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<title>Techdirt. Stories filed under &quot;pre-settlement&quot;</title>
<description>Easily digestible tech news...</description>
<link>http://www.techdirt.com/</link>
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<image><title>Techdirt. Stories filed under &quot;pre-settlement&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Thu, 24 Mar 2011 08:28:30 PDT</pubDate>
<title>Judge Says Mass Suing People For Infringement Is Perfectly Fine And Even 'Benefits' Defendants</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml</link>
<guid>http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml</guid>
<description><![CDATA[ While a bunch of courts have rejected attempts by various law firms and movie producers to join together thousands of totally unrelated people in charges of copyright infringement of various movies, one judge has now <a href="http://www.hollywoodreporter.com/thr-esq/mass-suing-pirates-gets-shot-170403" target="_blank">said that it's perfectly fine to join all those defendants together</a>.  In fact, Judge Beryl Howell directly suggests that the defendants are <i>better off</i> this way:
<blockquote><i>
"Given the administrative burden of simply obtaining sufficient identifying information to properly name and serve alleged infringers, it is highly unlikely that the plaintiffs could protect their copyrights in a cost-effective manner. Indeed, Time Warner urges the Court to sever the defendants for this very reason. Time Warner asserts that, if joinder were disallowed, its burden of complying with subpoenas would be diminished because the plaintiffs would not be able to proceed against all of the putative defendants individually At this procedural juncture, the plaintiffs have met the requirements of permissive joinder under Rule 20(a)(2). The putative defendants are not prejudiced but likely benefited by joinder, and severance would debilitate the plaintiffs' efforts to protect their copyrighted materials and seek redress from the putative defendants who have allegedly engaged in infringing activity."
</i></blockquote>
I find this reasoning to be odd, and I'm sure there will be an appeal on this point.  The purpose of accurately suing individuals in the proper jurisdiction, rather than lumping together totally unrelated people, is not about what's <i>easiest</i> for the copyright holder.  It's about basic fairness and due process.  As discussed, each of the defendants may have totally different defenses.  Some, surely, did infringe, and it's fine if they face the legal consequences of what they've done.  Others, certainly, did not infringe.  Still others may have additional defense depending on the details.  Joining them all together is completely unfair to the defendants who have no actual connection.  The judge doesn't seem to think it'll be a problem if each defendant presents a separate defense, but it's hard to see how that's fair to the defendants.
<br /><br />
The judge here seems to mistakenly believe that the purpose behind these rules is to figure out what is easiest for the copyright holder.  But that's simply not the case.  Furthermore, the court ignores the key point: which is that these lawsuits have never been about actually suing people for copyright infringement.  It's always been about abusing the court system as a part of a business model, using the <i>threat</i> of a lawsuit as a way to get people to pay up.  It's a classic shakedown, and it's disturbing that a court would think that's a reasonable setup.
<br /><br />
The court also rejects the jurisdictional question, even though it was pointed out that it seems quite likely most of the people being sued have no connection to the region covered by the court.  The judge's reasoning here is also questionable, basically saying that since you can't be sure where the person is, it's fine to charge them all in whichever district court.  This seems wrong to me, but assuming we accept it, it seems like this argument could easily be flipped.  If it's true that IP addresses cannot adequately locate a user, isn't it equally true that the IP address alone does not adequately <i>identify</i> a user?  Thus, by this judge's own argument, the IP address should not be accurate evidence for the sake of such a lawsuit.
<br /><br />
Finally, there's an interesting discussion on the First Amendment rights of the users.  To be honest, I found this claim to be pretty uncompelling in the first place.  While I'm a huge supporter of the First Amendment, as well as the First Amendment's protections for privacy, that doesn't mean that you can hide behind it completely.  If there is actual evidence of law breaking, then such protections no longer apply.  Where I have questions is whether or not such evidence really has been presented.  As mentioned above, even the judge seems to note that IP addresses are not really identifiers.  Still, the ruling does get interesting in that the judge actually does state, flat out, that <b>"file-sharing does involves aspects of expressive communication."</b>  This is interesting because in our debates about the the domain seizures, we've had critics in the comments insist this is simply not true.   That said, the court does say that the First Amendment protections here are "minimal."  Still, the court does recognize a key point:
<blockquote><i>
Nevertheless, file-sharers are engaged in expressive activity, on some level, when they share files on BitTorrent, and their First Amendment rights must be considered before the Court allows the plaintiffs to override the putative defendants' anonymity by compelling the production of these defendants' identifying information.
</i></blockquote>
I'm happy to see the judge get this point correct.  I'm not necessarily convinced that the plaintiffs really do provide enough evidence to get over this barrier, but I think it's fair to say that if there is enough evidence, that it's reasonable to expect someone to be identified.  So this part of the ruling actually does make sense to me (even if I'm not convinced that the evidence really is enough to overcome the hurdle).
<br /><br />
No matter what, it's quite likely this case will be appealed.  I'm hopeful that an appeals court will reverse on the issue of joinder, but hopefully uphold the key point that there is a First Amendment issue, and certain hurdles need to be met to remove anonymity.<br /><br /><a href="http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>uh-what?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110323/16344113603</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 21 Mar 2011 02:31:27 PDT</pubDate>
<title>US Copyright Group Drops A Bunch Of Cases... But Will It Refile?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110318/22570313554/us-copyright-group-drops-bunch-cases-will-it-refile.shtml</link>
<guid>http://www.techdirt.com/articles/20110318/22570313554/us-copyright-group-drops-bunch-cases-will-it-refile.shtml</guid>
<description><![CDATA[ There was some news last week about copyright trolls, US Copyright Group (really DC-based law firm Dunlap, Grubb &#038; Weaver), <a href="http://torrentfreak.com/us-copyright-group-drops-cases-against-alleged-hurt-locker-pirates-110118/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">dropping thousands of lawsuits</a> it had filed against people for file sharing.  While some are declaring victory, I'd wait and see.  It may simply be setting up to refile those lawsuits in the proper venues, as the firm has done in the past.  It would be nice if USCG and the various studios had realized that this was a dead end strategy, but I find that unlikely...<br /><br /><a href="http://www.techdirt.com/articles/20110318/22570313554/us-copyright-group-drops-bunch-cases-will-it-refile.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110318/22570313554/us-copyright-group-drops-bunch-cases-will-it-refile.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110318/22570313554/us-copyright-group-drops-bunch-cases-will-it-refile.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>waiting-game</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110318/22570313554</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 7 Mar 2011 21:56:00 PST</pubDate>
<title>Copyright Pre-Settlement Virus A Lucrative Scam</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110307/04375913384/copyright-pre-settlement-virus-lucrative-scam.shtml</link>
<guid>http://www.techdirt.com/articles/20110307/04375913384/copyright-pre-settlement-virus-lucrative-scam.shtml</guid>
<description><![CDATA[ With all of the highly questionable pre-settlement lawsuits out there demanding cash from people to avoid a lawsuit for copyright infringement, we've heard of a few different scams designed to use the same tactics: accuse someone of copyright infringement and demand cash to avoid a lawsuit... even if the operation demanding cash has nothing to do with the copyright holder.  One recent example of this was a bit of malware that, once installed on a computer, would generate fake infringement warnings from the RIAA/MPAA, demanding cash settlements.  <a href="http://torrentfreak.com/leaked-docs-show-results-of-fake-riaampaa-bittorrent-scam-110305/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+Torrentfreak+%28Torrentfreak%29" target="_blank">TorrentFreak</a> points us to a report from Brian Krebs who got his hands on some documents from ChronoPay, the operation that was used to handle the payments in this scam, showing <a href="http://krebsonsecurity.com/2011/03/chronopays-scareware-diaries/" target="_blank">just how lucrative the scam has been</a>.  The documents only cover the past two months, but in that time, 580 people paid up, handing over $283,000 to scammers.  Of course, this is only marginally less legit than the standard shakedown from various lawyers who are working with the copyright holders.  But, the success of these scammers' operations is almost certainly driven in part by the success and press coverage of those lawyers who are sending out those mass pre-settlement letters.  People are hearing about this and thinking any such threat is legitimate, even when it's a pure scam.  Of course, this means you should only expect to start receiving plenty more such scam requests, demanding you pay up to avoid a lawsuit.  Kinda makes you wonder if it will make the "actual" letters sent by copyright holders less effective as people just assume they're scam letters.<br /><br /><a href="http://www.techdirt.com/articles/20110307/04375913384/copyright-pre-settlement-virus-lucrative-scam.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110307/04375913384/copyright-pre-settlement-virus-lucrative-scam.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110307/04375913384/copyright-pre-settlement-virus-lucrative-scam.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>scammers-love-a-new-scam</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110307/04375913384</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 1 Mar 2011 02:56:09 PST</pubDate>
<title>Judge Dumps Yet Another Mass Infringement Suit In Response To Single, Pro Se Motion To Quash</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110226/15103513284/judge-dumps-yet-another-mass-infringement-suit-response-to-single-pro-se-motion-to-quash.shtml</link>
<guid>http://www.techdirt.com/articles/20110226/15103513284/judge-dumps-yet-another-mass-infringement-suit-response-to-single-pro-se-motion-to-quash.shtml</guid>
<description><![CDATA[ The various lawyers who have jumped on the bandwagon of mass lawsuits against people accused of sharing certain porn productions have been finding that courts are becoming more aggressive in dismissing most of the defendants due to clear abuse of the law by the lawyers to file a single case against so many defendants.  We've seen a bunch of such cases have all but a single defendant dismissed.  However, it looks like one judge in Illinois, Judge Milton Shadur, went beyond even that in <a href="http://arstechnica.com/tech-policy/news/2011/02/random-defendant-outlawyers-p2p-attorney-gets-lawsuit-tossed.ars?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=rss" target="_blank">dismissing an entire case against all 300 defendants</a> in response to an amateur pro se motion to quash from one of the anonymous defendants.  Of course, we've talked about some "kits" that have been put online for such defendants to file motions to quash and some of the folks in our comments insisted that such motions would <a href="http://www.techdirt.com/articles/20100829/23330210812.shtml#c132">never work</a>.  Oops.
