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Private Anti-Piracy Investigator Spills The Beans

All around the world Hollywood is influencing politics and law enforcement, mainly through local anti-piracy groups. Aside from lobbying, they also employ private investigators to track down and bust copyright infringers. Today, one of them spills the beans. Gavin “Tex” Warren reveals how he was instructed to boost statistics, link piracy to drug trafficking, and manipulate the police in order to secure more interest for the war on piracy.

Hollywood goes to extremes to protect its interests worldwide. By now it’s public knowledge that MPAA-funded groups are lobbying at the highest political levels, but when it comes to law enforcement they have their ways of being heard too.

In the U.S. the MPAA was the outfit that tipped the authorities off on many of the ‘rogue’ sites that had their domain names seized in the last year. Similarly, in the U.K. the MPAA-funded group FACT carried out most of the investigative work in cases against the operators of the BitTorrent community FileSoup and the streaming site TV-Links.

Today we talk to Gavin “Tex” Warren, a private investigator who worked for the Hollywood backed group AFACT in Australia. While he mostly worked on offline piracy, his inside view allows us to learn more about how the anti-piracy agenda is sold to the outside world.

Warren became a private investigator in 2000, and prior to that he served as a detective in the Australian Federal Police for twelve years. From 2003 until 2008 he worked as an investigator, undercover operative handler and then lead investigator for AFACT. When AFACT moved their priorities from offline piracy to ISPs, they eventually let Warren go.

The Big Score

“Initially AFACT was called the Australasian Film and Video Security Office and was run out of Sydney by Mr Steve Howes,” Warren says, explaining how it all started for him in 2003. “The lead investigator here in Melbourne was another former AFP officer, Greg Hooper.”

“I had an undercover operative who worked for me (name withheld) that I shall refer to as “Short Round”. We were contracted to make purchases of DVDs and back then, VHS tapes of copyright infringing movies. In our first operation which lasted about six months, we had infiltrated a manufacturing “laboratory” and the dodgy sales team at the local trash and treasure market.”

Warren’s team then made so-called ‘trap purchases’ and all the evidence they gathered was then presented to the Victoria Police. The operation resulted in the execution of three simultaneous search warrants, netting about fifteen thousand exhibits, $30,000 cash and a dozen computer towers. It was a great success that was quickly communicated to the media.

“The press were informed and all was tied up in a neat bundle. Column inches were filled, sound bites were created and everyone was happy, except the pirates,” Warren recalls.

“This success ensured that Short Round and I had ongoing work. The AFVSO was subsumed by AFACT soon thereafter. Steve Howes was replaced by Neil Gane, a former British Hong Kong Police Inspector who had been working in Malaysia with the MPAA against piracy.”

Boosting Statistics

“At this time, Short Round and I were trotted out to meet Neil and to show him our equipment and discuss tactics. Mr Gane gave the impression of being very committed to stopping the evil scourge of piracy and was far more media savvy than his predecessor.”

“He was adamant that we needed to boost our statistics to make the media sit up and take notice and that the large numbers would make it easier to get the local Police interested. This was especially difficult to do as local police had no jurisdiction over copyright infringing product and the AFP were desperately short on manpower. We were encouraged to find links to drugs and stolen goods wherever possible.”

“We discussed the formula for extrapolating the potential street value earnings of ‘laboratories’ and we were instructed to count all blank discs in our seizure figures as they were potential product. Mr Gane also explained that the increased loss approximation figures were derived from all forms of impacts on decreasing cinema patronage right through to the farmer who grows the corn for popping.”

Gane understood that the media was an essential tool towards AFACT’s goal of getting tougher copyright legislation in place. And for this purpose, it was a good idea to bend the truth a bit. The results of this recalculation are quite amazing.

“2002 impact estimates were $100 million to today’s figure of $1.36 billion in nine years…. That’s a lot of extrapolating,” Warren says.

Courting the Police

Aside from influencing lawmakers with creative statistics, Warren and his colleagues also had to court the police on a regular basis. AFACT worked with both local law enforcement and the attorney general’s office where they delivered evidence and information to, based on their own investigations.

