MediaDefender Stock Plunges Due to Leaked Emails
Written by Ernesto on December 22, 2007It has been a rough year for MediaDefender and their parent company ArtistDirect. This September nearly 700mb of MediaDefender’s emails leaked to the public. Initially it didn’t seem to affect the stock price much, but after the financial consequences became apparent, their net worth plunged.
With still a few days to go it is probably safe to say that MediaDefender is one of the biggest losers of 2007. The leaked emails, published by the notorious “MediaDefender-Defenders“, gave away a lot of sensitive information and details about how MediaDefender sabotaged BitTorrent trackers and other file-sharing networks. Despite the fact that their decoy and spoofing operations were hugely ineffective on most BitTorrent sites, the company collected millions of dollars from the entertainment industry for protecting their content.
Unfortunately for them, one of their employees was stupid enough to forward all his work email to his Gmail account, without using a proper password. To make it even worse, more sensitive information started to leak as the email leak was soon followed by a p2p tracking database, a phone call and a collection of anti-piracy tools they used for their daily operations.
Soon after this sensitive information became public, the Pirate Bay launched a counterattack. They decided to use the information from the emails to file charges against some of MediaDefenders customers including Paramount Home Entertainment, Twentieth Century Fox and Universal Music Group for corrupting and sabotaging their BitTorrent tracker.
The leak did not have any effect on the stock price initially, but after the company announced that it had cost them $825,000, it started to drop hard. It turned out that MediaDefender’s parent company ArtistDirect spent $600,000 to compensate their customers and the rest of the money was used to cover legal expenses. The investors weren’t too happy about this news as can be seen from the picture below.
So what will happen now, will the company walk the plank to bankruptcy? Many people think it will, but MediaDefender still sees a future in the anti-piracy business. Sure, they were devastated by the leaks, but remarkably, they believe that it didn’t hurt the goodwill of the company. Makes you wonder what is needed to hurt this then, because it can’t get any worse if you ask me.
I’m sure we will hear from them again in 2008.
Previously: Japanese File-Sharing Population Explodes
Next: Piracy, Morals and The Need for Change
87 Responses (Add yours or TrackBack)
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[quote comment="245828"]@uNoWho
If we buy stocks, not only will they get money, but their stock price will go up and they will actually look good. Besides, unless you buy a significant portion of the company, you’re gonna have as much a say as a janitor in congress.
[/quote]
in a way you are right in a way you totally missed the point of what i was saying
what im saying is if ALOT of BT users brought shares yes the price would go back up but the BT users would have a say as to what the company does its basically a silent takeover which alot of companys do and if we really wanted 2 fcuk em over we could all “donate” our MD shares to TPB and give them basically control of the company
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You steal (those who do, know who you are), then wish ill on those trying to stop you, yet you think they’re the ones who deserve to be punished? P2P isnt all bad, but we all know most of it is. Shame on you people.
[quote comment="245910"]You steal (those who do, know who you are), then wish ill on those trying to stop you, yet you think they’re the ones who deserve to be punished? P2P isnt all bad, but we all know most of it is. Shame on you people.[/quote]
dude honestly stfu u dont know what your talking about ALOT of people here SHARE nobody STEALS and yes we do wish ill on those trying to stop it when its some company trying to intimidate/force governments that they have no jurisdiction over to try to close something thats not even illegal to begin with just because its interfering with some companys cash flow if anything they are the ones that are breaking the law not us and the MD emails proved it
made pisss :P
jd=MafIAA
Hahaha BURN!!
************THIS FORUM HAS EVERYTHING!*****************
http://beaclan.darktech.org/index.php
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************THIS FORUM HAS EVERYTHING!*****************
http://beaclan.darktech.org/index.php
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[quote comment="245642"]wow, I can’t believe these comments. You can’t blame media defender for trying to prevent people from stealing. Yes I said stealing, not sharing. Sure there are legit uses for bittorrent (linux distros come to mind), but most of you are thieves. If you’re not, then you wouldnt worry about MD. I can’t believe you’re rejoicing over this news. It’s disgraceful. This is not justice.[/quote]
Eat a dick Randy. My country’s laws permit me to legally share, and it is your company’s actions which are illegal and immoral!
