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Exposed Copyright Trolls Dump Mass-BitTorrent Lawsuits

A few weeks ago TorrentFreak unraveled a tangled web of copyright trolls who had sued hundreds of BitTorrent users under the name MCGIP. The article revealed the tight connections between the various parties involved in the scheme and the mistakes they made. Interestingly enough, soon after these findings were published MCGIP dropped their lawsuits for reasons unknown.

shredThe ongoing mass-BitTorrent lawsuits in the U.S. have led to some creative collaborations between lawyers and copyright holders.

Perhaps the most eye-catching is the setup used by a company called MCGIP. Unlike others, MCGIP have not produced any films themselves, but they ‘lease’ content from third parties and use this license to sue alleged copyright infringers. And that’s just the beginning.

What’s also noteworthy is that MCGIP is located in the same building as the Media Copyright Group (MCG), the outfit that collects the IP-adresses that serve as the former’s evidence. And coincidentally, MCG’s top technician Peter Hansmeier is the brother of lawyer Paul Hansmeier, who is a partner at Steele Hansmeier, the law firm that filed the lawsuits on behalf of MCGIP.

To top it off, Paul Hansmeier is also a partner at Alpha Law Firm, which also resides in the IDS tower in downtown Minneapolis, the same office where MCGIP and MCG are housed.

Last month the above findings were presented in an article here on TorrentFreak, in the secret hope that this peculiar operation would be brought to the attention of the courts. But when we decided to look at the various MCGIP cases against BitTorrent users this week, we were in for a surprise.

It turns out that in the month after our article was published, to the best of our knowledge MCGIP voluntarily dismissed (e.g.) all (but one) of their remaining cases, about a dozen with hundreds of defendants in total. This is peculiar to say the least, especially since in some cases the court had already granted MCGIP the right to subpoena Internet providers for the personal details of the defendants.

Why would they dismiss the cases when they are so close to “the money”?

Although we can only speculate as to why all these cases were suddenly dismissed, it might be concluded that our article was well-timed. There is no solid evidence to suggest that our report had anything to do with MCGIP’s sudden decision to drop their mass-BitTorrent lawsuits, but it’s yet another coincidence to add to this case.

So does this mean that BitTorrent users have nothing to fear anymore from these copyright trolls? Not per se. It has to be noted that all cases were voluntarily dismissed without prejudice, meaning that they can be filed again later on. But perhaps even more troubling, the key players are still heavily invested in other cases.

Peter Hansmeier’s Media Copyright Group (MCG) is collecting evidence in many other cases where the law firm of his brother Paul Hansmeier and John Steele are acting as legal counsel. They make their money one way or the other, and as long as it pays off we doubt that they will stop or slow down.

A small battle may have been won, but the war will undoubtedly continue.

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  • http://twitter.com/unthekno nthekno

    Sounds like corruption and a get rich quick scheme, the courts need to do something about this. Pay up or else needs to be illegal…

    • http://ompldr.org/vYXc2MA/see-what-i-thought-id-do-was-id-pretend-i-was-one-of-those-slut-whores.html w3ts1ut

      the courts need to do something about this

      So does Anonymous ;)

    • Anonymous

      It is illegal (blackmailing), but they manage to evade the law…

  • http://fightcopyrighttrolls.com S.J. Doe

    All our lives are comprised of coincidences… Some events may look coincidental, but imagine that TF, TechDirt, ArsTechnica and many other sources (including yours truly) were silent, would troll’s behaviors be the same? I don’t think so.

    BTW, the entire Nick’s Ranallo’s article was attached to a motion to quash in a troll case (forgot which one.)

  • http://twitter.com/AlyssaBlindy Alyssa Blindy

    Corruption has definitely been exposed here. Great job TF. I wonder if TF actually did cause the dismissal of the lawsuits. I hope so. :-)

  • 7th_Guest

    Light is the best disinfectant, it seems. Keep hunting for the rank truths and putrid facts behind such companies’ “righteous” image and practices, guys, and thank you for your services to our fellow file sharers so far. The people and history are both on your side.

  • Anonymous

    Is there no official place to report these things so that a formal investigation can be started?

