Internet users will face being monitored by the music and movie industries, and their ISPs forced to pass on infringement notices based on rights holder supplied evidence alone. ISPs will also have to keep records of who gets warnings and share this information with the rights holders.

If reduction targets aren’t met, file-sharers could have action taken against them by their own ISP, including the ultimate sanction of disconnection, all this without setting foot in a court. Also on the cards is allowing changes to UK copyright law without Parliamentary oversight, which means whatever the government decides to do, it can, with no threat of being blocked. Under the influence of the music and movie industries as it is, this can only go one way.

One of the benefits of living in a democracy is that entities like the Digital Economy Bill are preceded by everyone having their say. Rights holders, Internet service providers, consumer groups and, of course, the lowly individual, were allowed to participate via the BERR consultation.

While rights holders achieved almost everything they asked for and will undoubtedly be very happy with the outcome, the government insisted last week that ISPs were also widely supporting the Digital Economy Bill. But that claim turned out to be false, with the Internet Service Providers Association saying that it was “extremely disappointed” with aspects of the proposals aimed at illicit file-sharing.

Consumer groups also submitted to the consultation, including those from Which? and BeingThreatened, a portal created to provide help and support to ISP account holders who have been wrongfully accused of infringement by copyright holders.

“We are extremely disappointed, though not at all surprised with the nature of the response the government have given. Despite the 13 page response consisting of 11 pages of summary, much of which relates to the concern over the evidential collection, due process and appropriate appeal, the government makes absolutely no mention of this in the response,” they told TorrentFreak.

Indeed, as they quite rightly point out, the only items that remain in focus are those relating to protecting the entertainment industries by the introduction of technological solutions and a 3 strikes-style regime.

“The government response fails completely to put any provisions in place to deal with mistaken allegations. Whilst there is a right for appeal, there is no consequence to a rights holder for making vexatious and false claims,” they added.

Also of concern is that the new system being put forward by the government does not trump the old system, indeed they will remain in operation together. If rights holders and lawyers such as ACS:Law wish to continue with their campaigns of sending letters and demanding huge sums of money instead, they will be perfectly entitled to do so, perhaps with the added assistance of the new information ISPs will be compelled to store.

However, what BeingThreatened find most disappointing is that despite a large opposition to the plans to deal with file-sharing, many of the dissenting voices have simply been ignored, with the government giving submissions from rights holders and their umbrella groups absolute priority.

“This does not give the majority of respondents from our community a feeling that democracy has been observed. It is clear that the consultation, at least from the government’s point of view, was nothing more than a box-ticking exercise. It looks suspiciously like there was never any intent to engage in a transparent democratic process. I am certain that our group will not be alone in these views,” they added.

The full statement BeingThreatened can be found here and all the (corporate and individual) responses to the consultation are available on the BERR website.

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

Nevertheless, Uggla insisted that Spotify is a fantastic service with a great range of music to sample. However, he felt that the fact he wasn’t getting paid was the fault of the major labels involved in the project (Sony BMG bought 5.8% of Spotify for 2,935 Euros, Universal Music got 4.8% for 2,446 euros, Warner Music paid 1,957 Euros for 3.8% and EMI pocketed 1.9% for an investment of 980 Euros), claiming that he “earned as much in six months as a BUSKER could earn in a day.”

As the dust settled on the story, many non-Swedish readers were saying “Magnus who?” and wondering if this artist’s lack of mainstream popularity was the real reason behind him earning virtually nothing. But what about big artists? What about really, really big artists with huge international appeal. Say, an artist like Lady Gaga, who has sold more than 4 million albums and shifted in excess of 20 million paid digital downloads?

According to a report today, Lady Gaga’s track “Poker Face” was one of the most popular tracks during a five month period on Spotify and was played more than a million times. So how much money does she get paid by STIM (the Swedish Performing Rights Society) for this massive achievement?

SEK 1150 – that’s around $167 or roughly 113 Euros.

Commenting on the story, Douglas Léon, better known as Swedish rapper Dogge Doggelito, said he was dismayed.

“It is totally sick. We musicians have no rights, you may not charge [for music] anymore,” adding that Lady Gaga could’ve earned more driving an illegal taxi-cab.

Swedish artist, music producer and philosopher Alexander Bard, however, said that this payment was better than Lady Gaga would have achieved from her music being available via The Pirate Bay, noting that the amount was “…more than zero.”

Technically Bard is absolutely right, but let’s be honest – Lady Gaga would blow the money she earned from STIM in a 20 minute hotel mini-bar bender. Looking at the overall downloads, let’s face it, per track she earned pretty much near to nothing from both services.

While Spotify is to be commended for having the guts to try something new, for providing a truly wonderful service and for having achieved such a lot technically in a such a short space of time, one can’t help but wonder if it is ever going to bring in decent money for the artists.

After all, aren’t these the very people the music industry continually holds up as the important ones to encourage, nurture and support?

Lady Gaga’s example shows that Spotify’s business model needs some work, and the labels seem to agree on this. The US launch of the service has been delayed earlier this week, allegedly because of concerns about Spotify’s ability to upgrade free users to paid customers.

“We think Spotify is a great service but they’re going to have to convince us they can convert enough people from free to paid subscriptions to make it worth our while,” one label told the Financial Times. “As an ad-supported service the economics don’t work at all.”

Despite the startup troubles for Spotify the reviews from users, many of which were avid file-sharers, are still extremely positive. The service recently launched an iPhone app that allows users to play the tracks on the go, with or without an Internet connection, which many saw as the missing link. Now all they have to do is come up with a plan to actually make money.

