These submissions help to guide the U.S. Government’s position toward foreign countries when it comes to copyright enforcement. The RIAA’s report (odt) includes more than 50 alleged pirate sites, but it is the introduction that draws most attention.

Neil Turkewitz, RIAA Executive Vice President, informs the Government that some of the rogue websites, and their supporters, falsely argue that they aid freedom of speech and counter censorship.

Specifically, the RIAA describes The Pirate Bay and other pirate sites as an assault on our humanity, suggesting that the right to protect one’s copyrights trumps freedom of expression.

“Some observers continue to suggest that the protection of expression is a form of censorship or restriction on fundamental freedoms, and some pirate sites cloak themselves in the language of freedom to justify themselves—sites like The Pirate Bay…” Turkewitz writes.

“We must end this assault on our humanity and the misappropriation of fundamental human rights. If the protection of expression is itself a restriction on freedom of expression, then we have entered a metaphysical Wonderland that stands logic on its head, and undermines core, shared global values about personhood,” he adds.

The RIAA says it’s hopeful that the piracy threat can be addressed if society and legitimate companies stop doing business with these sites. To do so, the public must stop conflating anti-piracy measures with censorship.

“We may not be able to eradicate piracy—there will always be an isolated number of individuals or enterprises who are prepared to steal whatever they can, but we can—and must—stop providing moral cover by conflating copyright enforcement with censorship, or by misapplying notions of Internet freedom or permissionless innovation so that they extend to an embrace of lawlessness.”

In recent months copyright holders have often hammered on payment processors and advertising networks to stop doing business with pirate sites. The RIAA reiterates this in their USTR submission, but also points a finger at the ISPs, at least indirectly.

According to the RIAA, BitTorrent indexing sites make deals with hosting providers to pay lower fees if they have more traffic. While this is standard business for most ISPs, the industry group frames it as an indirect source of revenue for the pirate sites.

“Indexing services can, and usually do, generate revenue from one or more of the following: advertising, user donations and suspected arrangements with ISPs whereby reduced fees are offered in return for increased traffic on the sites. The particular financial model, structure and approach vary from site to site,” Turkewitz notes.

Finally, the RIAA admits that some torrent sites process DMCA takedown notices, but believes that this is only an attempt to “appear” legitimate. In reality the infringing content is re-uploaded almost instantly, so the problem remains.

“As a result, copyright owners are forced into an endless ‘cat and mouse’ game, which requires considerable resources to be devoted to chasing infringing content, only for that same infringing content to continually reappear,” the report reads.

Without specifying what, Turkewitz notes that torrent site owners have to do more if they really want to become legitimate services.

“It is imperative that BitTorrent site operators take reasonable measures to prevent the distribution of infringing torrents or links and to implement measures that would prevent the indexing of infringing torrents,” he writes.

In addition to torrent sites the submission also lists various cyberlockers, blogs and linking sites which allegedly deserve the label “notorious market.”

Below is the RIAA’s full list as it was reported to the USTR. These, and the other submissions will form the basis of the U.S. Government’s Special 301 Out-of-Cycle Review of Notorious Markets, which is expected to come out later this year.

—

- vKontakte
- EX.UA
- The Pirate Bay
- KickAss.to
- Torrentz.eu
- Bitsnoop.com
- ExtraTorrent.cc
- Isohunt.to
- Zamunda
- Arena.bg
- Torrenthound.com
- Fenopy.se
- Monova.org
- Torrentreactor.net
- Sumotorrent.sx
- Seedpeer.me
- Torrentdownloads.me
- 4shared.com
- Uploaded.net
- Oboom.com
- Zippyshare.com
- Rapidgator.net
- Turbobit.net
- Ulozto.cz
- Sdílej.cz
- Hell Spy
- HellShare
- Warez-dk.org
- Freakshare.com
- Bitshare.com
- Letitbit.net
- 1fichier.com
- Filestube.to
- Music.so.com
- Verycd.com
- Gudanglagu.com
- Thedigitalpinoy.org
- Todaybit.com
- Chacha.vn
- Zing.vn
- Songs.to
- Boerse.to
- Mygully.com
- Wawa-mania.ec
- Bajui.com
- Goear.com
- Pordescargadirecta.com
- Exvagos.com
- Degraçaémaisgostoso.org
- Baixeturbo.org
- Hitsmp3.net
- Musicasparabaixar.org
- Sapodownloads.net
- Sonicomusica.com
- Jarochos.net
- Rnbexclusive.se
- Newalbumreleases.net