“Funded solely by MPAA, AFACT lobbies hard for changes to Australian law and enhance the sexiness of their case by making vague references to links to terrorism. Sometimes not so vague. I was instructed to tell police officers that the profit margins were greater than dealing heroin. It was bizarre. A twisted logic that AFACT spewed out with monotonous regularity,” Warren says.

One of the examples Warren gives is that they assumed that all burners and DVD replicators would run 24/7, making these operations appear very lucrative.

“Each burner cranking out ten discs an hour, multiplied by ten dollars per disc is potentially a hundred dollars an hour, multiplied by number of burners by hours in a year gives a yearly potential…. Very pumped up statistics.”

When the local police were convinced about the to need to follow-up on the case, Warren delivered them all the evidence they would need on a silver platter.

“In my time at AFACT we developed relationships with various police officers (detectives) and would work our cases up to a stage where we could present them with enough information, intelligence and evidence that most of the work was done. This is called a ‘walk up start’.”

“Police on the other hand would sometimes find large quantities of copyright infringing material whilst executing warrants, eg: drug warrant executions would invariably turn up some dodgy DVDs and I would get a call to come and identify the product and prepare a brief of evidence for prosecution.”

“It was a matter of educating the police officers what to look for. In this vein, I would regularly deliver half day seminars to police on their training days. It was a good system and had the effect of increasing their prosecutions and my investigations statistics. Collaboration had such a dark overtone. Cooperation is my preferred term,” Warren says.

Like many other private investigators Warren is a former police detective. And although the statistics may have been pumped a little, Warren was always careful to act within the boundaries of the law when it comes to his investigative work.

“The PI license is relatively difficult to obtain and easy to lose, therefore we tend to shy away from any activity that would jeopardize our livelihood. The key to efficient and effective investigations is to know all aspects of the various legislations that cover things such as Surveillance Devices, hidden cameras etc. At no time did I authorize or condone the breaking of any laws or rules.”

“Undercover operations, to be used in evidence, need to be squeaky clean. The last thing any investigator needs is to have evidence thrown out of court because of the breach of legislation, or compromise by way of entrapment,” Warren told TorrentFreak.

Bye Bye PI

At the end of 2007 Warren had a meeting with Neil Gane, who just returned to AFACT after serving as the Australasian Operations Manager for the MPAA for a brief while. Gane told Warren that AFACT would be focusing more on ISPs and online piracy instead of the street work Warren did.

Warren was still welcome to submit a tender for piecemeal work at an hourly rate, instead of daily. However, he later learned that his partner and former friend, Short Round, had undercut him, and was working on an as-needed basis for AFACT.

This ended Warren’s ‘career’ in the anti-piracy business. In the years that followed he continued to monitor what AFACT was up to, and he still can’t help but crack a smile when he reads about the disastrous piracy statistics AFACT tells the media about. And so do we.

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  • Anonymous

    Don’t hate on him for offline piracy crackdowns – selling free downloaded stuff is wrong. And he told us his story.

    • MAFIAAFire

      Selling free downloaded stuff _used_ to be wrong, now we are not so sure.

      Don’t get us wrong, we would _never_ do it ourselves but we wouldn’t be as irritated seeing it being done locally as before.

      Why our sudden change in stance? Well, the MAFIAA keep pushing for newer and more restrictive laws no matter which laws they have already been able to purchase.

      The more they push the more we need to ignore the rules they have put in place as well as probably take a second view to old predispositions and if that means turning a blind eye to physical piracy (that probably does hurt them) we say, lets give it a shot.

      A geek quote comes to mind “The more you tighten your grip, Tarkin…”

      The MAFIAA were warned that the more they tighten their grip the more people will become disillusioned with the law; we actually see this happening with ourselves.

      Oh, and cue in the smear campaign for “Tex” in 3….2…1…

      • Strider

        My stance regardless is: File sharing is not a bad thing in anyway, and as statistics have shown us in the past – it is actually good on all sides. In most cases it equals more sales via word of mouth since no one loses out but a bit of bandwidth. Of course, they will always tell you it is a lost sale, which it isn’t, but I guess greed is hard to change.

        But, selling others copyright work for personal gain is, in my opinion, the worst thing someone can do. After how many times we say “sharing is caring” or “if you like buy it”, to turn around and try to sell it ourselves is completely ridiculous and strengthens their argument that file sharing needs to have more of crackdown. I am not saying everyone sells movies they download either, actually, I would be willing to bet only a small percentage does. But, that small percentage is making us look bad and exactly the evil MPAA wants us to look like.