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

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.

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

The latter group has not been very successful in convincing the big labels to change their anti-piracy strategies, but when MC Hammer says STOP they will have to listen.

In a recent interview Hammer commented on the industry’s struggle with piracy and the future of music in the digital age. In Hammer’s view, the RIAA’s legal battles against file-sharers have only alienated buying customers. ”The approach that the music industry took to fight piracy was the wrong strategy,” he said.

Aside from going after individuals, the entertainment industries have also targeted ISPs, for enabling their customers to pirate. The most prominent case at the moment is that of AFACT against iiNet, where the anti-piracy group wants the Aussie ISP to disconnect repeat infringers.

Using a murder and gun analogy to appeal to his fellow rappers, Hammer argues that AFACT is going after the wrong party by targeting the ISP.

”When there is a murder done with the gun, do they go back to the guy who sold the gun at the store and arrest him? No they don’t. They arrest the person who did it. So in this particular case, somebody is stealing content using the freeway. You can’t go back and sue the construction men,” Hammer said.

In addition to calling for a stop to the legal battles, Hammer thinks the music labels should focus more on digital content instead of trying to sell plastic to a generation of people that have never even owned a standalone CD player.

‘Digital files are no doubt not just the future, but the present. I think that it’s [the CD format] on its last legs, it’s on an artificial respirator,” Hammer commented.

“I don’t know what would turn them on about having to go through that terrible exercise of trying to open the packaging – it’s unbelievable when you’re trying to open a CD, right? You need a box cutter … it’s a tough deal to get it open. And once you get it open … you go and upload it to your computer,” Hammer added.

Hammer has a fair point there. Digital sales are breaking records year after year in terms of revenue generated, while the decline in physical CD sales is more likely to be a sign of the times rather than a side-effect of music piracy.

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

However, despite the shunning of the multi-colored approach of the above, among those millions of Internet users for whom BitTorrent has become a way of life, or those technology reporters who have written so much about the site, the logo employed by The Pirate Bay is also very recognizable indeed. The ship emblem, with its sails featuring the outline of a cassette tape-and-crossbones, has been reproduced millions of times on countless numbers of websites and products.

The Pirate Bay, in line with their sharing ethos, has always allowed people to use the logo free of charge and even makes the artwork publicly available in usable, scalable formats to ease its reproduction, some of which were used to create fan tattoos. But that is still not enough for some greedy individuals.

Today news broke that a private Swedish company, noticing that the logo had no commercial protection, took the opportunity to hijack it. The outfit, Sandryds Handel AB, have officially registered the emblem as their own with the authorities, with the intention of commercially exploiting it.

While admitting they have absolutely nothing to do with The Pirate Bay, in a radio interview Sandryds Handel spokesman Bengt Wessborg defended his company’s action.

“The idea is to sell USB drives using this brand,” he told SR. “We saw that it was not already allocated to someone else. It was not registered,” he added.

A spokesman for Sweden’s Patent and Registration Office said that they were unable to find that any rights to the logo were held by The Pirate Bay, therefore they were able to allocate them to Sandryds.

The logo registered by the company is very slightly different in color to that of the original Pirate Bay design, with ‘The Pirate Bay’ written as “The Piratebay”.

Commenting on the news, ex-Pirate Bay spokesman Peter Sunde told TorrentFreak: “It will be turned over quite easily, it’s a preliminary registration that is being ‘tested’,” adding that while anyone can use the logo for any purpose they like, they may not take any action which limits the way other people can use it.

Peter says he wrote to Sandryds, and they replied telling him “…that they were amazed themselves and just wanted to try.”

TorrentFreak asked if The Pirate Bay is going to try and get the logo back, and we were told that they would try to get the decision by the patent office anulled, adding that the registration wasn’t legal and is therefore prohibited by law.

“It’s a person at the registration office that has made an error – willingly or not, we’re not sure,” they added.

“It would be nice if they liked it,” said the Sandryds spokesman in a statement. “But we may perhaps enter into dialogue with them if needed,” he added.

Needless to say, certain Pirate Bay supporters will not “like” this hijacking at all, and offering discussions over the reappropriation of an emblem they already see as their own will be tantamount to waving a red rag at a bull.

History shows us what happens to outfits who take negative actions against The Pirate Bay, so on past experience, if Sandryds Handel hope to keep doing business on the web in any meaningful way, they may want to quickly reassess their position.

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

It therefore came as a big surprise to hear that Ethan Applen, director of technology and business strategy at Warner Bros., stated at NewTeeVee’s Video Rights Roundtable that P2P technology doesn’t deserve to be blamed for the fact that some people use it to download copyright infringing content.

“In terms of our own view, we think P2P gets vilified. It’s just a technology. CNN used it for Inauguration coverage. It can be used for piracy, but as a technology, I think it has a lot of advantages to it,” Applen said, adding that “P2P works really well at delivering an entire season or the entire run of a show.”

Applen’s comments are at odds with the legal strategies of the Hollywood studio, where its lawyers continue to blame the providers of technology for the activities of their users. If Warner Bros. indeed believes that P2P technology is not the villain, then they should inform their lawyers or withdraw from the court cases they are currently involved in.

Applen appeared together with Bram Cohen in the roundtable session, where worryingly some of the attendees admitted hating the BitTorrent inventor for creating his famous file transfer protocol. Aside from praising P2P for its speedy delivery of TV-shows, Applen also mentioned that it is a good marketing tool.