<br /><br />
In this particular case, brought by one of the "new breed" of P2P mass lawsuit lawyers, John Steele (who was a divorce lawyer before jumping in to these types of cases) sued 300 defendants on behalf of porn producer, CP Productions.  The judge seems to think the whole thing was clearly unwarranted, and had made it clear to Steele earlier that he didn't think much of the case at all.  Steele pushed forward, but once the motion to quash came in, the judge dumped the whole case, going with his initial intuition that the case never should have been brought in the first place.  Ars Technica summarizes the judge's reasoning:
<blockquote><i>
"Among other things, the newest motion demonstrates that there is no justification for dragging into an Illinois federal court, on a wholesale basis, a host of unnamed defendants over whom personal jurisdiction clearly does not exist and--more importantly--as to whom CP&rsquo;s counsel could readily have ascertained that fact," the judge said, apparently referring to the fact the IP lookup services would have shown the lawyers that most defendants were unlikely to be Illinois residents.
<br /><br />
In addition, the judge saw the joinder of 300 defendants as little more than a ploy for saving cash. "No predicate has been shown for thus combining 300 separate actions on the cheap," he added. "If CP had sued the 300 claimed infringers separately for their discrete infringements, the filing fees alone would have aggregated $105,000 rather than $350."
</i></blockquote>
The judge also noted Steele's amazingly fast response to his own initial concerns about the case, which he said seemed to suggest that Steele already knew why the judge would be concerned and had all of his arguments ready to go.  To the judge, this showed that Steele knew quite well the "obvious problems" of these types of lawsuits.  Nice to see more judges realizing that these lawsuits are a massive abuse of the legal system to squeeze money out of people.<br /><br /><a href="http://www.techdirt.com/articles/20110226/15103513284/judge-dumps-yet-another-mass-infringement-suit-response-to-single-pro-se-motion-to-quash.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110226/15103513284/judge-dumps-yet-another-mass-infringement-suit-response-to-single-pro-se-motion-to-quash.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110226/15103513284/judge-dumps-yet-another-mass-infringement-suit-response-to-single-pro-se-motion-to-quash.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>quashed-indeed</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110226/15103513284</wfw:commentRss>
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<pubDate>Wed, 9 Feb 2011 22:11:24 PST</pubDate>
<title>Expendables Producers Begin Process Of Shaking Down Thousands For Cash</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml</link>
<guid>http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml</guid>
<description><![CDATA[ As was widely <a href="http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml">expected</a>, the producers of the big budget Hollywood movie, <i>The Expendables</i> have joined the coalition of the clueless with the producers of <i>Hurt Locker</i> in deciding to <a href="http://torrentfreak.com/makers-of-the-expendables-sue-6500-bittorrent-users-110208/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">shakedown some of the movie's fans</a>.  Once again, using law firm Dunlap, Grubb &#038; Weaver under the name US Copyright Group (whose existing lawsuits of this nature haven't gone too well so far), a lawsuit lumping together 6,500 unnamed people accused of file sharing has been launched.  As with the previous lawsuits, the intent here is just to suss out names attached to the IP addresses, at which point they'll be sent misleading and threatening letters, which suggest they pay up to have the lawsuits against them dropped.  Of course, as with previous such lawsuits, I'm sure there will be a quick back and forth as someone points out that lumping all of these defendants into a single case is not proper, and it'll depend on whether or not the judge is reasonable to see if the case will actually move forward.
<br /><br />
Still, it kind of makes you wonder what the producers of <i>The Expendables</i> are thinking.  The studio, called Nu Image, is pretty much deciding to purposely piss off a large group of fans, just at a time when they're apparently working on a sequel.  Nothing in this action will make any of those people more interested in paying money to see any more movies from Nu Image in the future.  In fact, about the only thing it will do is give a large group of people an excuse <i>not</i> to pay to see Nu Image movies.  And for what?  To get a tiny group of folks who downloaded the movie to pay a few thousand dollars -- a large chunk of which just goes to the lawyers?  That's not exactly a brilliant business strategy.<br /><br /><a href="http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-to-piss-off-fans</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110208/15510213010</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 9 Feb 2011 03:06:07 PST</pubDate>
<title>Judge Not Amused By ACS:Law Stunts; Forcing Cases To Continue</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110208/15404913009/judge-not-amused-acslaw-stunts-forcing-cases-to-continue.shtml</link>
<guid>http://www.techdirt.com/articles/20110208/15404913009/judge-not-amused-acslaw-stunts-forcing-cases-to-continue.shtml</guid>
<description><![CDATA[ The saga of ACS:Law and its mass P2P user shakedown campaign continues.  Despite claiming to have <a href="http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml">shut down completely</a> in an attempt to avoid any possible sanctions for its <a href="http://www.techdirt.com/articles/20110118/01392212706/acslaw-continues-to-screw-up-court-judge-not-happy.shtml">disastrous strategy</a>, the judge is <a href="http://www.bbc.co.uk/news/technology-12396443?utm_source=twitterfeed&#038;utm_medium=twitter" target="_blank">forcing the cases to continue</a>, saying that ACS:Law and its partner MediaCAT cannot just drop the cases in an attempt to "avoid public scrutiny."  The judge clearly sees the shakedown scam for what it is:
<blockquote><i>
I cannot imagine a system better designed to create disincentives to test the issues in court.... Why take cases to court and test the assertions when one can just write more letters and collect payments from a proportion of the recipients?
</i></blockquote>
The judge appears to have also slammed ACS:Law and Andrew Crossley for claiming that one reason for dropping the cases were that necessary documents were in storage and they didn't want to retrieve them.  The judge saw through that excuse:
<blockquote><i>
"If true, it is extraordinary," said the ruling. "A party who keeps key documents which are cited in the particulars of claim in storage is not a party anxious to progress their claim in court."
