Now, following an announcement by ARTISTdirect CEO Dimitri Villard, it seems that the sullied names of both MediaDefender and Media Sentry will be consigned to the archives as the company rebrands the pair under a new name: Peer Media Technologies.

Despite the hacking chaos that all but destroyed Media Defender’s business, coupled with the controversy when Media Sentry’s investigative tactics were deemed illegal in several US states (and was promptly dropped by the RIAA), ARTISTdirect is still touting the pair as a force to be reckoned with – albeit with a new coat of paint and a new name.

“The combination of MediaDefender, the leader in Internet Piracy Prevention (IPP) with Media Sentry, the leader in business and marketing intelligence derived from P2P channels, creates a true powerhouse in the field of intellectual property protection,” says a notice on Peer Media’s shiny new website.

CEO Dimitri Villard also announced that he had hired ex Macrovision and Blackwave director Terri Denver as head of worldwide sales at Peer Media.

According to ARTISTdirect, the rebranding and consolidation of MediaDefender and Media Sentry under the Peer Media banner will benefit the customer base “by offering higher quality products than either company did previously.”

Services being offered by Peer Media include spoofing and decoys on file-sharing networks, sending cease and desist notices to ISPs to forward to their customers and sending the same to file-hosting sites carrying copyright content. Other services include monitoring networks for leaked movies and music, and assessing demand for media by monitoring what file-sharers do on the Internet.

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

Following the departure of its two founders, MediaDefender CEO Dimitri Villard said MediaSentry had been bought for $936,000, comprised of $136,000 in cash and an $800,000 1 year note.

“The combination of MediaDefender, the leader in Internet Piracy Prevention (IPP) with MediaSentry, the leader in business and marketing intelligence derived from P2P channels, creates a true powerhouse in the field of intellectual property protection,” Villard said. “This acquisition will enable MediaDefender to dramatically expand its effectiveness by providing customers with a wide range of options to meet the constantly evolving challenges in copyright protection and enforcement.”

Among file-sharers, MediaDefender grew to become one of the most hated anti-p2p companies but always maintained that it did not track individuals or report them to the authorities or copyright holders. With its acquisition of MediaSentry, a company designed to do just that, MediaDefender now boasts the full range of tools to hinder, mislead, track, monitor and report copyright infringers.

Previously a SafeNet Inc. subsidary, MediaSentry became well known as the RIAA’s main anti-piracy partner, providing crucial support to the lobby group during its aggressive litigation campaign against file-sharers. The RIAA dumped MediaSentry in January, choosing to work with Danish tracking company DtecNet instead.

MediaSentry is best known for harvesting IP-addresses of alleged copyright infringers but their methodology has been questioned in court by several experts. On top of that, Mediasentry’s investigation tactics were deemed illegal in several states because it operated without the appropriate and required paperwork. According to some, this was why they were ditched by the RIAA.

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

In mid 2005, MediaDefender founders Randy Saaf and Octavio Herrera were paid $43 million for their anti-piracy company when it was acquired by ARTISTdirect. This seemed to be a good deal, particularly since the big movie studios were paying millions for MediaDefender’s services – but that situation didn’t last.

In August 2007 disaster struck when a database of MediaDefender’s internal emails leaked to the public. Every juicy detail of their anti-piracy campaigns were out in the open, including the tools they used. The hacker said that he initially didn’t plan to make the info public, but when he found out what MediaDefender were up to he was determined to “destroy them” – and so he did.

The emails were published on the web at MediaDefender-Defenders.com but now the site just diverts to The Pirate Bay. Despite the damage control efforts of MediaDefender, however, the emails are still available for download on some BitTorrent sites. This must have helped give the large movie studios the impression that MediaDefender is not the most capable company to entrust with the protection of their blockbuster titles.

A few months after the leak it became known that the data breach was proving exceptionally expensive, with MediaDefender’s parent company losing almost $1,000,000 because of the hack. As a result, their stock price plunged and is now valued at a measly two cents per share and the company’s activities have noticeably decreased. BitTorrent site administrators told TorrentFreak that MediaDefender are not as active as they used to be.

Many times we have predicted the downfall of MediaDefender but on paper the company is still alive. Its founders are no longer on board though. According to a SEC filing last month, MediaDefender has terminated the employment of Randy Saaf and Octavio Herrara.

Why the two left is not clear, but it’s the end of an era for sure. It wouldn’t surprise us if the company ceases to exist in the near future. Meanwhile, the two anti-piracy partners were elected to the Board of Directors of Jibro, Inc. a relatively unknown mobile entertainment company where they will continue to work together.

We wish them all the best.

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

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.

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