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

TorrentFreak obtained a copy of the MPAA’s latest submission. The Hollywood group targets a wide variety of websites which they claim are promoting the illegal distribution of movies and TV-shows, with declining incomes and lost jobs in the movie industry as a result.

These sites and services not only threaten the movie industry, but according to the MPAA they also put consumers at risk through identity theft and by spreading malware.

“It is important to note that websites that traffic in infringing movies, television shows, and other copyrighted content do not harm only the rights holder. Malicious software or malware, which puts Internet users at risk of identity theft, fraud, and other ills, is increasingly becoming a source of revenue for pirate sites,” MPAA writes.

Below is an overview of the “notorious markets” the MPAA reported to the Government. The sites are listed in separate categories and each have a suspected location, as defined by the movie industry group.

Torrent Sites

BitTorrent remains the most popular P2P software as the global piracy icon, MPAA notes. The Pirate Bay poses one of the largest threats here. Based on data from Comscore, the MPAA says that TPB has about 40 million unique visitors per month, which appears to be a very low estimate.

“Thepiratebay.se (TPB) claims to be the largest BitTorrent website on the Internet with a global Alexa rank of 91, and a local rank of 72 in the U.S. Available in 35 languages, this website serves a wide audience with upwards of 43.5 million peers,” MPAA writes.

“TPB had 40,551,220 unique visitors in August 2014 according to comScore World Wide data. Traffic arrives on this website through multiple changing ccTLD domains and over 90 proxy websites that assist TPB to circumvent site blocking actions.”

For the first time the MPAA also lists YIFY/YTS in its overview of notorious markets. The MPAA describes YTS as one of the most popular release groups, and notes that these are used by the Popcorn Time streaming application.

“[Yts.re] facilitates the downloading of free copies of popular movies, and currently lists more than 5,000 high-quality movie torrents available to download for free,” MPAA writes.

“Additionally, the content on Yts.re supports desktop torrent streaming application ‘Popcorn Time’ which has an install base of 1.4 million devices and more than 100,000 active users in the United States alone.”

The full list of reported torrent sites is as follows:

- Kickass.to (Several locations)
- Thepiratebay.se (Sweden)
- Torrentz.eu (Germany/Luxembourg)
- Rutracker.org (Russia)
- Yts.re (Several locations)
-Extratorrent.cc (Ukraine)
-Xunlei.com (China)

The mention of Xunlei.com is interesting as the Chinese company signed an anti-piracy deal with the MPA earlier this year. However, according to the MPAA piracy is still rampant, and there is no evidence that Xunlei has fulfilled its obligations.

Direct Download and Streaming Cyberlockers

The second category of pirate sites reported by the MPAA are cyberlockers. The movie industry group points out that these sites generate million of dollars in revenue, citing the recently released report from Netnames.

Interestingly, the MPAA doesn’t include 4shared and Mega, the two services who discredited the report in question. As in previous submissions VKontakte, Russia’s equivalent of Facebook, is also listed as a notorious market.

- VK.com (Russia)
- Uploaded.net (Netherlands)
- Rapidgator.net (Russia)
- Firedrive.com (New Zealand)
- Nowvideo.sx and the “Movshare Group” (Panama/Switzerland/Netherlands)
- Netload.in (Germany)

Linking Websites

The largest category in terms of reported sites represents linking websites. These sites don’t host the infringing material, but only link to it. The full list of linking sites is as follows.

