this achievement, claiming that this piracy disaster may very well prevent a Zombieland sequel from being shot. “Beyond depressing. This greatly affects the likelihood of a Zombieland 2,” he wrote.

Reese’s comments are the classic Hollywood response we wrote about yesterday. Piracy is causing billions of dollars in lost revenue and prevents new movies from being funded, is the doomsday scenario they often paint. But is there any truth in this hunch, or is it just another Hollywood performance? Facts seem to support the latter.

More piracy is not necessarily linked with a drop in box office grosses or DVD sales. ‘The Dark Knight’, which was the most downloaded movie on BitTorrent in 2008 sold millions of DVDs, and grossed a record breaking billion dollars in cinemas worldwide. But what about Zombieland?

The Hollywood Insider wrote that the movie is “alive and kicking” at the box office, putting its success down in part to “strong word-of-mouth”. The release also marks the most successful debut of Woody Harrelson’s career, hitting the No.1 spot and taking $9.4m on its first day and a worldwide $84m to date – all this on a production budget of less than $24m.

Zombieland grossed more than $60.8 million in 17 days, even surpassing the remake of the Dawn of the Dead to become the top-grossing zombie film in history. That does not really sound like something that will prevent a sequel to us.

On the contrary, if anything success on BitTorrent has a direct relation with success at the box office. Since unauthorized ripped versions of virtually all movies appear on the Internet nowadays, it would be a really bad sign if no pirate would want to download it.

But of course, Reese and others could still argue that they would have made even more money if there was no piracy. There are no hard facts to refute this, but with the box office revenue steadily increasing since P2P file-sharing became mainstream, it has to be doubted as well. The same can be said for the claim that less films receive funding.

As many independent filmmakers have already experienced, BitTorrent and the Internet in general can be a boon to the film industry. Instead of seeing it as a threat Hollywood might want to embrace it before it’s too late.

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“As the law is today, you can not have a media center without breaking the law,” he told TorrentFreak.

“When I think of a media center it is a place where you have all your movies, pictures and music together. You can only do that by having a digital copy of the movie.”

Henrik told us that he had taken this action to draw attention to laws which allow him to copy DVDs for his own personal use, but forbid him to remove the DRM in order to do so. In his confession he asked Antipiratgruppen for a response by December 1st, indicating if they are prepared to take action against him.

The group has announced that Henrik will indeed get a response, but didn’t tell him directly, instead preferring to comment via the press.

“It is a political matter, and we have sent it to the Association of Danish Videodistributors so they can consider it. But Henrik Andersen will get a reply by 1st December,” said Antipiratgruppen lawyer Thomas Schlüter to Comon.

Schlüter went on to say that proving this type of infringement is usually impossible.

“Unless people confess, then it’s impossible to prove that they have broken copy protection. We can not break down the door to people’s homes and explore what they have available on their media server,” he said.

Poul Dylov, director for Warner Bros Denmark and chairman at the Association of Danish Videodistributors, said they will have a meeting next week to decide whether to report the matter to the police.

Dylov added they have not previously encountered a similar event, and consider the confession to be a media event, an assessment with which Henrik agrees.

“Of course, until now the film industry has not met the intentions of the law and as the culture minister will not force the film industry [to allow copying by removing DRM] by changing the law, then there must indeed be an awareness of the problem through the media,” he explains.

“But the whole problem lies in a sense with the Minster of Culture who does not follow its own interpretation of the law and the intentions of it. This gives the film industry an easy ride to the detriment of consumers,” he added.

All will be revealed here, on or before December 1st.

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“I’ve started this because i don’t want to be a criminal,” Henrik told TorrentFreak.

“As the law is today, you can not have a media center without breaking the law. When I think of a media center it is a place where you have all your movies, pictures and music together. You can only do that by having a digital copy of the movie.”

“In my media center I have digital copies of my legally purchased DVD movies,” he writes in his confession. “Overall, I suppose I’ve made digital copies of approx. 100 films and 10 seasons of TV series,” he added.

On the surface this should be fine, since Danish copyright law allows for the private, non-commercial copying of purchased DVDs.

12.–(1) Anyone is entitled to make or have made, for private purposes, single copies of works which have been made public if this is not done for commercial purposes. Such copies must not be used for any other purpose.

Unfortunately the law does not allow for the circumvention of the DRM on the disks in order to do so.

75.c –(1) It is not permitted to circumvent effective technological measures without the consent of the rights holder.

“Since the above copying is a violation of Danish law, I would therefore like to declare myself in violation of section 75 of the copyright law,” Henrik told Antipiratgruppen.