</i></blockquote>
Once again, those firms in the US copying this strategy should probably take note of what's happening over in the UK.<br /><br /><a href="http://www.techdirt.com/articles/20110208/15404913009/judge-not-amused-acslaw-stunts-forcing-cases-to-continue.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110208/15404913009/judge-not-amused-acslaw-stunts-forcing-cases-to-continue.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110208/15404913009/judge-not-amused-acslaw-stunts-forcing-cases-to-continue.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>be-fair-warned-us-copyright-group</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110208/15404913009</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 7 Feb 2011 14:52:48 PST</pubDate>
<title>With ACS:Law And MediaCAT Shutting Down, What Does It Mean For US Copyright Group?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml</link>
<guid>http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml</guid>
<description><![CDATA[ ACS:Law wasn't the first law firm to try the "send tons of 'pre-settlement' letters to people we accuse of file sharing in hopes they just pay up," business model.  In fact, ACS:Law got all of its <a href="http://www.techdirt.com/articles/20090508/1944054795.shtml">initial paperwork</a> from another law firm, Davenport Lyons, who was trying to get out of that business.  However, ACS:Law was the firm that really got much of the attention over the past few years.  Just about a year ago, that business model finally <a href="http://www.techdirt.com/articles/20100330/1132478790.shtml">jumped</a> to the US, initially from an outfit called US Copyright Group, which was really an operation run by a tiny DC law firm called Dunlap, Grubb and Weaver along with an online monitoring company.  However, with the latest news that ACS:Law and its online monitoring company MediaCAT <a href="http://torrentfreak.com/acslaw-and-mediacat-completely-shut-down-both-their-businesses-110204/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">have completely gone out of business</a> -- perhaps in a weak attempt to avoid sanctions for their <a href="http://www.techdirt.com/articles/20110118/01392212706/acslaw-continues-to-screw-up-court-judge-not-happy.shtml">disastrous</a> attempt to finally bring some cases to court, it makes me wonder if this is a precursor of things to come for US Copyright Group/DGW.  It certainly looks like DGW has been a bit more careful with its strategy than ACS:Law (where it really seemed like Andrew Crossley got in way over his head), but it certainly should be a warning sign to all those law firms who think this sort of shakedown play is easy money.<br /><br /><a href="http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110206/23594312981/with-acslaw-mediacat-shutting-down-what-does-it-mean-us-copyright-group.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>brothers-in-arms</slash:department>
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<item>
<pubDate>Mon, 7 Feb 2011 06:24:58 PST</pubDate>
<title>Mass P2P Porn Lawyer Tries Filing A Class Action Lawsuit... In Reverse</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110204/23142912973/mass-p2p-porn-lawyer-tries-filing-class-action-lawsuit-reverse.shtml</link>
<guid>http://www.techdirt.com/articles/20110204/23142912973/mass-p2p-porn-lawyer-tries-filing-class-action-lawsuit-reverse.shtml</guid>
<description><![CDATA[ Wow.  We've noted that the various lawyers who have jumped on the mass copyright infringement shakedown bandwagon (mostly for clients in the porn business) have been running into some <a href="http://www.techdirt.com/articles/20110101/21182712478/more-mass-porn-copyright-infringement-lawsuits-get-dumped.shtml">serious problems</a> on the issue of "joinder" -- tying all of those defendants into a single group.  You're only supposed to be able to do that if they were all involved <i>together</i> in breaking the law.  So far, the courts haven't been buying it for the most part.  However, it appears one of the lawyers involved in these cases, John Steele, is trying a bit of a novel strategy: <a href="http://arstechnica.com/tech-policy/news/2011/02/reverse-class-action-its-the-latest-tactic-in-the-p2p-wars.ars?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=rss" target="_blank">a class action lawsuit in reverse</a>.
<br /><br />
Normally, a class action lawsuit involves a "class" of related people as the <i>plaintiffs</i>.  Steele is arguing that you can lump all of the defendants into a class as well:
<blockquote><i>
This Court has personal jurisdiction over the Class because the putative named class representative Defendants are residents of Illinois. This Court has in personam jurisdiction over absent class members because due process is satisfied by providing them with best practicable notice, an opportunity to opt-out, and adequate representation. In addition, the Court may exercise personal jurisdiction over individual Defendants because their infringing activity should have reasonably been anticipated to violate the Copyright Act in this jurisdiction. Therefore, due process is satisfied because any person engaged in such activity could reasonably anticipate being haled into this jurisdiction where he or she violated the Copyright Act. 
</i></blockquote>
Now, there have been a <i>few</i> examples of such defendant class action lawsuits in the past, but they're <i>very</i> rare, and usually require a pretty damn good reason.  I'd be surprised if the judge grants it here.  As in other cases like this, judges have pointed out that the mass group of defendants sued are not really comparable, as they each may have extremely different defenses, and were not really connected to each other in any way at all.
<br /><br />
On a totally separate note, what is it with the lawyers bringing these mass P2P porn cases all having names out of some bad novel?  Evan Stone. John Steele.  Ken Ford.  Is there some rule that you need a forceful, single syllable last name to be one of these lawyers?<br /><br /><a href="http://www.techdirt.com/articles/20110204/23142912973/mass-p2p-porn-lawyer-tries-filing-class-action-lawsuit-reverse.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110204/23142912973/mass-p2p-porn-lawyer-tries-filing-class-action-lawsuit-reverse.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110204/23142912973/mass-p2p-porn-lawyer-tries-filing-class-action-lawsuit-reverse.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>against-the-class?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110204/23142912973</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 31 Jan 2011 08:40:39 PST</pubDate>
<title>Just Under 100,000 Sued In Mass Copyright Infringement Suits Since Start Of 2010</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml</link>
<guid>http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml</guid>
<description><![CDATA[ We've been covering the mass copyright infringement lawsuits being filed in the US over the past year or so.  Most of them aren't designed with the idea of actually taking anyone to court, but mainly to threaten people into "settling" (i.e., paying up) to avoid the lawsuit.  A "concerned citizen" hoping to remain anonymous has taken the time to put together an <a href="https://docs.google.com/leaf?id=0B8oEqWOAwM3SY2MxNjlhYzUtZDE4Mi00MDcwLWFhZDEtZjdjMmFlODQwYjBk&#038;hl=en" target="_blank">amazingly detailed spreadsheet cataloging all of these lawsuits</a>.  He claims that he will continue to keep it updated.  One stunning point from the data?  Between January 1, 2010 and now, 99,924 "John Does" have been sued in this manner.  If I don't hurry up and publish this post, I imagine we'll have already passed 100,000.
<center>
<img src="http://i.imgur.com/QlFZI.png" width=560 />
<br /><br />
<img src="http://i.imgur.com/bUPP3.png" />
</center>
While many of the John Doe cases have been dismissed, the spreadsheet shows that 70,914 have not yet been dismissed, so there are plenty to go.  When 100,000 people are getting sued anonymously by just a few firms, at what point do the courts and politicians realize that something is broken with the law?<br /><br /><a href="http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>out-of-control-yet?-Mass-Copyright-Infrigment-Suits-Filed-Against-Nearly-100,000</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110129/23354512882</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 27 Jan 2011 16:11:00 PST</pubDate>
<title>New Twist On Mass Pre-Settlement Copyright Shakedown Letters: Porn Company Asks Downloaders To Confess... And Pay</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110126/02580412829/new-twist-mass-pre-settlement-copyright-shakedown-letters-porn-company-asks-downloaders-to-confess-pay.shtml</link>
<guid>http://www.techdirt.com/articles/20110126/02580412829/new-twist-mass-pre-settlement-copyright-shakedown-letters-porn-company-asks-downloaders-to-confess-pay.shtml</guid>
<description><![CDATA[ We've been covering how tons of porn companies have jumped on the bandwagon with these mass pre-settlement shakedown operations, in which they threaten thousands of people for the possibility that they might have infringed on their copyrights, and ask them to pay up to avoid a lawsuit.  Over the last few weeks, TorrentFreak has been following how Liberty Media has been gearing up for just such a plan, with a few twists.  First, there was the really bizarre <a href="http://www.techdirt.com/articles/20110107/16025712574/guy-agrees-to-pay-250000-just-days-after-being-sued-uploading-movies.shtml">lawsuit and settlement</a>, where some guy was sued and settled in just a few days, giving Liberty Media the ability to claim he settled for $250,000, while the fine print suggested that he's paying a lot less (if anything).  Then, the company <a href="http://www.techdirt.com/articles/20110119/02103212713/third-parties-increasingly-targeted-infringement-cases.shtml">started suing intermediaries</a>, like Paypal and Hotfile.