This is no surprise as a Warner Bros. executive previously admitted to leaking a pilot of Pushing Daisies on BitTorrent in order to “help the cause”.

Bram Cohen himself also gave several example of how ‘unauthorized sharing’ via BitTorrent may have helped content creators. He mentioned that the leak of an unfinished copy of X-Men Origins: Wolverine might have boosted interest in the film, and he noted that BitTorrent may have also helped the anime business to grow.

Despite all the positive comments on the use of BitTorrent and P2P in general by this Warner Bros. executive, we can’t help wondering why they are still pouring millions into ridiculous anti-P2P lawsuits that haven’t decreased piracy a single bit.

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

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.

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

With a vote of 407 in favor, 57 against, with 171 abstentions, EU lawmakers sent the package back to the Council in May, due to concerns that Internet users would not have their rights sufficiently protected.

After all night negotiations the deadlock was broken after a compromise agreement was reached. Internet users in all 27 EU states will be entitled to be put through a “fair and impartial procedure” (although what that means exactly is far from clear), including the right to be heard in response to allegations before being subjected to the ultimate sanction – disconnection.

Christian Engström of The Pirate Party helped to shape the modified text that was accepted in a unanimous vote last night.

“The Telecoms Reform Package neither demands nor prohibits the implementation of three-strikes legislation to disconnect alleged file-sharers by member states,” Engström told TorrentFreak, adding that if they do implement such measures, they will have to be within the parameters of the directive.

As reported by Engström, the exact text reads:

3a. Measures taken by Member States regarding end-users’ access to or use of services and applications through electronic communications networks shall respect the fundamental rights and freedoms of natural persons, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and general principles of Community law.

Any of these measures regarding end-user’s access to or use of services and applications through electronic communications networks liable to restrict those fundamental rights or freedoms may only be imposed if they are appropriate, proportionate and necessary within a democratic society, and their implementation shall be subject to adequate procedural safeguards in conformity with the European Convention for the Protection of Human Rights and Fundamental Freedoms and with general principles of Community law, including effective judicial protection and due process.

Accordingly, these measures may only be taken with due respect for the principle of presumption of innocence and the right to privacy. A prior fair and impartial procedure shall be guaranteed, including the right to be heard of the person or persons concerned, subject to the need for appropriate conditions and procedural arrangements in duly substantiated cases of urgency in conformity with European Convention for the Protection of Human Rights and Fundamental Freedoms.

The right to an effective and timely judicial review shall be guaranteed.

Engström said the vote for the text was a positive surprise as he thought this agreement would never happen. Although in an ideal world it is not everything he could have hoped for, it is a big step in the right direction.

“We would never have been able to achieve this without all the work that the community of net activists has put in,” he further notes. “We have shown that ordinary citizens working together can make a difference. And this is only the beginning. The Internet community has begun to flex its muscles.”

Engström told TorrentFreak that although he is happy with the outcome, there are still many battles to be fought. “Nobody should be disconnected from the Internet in an open and free society,” he said.

The European Parliament and Council is due to make a decision on the Telecoms Reform Package in late November, with the laws coming into force early 2010. Member countries will then have 18 months to pass the legislation into their own national laws.

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

The case continued Wednesday in the Federal Court, with iiNet CEO Michael Malone taking the stand for the third consecutive day.

Again AFACT barrister Tony Bannon tried to portray iiNet as an encourager of copyright infringement on its network, by referring to iiNet marketing where the ISP measures bandwidth in terms of how much music or TV episodes people can download. Malone said the company did this simply to give a customer an easier barometer by which to measure their consumption.

When questioned on the music aspect, Malone said the company referred to legal downloads, such as those from iTunes. Bannon countered by saying this could not be the case, since iiNet did not count downloads from iTunes towards a customer’s bandwidth quota.

According to iTWire, a welcome email from iiNet to new customers ended with, “Thanks for choosing iiNet. Happy downloading.”

By drawing attention to the above ponts, AFACT hopes to show that iiNet encouraged infringements, thereby losing its safe habor protection as a carrier.

CW reports that AFACT presented press articles regarding the levels of BitTorrent transfers on the Internet, in the context of actions taken by ISPs in order to limit P2P traffic.

In one article, Malone had said that BitTorrent transfers accounted for around 50% of all Internet traffic and admitted in court that BitTorrent had been used on iiNet’s network since it became available. He went on to agree that while much of this traffic involved the transfer of movies and TV shows, he didn’t feel that “..every young person in Australia is downloading illegally using BitTorrent.”

One exchange apparently raised a laugh in the courtroom when Bannon accused Malone of attracting heavy-usage customers in order to boost iiNet profits.

“I would prefer [those customers] go to someone else and let someone else be sued,” said Malone.

“And you’re happy to take their money in the meantime?” Bannon asked.

“Yes,” he replied.

Yet again, Bannon raised the issue of iiNet’s failure to forward AFACT copyright infringement allegations to its customers. However, an email presented from the Internet Industry Association’s Peter Coroneos, indicated that he was concerned that doing so could lead to an assumption that ISPs are responsible for the actions of their customers.

In the email exchange with Malone, Coroneos said it would be preferable and advantageous for all involved if the content owners could provide some legal alternatives.

After Bannon showed the court documentation showing policies in place at rival ISPs to deal with allegations of copyright infringement, Malone again confirmed that iiNet has no formal policy on how to deal with these type of allegations, noting that the company had yet to be presented with evidence of what he described as a “repeat infringer”.