- Free-tv-video-online.me (Canada)
- Movie4k.to (Romania)
- Primewire.ag (Estonia)
- Watchseries.lt (Switzerland)
- Putlocker.is (Switzerland)
- Solarmovie.is (Latvia)
- Megafilmeshd.net (Brazil)
- Filmesonlinegratis.net (Brazil)
- Watch32.com (Germany)
- Yyets.com (China)
- Cuevana.tv (Argentina)
- Viooz.ac (Estonia)
- Degraçaemaisgostoso.org (Brazil)
- Telona.org (Brazil)

The inclusion of Cuevana.tv is noteworthy as the website stopped offering direct links to infringing content earlier this year. Instead, it now direct people to its custom “Popcorn Time” equivalent “Storm.”

Finally, the MPAA lists one Usenet provider, the German based Usenext.com. This service was included because, unlike other providers, it allegedly heavily markets itself to P2P users.

Later this year the US Trade Representative will use the submissions of the MPAA and other parties to make up its final list of piracy havens. The U.S. Government will then alert the countries where these sites are operating from, hoping that local authorities take action.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Under development at Github, SportsDevil’s aim is to present its tens, perhaps hundreds of thousands of users with links to external video sources via a convenient interface, covering everything from live NFL, Basketball, Baseball, Hockey and motorsports, combat sports such as UFC and boxing, plus football and soccer from both sides of the Atlantic.

This week, however, SportsDevil’s reign on Github was brought to an end following action from UK-based anti-piracy group Federation Against Copyright Theft. While FACT is closely affiliated with Hollywood studios, it also represents the rights of major sports broadcasters and rightsholders including The Premier League, British Sky Broadcasting Ltd and BT Sport.

In its takedown notice, FACT explains what SportsDevil does and why it should be taken down.

“The files found at the following locations facilitate linking to sites known to provide access to streams of infringing content. The sites are subsequently scraped for links to various broadcasts including those whose copyrights belong to FACT members,” the group explains.

In addition to the ZIP files for the project, FACT targeted 47 configuration files enabling SportsDevil to pull links to content from sites such as FirstRowSports, Wiziwig.tv and Cricfree, a site that was targeted by PIPCU earlier this year.

TorrentFreak contacted FACT about the takedown and asked if this was the first piece of software to be taken down by the group.

“This is not the first time and with development of technology, we don’t anticipate it will be the last,” FACT told TF.

We also put it to FACT that although it’s pretty clear what SportDevil is designed to do, the tool itself is often far removed from actual infringing content and could be several steps down the linking chain. Does that present issues?

“That’s the point of what we’re doing. The tool is creating alternative ways of accessing content, and we view that as a likely offense,” FACT said.

Also of interest is the formatting of FACT’s takedown notice, which references neither UK law where its members are based nor US law where Github is located.

“Our takedown notices are modeled on DMCA notices. In this particular case, they were adapted to comply with Github DMCA policy,” FACT confirmed.

It’s worth noting that Github recently updated its takedown processes to give projects more time to ‘fix’ any issues following a DMCA complaint but it appears SportsDevil’s creators didn’t take up that opportunity.

TF spoke with an expert on this type of software who told us that while its removal from Github will be a setback, it won’t mean the end of the tool.

“If an addon’s repository is removed from GitHub, the addon author loses the ability to push further updates to the addon, so unless users install the author’s new repository (which they would have to do manually) further automated updates won’t take place,” he explained.

Finally, we asked FACT if it intends to target more software tools in future.

“Where we see a threat to our members’ content, we’ll continue to seek appropriate ways of dealing with it,” FACT conclude.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Pirate Bay users also have a great interest in anonymity. A survey among the site’s users previously revealed that nearly 70% already had a VPN or proxy or were interested in signing up with one.