<Br><Br>
But the latest move appears to be an attempt to turn this whole circus into a way to sign up more users.  That's because the studio is now offering an "amnesty program," for people who <a href="http://torrentfreak.com/movie-studio-tells-bittorrent-users-turn-yourselves-in-110126/" target="_blank">'fess up to downloading its movies</a>.  But unlike typical "amnesty" programs, you have to pay $1,000.  Yes, the studio is asking people to effectively voluntarily agree to pay $1,000 so that they won't sue them, on the off-chance that there's actually evidence pointing to them (and that it can actually successfully sue a bunch of users -- which has proven problematic for others).  But, here's the kicker: for those who do pay up, you get a one-year "paid membership" to the company's websites.  In other words, it's a shakedown-turned-marketing plan.<br /><br /><a href="http://www.techdirt.com/articles/20110126/02580412829/new-twist-mass-pre-settlement-copyright-shakedown-letters-porn-company-asks-downloaders-to-confess-pay.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110126/02580412829/new-twist-mass-pre-settlement-copyright-shakedown-letters-porn-company-asks-downloaders-to-confess-pay.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110126/02580412829/new-twist-mass-pre-settlement-copyright-shakedown-letters-porn-company-asks-downloaders-to-confess-pay.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>yeah,-good-luck</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110126/02580412829</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 26 Jan 2011 16:03:00 PST</pubDate>
<title>Latest Mass Copyright Infringement Suit Involves Paris Hilton's Sex Tape</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110125/18125412821/latest-mass-copyright-infringement-suit-involves-paris-hiltons-sex-tape.shtml</link>
<guid>http://www.techdirt.com/articles/20110125/18125412821/latest-mass-copyright-infringement-suit-involves-paris-hiltons-sex-tape.shtml</guid>
<description><![CDATA[ In the past year or so, it seems that the porn industry has really jumped on board the train of supporting the mass "pay up or we'll sue" copyright infringement shakedown efforts.  While some folks have been paying up to avoid a lawsuit, the actual court cases haven't been particularly successful so far.  However, it's interesting to see that the latest "film" being used in one of these programs is the <a href="http://torrentfreak.com/bittorrent-users-sued-paris-hilton-sex-tape-110125/" target="_blank">famed Paris Hilton sex tape, "One Night in Paris,"</a> that came out in 2003 and is a big part of what catapulted Hilton to her current level of fame.  Of course, when it came out there were a few legal fights over who actually owned the rights to the film.  Those legal fights have been settled for now, with both of the "participants" in the video apparently earning a cut of any revenue.  Of course, given how much the free distribution of this video helped increase Ms. Hilton's value and bank account, it's a little silly to see folks now suing over it.  I imagine that, like the other similar cases, those bringing the lawsuit will find that it's not that easy to succeed in court.  But I'm sure plenty of people will still just pay up, rather than risk having to go to court to explain their porn downloading habits.<br /><br /><a href="http://www.techdirt.com/articles/20110125/18125412821/latest-mass-copyright-infringement-suit-involves-paris-hiltons-sex-tape.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110125/18125412821/latest-mass-copyright-infringement-suit-involves-paris-hiltons-sex-tape.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110125/18125412821/latest-mass-copyright-infringement-suit-involves-paris-hiltons-sex-tape.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>who-owns-the-copyright-now?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110125/18125412821</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 11 Jan 2011 03:44:52 PST</pubDate>
<title>Mass Infringement Pre-Settlement Lawyers Team Up To All Fail Together</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110110/16414612598/mass-infringement-pre-settlement-lawyers-team-up-to-all-fail-together.shtml</link>
<guid>http://www.techdirt.com/articles/20110110/16414612598/mass-infringement-pre-settlement-lawyers-team-up-to-all-fail-together.shtml</guid>
<description><![CDATA[ We've noted how in the past year, a bunch of "pay up or we'll sue" law firm operations have popped up, signing up confused and short-sighted copyright holders, who believe that shaking down fans is a business model that can work.  Of course, to date, this legal strategy has been <a href="http://www.techdirt.com/articles/20110101/21182712478/more-mass-porn-copyright-infringement-lawsuits-get-dumped.shtml">failing</a> pretty spectacularly in court.  It is true that some folks just pay up but as these lawsuits continue to have trouble in court, people will begin to realize that paying money to someone who just demands it probably isn't a smart move.  Of course, one of the issues is that none of the law firms actually have the manpower to follow through and sue people, so it should come as little surprise that some of the law firms who have recently been losing in court, including Kenneth Ford, the lawyer for <a href="http://www.techdirt.com/articles/20110101/21182712478/more-mass-porn-copyright-infringement-lawsuits-get-dumped.shtml">Axel Braun</a>, as well as Dunlap, Grubb &#038; Weaver (which is the law firm behind <a href="http://www.techdirt.com/articles/20101216/16450012305/court-shoots-down-mass-porn-copyright-infringement-lawsuits.shtml">US Copyright Group</a>) <a href="http://news.cnet.com/8301-31001_3-20028080-261.html?part=rss&#038;subj=news&#038;tag=2547-1_3-0-20" target="_blank">are teaming up to try to work together</a>.  I guess they figure it's better to fail together, rather than to watch each fail alone.<br /><br /><a href="http://www.techdirt.com/articles/20110110/16414612598/mass-infringement-pre-settlement-lawyers-team-up-to-all-fail-together.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110110/16414612598/mass-infringement-pre-settlement-lawyers-team-up-to-all-fail-together.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110110/16414612598/mass-infringement-pre-settlement-lawyers-team-up-to-all-fail-together.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-luck</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110110/16414612598</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 5 Jan 2011 16:23:11 PST</pubDate>
<title>Expendables Producers Decide To Demand Cash From Fans Who Downloaded</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml</link>
<guid>http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml</guid>
<description><![CDATA[ Most of the movie producers who have jumped onto the "pre-settlement" letter bandwagon, whereby they simply demand cash from people, who might have downloaded the film, in exchange for not suing them, have been either small time producers or porn producers.  The one exception, so far, had been <a href="http://www.techdirt.com/articles/20100528/1044069619.shtml">the producers</a> of <i>Hurt Locker</i>, who suggested that anyone who suggested this move might backfire was naturally <a href="http://www.techdirt.com/articles/20100518/2341519482.shtml">a "moron and a thief."</a>  Others in Hollywood had seemed to recognize that suing people, who downloaded your movie and demanding that they pay thousands of dollars to avoid a lawsuit, might lead to a serious backlash.  But, apparently that's not true of everyone.  The producers of the "let's get together a bunch of has-been actors and make a film" action flick, <i>The Expendables</i>, have apparently <a href="http://torrentfreak.com/downloaded-the-expendables-on-bittorrent-the-copyright-police-are-coming-110105/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">signed up to be the next big name movie</a> to extort money from fans.  Even though these types of threats and lawsuits haven't been shown to work all that well so far and often lead to a massive backlash among fans.