Earlier in the case, Malone had defined a repeat infringer as one who had been proven as such by a court, but Bannon mocked Malone, asking if the iiNet CEO had just heard what he’d said and would he like to think about the question again for a moment.

Malone said he didn’t and Bannon accused him of treating the proceedings as a game.

The case continues tomorrow.

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

While the public is denied access to drafts of the controversial agreement, lawmakers continue to receive input from anti-piracy lobbyists such as the RIAA and MPAA. Today, the 6th round of ACTA negotiations have started in Seoul, South Korea, where representatives from the U.S, the European Union, Canada, Australia and several other countries will discuss the treaty’s content.

As happened previously, parts of the document have leaked out to the public and they reveal that the agreement’s scope is even more far-reaching than previously expected. The Internet chapter of ACTA has very little to do with counterfeiting, but adopts many of the same policies that anti-piracy lobbyists have been calling for.

Among other things, the ACTA draft calls for a global three-strikes policy to disconnect alleged file-sharers from the Internet, without solid evidence or a court order. If ISPs won’t do so, they will be held liable for the copyright infringements of their customers.

Similarly, all participating countries have to adopt a ‘notice and takedown’ policy where copyright holders can request ISPs to remove infringing materials, again without having to provide solid evidence or proof that they actually own the copyrights. When ISPs don’t comply with the requests they will be held liable, which means that they will be seen as pirates themselves.

Unfortunately, all parties involved in the negotiations refuse to make the ACTA plans public, effectively preventing any constructive input from the public. Yesterday, Knowledge Ecology International (KEI) petitioned President Obama to change this situation and be transparent about the agreement that will affect millions of people. Until that happens we can only fear the worst.

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

Continuing first from yesterday’s proceedings, ITnews reported an exchange between iiNet CEO Michael Malone and movie industry barrister Tony Bannon, over Malone’s understanding of BitTorrent.

Malone told the court that while he had an understanding of the protocol, he had never used uTorrent, the client used earlier by Bannon to give the court a technical demonstration. Bannon’s demo used iiNet’s own tracker (an installation of RivetTracker) which it has used to distributed several press releases which all relate to the trial.

It is difficult to see where Bannon was going with his questioning, but it began with an admittance by Malone that the torrent files were intended to be used by people with access to a BitTorrent client. Malone then denied that the releases were specifically targeted at iiNet customers, noting that anyone can access them

Under further questioning regarding the inclusion of a note in the torrent files dialogue box indicating the files were non-pirated, Malone reiterated that while he had an understanding of the BitTorrent protocol, he did not have experience of the client used by Bannon

Then, with an apparent deafness towards Malone’s perfectly clear response, and demonstrating an apparent ignorance between a BitTorrent client and the BitTorrent protocol, Bannon sought to press Malone into admitting to his 400,000 customers that he didn’t understand BitTorrent.

Again, Malone stated that he didn’t know how to put a comment on a torrent file, but Bannon persisted in trying to get Malone to admit that he knows how uTorrent 1.8.4 works, but Malone said he’d never used it. There could, however, be people in iiNet who had, he conceded.

Bannon then said that in the last 24 hours the torrent file functionality for the press releases had been removed. Malone said that if it had, he certainly hadn’t requested it, asking Bannon how he was attempting to access the Internet, suggesting that a firewall in the court was stopping the transfer.

TorrentFreak’s checks show a single seeder on each torrent and each one worked absolutely perfectly.

Moving on to iiNet’s handling of copyright infringement allegations, iTWire reports that Bannon tried to paint a picture that iiNet’s policy of forwarding AFACT notices to the police was little more than a cynical attempt to pretend that they were dealing with them, when in fact they were not.

For the umpteenth time in this case, Malone said that he was under no obligation to act on mere allegations from AFACT which were not backed up by a court order.

“AFACT was telling us to disconnect customers without further ado,” said Malone. “The question is, what should we do when confronted with illegal activity? And our response is, report it to the proper authorities.”

While iiNet said it had always been policy to forward the notices to the police, ITWire notes that evidence emerged that the company had sent notifications twice, although there was no indication of how many infringement notices were in each batch.

Yesterday Malone said that the evidence provided by tracking company DtecNet’s investigation was “compelling” and should be reviewed by a third party and the courts. In the face of this statement, Bannon asked Malone why he had not taken action based on AFACT’s allegations.

“This is a right,” said Malone, “not an obligation of iiNet.”

These days arguments in favor of anti-piracy action seem almost incomplete with the obligatory reference to child pornography, as we heard in yesterday’s propaganda piece from CBS. This case is no different.

Bannon put it to Malone that if the evidence provided was “compelling” and Malone had received “compelling evidence” that an iiNet customer was accessing child porn, would the company allow the user to do so “day after day?”

Of course, any allegations of this nature would involve the police, and the police or the courts would do the investigation, get the proper paperwork and order iiNet to comply, which they naturally would. Malone said that on mere AFACT allegations of civil infringement (as apposed to an infinitely more serious and jailable criminal offense), such action would not be permitted.

Bannone then pressured Malone to admit that “…you’re happy to tell your customers this from the witness box,” that iiNet will not disconnect subscribers for infringing copyright.

At this point one has to wonder if Bannon is deaf or just plain stubborn. It is absolutely crystal clear to anyone following these proceedings that yes, iiNet will disconnect customers for copyright infringement, providing there has been due process and a court has ruled that disconnection is appropriate.

The case continues tomorrow.