While previously acknowledging this catch 22 situation, Denmark’s Ministry of Culture felt that the situation would shortly rectify itself.

“…it is expected that in future copy protection will be designed in such a way that it will be possible to take one or more copies for personal use, and this is certainly the intention of the law,” they wrote.

However, as Henrik points out, while this might be the government’s plan, the movie industry has failed to live up to this vision, hence his intended piracy martyrdom to draw attention to the issue.

“As the culture minister sees no reason to change the law, she must, in my opinion, not understand the problem, therefore I choose to confess to you, to see whether you are prepared to get the legislation tested in court,” says Henrik as he concludes his confession.

Henrik has given Antipiratgruppen until December 1st to respond. Even given a prosecution on a plate, it’s extremely unlikely they will take him up on his offer.

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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Bragginrights, ShunTV, Btefnet, CDDVDHeaven, SciFi-Classics and Zonatracker served around 100,000 users between them, and were all targeted with lawsuits in May 2005. Earlier in the year moves were also made against LokiTorrent, s0nicfreak and TorrentStop.

While others faded away, users and admins of some of these sites regrouped to form new sites, and from the ashes of another targeted site, UK-Torrents, UK-T was born.

After the scares of 2005, becoming a large and open site became less attractive. With security in mind UK-T was an invite-only private tracker with an estimated membership of less than 5000. The site also had a fake frontend which gave birth to its codename: Wheel Mods

Some might wonder why the site is being referred to in the past tense after a healthy four years’ operation. The reason is that the site is no more.

In the absence of any official announcement either by the site’s staff or any anti-piracy outfit, details about the shutdown have been very difficult to obtain. After sitting on this story for quite a while, TorrentFreak managed to get a couple of individuals close to the site’s owners to part with a few pieces of information.

According to our sources a senior member of staff experienced legal issues following allegations of selling counterfeit DVDs which led to a search of his home address. Reports from a second source close to the situation claim that there have been further arrests of site staff, although we have been unable to confirm these reports at this point.

Some facts, however, seem fairly solid. Ex-site members are assured that they are safe, since staff quickly took the opportunity to securely delete the site and databases. However, the bad news is that the site will not be returning.

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James Monaghan from the company has recently taken part in the BERR consultation on file-sharing so has been watching this week’s developments closely. The government has set a deadline for responses to its plans (which include disconnecting alleged file-sharers from the Internet) of 29th September and, like many others, James has responded to the new statement by sending his thoughts in to the consultation. His feelings will resonate with many TorrentFreak readers. Here they are in full;

Monaghan Media Response To Latest BERR Statement

There are an estimated 7 million file-sharers (your figures) in the UK, and you want to reduce that number by 70%. 70% is 4.9 million. A fair trial is fundamental to democracy. To fairly prosecute 4.9 million citizens is an optimistic suggestion when currently Her Majesty’s Court System holds 200,000 criminal cases per year. This would suggest it is going to take 25 years to reduce file-sharing by 70%. This is only dealing with the 70% of today’s file-sharing with no regard to the expected increase of file-sharing. Research suggests that the number of file-sharers increases every day, 63% of people aged 14-24 now admit file-sharing, with 83% of those file-sharing every day.

To prosecute 4.9million people you will also need evidence. No evidence exists. Anywhere.

The ‘evidence’ championed by the failing sector of the media industry – the physical distribution sector – has been proven time and time again to be incredibly flawed. I refer here to the elderly couple who the copyright industry began legal proceedings against for downloading hardcore gay nazi pornographic film ‘Army Fuckers’ (1) among others. I also refer to the law firm Davenport-Lyons, who sent out 15,000 letters telling people to pay a small ‘fine’ (usually about £600) and they’d make a lawsuit against them (for file-sharing) go away. This is what is known as ‘extortion’.

Luckily for the consumers, and all of those of us who enjoy freedom from criminals, Davenport-Lyons were quickly picked up by BBC’s Watchdog program, and promptly disappeared.

I note though, that in today’s (25th August 2009) response, you don’t mention a fair trial. In fact you don’t mention any opportunity for those accused with this flawed and faulty evidence to defend themselves. Which rather gives the impression that there will be no opportunity for the accused to defend themselves. What you do say is this:

“…the previous proposals, whilst robust, would take an unacceptable amount of time to complete in a situation that calls for urgent action…”

So what you’ve stated, is that it is impossible for your draconian anti-file-sharing measures to be implemented fairly. Which is correct. What this means, is that this route of anti-file-sharing legislation, the ‘criminalise-7-million-of-your-citizens’ route is wholly unfeasible, impossible to implement without massive cost to the tax-payer, and impossible to implement without massive damage to the progress of the UK’s creative industries. What this does not mean is that instead of fair trials and the assumption that the accused are innocent until proven guilty, everyone should be presumed guilty until they are proven innocent. This is perverse as the accused would not then have the opportunity to be proven innocent.