<br /><br />
In related news, US Copyright Group is now insisting that it really, really (no really!) is planning to <a href="http://news.cnet.com/8301-31001_3-20027252-261.html" target="_blank">start suing people</a> in a variety of different jurisdictions.  They've promised this for a while, but there have been some doubts.  I'm sure that some lawsuits will definitely be filed, but I'm guessing that the number won't be nearly as big as has been suggested in the past.<br /><br /><a href="http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110105/11042412530/expendables-producers-decide-to-demand-cash-fans-who-downloaded.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-to-lose-fans</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110105/11042412530</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 14 Oct 2010 12:40:51 PDT</pubDate>
<title>Why Do The Various Copyright Pre-Settlement Lawsuit Factories Keep Copying Each Other?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101014/03220211427/why-do-the-various-copyright-pre-settlement-lawsuit-factories-keep-copying-each-other.shtml</link>
<guid>http://www.techdirt.com/articles/20101014/03220211427/why-do-the-various-copyright-pre-settlement-lawsuit-factories-keep-copying-each-other.shtml</guid>
<description><![CDATA[ Earlier this year we noted, with some amusement, that the US Copyright Group (the biggest name among the recent glut of copyright pre-settlement shakedown letter factories popping up <a href="http://www.techdirt.com/articles/20101011/00084611353/the-rise-of-mass-copyright-infringement-filing-shakedown-factories-in-the-us.shtml">all over</a> the country) had apparently <a href="http://www.techdirt.com/articles/20100730/10510310426.shtml">copied the code</a> for its settlement website from a competitor, the Copyright Enforcement Agency (even leaving in the phone number).  And, of course, we've also noted that the US Copyright Group is now involved in a <a href="http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml">lawsuit</a> after threatening to sue competitor Media Copyright Group, for being too similar.
<br /><br />
Now, a reader who goes by the name Mr. Piracy Reporter, notes that yet another new pre-settlement lawsuit factory, going by the name of the <a href="http://www.copyrightdefenseagency.com/" target="_blank">Copyright Defense Agency</a>, appears to have created a very, very similar website to that of the <a href="http://www.copyrightenforcementgroup.com/" target="_blank">Copyright Enforcement Agency</a> (the same company that USCG was accused of copying.  You can see the images below:
<center>
<img src="http://imgur.com/t9UvP.png" alt="Copyright Enforcement Agency" width="560" />
<br /><br />
<img src="http://imgur.com/LLZKE.png" alt="Copyright Defense Agency" width="560" />
</center>
Now, it's true that they're not exactly the same, but it certainly looks like one site pointed their designer towards the other's and said "make it look like that."  Either that or the design firm they hired just went looking for a similar site to mimic.  I especially like how both have similar, but not identical, graphics on the right-hand side, including the globe with the arrow (what does that even mean?).  Of course, such copying almost certainly is not illegal, but for organizations trying to convince the world that they're all about preventing unauthorized copying, it does seem amusing to note just how much copying of each other they seem to do.<br /><br /><a href="http://www.techdirt.com/articles/20101014/03220211427/why-do-the-various-copyright-pre-settlement-lawsuit-factories-keep-copying-each-other.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101014/03220211427/why-do-the-various-copyright-pre-settlement-lawsuit-factories-keep-copying-each-other.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101014/03220211427/why-do-the-various-copyright-pre-settlement-lawsuit-factories-keep-copying-each-other.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that-design-looks-familiar</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101014/03220211427</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 12 Oct 2010 11:56:23 PDT</pubDate>
<title>Media Copyright Group Sues US Copyright Group Over Trademark Threat</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml</link>
<guid>http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml</guid>
<description><![CDATA[ We had <i>just</i> written about the <a href="http://www.techdirt.com/articles/20101011/00084611353/the-rise-of-mass-copyright-infringement-filing-shakedown-factories-in-the-us.shtml">rise</a> of a bunch of new pre-settlement shakedown shops, who send out massive amounts of lawsuits over claims of file sharing in order to get people to pay up.  Just recently, some had noticed that these firms all seem to <a href="http://www.myce.com/news/anti-piracy-lawyers-caught-pirating-each-others-work-34977/" target="_blank">copy</a> from each other, and now two of the firms may be heading to court over it.  Seriously.
<br /><br />
An anonymous reader passed along the news that the Media Copyright Group -- which was set up recently by a divorce lawyer to work with porn providers -- has <a href="http://www.scribd.com/doc/39192531/Media-Copyright-Group-v-Legacy-21-Complaint" target="_blank">filed for declaratory judgment against US Copyright Group</a>, the offshoot of Dunlap, Grubb &#038; Weaver (the firm that was the <a href="http://www.techdirt.com/articles/20100330/1132478790.shtml">first</a> to get attention for bringing these sorts of pre-settlement deals to the US).  We had already noted that US Copyright Group appeared to have <a href="http://www.techdirt.com/articles/20100730/10510310426.shtml">copied its website</a> from a competitor, but apparently even though US Copyright Group thinks it's okay to copy others, it doesn't like anyone else copying it.  A lawyer from Dunlap, Grubb &#038; Weaver sent a cease and desist to Media Copyright Group, alleging trademark infringement.  Media Copyright Group filed for a declaratory judgment that it is not infringing:
<center>
 <object id="doc_70499" name="doc_70499" height="600" width="550" type="application/x-shockwave-flash" data="http://d1.scribdassets.com/ScribdViewer.swf" style="outline:none;" >                <param name="movie" value="http://d1.scribdassets.com/ScribdViewer.swf">                 </param><param name="wmode" value="opaque">                 </param><param name="bgcolor" value="#ffffff">                 </param><param name="allowFullScreen" value="true">                 </param><param name="allowScriptAccess" value="always">                 </param><param name="FlashVars" value="document_id=39192531&#038;access_key=key-t8qutyzbb2y6s18n65h&#038;page=1&#038;viewMode=list">                 <embed id="doc_70499" name="doc_70499" src="http://d1.scribdassets.com/ScribdViewer.swf?document_id=39192531&#038;access_key=key-t8qutyzbb2y6s18n65h&#038;page=1&#038;viewMode=list" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" height="600" width="550" wmode="opaque" bgcolor="#ffffff"></embed>             </param></object>
</center>
All I can say is that there's something quite amusing about watching two of these law firms suing each other in court, arguing over whether or not one infringed on the other's "intellectual property."<br /><br /><a href="http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101012/10515411392/media-copyright-group-sues-us-copyright-group-over-trademark-threat.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-what-you-get</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101012/10515411392</wfw:commentRss>
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<item>
<pubDate>Tue, 5 Oct 2010 04:52:00 PDT</pubDate>
<title>UK ISPs Refusing To Hand Over Subscriber Data To Pre-Settlement Lawyers Due To ACS:Law Data Leaks</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101004/21455811288/uk-isps-refusing-to-hand-over-subscriber-data-to-pre-settlement-lawyers-due-to-acs-law-data-leaks.shtml</link>
<guid>http://www.techdirt.com/articles/20101004/21455811288/uk-isps-refusing-to-hand-over-subscriber-data-to-pre-settlement-lawyers-due-to-acs-law-data-leaks.shtml</guid>
<description><![CDATA[ The fallout from the ACS:Law <a href="http://www.techdirt.com/articles/20100927/00183711179/pre-settlement-shakedown-by-acs-law-doesn-t-seem-quite-so-profitable.shtml">email leak</a> continues.  Law firm Gallant Macmillan, who only recently <a href="http://www.techdirt.com/articles/20100712/12492810179.shtml">jumped into</a> the pre-settlement shakedown game, went to court this week to seek the names of various people it wanted to send such letters to and UK ISPs BT and Plusnet -- who had previously cooperated with such requests -- <a href="http://torrentfreak.com/uk-isps-successfully-resist-file-sharing-data-handover-101004/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">refused to hand over the information</a>, citing the <a href="http://www.techdirt.com/articles/20100927/16595811186/privacy-international-plans-to-sue-acs-law-for-mishandling-information-on-those-it-threatened.shtml">privacy issues</a> raised by the fact that ACS:Law did not properly store and privatize the information it received on subscribers.  Of course, it's a bit weak to wait until now to make this complaint.  These ISPs should have been standing up for their users from the beginning.  Still, better late than never.<br /><br /><a href="http://www.techdirt.com/articles/20101004/21455811288/uk-isps-refusing-to-hand-over-subscriber-data-to-pre-settlement-lawyers-due-to-acs-law-data-leaks.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101004/21455811288/uk-isps-refusing-to-hand-over-subscriber-data-to-pre-settlement-lawyers-due-to-acs-law-data-leaks.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101004/21455811288/uk-isps-refusing-to-hand-over-subscriber-data-to-pre-settlement-lawyers-due-to-acs-law-data-leaks.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>oh,-now-they-decide-this?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101004/21455811288</wfw:commentRss>
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<pubDate>Thu, 26 Aug 2010 13:17:28 PDT</pubDate>
<title>Why Are Gay Porn Producers So Quick To Get Involved In Shakedown Copyright Pre-Settlement Schemes?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100825/17125610777.shtml</link>
<guid>http://www.techdirt.com/articles/20100825/17125610777.shtml</guid>
<description><![CDATA[ Over in the UK, where firms like Davenport Lyons and ACS:Law made the whole mass "pre-settlement" letter "pay us or we'll sue your for infringement" practice popular, it seemed that many of their early customers were <a href="http://www.techdirt.com/articles/20081201/0233572982.shtml">gay porn producers</a>.  And now, we're seeing something similar in the US.  While US Copyright Group is getting lots of attention for <a href="http://www.techdirt.com/articles/20100330/1132478790.shtml">bringing</a> this sort of campaign to the US with some independent films, the gay porn producers are jumping into the game quickly.