For this last group The Pirate Bay has an interesting promotion running. For the past few days the site has replaced its iconic logo with an ad for FrootVPN, a new startup that offers free VPN accounts.

The promo has has been seen by millions of people, many of whom very interested in the costless offer.

Since VPNs are certainly not free to run, many people are wondering if there’s a catch behind this rather generous offer. Previously TPB advertised an adware ridden client so this suspicion is understandable.

TorrentFreak contact the Pirate Bay team for more information, and they informed us that the FrootVPN promotion is not a paid ad. It’s merely a friendly plug for a startup run by some guys they know.

While that’s assuring, it doesn’t explain how they can offer their service for free. We contacted the FrootVPN operators to find out more, and they told us that they started the free VPN to counter the commercialization of the VPN business.

“The whole idea behind FrootVPN was to provide a free simple VPN service without any bandwidth limitations. Of course the maintenance isn’t free but we had some resources over from our other projects from which we were able to launch FrootVPN.”

“We are a bunch of guys who support freedom of speech and don’t like the idea that VPN providers charge so much money for just a simple proxy, especially since the bandwidth costs nowadays is so cheap,” FrootVPN tells us.

While a free VPN sounded like a good idea, the VPN service has become a victim of its own success. They gained 100,000 users in less than a week and admit that it’s not sustainable to keep the service free forever.

“The word has spread rapidly and we thank all our promoters including TPB for supporting us. We got 100,000 users within a week, which we never expected. However, this does indicate that we will be forced to charge something for the service in order to maintain it,” FrootVPN says.

FrootVPN’s VPN servers are currently hosted at Portlane, who have been very helpful in accommodating the growth. During the weeks to come they hope to increase their capacity and FrootVPN has already bought several new servers to keep the quality of the service on par.

“We have 20x servers running currently with 2x10Gbps total capacity. We have now additionally bought 40x more servers and 4x10Gbps bandwidth from Portlane which will be ready within a week or two. We hope that after this upgrade the quality of our service will be much better,” they say.

While they may have to charge a few dollars in the future, one of the main motivations of the FrootVPN team remains in line with The Pirate Bay’s original philosophy. That is, to provide tools that help to bypass censorship and promote freedom of speech.

“FrootVPN supports freedom of speech and want the Internetz to be an uncensored place,” they say.

Although free VPNs are often not the fastest, especially not when they are growing with tens of thousands of users per day, FrootVPN says it will try to keep up. In any case, “free” is an offer that’s hard to refuse for those who are on a tight budget.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

The follow-up debacle involving ACS:Law was widely documented, with owner Andrew Crossley being forced to close down his business after being suspended by the Solicitors’ Regulatory Authority for misconduct. After misleading the courts, bankruptcy was just the icing on the cake.

None of this was a deterrent to porn outfit GoldenEye International. They embarked on a similar scheme, sending letters to alleged file-sharers and demanding hundreds of pounds in settlements to make supposed lawsuits go away. However, GoldenEye learned from its predecessors by proceeding with caution and staying largely under the radar. But quite predictably and despite legal bluster and empty threats, the company took not a single case to court.

So today, quite possibly due to the tendency of the public to pay up rather than become linked with embarrassing porn movie titles, the porn trolls are back once again in the UK.

TorrentFreak has learned that last year four porn producers teamed up in an effort to force ISP Virgin Media to hand over the names and addresses of more than 1,500 subscribers said to have downloaded and shared adult content without permission.

The companies, none of which appear to be based in the UK, teamed up with Wagner & Co, the London lawfirm also working with GoldenEye. They are Mircom International Content Management & Consulting Ltd, Sunlust Pictures, Combat Zone Corporation and Pink Bonnet, Consultores de Imagem LDA.