In my previous contribution to this consultation, I briefly touched upon the fact that the industry has never been able to show any loss, financial or otherwise, has been caused by file-sharing. I’ve gone into a little more detail here, which shows, with numbers, evidence, and references, (rather than the usual hearsay provided by the industry) to show that there isn’t a financial loss to any of the most downloaded films this year (so far).

You’ll note that all of the top ten most downloaded films so far this year (3) are all incredible commercial successes, each making hundreds of millions of pounds. Watchmen, the most downloaded film with 16.9 million illegal downloads, still made $185,248,060. How can anyone argue that file-sharing has caused it a financial loss? Benjamin Button was the second most downloaded film so far, being downloaded 13.1 million times illegally. It made $332,860,689. A financial loss? I think not.

What we are seeing here, is the end of one type of business: the physical distribution of digital products. We are in a world where DVDs are old technology, in less than ten years Blu-ray disks will go the same way as LPs, as tape cassettes, as VHS tapes, and as DVDs. The internet however, has outlived the DVD. And it will outlive the Blu-ray disk. And it will outlive whatever format ‘succeeds’ the Blu-ray disk. The internet is here to stay. What we are seeing in the Creative Industry is a very small sector (distribution), which makes massive money from a system which is made redundant by the internet.

It is not the responsibility of the government, of the ISPs to prop up a failing business. If a business is failing, it is the responsibility of that business to look at itself, at its actions and rethink its operations in order to save itself.

It is wholly unfeasible to enforce any rule against filesharers, and impossible, literally impossible to enforce according to law.

I reiterate the statement I made in my first contribution to this consultation, the majority of my audiences watch my films over the BitTorrent system, a system so revolutionarily brilliant that it means I, an independent film-maker, can distribute a film in full High Definition to hundreds of millions of viewers with absolutely no cost incurred to me, where normally global film distribution costs several tens of millions of pounds. I think it is acceptable to say then, that my company and I are at the forefront of the industry.

As someone who uses file-sharing systems, not only to gain access to media which I never could’ve before, but also to distribute my own contributions to the UK’s Creative Industry, I am utterly shocked and appalled by the lengths to which your government will go to make my audiences, my peers and myself criminals.

This is not the end of the creative industry. I can say this with great confidence, as someone working in the industry. The industry is currently undergoing a change, a natural change, a change that it must undergo. Although this is not the end of the creative industry, it is the end of a disgusting sector of the industry which has been a parasite on the industry for the past half-century, milking it for as much money as it can, promoting false inflation of the rest of the industry only to increase its own profits.

The criminals here are not the teenagers downloading films and music, but the global corporations that extort money from artists and consumers alike, and who operate in a manner not unfamiliar with sinister global criminal networks.

It is the remit of democratically elected Government to protect the citizens, film-makers, and business-owners from the failing business model which threatens freedom, civil liberty, and creative business’ economic future.

Finally, I take this quote from your statement today:

“…As ever we would need to ensure any such measure fully complied with both UK and EU legislation…”

Disconnecting people from the internet does not fully comply with EU legislation. In fact it directly contravenes EU legislation. I am referring to amendment 138/46 which was adopted on the 6th May 2009 in response to French attempts to implement a system almost exactly the same as the one proposed here. A system which was declared unconstitutional by the French High Court. You will be aware that amendment 138/46 declared that access to the internet was a fundamental human right.

Not only do your proposals directly contravene European Law, but the certainty of wrongful sanctions being taken against citizens opens the government up to legal action. The fact that cutting off an entire household’s internet punishes everyone in that household and not just the ‘accused file-sharer’ is near-certain to breach the government’s ‘Every Child Matters’ directive where children are punished for others’ actions. The probability of cutting off the internet of those who need the internet to survive, the long-term sick, for example, or the disabled, further opens up the government to attack.

Is this the route that my government wants to pursue? Or should the government perhaps listen to its’ citizens’ outrage and stop neglecting them in favour of the power and massive wealth offered by the global corporations who’s only motivation is furthering said power and wealth?