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

In early 2007, when network neutrality was still a non-issue for most people, BitTorrent inventor Bram Cohen told us that ISPs should find a way to cope with BitTorrent.

“ISPs have to invest in making their networks better and faster rather than stifling applications which consumers use and love,” he said, while encouraging users to switch to non throttling ISPs if possible, or complain to their ISP’s customer services.

A lot of things have changed in the years that followed. Comcast started to prevent its users from seeding content on BitTorrent, and many other ISPs took similar actions to throttle BitTorrent traffic. As a direct result, network neutrality was placed on the political agenda in many countries. It also inspired BitTorrent Inc. to look for solutions that would eliminate the need for throttling entirely, solving the problem at its root.

This is where uTP comes in. uTP is a new and improved implementation of the BitTorrent protocol which is designed to be network friendly. The current implementation often causes interference with other applications, which is the main reason why ISPs try to slow it down, or even stop it altogether. uTP aims to solve this problem.

With uTP, uTorrent (and the Mainline client) will become network aware by throttling itself if congestion in the network is detected. This will have a huge impact on ISP networks according to Simon Morris, BitTorrent’s VP of Product Management. “If uTP is successful it should result in a multi-billion dollar windfall in terms of savings for ISPs,” Morris told TorrentFreak

This means that the new uTorrent will eliminate the need for ISPs to throttle BitTorrent traffic in their networks. Of course, uTorrent users will also be affected by the new protocol. When needed, uTorrent will decrease the upload or download speed to avoid congestion.

According to Morris it’s mainly the upload speed that will be affected. “The throttling that matters most is actually not so much the download but rather the upload – as bandwidth is normally much lower UP than DOWN, the up-link will almost always get congested before the down-link does,” he explained.

“uTP measures the time a packet takes to get sent from peer A to peer B, so in theory uTP will detect congestion anywhere on that path, although in practice the congestion most often happens somewhere on the first-mile uplink connection.”

So does this mean that the new uTorrent will result in slower download times? Not necessarily. Since there is less congestion, uTorrent users will experience no slowdowns in web-browsing, and ideally less congestion and a more efficient use of the network may result in faster download speeds. uTP is currently being tested in uTorrent v2.0 beta and thus far none of the testers have reported any significant problems.

“There are already a couple of hundred thousand people using our v2.0 beta client, and things seem to be progressing very nicely. Our v2.0 client will initiate outgoing uTP connections by default whenever it can. Previous versions of our clients will accept incoming uTP connections – they just won’t initiate them,” Morris said.

“We’re excited that this creates a better experience for millions of consumers, and it also potentially has a massive impact on ISPs – greatly reducing (even eliminating) any justification to manage or shape BitTorrent traffic and allowing ISP networks to handle more BitTorrent traffic, without resulting congestion forcing capital network upgrades ahead of schedule or the ‘need’ to invest in DPI or other traffic shaping gear.”

It is hard to tell if uTP really is BitTorrent’s savior (some highly doubt it), but if it lives up to the expectations it will be beneficial to both users and ISPs. The specs for uTP will eventually be open so other clients will have the opportunity to implement it too. However, since uTorrent and the Mainline client together are used by two thirds of all BitTorrent users, the effects should be immediately noticeable to both those users and ISPs.

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

However, those who thought that these landmark cases would change public opinion towards file-sharing are wrong. In fact, not even the draconian anti-piracy legislation that went into effect in Sweden this spring could change social norms towards downloading movies and music without the permission of copyright holders.

These findings are the result of the Cyber Norms sociological research project carried out by Swedish researchers. They conducted survey interviews among 1,000 people between the ages of 15 and 25 to measure the strength of the social norms towards illegal file sharing. The aim was to find out whether the newly implemented anti-piracy legislation (IPRED) had been successful in reducing the gap between legal and social standards.

The findings of the surveys show that despite stronger anti-piracy legislation, the attitudes of young Swedes towards piracy haven’t changed.

“Despite the intensive efforts of the government during the six-month performance period, social support for copyright law in relation to file sharing is still at a record low. Young people in the survey do not feel any social pressure to refrain from interchange, whether from adults or peers,” researcher Måns Svensson comments.

Interestingly, the new law does seem to have an effect on the file-sharing habits of the younger Swedes. The percentage of people who say they don’t download any files illegally has increased from 22 percent in February to 39 percent in September. However, as the norms do not reflect the letter of the law it will be hard to maintain compliance, which could result in an increase in piracy in the months to come if people feel less threatened by possible punishments.

“In cases where the law is not supported by the social norms, it makes it extremely difficult to maintain compliance. Humans tend to follow social pressure rather than the letter of the law. With regard to intellectual property and copyright provisions, the Internet and file sharing technologies have created new conditions. In a short time, the social norms have developed in a direction that gives very little support of the law,” Svensson explained.

The study emphasizes that the law does not reflect what the general public considers to be legal, fair use, or even moral. Most people don’t feel that they’re doing anything wrong when they download an MP3 or share a movie, often because the legal alternatives are hard to find, full of DRM or simply overpriced.

So, as long as the entertainment industries fail to innovate and offer some real competition to piracy, the social norms wont change.

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

Then, a little later, Lynton hit back at his critics. He pointed to the leak of an unfinished copy of Wolverine, which appeared on the Internet (from a movie studio source who has never been identified) a month before its official release. As Techdirt pointed out, none of this hurt the movie.