Mircom International Content Management & Consulting Ltd are active in Europe, particularly when it comes to demanding cash settlements from alleged file-sharers in Germany. Sunlust Pictures is an adult movie company founded in 2009 by former porn actress Sunny Leone, who – entirely unsurprisingly – has featured in copyright trolling cases in the United States. Combat Zone Corporation is an adult movie company based in California. They’re no strangers to the cash settlement model either.

TorrentFreak contacted Mark Wagner at Wagner & Co to find out what his clients hope to achieve in the UK, but unfortunately our emails went unanswered. The company doesn’t appear to have a working website and its address relates to a house in residential area.

Fortunately, Virgin Media were rather more accommodating. In the past the ISP has been criticized for not doing more to protect its subscribers’ personal details but it turns out the battle with Wagner & Co has been going on for some time.

“We have contested the validity of Wagner & Co’s claims (ongoing for 12 months), asking the Judge to thoroughly review the application and the supporting evidence. We have challenged the reliability of the software used to obtain evidence of infringement (FileWatchBT) and the accuracy of the data collected,” spokesperson Emma Hutchinson told TF.

But despite Virgin Media’s efforts the High Court took the decision to side with Wagner & Co and order the ISP to hand over the details of its subscribers. While the situation is pretty grim, things could have been worse.

“The original request was for double the number of addresses than we have been forced to disclose, now fewer than 800,” Virgin explain.

“We advise any of our customers who receive a speculative letter from Wagner & Co, who also represented Golden Eye International in action against O2 customers last year, to seek independent advice from organizations such as Citizens Advice,” the ISP concludes.

Restrictions placed on GoldenEye in previous procedures indicate that initial letters sent to Virgin customers by Wagner & Co and its clients will not be as aggressive as the ones sent out by ACS:Law and will not contain a precise settlement amount. However, it is guaranteed that cash will be requested at some point.

Upon receipt of these “speculative invoices” there will be those who panic and pay up, and that’s their prerogative. But it’s highly likely that those who admit nothing and stand firm will pay what they’ve always paid in UK cases – absolutely nothing.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

One of the suggestions often made is the removal or demotion of pirate sites in search results. A lower ranking would lead fewer people to pirate sources and promoting legal sources would have a similar effect, rightsholders argue.

While Google already began changing the ranking of sites based on DMCA complaints in 2012, it announced more far-reaching demotion measures last week. According to Google the new alghorithm changes would “visibly” lower the search rankings of the most notorious pirate sites, and they were right.

TorrentFreak has spoken with various torrent site owners who confirm that traffic from Google has been severely impacted by the recent algorithm changes. “Earlier this week all search traffic dropped in half,” the Isohunt.to team told us.

The drop is illustrated by a day-to-day traffic comparison before and after the changes were implemented, as shown below. The graph shows a significant loss in traffic which Isohunt.to solely attributes to Google’s recent changes.

The downranking affects all sites that have a relatively high percentage of DMCA takedown requests. When Google users search for popular movie, music or software titles in combination with terms such as “download,” “watch” and “torrent”, these sites are demoted.

The new measures appear to be far more effective than previous search algorithm changes, and affect all major ‘pirate’ sites. Below is an overview of the SEO visibility of several large torrent sites in the UK and US, based on a list of 100 keywords.

The true impact varies from site to site, depending on how much it relies on Google traffic. Confirming their earlier stance, The Pirate Bay team told TorrentFreak that they are not really concerned about the changes as they have relatively little traffic from Google.

“That Google is putting our links lower is in a way a good thing for us. We’ll get more direct traffic when people don’t get the expected search result when using Google, since they will go directly to TPB,” they said.

To get an idea of how the search results have changed we monitored a few search phrases that were likely to be affected. The before and after comparisons, which are only three days apart, show that popular ‘pirate sites’ have indeed disappeared.

A search for “Breaking Bad torrent” previously featured Kickass.to, Torrentz.eu and Isohunt.com on top, but these have all disappeared. Interestingly, in some cases their place has been taken by other less popular torrent sites.