<br /><br />
In July, we noted that one such gay porn producer had <a href="http://www.techdirt.com/articles/20100719/17330710283.shtml">filed a bunch of lawsuits</a> for sharing films via BitTorrent, and now THREsq is reporting that litigious porn producer Io Group <a href="http://thresq.hollywoodreporter.com/2010/08/pirates-porn-lawsuit.html?utm_source=twitterfeed&#038;utm_medium=twitter" target="_blank">is also suing a bunch of John Does for the same thing</a>.  If Io sounds familiar, that's because they were also one of the first to sue a video site for infringement, in this case Veoh, in a lawsuit that <a href="http://www.techdirt.com/articles/20080827/2332412121.shtml">Io lost</a>.
<br /><br />
Of course, with gay porn movie claims, the privacy questions for ISPs who received demands to turn over names associated with IP addresses becomes a bit trickier.  One reason why gay porn producers may be drawn to these sorts of legal actions is because they're assuming that at least some of those they target may not be "out," and having it go public that they were being sued for accessing gay porn could present a bigger issue -- so they may be more likely to pay up quickly.  But for ISPs, this also makes the privacy issues a lot clearer.  I could definitely see some people turn around and sue ISPs right back for revealing their private info in these cases.
<br /><br />
THREsq notes that many ISPs are getting sick of these pre-settlement schemes, but it's not yet clear how far they're willing to go to stand up for the privacy of their subscribers.<br /><br /><a href="http://www.techdirt.com/articles/20100825/17125610777.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100825/17125610777.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100825/17125610777.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hoping-people-pay-an-embarassment-tax?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100825/17125610777</wfw:commentRss>
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<item>
<pubDate>Fri, 11 Jun 2010 12:40:00 PDT</pubDate>
<title>Lawyers Who Tried To Get Into The Mass 'Pre-Settlement' Game Threaten Wordpress</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100611/0319489778.shtml</link>
<guid>http://www.techdirt.com/articles/20100611/0319489778.shtml</guid>
<description><![CDATA[ Lots of attention has been paid to Davenport Lyons and ACS:Law as two UK law firms that have sent out thousands of "pre-settlement" threat letters, demanding payment to avoid a lawsuit over copyright infringement.  There was a third firm in the UK that briefly popped up trying to do the same thing: Tilly Bailey & Irvine (TBI). A ton of complaints were filed against TBI and even members of the House of Lords in the UK <a href="http://www.youtube.com/watch?v=TkPHV-U3kMQ&feature=youtube_gdata" target="_blank">called them</a> the "new entrants to the hall of infamy."  After that, TBI "reluctantly agreed" to stop these kinds of campaigns, due to "the amount of adverse publicity" that came with it.  Apparently TBI is a big law firm that's been around for nearly two centuries, and it realized that smearing its name this way probably wasn't a good idea.
<br><br>
However, since then, it's tried pretty much everything possible to pretend that it never did anything.  Its latest move is to <a href="http://torrentfreak.com/lawyers-warn-wordpress-over-file-sharing-news-blog-100610/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">threaten Wordpress.com for hosting a blog that was critical of TBI</a>.  The <a href="http://acsbore.wordpress.com/" target="_blank">ACSBore blog</a> has been following the law firms involved in these types of actions and uncovering all sorts of embarrassing stuff at times.
<br><br>
However, in one post, the blogger behind the site put up a "wanted" poster of a TBI lawyer who had been involved in the pre-settlement letter campaign along with a <a href="http://acsbore.wordpress.com/2010/04/10/tilly-bailey-irvine-stop-sending-speculative-invoices-to-save-their-reputation/" target="_blank">blog post quite critical of the firm</a>.  Rather than go after him directly, TBI is using a bit of third party liability trickery, claiming first that using the image of one of its lawyers in a "wanted poster" is <i>copyright infringement</i>, and secondly, that the nature of the wanted poster was defamatory.  TBI claimed that Automattic, the company behind Wordpress.com would be liable for defamation.
<br><Br>
Of course, Automattic is a US-based company, and it almost certainly would not be liable under either issue.  On the defamation claim, it's clearly protected by Section 230.  On the copyright claim... well... just a year ago we wrote about an almost <i>identical</i> situation, with some company execs suing a guy who created "Wanted" posters out of their corporate photos.  The company claimed copyright infringement, but the <a href="http://www.techdirt.com/articles/20090728/0329415681.shtml">court noted it was fair use</a>.  Unfortunately, Automattic accepted the complaint as a DMCA takedown and removed the content to avoid liability.  Perhaps the ACSBore owner will file a counternotice and get the image put back up.
<br><br>
TBI is also trying to find out the identity of who is behind the ACSBore blog.  Wordpress is standing behind its user on that front, though, saying: "We will not, under any circumstance, disclose any contact/personal/private details of our bloggers without a U.S. Court Order, and this has not been presented to us."
<br><br>
For a company that was worried about its reputation, you would think it would learn that trying to intimidate critics is probably going to backfire badly and give you an even worse reputation than whatever it was you did in the first place.  If TBI is really worried about bad publicity, it should ignore the critics -- not try to bully them legally into shutting up.<br /><br /><a href="http://www.techdirt.com/articles/20100611/0319489778.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100611/0319489778.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100611/0319489778.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let-me-explain-safe-harbors</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100611/0319489778</wfw:commentRss>
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<item>
<pubDate>Fri, 11 Jun 2010 11:38:00 PDT</pubDate>
<title>Didn't Take Long: Lots Of People Getting Sued By US Copyright Group Claim Innocence</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100611/0237179777.shtml</link>
<guid>http://www.techdirt.com/articles/20100611/0237179777.shtml</guid>
<description><![CDATA[ In the recent <a href="http://www.techdirt.com/articles/20100603/1244079676.shtml">amicus filing</a> by the EFF, Public Citizen and the ACLU in one of US Copyright Group's <a href="http://www.techdirt.com/articles/20100330/1132478790.shtml">mass copyright infringement lawsuits</a>, one of the points that they raised was that these mass filing strategies always snare a significant number of innocent users -- many of whom still feel the need to pay up, as it's cheaper to do so than to hire a lawyer and fight.  It looks like that's already happening.  Ars Technica is reporting on <a href="http://arstechnica.com/tech-policy/news/2010/06/songs-of-innocence.ars" target="_blank">a number of people proclaiming innocence over the filings</a>.  What you get is a picture of frustration as well.  Many were informed by their ISP that they had just a couple days to try to quash the subpoena or their info would get handed over to USCG.  Even those that tried to understand the details of what they were being threatened with were left in the dark:
<blockquote><i>
"Originally we got a letter from our ISP stating they have a subpoena for our name and address. We literally had 2 business days to research and try to find legal counsel on this matter. I called a local ISP lawyer here in [state redacted]. His advice was to contact a lawyer over where this lawsuit originated (Washington, DC). Well, we do not have the monetary means or time to try and fight this..."