Despite terrible reviews and this “devastating” leak, Wolverine still did very well at the box office, taking $35 million on its first day, beating both X:Men ($20.8m) and X2: X-Men United ($31.2m).

In a guest piece in The Times today, Lynton is complaining again. “Internet piracy means less money to make movies,” warns the headline.

Lynton begins by plugging Sony’s launch tomorrow of Michael Jackson’s This Is It, noting the importance of releasing it simultaneously worldwide.

“If Sony released it only in the US on Wednesday, by late Thursday it would be camcorded, uploaded on to the internet and available free to anyone with a broadband connection,” he said.

While absolutely correct, everyone also knows that the following is also true. The quality would be absolutely dire, Jackson’s singing would be punctuated by the rattling of candy packets and accompanied by a myriad of noisy cinema-goers singing their own version of his songs, probably all in D-Minor. The video would undoubtedly bring a whole new dimension to Black or White. People download this garbage but no-one enjoys it, and for good movies sales are not affected – but I digress.

“Online theft siphons billions of dollars out of the marketplace. That means less money to make movies. Projects get scaled back and others dropped. Some potential blockbusters won’t get made. Some new writers, actors and film-makers won’t get discovered,” writes Lynton, adding;

“Last year the leading Hollywood studios made 162 films — more than 40 fewer than in 2006, and the lowest number in a decade.”

But of course, just counting the “leading” studios doesn’t give the full picture. Even the MPAA’s own stats reveal a slightly different picture;

“The total number of films released domestically in 2008 was up 1.8%, to 610 films.”

So, if one casts the net slightly wider (yes, there is a world outside Universal, Warner, Paramount, Sony and Twentieth Century Fox), things look slightly different.

2004 Total Movies Released: 567 Total Combined Gross: $9,327,315,935
2005 Total Movies Released: 594 Total Combined Gross: $8,825,324,278
2006 Total Movies Released: 808 Total Combined Gross: $9,225,689,414
2007 Total Movies Released: 1022 Total Combined Gross: $9,665,661,126
2008 Total Movies Released: 1037 Total Combined Gross: $9,705,677,862
2009 Total Movies Released: 1177 Total Combined Gross: $7,596,626,766
(2009 figures incomplete, total movies scheduled to be released, gross to date)

Admittedly less money seems to be being made per movie, but that hasn’t resulted in less being made – movie releases are set to almost double from 2004 to 2009.

But in the end, Lynton is arguing that more piracy means that less money goes into the studios’ pockets. But in an Ars Technica piece ‘What piracy crisis? MPAA touts record box office for 2007‘, the stats speak for themselves;

“..data that shows the US box office doing its biggest year of business ever in 2007, growing 5.4 percent over 2006 and bringing in $9.63 billion.”

So maybe 2008 was a disaster? Not quite. In another Ars piece ‘What piracy? Movie biz sees record box office in 2008‘, the stats also speak loud and clear;

“Domestic film box offices broke multiple records this year [2008], grossing an estimated $9.78 billion.”

Even the MPAA’s own stats reveal that the “Worldwide box office reached another all-time high in 2008 at $28.1 billion, an increase of 5.2% over 2007.”

I’m absolutely no statistician, but I simply find Lynton’s claims confusing. I can’t imagine that I’m on my own.

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

For that experiment the stream was only broadcasted to a select group of people and not the entire Internet. Today, however, the lab’s researchers will launch their second BitTorrent streaming experiment on a much bigger scale, as they will broadcast a live stream of a live music performance for all the world to see.

“The setup is very simple at the cinema – we have a standard computer connected to audio and video mixers, which then feeds the P2P network,” Dr. Njål Borch, a senior researcher involved in the project told TorrentFreak.

The software they use to stream the performance is from the EU-funded P2P-Next project and several of the partners are also donating bandwidth for the experiment to make sure that everything runs smoothly.

The performance will take place at Aurora Kino in Tromsø as a part of the Insomnia electronic music festival. To spice things up, the lab is also sending a live feed to the Notch festival in Beijing, which is running in parallel with Insomnia, and to Skjervøy kulturhus in the far north of Norway.

However, since the broadcast is public this time, everyone with an Internet connection can tune in. The only thing required to watch the stream is the Swarmplayer software, or a browser plugin (Windows only). Both are linked on the project’s website.

According to Borch, this BitTorrent live streaming experiment is not just a proof of concept, it might eventually play a significant role in the future of live streaming on the Internet.

“If the scalability is good for live streaming, this can increase the amount of viewers without massive bandwidth bills. Another effect, which I am currently very much a fan of, is that adding more bandwidth is very easy – put up a seedbox and hand it the torrent. No administration otherwise necessary,” he told TorrentFreak.

Anyone who would like to be part of this world premiere can tune in at 5 pm CET when the broadcast will start. If all goes well you’ll be able to see a live performance of a new soundtrack to Pudovkin’s 1926 film, “Mother”.

Update: The broadcast ended and it’s replaced by a 5 minute clip of the concert so people can still test the streaming technology. It was a great success with visitors from all over the world.

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

However, none of this stopped the lobby groups, or the politicians looking to push for the ruling.

In the EU, the amendment, which would protect against 3-strikes laws by requiring due judicial process to occur before any sanction (such as cutting off Internet access), has been substantially watered down. Meanwhile, in France the Constitutional Court has ruled in favor of a slightly modified version of HADOPI – their legislation which includes a 3-strikes sanction.