The top torrent sites have also vanished from a search for the movie The Social Network. “The Social Network download” no longer shows results from Kickass.to, ThePirateBay.se and Movie4k.to but shows the IMDb profile on top instead.

Searches for music tracks have changed as well. The phrase “Eminem lose yourself mp3″ no longer shows links to popular MP3 download sites such as MP3Skull.com, but points to legal sources and lesser known pirate sites.

The traffic data and search comparisons clearly show that Google’s latest downranking changes can have a severe impact on popular “pirate” sites. Ironically, the changes will also drive a lot of traffic to smaller unauthorized sources for the time being, but these will also be demoted as their takedown notice count increases.

Rinse and repeat.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Since its official launch in September 2013 the unit has tackled online copyright infringement from a number of directions including arrests, domain seizures and advertising disruptions. PIPCU has shut down several sports streaming and ebook sites plus a large number of proxies.

In June 2013 when the Department for Business, Innovation & Skills announced the creation of PIPCU, Viscount Younger of Leckie noted that the Intellectual Property Office would provide an initial £2.56 million in funding to the unit over two years.

However, this funding was allocated on a temporary basis and was set to expire in 2015, a situation which prompted the Prime Minister’s former Intellectual Property Advisor Mike Weatherley to call for additional support.

This morning the government confirmed that additional funding will indeed be made available to PIPCU enabling it to operate until at least 2017.

Speaking to the national crime unit at the Anti-Counterfeiting Group Conference in London, Minister for Intellectual Property Baroness Neville-Rolfe said that PIPCU would be boosted by £3 million of funding from the public purse.

“We’ve seen significant success in PIPCU’s first year of operation. This extra support will help the unit to build on this impressive record in the fight against intellectual property crime, which costs the UK at least £1.3 billion a year in lost profits and taxes,” Baroness Neville-Rolfe said.

“With more money now being invested in ideas than factories or machinery in the UK, it is vital that we protect creators and consumers and the UK’s economic growth. Government and industry must work together to give long-term support to PIPCU, so that we can strengthen the UK’s response to the blight of piracy and counterfeiters.”

City of London Police Commander Steve Head, who is the Police National Coordinator for Economic Crime, welcomed the cash injection.

“The government committing to fund the Police Intellectual Property Crime Unit until 2017 is fantastic news for the City of London Police and the creative industries, and very bad news for those that seek to make capital through intellectual property crime,” Head said.

“Since launching a year ago, PIPCU has quickly established itself as an integral part of the national response to a problem that is costing the UK more than a billion pounds a year. Much of this success is down to PIPCU moving away from traditional policing methods and embracing new and innovative tactics, to disrupt and dismantle criminal networks responsible for causing huge damages to legitimate businesses.”

The news was also well received at music industry group BPI.

“The work of PIPCU to date has been invaluable in tackling piracy, which is recognized as a significant threat to musicians’ income, investment in new businesses and the growth of the UK’s creative economy,” said Director of Copyright Protection, David Wood.

“This funding demonstrates the commitment of the UK Government to promoting respect for intellectual property, which acts as the backbone of growth for our world-leading creative and digital media sectors.”

PIPCU, which is closely allied with the Intellectual Property Office (IPO), is a 21-strong team comprised of detectives, investigators, analysts, researchers, an education officer and a communications officer.

The unit also reports two secondees – a Senior Intelligence Officer from the IPO and an Internet Investigator from the BPI. The latter role was previously filled by the BPI’s Mark Rampton but according to his Linkedin profile he left his position last month. No announcement has been made detailing his replacement.

While PIPCU is definitely leaving its mark, not all operations have gone to plan. In one of its highest-profile actions to date, last month the unit shut down what it described as an illegal and “industrial scale” sports streaming service in Manchester. However, in mid October all charges were dropped against its alleged operator.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Virtually every person on the Internet has shared a photo without obtaining permission from its maker, whether through social networks, blogs or other services.