Yours faithfully,
James Monaghan

Monaghan Media

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.

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In film circles, Pallotta is known for his outstanding animation work that defines most of his work thus far. His last film, A Scanner Darkly starred Keanu Reeves and was a smash hit on BitTorrent. With more than a million downloads, the movie earned a place in our list of Top 10 most downloaded movies four weeks in a row.

Pallotta’s latest work is something totally different though. It’s a follow up documentary to film legend Martin Scorsese’s cult-classic American Boy that was shot more than thirty years ago. In American Boy Scorsese documented the life of his friend Steven Prince, who was also the inspiration for one of the best known scene’s in Tarantino’s Pulp Fiction. With American Prince Pallotta continues the saga.

Since Scorsese’s original documentary is a rarity nowadays, Pallotta had to ‘pirate’ much of his material on BitTorrent sites and YouTube. In return, Pallotta is giving the film away for free on BitTorrent. This of course caught our attention and we decided to catch up with the director to lear a little more about his motivation to embrace BitTorrent.

TF: First off, A Scanner Darkly – which you produced – became quite successful on BitTorrent and was downloaded by hundreds of thousands of people. Were you aware of that at the time? What do you think of people who use BitTorrent to download the film?

Tommy: Really, A Scanner Darkly was successful on BitTorrent? GREAT! I wish it was more so, I have to admit, I get jealous when I look at the top 100 downloads on the trackers and I don’t see my movies. In fact, part of the reason I am releasing American Prince on BitTorrent is for the hope that it breaks the top 100. I live in Amsterdam now, so the only way I can keep up with some of my favorite shows, events, and films is to download. I think it is great, especially for filmmakers of niche movies. My movies tend to get limited releases and are more of the cult film status, so the initial release is often overlooked or simply the movie is unavailable in many areas. For me as a filmmaker it is most important that the work I make get seen. I feel for many people and places, downloading is the only way they will get to see my movies. Waking Life is a movie that I produced that is a pretty interesting example of that. It seems more popular today that when it came out in 2001. I think BitTorrent and steaming sites like YouTube are completely responsible for that phenomena. Since I use BitTorrent, I wanted to give back to the community, that was part of the motivation is releasing American Prince via BitTorrent.

TF: The MPAA has often argued that the movie industry loses billions of dollars through piracy. Others think that it has close to no impact. What’s your position in the ongoing ‘piracy debate’?

Tommy: Well, everyone has a different opinion. It is pretty simple to me: The exact same thing that happened to the music industry will happen to the film industry. I suspect the film industry knows that and is trying to hold off the inevitable as long as they can. My guess is that they will try to make as much money as long as they can until they have to change or someone comes in and organizes and unifies the industry in the way Apple did for music. But even that is tricky because obviously Apple benefited more than the music industry. So they should be looking at alternative revenue streams, I find it hard to believe that many DVDs will be sold a few years from now. I would rather embrace new technologies and distribution methods, I feel this gives me greater and more immediate access to an audience.

TF: For American Prince you’ve used material from BitTorrent and YouTube, which is great. Did you license all these clips, or are they pirated copies?

Tommy: Yes we used material from BitTorrent and YouTube for American Prince and no, we did not license them. I did receive the Master copy of American Boy from Steven Prince himself, but we found a copy via BitTorrent that was better than that copy, so we used that! Plus, there is some confusion as to who actually owns the rights to American Boy. Part of the motivation of this film was to get a proper release for Scorsese’s American Boy. I felt this film would help uncover who has the rights and hopefully get it in front of a larger audience.

TF: Why did you decide to release American Prince for free on BitTorrent and what do you expect from it?

Tommy: Scorsese’s American Boy has been and is still generally unavailable for over 30 years, yet so many filmmakers have been influenced by it. The way we saw it is through multi-generational VHS tapes. Now with BitTorrent, there is a whole new audience and generation ready to be influenced by that film and I hope mine. Steven Prince is a gold mine of future cinema scenes and I hope a whole new generation of filmmakers will understand how he has influenced American Cinema. My biggest expectation is that the most people possible will watch my film! Also, I would really like to encourage people to talk about the film, with each other as well as on the Internet. It would make me happy to see Wikipedia entries and IMDB boards as well as Internet sites. I would love for people to get together and have screenings of it with their friends, or for universities to suggest to their class for the students to watch it. I look at American Prince as the film school I never had, what I always imagined film school to be.

TF: Do you think that the Internet and file-sharing technology will play an important role in shaping the future of film distribution?

