Rapidshare was also ordered to delete any and all of those same tracks from its servers and ensure that they are not uploaded again by users. Previously Rapidshare had been using file hashes to recognize tracks that were already removed after requests from GEMA, to ensure that they weren’t uploaded again. The court decided that the technique used was ineffective.

The court found Rapidshare guilty of breaches of copyright law and estimated the value of the tracks at €24 million ($34 million).

“The decision of the Hamburg Regional Court is a milestone in GEMA’s fight against the illegal use of musical works on the Internet,” said Dr. Harald Heker, Chief Executive Officer of GEMA. “We are confident that in this way we will be able to reduce the illegal use of the GEMA repertoire on the Internet to a negligible level,” he added.

Understandably, Rapidshare sought to downplay the ruling. Bobby Chang, COO of RapidShare, Switzerland, said: “We do not consider the court’s decision to be a breakthrough. As other proceedings in similar disputes with GEMA have shown, there is considerable disparity amongst the individual courts in some cases.”

Noting that the courts of appeal “tend to restrict the scope of the decisions made by the lower courts,” Chang said it would make more sense to offer music fans the right products and services at the right price to “open up a new source of income for music-markets on the Internet.”

Update: We initially reported that Rapidshare was fined $34 million on the back of this report. This information is wrong, the court only stated that the value of the tracks was estimated at $34 million. The article is updated accordingly and we’re sorry for the confusion.

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

At first it was unclear how the identity of the uploader was revealed, but today German news outlet Gulli said it had found out that this was likely to be accomplished by creative use of paragraph 101 of German copyright law. It turns out that several record labels are using this to take legal action against those who share music on Rapidshare.

Previously the paragraph was only used by rights holders to get the personal details of those who share copyrighted works on file-sharing networks. It basically enables the copyright holders to get “permission” from a civil judge to ask ISPs to disclose the personal details of a user behind a certain IP. Now, however, this also seems to be the case for file-hosting services such as Rapidshare, which is based in Germany.

This of course opens up the possibility for rights holders to go after a wide range of file-hosting services and potentially even BitTorrent sites. Indeed, everyone who now uploads a torrent file to a site hosted in Germany is at risk of having his personal details revealed. Although it will be impossible to prove that the uploader actually seeded the file it might be seen as assisting in copyright infringement.

Pretty much all torrent sites keep track of the IP-addresses of their (.torrent) uploaders, and if the rights holders can get the IP-address of people who upload to file-hosting services such as Rapidshare, they can easily extend this to BitTorrent sites hosted in Germany. A dream come true for copyright holders, but a nightmare for the privacy of Internet users.

Too bad for Metallica’s Lars Ulrich who only just started sharing files himself.

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

Almost exactly 1 year ago, P2PBlog reported that the German rights organization GEMA had gained a preliminary injunction against Rapidshare which ordered the company to stop hosting and distributing titles which GEMA represent.

Rapidshare made an appeal – but lost. The court decided that Rapidshare should be forced to monitor all uploads which infringed on GEMA’s copyright – a feat which the company said was impossible.

At the time, GEMA boss Dr. Harald Heker said that the Court’s decision shows that it’s not down to the rights holders to police commercial outfits such as Rapidshare for their copyright works. He went on to say that he felt that the decision would send a major signal to all file-hosting sites where copyright works are used to generate revenue for themselves.

Then in April 2007 it was reported that Rapidshare was fighting back, suing GEMA in response – with the aim of clarifying the legal position for file-hosting sites.

Now, rumors circulating on the web indicate that Rapidshare was shut down. Quite a few sites reported the news but this situation does not appear to be true. Rapidshare’s Wiki page is now closed due to vandalism which is believed to have carried erroneous information which contributed to the confusion.

According to a report, a Rapidshare technician said: “There are rumors concerning attacks made on the Rapidshare.com servers. There are also rumors that Rapidshare has been shut down by a court order. These rumors are false. We would like to apologize to our users and inform them that no data has been lost. There have been some hardware issues as a result of high bandwidth and server overload. We are doing our very best to resolve the hardware issues, and users should expect uptime by midnight tonight (GMT)”

There is no doubt that Rapidshare stores millions of files – including lots of music. The operators of Rapidshare claim they have no idea what material they store on their servers and are in no postion (much like a regular ISP) to monitor or police the content. The users upload the content, they say, and as such, it’s out of their control.

However, the injunctions issued by the District Court in Cologne indicate that Rapidshare’s liability for such infringements still exist as they were carried out during the course of Rapidshare’s business. GEMA head, Harald Heker said at the time: “The mere circumstance of shifting acts of use to users and the purported inability of the operator to control content do not relieve the operator of a service from the copyright liability he/she/it possesses for the content made available for download from the operator’s website(s).”

In the meantime, Rapidshare.com and Rapidshare.de continue to operate.

This article has been updated

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