DL then wrote to the individuals demanding several hundred pounds to make the threat of a lawsuit disappear. Some paid up, but many did not, and the only cases DL took to court were against those who didn’t defend themselves.

Generating revenue from porn proves controversial

Then the law firm overplayed its hand and got into bed with DigiProtect, the German piracy exploitation outfit with a catalog of hardcore porn titles to its name. The rights were signed over to the company by the copyright holders so that DigiProtect could use them to generate revenue – lots and lots of revenue.

After mountains of bad publicity, DL withdrew from this business model. In May this year, the exact same scheme reappeared with UK lawyers ACS:Law. TorrentFreak asked company owner Andrew Crossley about the connections between ACS and DL – his reply: “NONE”. However, it was crystal clear that there were many links, not least that staff from DL were now working at ACS:Law directly on these cases – known cyber-squatter Terence Tsang as one example.

We’ve known all along that if those threatened put up a spirited defense and refused to be cowed they were never taken to court, but we had no proof as to the mechanism employed. Then, out of nowhere, months ago someone from inside either Davenport Lyons or DigiProtect leaked lots of sensitive documents to German news outlet Gulli.

Having remained secret until now, the documents made very interesting reading and along with a helping hand from TorrentFreak and armed with the leaked personal details and email addresses of some of the letter recipients, Firebird77 at Gulli was able to confirm the authenticity of the documents.

Document 1 – Ranking alleged infringers in order to decide who to pursue

The first document reveals how the targets are ranked based on an estimation of how likely it is that they will pay up. Each alleged infringer has their details filled in on a form (download here from WikiLeaks). The document shows that despite the claims that an IP address alone is irrefutable evidence of an infringement and will lead to being taken to court, the reality is rather different.

Letter recipients are given a ranking based on many parameters. Does the law firm want to continue to pursue the person? What are the chances of success? A zero would mean “no action” up to ten which would mean the respondent is ripe for maximum pressure. One letter recipient hired Michael Coyle at Lawdit Solicitors to defend him and this earned him a “three”.

One part of the form is entitled “Circumstances” and this is a very surprising section indeed. Despite the “fact” that the law firms supposedly already have solid evidence of infringement that they say will lead to court action if recipients don’t comply, the section seems to show that they make their decisions on who to pursue based on the recipients’ personal circumstances.

One circumstance is labeled “impecuniosity”, i.e the letter recipient is flat broke. Another is whether the recipient is on state benefits – this is expected to be proven by way of copies of benefit books and/or letters. TorrentFreak has evidence that one gentleman was asked to prove that he was indeed disabled in order to make the claims go away. Other circumstances include whether the recipient is a pensioner, a student or a child.

One other circumstance is an eyebrow-raising “out of jurisdiction” (no rightful claim could be made the against the recipient) along with whether or not the individual was aware of that fact.

The form also lists possible defenses that recipients rely on, including the breach of their wireless router, a virus infected PC, not being at home when the infringement occurred, no knowledge of infringement or the possibility that someone else in the location carried out the infringement.

Document 2 – Letter from lawyer Dr Kornmeier from Kornmeier & Partner to Brian Miller at Davenport Lyons

The 14 page document (download from WikiLeaks) details the agreement DigiProtect enters into with rights holders in order to exploit their copyrights for profit.

Included is a section which confirms that the original rights holders sign over the rights to DigiProtect so that they are legally allowed to make the works (hardcore porn movies) publicly available on P2P networks such as BitTorrent. Dr Kornmeier asks: “Does this constitute any problem under UK law?”

According to page 2 of the letter, when the recipient of these letters pay up, the spoils are divided up as follows – 51% to DigiProtect, 37.5% to Davenport Lyons and 11% to DigiRights Solutions. The remaining pages detail the exact business arrangement along with a list of the hundreds of porn movies covered by the agreement.

TorrentFreak discussed the documents with staff at the excellent BeingThreatened.com, a site set up to support and inform those targeted by Davenport Lyons and ACS:Law in the UK.

“These documents confirm what we have long suspected,” they told us. “This scheme is not about getting justice for the rightsholders at all; it is there to fill the pockets of companies like DigiProtect by exploiting many innocent people. Everyone with an IP address has reason to be worried about becoming a victim of these exploitative practices, whether they use P2P networks or not.”

Indeed, John Stagliano, boss of porn company Evil Angel which also worked with DigiProtect, admitted to earning less than £50 from each infringement and told the BBC the scheme “…was completely misrepresented” to him.

Uk consumer magazine Which? earlier reported Davenport Lyons to the Solicitors Regulatory Authority for alleged “bullying”. It will be interesting to see how these documents develop that case.

Thus far just two documents have been made public. Stay tuned for further updates.

Article from: TorrentFreak, check out our new blog at FreakBits.

“We get the legal rights from the companies to distribute these movies to stores, and with these rights we can sue illegal downloaders,” said Digiprotect’s account manager Thomas Hein as he explained how his operation works. “Then we take legal action in every country possible, concentrating on the places where such action will be profitable.”

“No one working for DigiProtect has a fixed salary. If we make money, everybody makes money. If we don’t, nobody does. This means the lawyers, sales people and customers. It’s all about how much money can be recouped and then sharing it,” he added, crucially.