Tommy: I absolutely believe how we watch and share movies will shape the future of film distribution. I believe it will have such a profound influence that it will even change how movies are made. I think it is a win-win for the filmmakers and the viewers. Filmmakers will have a more direct reach with audience and viewers have more to choose from. I wanted to release this film in support of file sharing and to prove to myself and others that it can have a profoundly positive effect.

TF: Amen.

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Now, the leader of Spain’s Popular Party (Partido Popular), Mariano Rajoy, is warning Spaniards that Prime Minister José Luis Rodríguez Zapatero of the Spanish Socialist Workers’ Party (PSOE) may try to implement a French-style “3 strikes” regime for alleged file-sharers.

At a rally held in the Prince Felipe Auditorium in Oviedo to promote the European Parliament elections, Rajoy raised questions over the tax currently paid by everyone on devices such as computers, hard drives, blank media, CDs and DVDs etc, which should be divided between all artists but is actually going mainly to the big ones.

On the ‘3 strikes’ issue, Rajoy asked the gathered crowds if it would be acceptable to stop people from using the Internet because a government agency (at the behest of the entertainment industries) says so – is this what the young people want?

Rajoy is clearly against such punitive measures and announced that if Zapatero or anyone else tries to bring in something akin to Sarkozy’s ‘3 Strikes’ HADOPI law, he will be strongly against it.

“If someone takes this decision,” he said, “we’ll oppose it and go to the courts.”

In response PSOE candidate for the European Parliament, Iratxe García, said that PSOE is an overwhelming supporter of Internet user’s rights.

“PSOE doesn’t support or accept measures or laws like the ones in France,” she said adding, “We are voting in favor of keeping telecommunication interventions in the hands of judges and not by any other administrative authority.”

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Just under a year ago in June 2008, Warner Music, Universal Music, EMI and Sony under the umbrella of PROMUSICAE (Productores de Música de España) – Spain’s answer to the RIAA – filed a lawsuit against Pablo’s company, MP2P Technologies.

The group didn’t care how they got their ‘evidence’ against Pablo either. The record companies even hired a private detective who turned up at Pablo’s offices pretending to be a customer. Using a hidden camera, the detective took photographs, which can be seen in various pages in the complaint against Pablo’s company.

Demanding a massive 13 million euros ($17.8m) from the Spaniard, they claim that his software – which allows people to share files over the Internet – has caused them to lose a substantial amount of earnings. Pablo has never denied that he created the applications for commercial purposes and that he made some money from them. However, Pablo denies any destructive intentions against the music industry.

For their part, the record companies claim that Pablo designed the software with the express intent of providing a platform for Internet users to download and share music for free, a situation they describe as “unfair competition.” Pablo is also accused of creating these applications to profit from work to which the plaintiffs own the copyright.

But of course, since the case is taking place in Spain, there are some other interesting issues being thrown into the mix. Spanish courts have ruled again and again that no crime is committed if people download music for personal use and no profit is directly generated from any infringement. Additionally, Spaniards already pay special taxes on things like CDs, DVDs, memory cards and mobile phones to compensate the music industry for supposed losses.

But the almost undoubted legality of sharing files in Spain goes even further. In all cases presented so far, the courts have ruled that even BitTorrent and eDonkey-type sites are legal, if operated within the aforementioned parameters.

Furthermore, as pointed out by his legal team consisting of P2P and copyright experts Javier de la Cueva and David Bravo, Pablo merely created software and at no time has he ever had control over what users choose to do with it.

“This claim is illogical and goes against every principle of law. If every time someone builds something he has to ensure that any illegal use of it is impossible, we would all still be living in caves,” said Pablo. “You can not block a tool because of the use that someone might make of it. We designed a ‘tool’ for transferring files as efficiently as possible, full stop,” he added.

The case began in Madrid’s Superior Court on Tuesday and will continue today. So far Pablo says that although he is no lawyer, “Things are looking good,” despite a courtroom mishap. Unfortunately for Pablo, his iPhone received an unexpected incoming call. “My geek ultra edition R2D2 tone began to sound at full volume, and due to my nerves I dropped the mobile on the floor. This left the room clear that (a) I’m freaky and (b) I am clumsy,” he said.

Pablo also notes that he was touched when Marti Lafferty, chairman of the Distributed Computing Industry Association (DCIA) flew all the way from Washington to testify in the case. He told the judge that “Spain should be proud of Pablo.”

A decision is expected within a month, but it is entirely possible that the case will end up in Spain’s Supreme Court and could take many years to reach a final conclusion.

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

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