        In short, if you like it: Buy it and support the creators. If you don’t: Just forget about it. If you think its good to sell dvds of downloaded movies: Don’t.

        • MAFIAAFire

          I totally agree with everything that you said, except that the rules change if you the product is from a MAFIAA company.

          If it’s from a MAFIAA company do your best to kick them, when they are on the ground have no mercy and kick them again… and again just for good measure.
          Do nearly anything to hurt them. They want to give us constant copyright extensions, ACTA, Protect IP etc… well, we’ll give them royal pains, headaches, frustration and ulcers.

          OTOH If it’s from an indie, support them in every way possible, buy their products and related merch like tshirts etc
          Just to be an indie and compete with the big boys is hard enough, so again, support them in every way possible.

          Just to be clear, I am not asking/telling you to sell what you download; just try to change your views a bit when you see someone who is selling stuff.
          We would _never_ do it ourselves, but wont be so quick to judge if we see someone else doing it.

          Remember, if the products were priced competitively, fairly and released in a timely manner the second hand commercial pirate market wouldnt exist in the first place.

      • Asdf

        Im with you on this. Ive said for awhile now. If you lose your net or are getting sued…SELL SELL SELL. We are already pirates and thieves and guilty as hell on all accounts of everything. So we might as well be what they are making us out to be anyhow. Its like being married and are being accused of cheating and being treated as though your in trouble when you haven’t cheated. You might as well go be guilty!

        • http://profiles.google.com/zerianis10 Christopher Kidwell

          Have to agree with that line of thinking, in all honesty.

  • http://www.facebook.com/people/Don-Dilly/1624894683 Don Dilly

    Its interesting
    What the article is really saying is that their is a certain skill for an MPAA funded PI to know what magetude of lies and falsification of evidence he or she can get away with and still retain their PI License.

    A black art indeedy

    • R S

      Interesting, we didn’t think of that angle :)

  • http://twitter.com/icanhazsake Ninja

    $100M to $1,36G in 9 years. I’m gonna start a label/studio.

    Ahem. Nothing that he said that wasn’t previously known. I foresee MAFIAA trying to discredit and destroy him in the near future.

    Dude, 1360% in 9 years.. They didn’t even try to make it passable. And worst, the politicians swallowed it in one gulp without any liquids….

    • Anonimouse

      Na the politicians don’t swallow it they just want the campaign contributions and don’t care how they get them.

    • Bob

      $100M to $1,36G?

      Are we talking about GigaBucks?

  • Flubaluba

    The entertainment industry has said repeatedly do not buy movies unless from a reputable supplier as buying a dvd from the side of the road supports terrorism. Excellent , when i buy music or movies from reputable suppliers that money is also used to buy drugs which supports terrorism so they have given me permission not to buy from them. I don’t care that not all actors or singers use drugs ,Not all dvd sellers support terrorism, so i will not support either side .and should just torrent from torrent sites that do not demand payments.Surely this could be used as a defense in court i mean it is there supposed intention not to support terrorism is it not.

    • gae

      What is the evidence to support this terrorism link with pirate dvd’s? I think it will turn out to be pretty weak.
      Maybe they busted a terrorist once and found a blank cd in his house somewhere.

      • gae

        After a quick look around, it appears just about every piece of data that relates piracy to terrorism all comes from the same report from a few years back.
        And who exactly funded the report? The MPA of course.

      • Asd

        Actually the drug dealers in mexico DO indeed sell pirated movies and music.

        • Someone

          Drug dealer != Terrorist

  • http://modmyi.com/forums/iphone-4-new-skins-themes-launches/740147-neurotech-hd.html#post5637502 Jay

    Gah, corruption. The worst part about corruption is that it affects people with power the most, and there’s not much we (the poor) can do about it.

    The mainstream media won’t even pick up these stories because they’re owned in large part by giant multimedia corporations that actually MAKE movies. They last thing they want to do is report on how easy it is to pirate movies nowadays.

  • Bing

    [QUOTE]Hollywood goes to extremes to protect its interests worldwide. By now it’s public knowledge that MPAA-funded groups are lobbying at the highest political levels[/QUOTE] I think this is the problem it is not public knowledge and this is why they are able to get away with what they do.