</i></blockquote>
Another example:
<blockquote><i>
"I received a subpoena notice from [ISP redacted] on May 4, with a deadline of May 7 for response. It included NO INFORMATION as to what the subpoena was about so I immediately tried to contact the sender of the notice. After countless e-mails & phone calls, I finally reached an informed, live person by calling [ISP's] corporate line (which I found online and was NOT included in the notice).
<br><Br>
"I was finally provided a copy of the subpoena itself and I recognized the date that I was accused of downloading Far Cry (a movie I never heard of) as a period when I was having Internet connection and wireless router issues. I suspect my neighbors may have been using my connection without my permission and my ISP should have record of my support calls...
<br><br>
"Unfortunately, I tried to hire an attorney that could help me with this and I was repeatedly told there was little I could do without further information from [ISP], and certainly nothing I could do in the very short period before the subpoena deadline. I did all this in the span of only a few days and STILL DIDN'T GET ANYWHERE. I assume my identity has been sent to the plaintiff and I can only imagine what others are going through trying to figure out what is going on here."
</i></blockquote>
We've had numerous defenders of these sue-em-all programs in our comments say that false positives are few and far between, and that it's "easy" to get the case dropped if you didn't do it.  I'm guessing most of those people have never been on the receiving end of a lawsuit.  It is not a good feeling -- especially when it is incredibly expensive to defend your innocence.  I have no doubt that many, many people on the list actually did make unauthorized copies of these files.  But is it worth this sort of collateral damage on innocent people to go after them?<br /><br /><a href="http://www.techdirt.com/articles/20100611/0237179777.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100611/0237179777.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100611/0237179777.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>dolphins-in-the-fish-nets</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100611/0237179777</wfw:commentRss>
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<item>
<pubDate>Wed, 26 May 2010 22:11:59 PDT</pubDate>
<title>ACS:Law Asks Those Who Deny Infringing To Incriminate Themselves</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100526/1135459585.shtml</link>
<guid>http://www.techdirt.com/articles/20100526/1135459585.shtml</guid>
<description><![CDATA[ ACS:Law, the UK-based copyright threat letter operation that has been called a <a href="http://www.techdirt.com/articles/20100317/1105298595.shtml">"scam"</a> by UK politicians and condemned by ISPs alike, is apparently using a new tactic.  The operation, which is apparently being investigated for potential disciplinary action (like Davenport Lyons, whose lawyers have been <a href="http://www.techdirt.com/articles/20100315/1119348568.shtml">disciplined</a> for initiating the "pre-settlement" mass letter campaign, and which has some sort of <a href="http://www.techdirt.com/articles/20090508/1944054795.shtml">connection</a> with ACS:Law), seems to know that the "evidence" it has isn't enough to actually take anyone to court, so if you reply and deny the infringement, ACS:Law <a href="http://torrentfreak.com/law-firm-asks-alleged-file-sharers-to-incriminate-themselves-100526/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29" target="_blank">sends you a questionnaire effectively asking you to incriminate yourself</a>.
<br /><br />
Of course, there's no legal obligation to reply, just as there's no legal obligation to pay, based on such a "pay up or we'll sue" letter.  TorrentFreak notes that, despite all of this, people are still paying, even though not a single case has gone to court.  No wonder we have multiple <a href="http://www.techdirt.com/articles/20100401/0846028831.shtml">copycat operations</a> showing up in the US.  Extortion-like processes are apparently quite profitable.  I'm sure that's exactly what the folks who created copyright law in the first place were thinking of in their creation: a system to send out thousands of threat letters demanding payment to avoid a lawsuit.  It's all about promoting the "progress" of a few copyright lawyers, you see...<br /><br /><a href="http://www.techdirt.com/articles/20100526/1135459585.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100526/1135459585.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100526/1135459585.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well,-that's-one-strategy</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100526/1135459585</wfw:commentRss>
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<pubDate>Fri, 16 Apr 2010 12:11:00 PDT</pubDate>
<title>Company That Sends Out Almost-Extortion-Like 'Pre-Settlement Letters' Sees No Problem With Almost-Extortion-Like 'Pre-Settlement Letters'</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20100415/0946189024.shtml</link>
<guid>http://www.techdirt.com/articles/20100415/0946189024.shtml</guid>
<description><![CDATA[ Germany-based DigiProtect has a long history of using a machine-gun approach to "fight piracy", in which it <a href="http://techdirt.com/articles/20100330/1132478790.shtml">sends out tens of thousands of letters</a> to people it says have illegally downloaded its clients' content, and demanding a "pre-settlement" payment to stop them from being sued. The big problem is that the company's net catches <a href="http://www.techdirt.com/articles/20100127/0523087919.shtml">lots of innocent people</a>, and it's been condemned by all sorts of people, even including <a href="http://www.techdirt.com/articles/20100129/0307207970.shtml">the British equivalent of the RIAA</a>. The BBC has been asking some questions of DigiProtect, and as you might expect, <a href="http://news.bbc.co.uk/2/hi/technology/8619407.stm">the firm sees absolutely nothing wrong</a> with what it's doing, calling its method "the only proven effective proceeding" for dealing with piracy. How, exactly, is the method effective? Because as far as we can tell -- and as far as the recording industry is concerned -- the amount of illegal downloading going on really isn't slowing down much. What it's effective at is generating revenues for DigiProtect, which tells the BBC that after deducting costs, it pays rightsholders at least 50% of the remainder of the "pre-settlements", leaving it a nice commission. These answers from Digiprotect are completely unsurprising, and it's not clear if the BBC expected the company to have some sort of epiphany and shut down or what. After all, another company using a similar model in the UK called it quits last week, saying it was "surprised and disappointed by the amount of adverse publicity that our firm has attracted in relation to this work." I mean, who in their right mind would think that sending out these bully-like letters, particularly to lots of innocent people, would upset anybody?<br /><br /><a href="http://www.techdirt.com/articles/20100415/0946189024.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100415/0946189024.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100415/0946189024.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>business-as-usual</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100415/0946189024</wfw:commentRss>
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<pubDate>Thu, 8 Apr 2010 12:15:00 PDT</pubDate>
<title>Are There More Copyright 'Pre-Settlement' Groups Setting Up Shop In The US?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100401/0846028831.shtml</link>
<guid>http://www.techdirt.com/articles/20100401/0846028831.shtml</guid>
<description><![CDATA[ We recently covered how a recently created outfit going by the name US Copyright Group, had launched <a href="http://www.techdirt.com/articles/20100330/1132478790.shtml">tens of thousands of lawsuits</a> (some of which appear to be <a href="http://www.techdirt.com/articles/20100331/1443278816.shtml">quite questionable</a> from a legal standpoint), as part of what appeared to be an attempt at copying the efforts of companies like DigiProtect and ACS:Law in Europe (where such practices have been <a href="http://www.techdirt.com/articles/20100317/1105298595.shtml">widely condemned</a>).  The lawsuits appear to be a smokescreen to get contact information for people to whom this "company" can send "pre-settlement" letters, in which they're told to pay up to avoid the lawsuit.
<br /><br />
Considering that this pseudo-shakedown is apparently lucrative in Europe, perhaps others are preparing to do the same in the US as well.  A reader who prefers to remain anonymous, but who works for a small ISP, passed along an email he recently received from what appears to be a newish operation called <a href="http://www.copyrightenforcementgroup.com/index.html" target="_blank">the Copyright Enforcement Group</a>, whose website has a mock law enforcement shield on it.  Like US Copyright Group, it doesn't hide behind any claims of stopping infringing content.  It focuses solely on how this is a way to "monetize" infringements.  The email also points to a separate site called <a href="http://www.copyrightsettlements.com/" target="_blank">CopyrightSettlements.com</a>, which makes some interesting claims.  This is the website where folks can "pay up," and it promises "you will receive a full release of liability" but also that "Your personal information and settlement terms will be kept confidential."  Makes you wonder how the two can go together.  If your info is kept secret, what's to keep copyright holders from suing again?  And does the company make sure it covers <i>all</i> copyright holders for a piece of content?  Will it indemnify users if they're threatened or sued again?