While most photographers spend little time on combating piracy, Seattle-based artist Christopher Boffoli has taken some of the largest web services to court for aiding these infringements

Boffoli has filed lawsuits against Twitter, Google and others, which were settled out for court under undisclosed terms. Last month he started a new case against popular image sharing site Imgur after it allegedly ignored his takedown requests.

The photographer asked the court to order an injunction preventing Imgur from making 73 of his photos available online. In addition, he requested millions of dollars in statutory damages for willful copyright infringement.

Imgur has yet to file an official reply to the complaint. In the meantime, however, Boffoli’s actions appear to have triggered another less welcome response.

A few days ago a user of The Pirate Bay decided to upload a rather large archive of the photographer’s work to the site. The archive in question is said to hold 20,754 images, including the most famous “Big Appetites” series.

The image archive, which is more than eight gigabytes in size, had to be partly wrapped in an .iso file because otherwise the .torrent file itself would have been too large.

The description of the archive mentions Boffoli’s recent actions against Imgur, which could have triggered the upload. One of the commenters points out that the Imgur lawsuit may have done more harm than good, and a new Internet meme was born.

“Sued for 73 images, got 20,754 uploaded to TPB, LOL. About the Big Appetites series, if I ever get my hands on a copy, I’ll scan it at 600 dpi and upload it here, have fun trying to censor the internet, Boffoli,” the commenter notes.

TorrentFreak asked Boffoli for a comment on the leak and whether he will take steps to prevent the distribution, but we have yet to hear back.

While not everyone may agree with the lawsuit against Imgur piracy can impact photographers quite a bit. It’s usually not the average Pirate Bay user that’s causing the damage though, but rather companies that use professional photos commercially without a license.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

In a lawsuit filed in the Southern District of Texas, Voltage sought to identify illegal downloaders of the movie by providing the IP addresses of Internet subscribers to the court. Their aim – to scare those individuals into making cash settlements to make supposed lawsuits disappear.

Now, in the most significant development of the ‘trolling’ model in recent times, Dallas Buyers Club LLC are trying to expand their project into Australia. Interestingly the studio has chosen to take on subscribers of the one ISP that was absolutely guaranteed to put up a fight.

iiNet is Australia’s second largest ISP and the country’s leading expert when it comes to fighting off aggressive rightsholders. In 2012 the ISP defeated Hollywood in one of the longest piracy battles ever seen and the company says it will defend its subscribers in this case too.

Chief Regulatory Officer Steve Dalby says that Dallas Buyers Club LLC (DBCLLC) recently applied to the Federal Court to have iiNet and other local ISPs reveal the identities of people they say have downloaded and/or shared their movie without permission.

According to court documents seen by TorrentFreak the other ISPs involved are Wideband Networks Pty Ltd, Internode Pty Ltd, Dodo Services Pty Ltd, Amnet Broadband Pty Ltd and Adam Internet Pty Ltd.

Although the stance of the other ISPs hasn’t yet been made public, DBCLLC aren’t going to get an easy ride. iiNet (which also owns Internode and Adam) says it will oppose the application for discovery.

“iiNet would never disclose customer details to a third party, such as movie studio, unless ordered to do so by a court. We take seriously both our customers’ privacy and our legal obligations,” Dalby says.

While underlining that the company does not condone copyright infringement, news of Dallas Buyers Club / Voltage Pictures’ modus operandi has evidently reached iiNet, and the ISP is ready for them.

“It might seem reasonable for a movie studio to ask us for the identity of those they suspect are infringing their copyright. Yet, this would only make sense if the movie studio intended to use this information fairly, including to allow the alleged infringer their day in court, in order to argue their case,” Dalby says.

“In this case, we have serious concerns about Dallas Buyers Club’s intentions. We are concerned that our customers will be unfairly targeted to settle any claims out of court using a practice called ‘speculative invoicing’.”