  • gae

    So assuming such manipulation of figures is happening at all the major anti-piracy groups, its pretty safe to say that their published data for losses are going to be nowhere near accurate and overinflated the the maximum ammount the law permits.
    Not that this is any kind of a suprise….

  • Anonymous

    ,..awesome..,

    • MAFIAAFire

      The only way your “best friends mom” could do that, is if she has a “private webcam” in her room.

      Go sell your bullshit elsewhere, we are all stocked up here.

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  • Okarin

    the end sounded like movie plot of a criminal organization, their own guys at the bottom got treated the same way

    • Anonymous

      This article could make a great movie, forget The Social Network this here is where it’s at. The AFACT Story would do for a good project title to get the ball rolling if someone feels like going for it.

      Obviously it will have to be an independent film production as no MPAA backed company will want to touch it lest they be shunned by their peers.

    • Anonymous

      This article could make a great movie, forget The Social Network this here is where it’s at. The AFACT Story would do for a good project title to get the ball rolling if someone feels like going for it.

      Obviously it will have to be an independent film production as no MPAA backed company will want to touch it lest they be shunned by their peers.

  • http://pulse.yahoo.com/_PFCI5VRUCYT6AVBT3P6ILV3COI Ophelia Millais

    The copyright mafia will eventually realize that they cannot expect to always be able to operate in the shadows; as they shine a spotlight on the actions of pirates, so shall their own misdeeds be exposed to the light of day. Thank you, Ernesto, for conducting this interview and reporting on it.

    And cheers to Gavin Warren for his belated honesty, especially if he is doing so in violation of any NDAs he signed.

    However, I feel strongly that an employee/citizen who’s put in the position of doing something that they know is wrong, even if it’s on behalf of a cause they think is right, need to 1. refuse, no matter how much they’re getting paid, even if it costs them their livelihood; 2. explain to their employer/government that it ultimately undermines the cause when dishonest tactics are used, even if the ends seem to justify the means; and 3. immediately and repeatedly speak publicly and plainly on the matter, to the extent they legally can. There are websites and books related to whistleblowing that surely have more and better advice for how to make a principled stand and how to craft your message without shooting yourself in the foot.

    In other words, it never should have gone as far as it did for so long; the damage is done, and now it’s time to do everything you can to undo it. Coming out later with the truth in a forum such as this is a very weak effort. I feel it is Warren’s obligation to contact all of the people in the press and in law enforcement who he conspired to deceive, and set the record straight with them. If he won’t do it, we should. Getting an interview published on TorrentFreak is a good start, but it’s just preaching to the choir; the people who need to hear this message will never hear it. This story needs to be shopped around to relatively neutral media outlets and put in the hands of the politicians who have been duped.

    • Anonymous

      It does need to spread, hopefully Gavin Warren makes himself available for future interviews with other neutral reporters so as to get the attention of the most die hard of anti p2p subscribers while not being discredited by TFs views on p2p and torrents (‘but the articles source is TF, a pro piracy news blog’ is all I would hear from such people).

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  • Anonymous

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    • Guest

      love to flag

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

    It’s funny how my screenreader will pronounce “MAFIAA” as the word Mafia. I really love it; makes me laugh.
    Well, it did it more previously, then, soon enough, updates seemed to cause it to start spelling out the word.
    It pronounces AFACT as something like, “a fact,” which makes you think, did these people purposefully make their name that, because they want everything they say to be considered immediately as a fact?
    It’s interesting, how things like this show up, but that’s quite a tangent.
    The point is, this private investigator decided to go and tell the truth; finally, someone explaining the corruption.
    I think some of the most corruption is actually in the Intellectual Property industries, more than anywhere else in businesses.
    But I’m not sure; just what I see from reading things on here and such.
    Lol.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      In all honesty? I am betting that choice of name by AFACT was NOT at all a coincidence.

  • David B

    Horrah for lying to the police and then admitting to it, lol

  • http://www.ecigator.com/ Electronic Cigarette

    And no one will ever be punished for lying.

  • Anonymous

    tinyurl.com/3ct3pn6
    tinyurl.com/3tnmjr8

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