    • http://torrentfreak.com/ Rob8urcakes

      Yes there is, it’s called the DAG’s Office in Washington DC.
      The following applies once you’ve received a “pay-up-or-else” letter -

      TITLE 18 > PART I > CHAPTER 41 > § 875
      (d) Whoever, with intent to extort from any person, firm, association, or corporation, any money or other thing of value, transmits in interstate or foreign commerce any communication containing any threat to injure the property or reputation of the addressee or of another or the reputation of a deceased person or any threat to accuse the addressee or any other person of a crime, shall be fined under this title or imprisoned not more than two years, or both.
      http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00000875—-000-.html

      Since I’m not a USitizen, I’m STILL unsure whether you should lodge your complaint (with evidence please) in the 1st place to -
      1.
      Mr J Cole, Esq.
      Office of The Deputy Attorney General,
      U.S. Department of Justice
      950 Pennsylvania Avenue, NW
      Washington, DC 20530-0001
      http://www.justice.gov/dag/

      2.
      Your own State DAG
      http://www.justice.gov/usao/about/offices.html

      3.
      Your local FBI Field Office
      http://www.fbi.gov/contact-us/field/field-offices

      or 4.
      Your local State Police Office.

      But you should ALWAYS quote the above item of law, AND send letters or email evidence of the “letters of extortion”, AND ask for a FULL investigation into these corrupt practices.

      If you’re contacted by ‘phone NEVER admit to anything, but PLEASE take a written note of the date and time of call, who called and what was said.

  • Randy McAttache

    “the key players are still heavily invested in other cases”

    Am I the only one to read that as ‘infested’?

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  • http://torrentfreak.com/ Rob8urcakes

    If you receive a threatening letter from ANY of these asswipe copywrong trolls -
    Do NOT panic;
    Do NOT contact or reply to them;
    Do NOT answer the ‘phone from them, and if you do HANG UP;
    Do NOT give them any personal information EVER;
    Do NOT admit to filesharing to ANYONE;
    Do NOT spend money on a lawyer (yet).

    These letters claiming cash and blaming you for some act of filesharing are merely attempted extortion, and they’re phishing attempts to get you into a panic and admit that you share files over the internet.

    Continue to share, but DO protect yourself from future scams by using a paid-for proxy or VPN (see wikipedia and earlier TF articles please).

  • http://torrentfreak.com/ Rob8urcakes

    If you receive a threatening letter from ANY of these asswipe copywrong trolls -
    Do NOT panic;
    Do NOT contact or reply to them;
    Do NOT answer the ‘phone from them, and if you do HANG UP;
    Do NOT give them any personal information EVER;
    Do NOT admit to filesharing to ANYONE;
    Do NOT spend money on a lawyer (yet).

    These letters claiming cash and blaming you for some act of filesharing are merely attempted extortion, and they’re phishing attempts to get you into a panic and admit that you share files over the internet.

    Continue to share, but DO protect yourself from future scams by using a paid-for proxy or VPN (see wikipedia and earlier TF articles please).

  • guest

    i thought hidden agreements between say 2 brothers involving profit is the definition of a conspiracy ????

  • Jim

    BT given 14 days to block access to Newzbin

    http://www.bbc.co.uk/news/technology-15459005

    • Jim

      BT has also been ordered to pay the costs of implementing the block, something it had argued it should not have to do.

      “The judge ruled that the ISP is closely related to the wrongdoing, it happened on its pipes and therefore it should pay,” said Simon Baggs, a partner at Wiggins LLP law firm.

      “That is significant because it means the rightsholders have found a cost-efficient remedy to blocking these sites.”

  • Anonymous

    tiny.cc/qcfnd

    • Randy McPorkpie

      Another spam! Can’t these users be banned altogether?

  • Megarock Radio

    So, does this mean I can lease the rights to a movie for one day then sue everyone on the planet afterwards? Maybe the public needs some trolls who search every single movie for any little tiny shred of music used without permission in a movie, commercial or otherwise and sue the movie houses for infringement as well.

  • Megarock Radio

    So, does this mean I can lease the rights to a movie for one day then sue everyone on the planet afterwards? Maybe the public needs some trolls who search every single movie for any little tiny shred of music used without permission in a movie, commercial or otherwise and sue the movie houses for infringement as well.

  • Jk

    US Law and justice is a farce at the best. Best judges and politicians that money can buy. and best military, oil can send to murder millions.

  • gae

    John Steele and friends are nothing but a bunch of crooks with one goal of scaring as much money out of random people as they can. They are at the same level as a street mugger and the quicker they are shut down the better.

  • Pingback: Quick Takes | Third Pipe

  • Anonymous

    tiny.cc/qcfnd

  • BTGuard - BitTorrent Anonymously

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