The term ‘speculative invoicing’ was coined in the UK in response to the activities of companies including the now defunct ACS:Law, which involved extracting cash settlements from alleged infringers (via mailed ‘invoices’) and deterring them from having their say in court. Once the scheme was opened up to legal scrutiny it completely fell apart.

Some of the flaws found to exist in both UK and US ‘troll’ cases are cited by iiNet, including intimidation of subscribers via excessive claims for damages. The ISP also details the limitations of IP address-based evidence when it comes to identifying infringers due to shared household connections and open wifi scenarios.

“Because Australian courts have not tested these cases, any threat by rights holders, premised on the outcome of a successful copyright infringement action, would be speculative,” Dalby adds.

The Chief Regulatory Officer says that since iiNet has opposed the action for discovery the Federal Court will now be asked to decide whether iiNet should hand over subscriber identities to DBCLLC. A hearing on that matter is expected early next year and it will be an important event.

While a win for iiNet would mean a setback for rightsholders plotting similar action, victory for DBCLLC will almost certainly lead to others following in their footsteps. For an idea of what Australians could face in this latter scenario, in the United States the company demands payment of up to US$7,000 (AUS$8,000) per infringement.

_{Photo: Michael Theis}

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

In the 1980s, those with access to Bulletin Board Systems would download programs and share them with their friends, all with the full encouragement of the software’s creators. Shareware, as it was known, often encouraged users to send off a snail-mailed registration fee in return for a code to unlock premium features. Although basic, freemium had been born.

Today the concept has gone way beyond those humble roots. The App Store and Google Play are awash with free-to-play games with premium addons, and services such as Spotify and Dropbox offer decent free levels of service to get users onboard and primed to start parting with real cash.

If Joe Public was pressed into a snap judgment, Microsoft would probably be more associated with premium than free, with the company historically charging sizable amounts for its Windows and Office products, for example. However, speaking with CNBC, Microsoft CEO Satya Nadella says that the company has always had an eye on the freemium experience.

The idea, the CEO notes, is to get people on board with a product they find useful. Then, when it becomes clear how users are utilizing the service, options to monetize become available alongside their demands for improved service. He uses the company’s cloud-storage service as an example.

“We want everybody to use OneDrive. And then when you are starting to use it for business, that’s when we want to monetize. So we do not want to have you only start using us when you have a business license or subscription. We want to have you use us when you just want to save any file or any document, any artifact of yours. And then have a natural way for us to monetize as you use more of it in the commercial context,” Nadella explains.

By now millions of people online are familiar with ‘freemium’ in one shape or another but comments from Nadella suggest that while this business model has been leveraged by Microsoft for quite some time, the company had it forced upon them.

“Well, we’ve always had freemium. Sometimes our freemium was called piracy,” Nadella reveals.

“[The] thing that I don’t want us as a company to shy away from is usage first. Because I think if anything, the new competition has taught is that, you know, what matters is do not try to equate revenue and usage day one.”

The ‘piracy is promotion’ angle is something rarely spoken about by company execs, probably in fear of endorsing an illegal activity and validating it in the eyes of piracy proponents. However, by speaking of it alongside ‘freemium’, Microsoft’s CEO appears to have confirmed what many have been saying all along, that getting people on board for free – via piracy if necessary – is one the first steps on the monetization trail.

Indeed, this belief his held so strongly in some quarters that there are some who insist that it’s preferable for people to pirate the software of company ‘A’ than switch to the opposition, whether paid or not.

That said, what Microsoft does not want is people selling pirated copies of its premium products – that kind of ‘promotion’ is never welcome. If people use a free sample of Microsoft products at home, the company isn’t likely to kick down the door. Do the same in a business environment, however, and things aren’t anywhere near as open-minded.

There are no signs that Microsoft is going soft on piracy but as business models change, as they have with Adobe’s Creative Cloud, free tiers attractive to would-be pirates will become more commonplace. And that can only mean one thing for piracy rates.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.