And here lies the problem. According to lawyer Christian Solmecke of Wilde & Beuger law firm in Germany, the law requires such an operation to have an RVG agreement, which is part of the mechanism to regulate attorney’s fees. Since no-one can say how much the lawyers get paid, this causes difficulty.

“The interview creates the impression that no RVG agreement was entered into by DigiProtect and the law firms who admonish users [threaten with pay-up-or-else letters]. The report relating that the money thus earned is shared, rather suggests a success fee. Such an agreement is illegal. An admonishment based on it would equally be illegal and admonishing expenses would not have to be paid,” Solmecke notes.

DigiProtect have been pretty open about their aim of generating profit for their own company and their partners – indeed, its tagline is Turn Piracy Into Profit. This may also cause problems for their lawyer partners.

“If the admonishment serves solely the purpose of generating gains, it may furthermore be repudiated for reasons of abuse of legal right,” says Solmecke.

DigiProtect partners with lawyers ACS:Law in UK and presumably operates in a similar manner, sharing profits from those who ultimately pay up on the threats.

Update: Aldor Nini from Easycom contacted TorrentFreak with his view on this article. It’s a long read but interesting nonetheless

Our company develops end-user software, custom B2B solutions and sometimes we do also create software for anti-piracy purposes. We’re not related with DigiProtect, nor do we have any business or private relatinoship with them, but we’re very specialized in the German law together with our law-firm in Germany. The German RVG states, that the lawyer should be compensated by the RVG, that’s true. The RVG does also allow the lawyer to be compensated by additional charges like working hours for special tasks, this is also very usual.

Article from: TorrentFreak, check out our new blog at FreakBits.

The latest development is one that file-sharing commentators have quietly been expecting. While some 40-60% of those threatened over video game sharing in the UK appear to pay up, there are other ways of increasing this amount substantially via social leverage. Unsurprisingly, Davenport Lyons are now going down this road which is likely maximize compliance rates.

According to recipients of fresh letters this weekend, the lawyers have now expanded into movie ‘protection’ – a gay hardcore porn movie to be precise. Set on a farm in the former Czechoslovakia, Gestapo officers apparently hand out ‘forced’ punishment in ‘Army Fuckers‘, a 2006 movie originally released by Dutch porn outfit Dream Logistics BV, on the ‘Eurocreme‘ label.

Strangely, however, Dream Logistics BV aren’t the rights holder anymore, or the ones that hired Davenport Lyons. It appears the new rights holder is German anti-piracy company DigiProtect, who managed to get this High Court order for disclosure of alleged file-sharer’s identities, based on evidence provided by lesser-known anti-piracy tracking company DigiRights Solution, of Darmstadt, Germany. Indeed, DigiRights Solution GmbH appear to have no obvious Internet presence.

Davenport Lyons are demanding £500 compensation, plus the costs from the ISP for disclosing the alleged infringer’s personal details. Recipients of the letter are given 21 days to pay up and are threatened with huge court costs and damages if they don’t, which is no different to all the other threats made by Davenport on other media they ‘protect’. It is worth noting that of a claimed 25,000 threats of legal action, no more than half a dozen have gone to court and of those, none were contested, meaning that Davenport Lyons won default judgments on them all. There is no evidence to suggest that anyone has ever contested a case with many people simply refusing to pay up.

Those accused and deciding to settle are asked to sign an undertaking that they will never infringe copyright on any media owned by DigiProtect in the future, which might be easier than you think – considering the number of titles they own the rights to. As previously pointed out by P2P-Blog, DigiProtect seem to be acquiring the ‘P2P Rights’ to many titles (including those of US porn company ‘Evil Angel’) and gathering their money via P2P tracking and subsequent legal threats.

However, most worrying is the leaked contract between DigiProtect and Evil Angel, as it contains the following paragraph, which one would believe applies to these UK cases too:

To achieve the purpose outlined in clause 1, LICENSOR grants DIGIPROTECT the exclusive right to make the movies listed in Appendix 1 worldwide available to the public via remote computer networks, so-called peer-2-peer and internet file sharing networks such as e-Donkey, Kazaa, Bitorrent, etc. for the duration of this agreement

This destroys claims that these actions are for strict anti-piracy purposes, this is a clearly a money-making operation, designed from the ground-up.

Since most people will want to avoid lining the pockets of DigiProtect and friends, here is a list of titles that include those that appear to be now owned by DigiProtect and ripe for IP harvesting.

Although not DigiProtect titles, the eagle-eyed reader will notice the inclusion on this list of Dream Pinball 3D, Colin McRae Rally and Call of Juarez – all titles targeted by Davenport Lyons. According to the list, DigiProtect also owns the rights to Atari’s dire ‘Alone in the Dark 5′.

Of course, we live in a world that has become much more liberal in recent years, so the stigma attached to porn of all flavors has diminished significantly. However, the damage that will be done to a family will be considerable if someone is incorrectly accused of sharing porn that doesn’t ‘fit’ the acceptance levels in that household.

There is a firestorm coming, there can be little doubt, and a simple apology from Davenport Lyons following an incorrect accusation won’t be enough.

Article from: TorrentFreak, check out our new blog at FreakBits.