Your rationale is EXACTLY the same used by Germans during the Nazi regime to excuse what was done to the jews.. “If you’re not one what should it matter to you?”
Really, eat a big old dick you facist fuck.
lmao:D
[quote]As much as I would love to agree with you, different rules are applied to what is known as intellectual property.[/quote]
Those rules go against two things that I cherish; Freedom and Sharing, therefore I do not obey them.
The government can try to change the definition of theft all they want - I’m not going to go with their new definition. I’ll stick with the true definition.
Let this be a lesson to all who oppose us. You will be hacked, you will be destroyed.
fuck you MD
Let criminal gang md go bankruptcy. This “company” is fucked up.
@uNoWhO: I’m not taking sides, but I have to add that you guys really don’t know what “stealing” is for digital content. Yeah, if your friend steals a TV, you can share it in a group cause there is only one. But, with something like digital content “sharing” is “stealing” since you are just copying it over and over and over.
Now, since I didn’t start this with “fuck MD”, let the “@ROFLcopter: fuck you!” pounding begin.
(BTW, how many of you are digitizing your home movies and sharing them with BT? ’cause I think that’s the sharing that you are thinking of.)
[quote comment="246344"](BTW, how many of you are digitizing your home movies and sharing them with BT? ’cause I think that’s the sharing that you are thinking of.)[/quote]
And what makes you think we all live in America? Pull your head out of your ass, American laws mean nothing in my country.
Haha MD you got what was comin to ya!
Is not about free or about money
Its about control and slavery of the people
We’re no longer stupid
We’re no longer controlled by these dictator
We do as we please
Free like oxygen
Free as a bird
Screw greedy scumbag
I don’t even watch any movies
I just share wuahahahahahaha
[quote comment="246344"]@uNoWhO: I’m not taking sides, but I have to add that you guys really don’t know what “stealing” is for digital content. Yeah, if your friend steals a TV, you can share it in a group cause there is only one. But, with something like digital content “sharing” is “stealing” since you are just copying it over and over and over.
Now, since I didn’t start this with “fuck MD”, let the “@ROFLcopter: fuck you!” pounding begin.
(BTW, how many of you are digitizing your home movies and sharing them with BT? ’cause I think that’s the sharing that you are thinking of.)[/quote]
actually no your wrong as far as digital content goes the ONLY way it can legally be classed as stealing is if somebody buys/downloads something and then releases it and says its theres for example if i changed the startup screen on windows and changed everything that said windows to uNoWhO and took out the logo and then started selling it saying i had made it THAT is stealing me sending little bits and peices of data to somebody else which may or may not turn into something made by somebody else isnt stealing its sharing information
You Ho! Ho! Ho! MediaDefender, if I may be so bold as to *leak* this holiday message to all: Merry bit-mas everyone and a happy new y’arrr!
And it’s so true, these chumps deserved everything they got!
F*ck you Randy *evil laugh*. Even funnier if you think that he probably spent a large portion of his life setting this company up, trying to capitalise on suing torrent users. Yay, they’re going down *Salutes as the MD ship sinks to hell*
Even funnier is if he reads this. (Hi Randy; I hate you!)
[quote comment="247975"]F*ck you Randy *evil laugh*. Even funnier if you think that he probably spent a large portion of his life setting this company up, trying to capitalise on suing torrent users.[/quote]
Even funnier is how quick it was all taken away from him. Who says there’s no karma?
[quote comment="247975"]Yay, they’re going down *Salutes as the MD ship sinks to hell*[/quote]
I believe that’s a one-finger salute? :)
[quote comment="247975"]Even funnier is if he reads this. (Hi Randy; I hate you!)[/quote]
Me, too! Happy New Year Randy! You pwned putz.
Karma’s a bitch, ain’t it?
Be a nice new year’s gift to read about MD getting raped in court by their investors and clients.
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