On Tuesday, the Parliament gave up on Amendment 138, which had been voted on twice by the assembly, gaining a majority both times. The amendment was supposed to protect the rights of citizens from being treated as guilty upon the accusations of an industry group, and punished based on the same. It read;

Applying the principle that no restriction may be imposed on the fundamental rights and freedoms of end-users, without a prior ruling by the judicial authorities, notably in accordance with Article 11 of the Charter of Fundamental Rights of the European Union on freedom of expression and information, save when public security is threatened in which case the ruling may be subsequent.

Instead, they are now considering a version which does not guarantee the right to an effective and timely judicial review.

Christian Engstrom, the Pirate Party’s MEP, commented on the amendment in his blog. He included the differences in text that have been made since Tuesday (bold denotes added text, strike-through indicates removed) in a meeting between three negotiators for the European Parliament and representatives for the Council of Ministers.

The changes included the removal of the judicial guarantee, that any measures should come only after a fair an impartial procedure (and should now just ‘respect’ such things), and the ACTA-like inclusion of ‘National Security’ clauses.

He summarized things simply, saying: “It shows utter contempt for Parliament by totally ignoring everything it says. The Council plans to bypass Parliament and once and for all prove that it is they who make the decisions, end of story.”

Meanwhile, France’s highest Constitutional Court has approved a slightly modified version of HADOPI. While initially blocked last September, a change to require a judge to sign off on the disconnection action (rather than the Agency itself) has meant it passed the Court. However, such court measures will be ‘fast tracked’ rather than given full judicial process, a situation the New York Times describes as ’similar to traffic violations’.

This has angered many, including (of course) the Pirate Party. Laurent Le Besnerais of the Parti Pirate and Pirate Party International called it “a huge blow for Internet Freedom.”

“In June 2009, this same Council declared that Internet access is a fundamental right which cannot be restricted without judicial process,” he told TorrentFreak. “Today, the council gives a judge the right and responsibility to pronounce a closure of Internet access to anyone suspected of having shared illegally. Furthermore, the suspect will have to prove his innocence, which creates a presumption of guilt.”

With the flip-flopping over these measures, it can only be seen as a greater boost for the European Pirate Parties in future elections. However, since much of the party works and draws its support online, there is the risk that members could start having their net connections cut off. With evidential standards so low, would it really be beyond the realms of possibility that political critics of these plans could end up being cut off at the say-so of those they oppose?

If all goes as planned the agency will be staffed next month, with letters starting in the new year, and terminations starting as soon as next summer. How long the law will stay once the innocent start being punished is harder to predict. As with IPRED, the people the law aims to deal with will just use seedboxes, VPNs, and open WiFi hotspots instead of their home connections.

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

One major site that has showed an acute aversion to saying just about anything to outsiders is Demonoid. This semi-private site has nevertheless made the news dozens of times, most recently due to its recent downtime, as reported here on TorrentFreak.

“We are experiencing power outages that have caused some ram and hard drive issues. We might have to shut down everything to fix and prevent further damage,” said Demonoid in a statement six weeks ago, warning that downtime could run to “…days maybe, until we can change the power circuit.”

However, TorrentFreak has received possibly conflicting information from Demonoid’s host, Colocall in Ukraine, who said in a statement: “There were no problems with power supply at the location where Demonoid servers are hosted.”

While information about Demonoid is always scarce, information coming out of Colocall is a rarity too, since the company has previously refused to speak with journalists about their most infamous customer. That’s why it was of great interest when Ukrainian blogger Pavel Golubovskiy contacted TorrentFreak to say he had netted an interview with Colocall. Here is a translation of the questions related to Demonoid;

Why did you choose to host Demonoid?

The customer came to us and ordered a particular service. For us it wasn’t a political decision, Demonoid is an ordinary client for us.

What exactly do you host, the inferno.demonoid.com tracker?

They brought their servers, which are now located in our data center. We don’t know what information is stored there – we do not have access to this information. These servers are supported remotely by Demonoid technical staff.

Is there a way to contact the Demonoid admins?

They will not answer you. Many people want to contact them – journalists, fans, police, local authorities from different countries. But the Demonoid admins have a very selective approach to e-mail correspondence. When the police wanted to contact them, I specifically warned the admins that they had to respond to this request.

So the police already inquired about Demonoid?

Well, our local authorities are interested in Demonoid all the time. Rightholders associations are constantly trying to put pressure on us, including pressure with the help of Ukrainian authorities. We redirect them to the admins, but do not interfere or try to negotiate.

Are they putting any serious pressure on you?

It sounds strange, but Ukraine is still a jural state. Therefore IFPI’s personal opinion is just that, their personal opinion, despite the fact that the budgets of the IFPI participants are comparable to the budget of the Ukraine.

Aren’t you afraid that there can be a similar situation with Demonoid’s servers as there was with Infostore.org site? [famous Ukrainian file-sharing site, its servers were confiscated by police about a year ago]

As a hosting-provider we take such risks into account. This can happen not only with Demonoid, but with any client. We do not control what information is stored on servers, anybody can buy our hosting service.

Anti-pirates and the media-lobby are now trying to shift all the responsibility for file-sharing onto Internet providers, so that providers will have to monitor user activities. Will this affect hosting providers too?

We have such laws in draft in our parliament periodically. But the Ukrainian law “On communication” is clear about this: providers are not responsible for what their customers do. And the fact that rights holders want to change that is their personal opinion, they are not legislative bodies. Let them buy a parliament member and lobby for such law, then we will observe this law. But until then they are nobody to us, and we are nobody for them too.