<br /><br />
As for the letter to the ISP, it was an "introduction," in an attempt to ask for the ISP's cooperation in identifying its users.  As we've seen with US Copyright Group, many ISPs refuse to just hand over names, though some will.  Hopefully, most ISPs receiving the following letter know better than to just hand over info without a court order.  Here's the relevant part of the email:
<blockquote><i>
CEG provides intellectual property management services to a consortium of studios in the entertainment industry.  Our clients have entrusted us with their valuable property and authorized us to bring legal action against those individuals who illegally download and/or distribute their copyrighted materials over the Internet.<br />
<br />
CEG's proprietary technology detects infringements which occur over the Internet and gathers sufficient evidence to support a claim of copyright infringement against the infringing party.  Once infringement is detected, we follow strict multi-step validation procedures to ensure that all information is accurate before we forward the DMCA notice to you.  The infringing party is then afforded with an opportunity to settle the matter for substantially less than what will be offered if a lawsuit is filed or compared to the judgment amount a court may enter against the infringer.<br />
<br />
We understand and respect the important role that you play in securing the privacy of your subscriber base. However, we, too, are deeply committed to our clients and will vigorously enforce their intellectual property rights against infringement.  We sincerely hope that you will join us in our effort to fight Internet piracy.<br />
</i></blockquote>
Looks like this new form of "monetizing" content is spreading.  And not in a good way.<br /><br /><a href="http://www.techdirt.com/articles/20100401/0846028831.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100401/0846028831.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100401/0846028831.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>warning-letters</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100401/0846028831</wfw:commentRss>
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<item>
<pubDate>Mon, 1 Feb 2010 08:17:46 PST</pubDate>
<title>Even The Recording Industry Is Criticizing ACS:Law/DigiProtect Pre-Settlement Letter Program</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100129/0307207970.shtml</link>
<guid>http://www.techdirt.com/articles/20100129/0307207970.shtml</guid>
<description><![CDATA[ With more and more <a href="http://www.techdirt.com/articles/20100127/0523087919.shtml">attention</a> being paid to the efforts by firms like ACS:Law and DigiProtect to profit from blasting out <a href="http://www.techdirt.com/articles/20100110/1539187689.shtml">hundreds of thousands</a> of letters demanding payment to avoid file sharing lawsuits (which almost never seem to actually get filed), it seems that the companies involved in such things may finally be facing some pretty serious criticism that could force them to curb the practice.  First up, politicians.  A few different UK officials are <a href="http://torrentfreak.com/anti-piracy-scheme-a-scam-legal-blackmail-say-uk-lords-100128/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+Torrentfreak+(Torrentfreak)" target="_blank">coming out loudly</a> against ACS:Law, with some even suggesting that the firm's efforts are like a "scam" or "legal blackmail."
<br /><br />
Meanwhile perhaps the most surprising of all is that BPI, the UK's version of the RIAA has <a href="http://news.bbc.co.uk/2/hi/technology/8483482.stm" target="_blank">also come out against the practice</a>, saying that they don't feel it is appropriate.  Perhaps it's not a huge surprise -- given that the clients of ACS:Law/DigiProtect have tended to be video game and porn producers rather than the recording industry.  However, when even the recording industry finds your actions against file sharing too draconian, it suggests you've really stepped over the line.  At some point, you get the feeling that ACS:Law is going to get slapped down legally.<br /><br /><a href="http://www.techdirt.com/articles/20100129/0307207970.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100129/0307207970.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100129/0307207970.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hammer-coming-down</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100129/0307207970</wfw:commentRss>
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<pubDate>Tue, 12 Jan 2010 03:01:27 PST</pubDate>
<title>European Rights Holders Drastically Increase Borderline Extortion Pre-Settlement Letters</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100110/1539187689.shtml</link>
<guid>http://www.techdirt.com/articles/20100110/1539187689.shtml</guid>
<description><![CDATA[ We've covered in great detail how DigiProtect purposely <a href="http://www.techdirt.com/articles/20090831/0250256053.shtml">seeds</a> files of content from its copyright holding partners, in order to send anyone who downloads the content a <a href="http://www.techdirt.com/articles/20091125/1047377088.shtml">"pre-settlement" letter</a> that seems not very different from the traditional extortion "protection" rackets ("pay us, or we'll sue.")  Those who don't pay are actually discovering that the pre-settlement letters may be handed over to <a href="http://www.techdirt.com/articles/20091207/0102027231.shtml">collections agencies</a> despite no agreement to pay nor a court order requiring payment.  It turns out this shakedown business is <a href="http://www.techdirt.com/articles/20091012/0310056486.shtml">quite profitable</a> but of <a href="http://www.techdirt.com/articles/20091204/0924437205.shtml">very questionable legality</a>.
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A new report in Germany is suggesting that DigiProtect and a few similar firms in Europe may have sent out <a href="http://newteevee.com/2010/01/09/are-rights-holders-making-a-fortune-with-p2p-lawsuits/" target="_blank">450,000 such letters last year</a>.  Unfortunately, NewTeeVee, in reporting on this, claims that each of these are "P2P lawsuits," but that's not true (and a large part of the problem).  Nearly every one of these letters are sent without any corresponding lawsuit.  The whole idea is to shake people down by threatening a lawsuit, but never having to go through the expense of filing one (or the trouble of actually proving the infringement -- which is a big deal since many, many, many <a href="http://www.techdirt.com/articles/20081030/0222502686.shtml">bogus letters</a> have been generated, snaring many innocent users).  But, with little in the way of <a href="http://www.techdirt.com/articles/20091130/0616407124.shtml">penalties</a> for such bogus pre-settlement letters, there's simply no reason not to keep sending them.  Apparently, enough people just pay up to make this an incredibly profitable business.
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However, with the massive increase in such letters, and increasing scrutiny about the whole practice, you have to wonder when European governments will start to crack down on this behavior.  It's difficult to see anyone defending these actions with a straight face.  They clearly have nothing to do with preventing file sharing or unauthorized use of content, but are very much about just getting people to pay up under the threat of a lawsuit.<br /><br /><a href="http://www.techdirt.com/articles/20100110/1539187689.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100110/1539187689.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100110/1539187689.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>this-won't-last</slash:department>
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<pubDate>Tue, 8 Dec 2009 06:02:00 PST</pubDate>
<title>DigiProtect Now Handing Pre-Settlement Threat Amounts Over To Collections Agencies</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091207/0102027231.shtml</link>
<guid>http://www.techdirt.com/articles/20091207/0102027231.shtml</guid>
<description><![CDATA[ We've covered how various companies in Europe have built up an <a href="http://www.techdirt.com/articles/20091012/0310056486.shtml">extremely profitable business</a> by purposely <a href="http://www.techdirt.com/articles/20090831/0250256053.shtml">seeding content</a> they have the rights to on file sharing networks, and then sending "pre-settlement" letters demanding money from the holder of any IP address that connects to them, even if the IP address is <a href="http://www.techdirt.com/articles/20091130/0616407124.shtml">not accurately indicating</a> who was involved.  They're now sending out these letters at <a href="http://www.techdirt.com/articles/20091125/1047377088.shtml">a massive rate</a>, and while they're not actually filing lawsuits, it appears that at least one of the firms involved, DigiProtect, is getting <a href="http://torrentfreak.com/anti-piracy-group-calls-in-debt-agency-to-collect-fines-091205/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A Torrentfreak %28Torrentfreak%29&#038;utm_content=Google Reader" target="_blank">a collections agency involved in some cases</a>.  That seems pretty nasty.  There's no actual debt here, because the person has not agreed to pay up, but by handing it over to a collections agency, the person will now get hounded with demands for payment.  It's difficult to see how this is even close to legal.<br /><br /><a href="http://www.techdirt.com/articles/20091207/0102027231.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091207/0102027231.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091207/0102027231.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-not-good</slash:department>
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