About a month ago Demonoid reported technical problems. Due to those problems all data for the last several months has vanished. In an attempt to recover from these problems the site went offline. Do you know what happened?

Some time ago several of their hard-drives crashed. But that was several months ago and we don’t know what was the reason of recent problems.

According to their admins, the man who can restore the tracker is not available. Are they speaking about some Colocall programmer?

No, all the technical support of servers is performed remotely. They aren’t speaking about one of our specialists.

Torrentfreak wrote about the president of Lithuanian antipirates, who demanded the closure of access to Demonoid. He said that it is very hard to even make contact with you. Have you spoken with him?

Yes, someone called us. We just could not speak with him: from the start of the conversation he immediately began to threaten us, he was absolutely non-constructive. We sent him to the court and have said that if he brings the court’s decision, we will be happy to execute it, because we observe all Ukrainian laws. Until then we are not going to speak with him.

Access to Demonoid is blocked for several countries including Ukraine. Is this your initiative or the tracker’s decision?

It is the tracker’s policy, not our initiative. I think this is due to DDoS-attacks.

Are there any DDoS-attacks aiming at Demonoid?

Yes, there are many large and serious DDoS-attacks. But they are always the problem of every hosting provider. We have learned how to neutralize them, so such attacks have almost no effect on Demonoid’s operations. And, incidentally, Demonoid isn’t the only site to be attacked: during the last election we hosted the server of the central election commission committee, it was constantly under DDoS-attacks.

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

As always, we’re looking forward to your commentary. For questions or suggestions, feel free to contact the crew at tv@torrentfreak.com. We encourage contributions from viewers!

An iTunes feed is available here, and a regular RSS feed here.

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

Today’s report is based on data from over 17,221 unique users in a few dozen public BitTorrent swarms, collected by the Tribler P2P research team at Delft University of Technology.

The results in the table below show the market share for each individual client. In common with our previous reports, only 5 clients reached the 1% threshold, the remaining 14 that were encountered are grouped in the ‘other’ category. Some clients were not identified by libTorrent (rakshasa) and those ended up in the unknown ‘category’.

The changes in market share compared to our September report are also included, and these show some interesting trends. First of all, uTorrent extended its user base and now has a massive 60 percent market share. Vuze, BitComet and BitTorrent’s Mainline client all lost market share.

Transmission, on the other hand, keeps on growing. Its market share increased 23 percent and might take over BitComet’s fourth place soon. More on this in our December report.

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

This week alone we’ve had an Early Day Motion from a member of Lord Mandelson’s own party, and more recently ISPs have talked about the futility of the suggested legislation.

Mandelson reportedly started pushing it after a meeting with Hollywood mogul David Geffen, and was apparently uninterested in the whole situation prior to the meeting, although that claim was flatly denied.

Now, the All Party Parliamentary Communications Group (apComms) has released its own findings to its more broad consultation, and it’s not good reading for 3-strikes proponents.

There were significantly fewer responses than for other similar consultations, although the scope was much wider. It was also much more open, without assumptions or leading questions. It was, in fact, fairly neutral and seemed to be concerned with gathering information, rather than trying to solicit support for a predetermined policy. Most appropriately, it was titled “Can we keep our hands off the net?”

The topics covered included dealing with ‘bad traffic’ (which includes copyright infringement, P2P and botnets), behavioral advertising (such as Phorm), online privacy and child pornography procedures. Finally it dealt with the issue of who should foot the bill for Internet traffic, and whether network neutrality should be codified. The first and last questions are of particular concern to TorrentFreak, and the conclusions make for interesting reading.

On the subject of P2P and copyright enforcement, they came to the following conclusions;

58. We conclude that much of the problem with illegal sharing of copyrighted material has been caused by the rightsholders, and the music industry in particular, being far too slow in getting their act together and making popular legal alternatives available.
59. We do not believe that disconnecting end users is in the slightest bit consistent with policies that attempt to promote eGovernment, and we recommend that this approach to dealing with illegal file-sharing should not be further considered.
60. We think that it is inappropriate to make policy choices in the UK when policy options are still to be agreed by the EU Commission and EU Parliament in their negotiations over the “Telecoms Package”. We recommend that the Government terminate their current policy-making process, and restart it with a new consultation once the EU has made its decisions.

Network Neutrality and actual bandwidth availability was also a concern, with the following recommendations being made;

212. We recommend that Ofcom keep the issue of “network neutrality” under review and include a section in each annual report that indicates whether there are any signs of change.
214. We recommend that Ofcom regulate to require ISPs to advertise a minimum guaranteed speed for broadband connections.

We know that many of our UK readers will be happy with the last recommendation, especially after a study by OFCOM earlier this year found that many subscribers were seeing an average of 40% of their connection’s advertised speed. A more appropriate advertised speed will also prevent many BitTorrent clients from being setup for speeds they can’t actually achieve.

If you thought that such open minded, clearheaded and competent recommendations couldn’t have come from elected officials, well, the good news is they’re not all luddites. ApComms’s Joint-Chairman, Derek Wyatt MP was formerly Head of Programmes at WireTV, before becoming the director of BSkyB’s Computer Channel (later ‘.tv‘), leaving when he was elected to government. Other executives of apComms include a former BT researcher (Chris Mole MP), and Dr Nick Palmer MP, who has studied AI at MIT.

An extremely well-educated and technologically literate group making these recommendations should help carry some weight. Whether or not it will be enough to convince the Peter Mandelson’s and Sion Simon’s of the government, remains to be seen.

The full report is available here.

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