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<title>Techdirt. Stories filed under &quot;shakedown&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;shakedown&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Tue, 10 Jul 2012 14:05:00 PDT</pubDate>
<title>Class Action Racketeering Lawsuit Filed Against Copyright Trolling Porn Companies</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120710/12331219649/class-action-racketeering-lawsuit-filed-against-copyright-trolling-porn-companies.shtml</link>
<guid>http://www.techdirt.com/articles/20120710/12331219649/class-action-racketeering-lawsuit-filed-against-copyright-trolling-porn-companies.shtml</guid>
<description><![CDATA[ The latest news in the world of copyright-trolling porn companies is that one of the people that the porn world tried to shake down with a trolling attempt <a href="http://fightcopyrighttrolls.com/2012/07/09/copyright-trolls-attempt-to-extort-a-wrong-person-invite-a-class-action-lawsuit/" target="_blank">has hit back with a racketeering lawsuit</a>, which she's trying to turn into a class action.  The woman, Jennifer Barker, received a call from someone claiming to work for a law firm (though, in the lawsuit, Barker says she actually works for a third party) demanding a "settlement" payment to avoid being named in one of the lawsuits in Florida (the new <a href="http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml">favorite</a> for copyright trolls due to some oddities in the law).  The caller, like many copyright-trolling porn attempts, played up the fact that it would be embarrassing to be named in a lawsuit for downloading porn.  Barker claims she never downloaded the porn and has no clue what BitTorrent is, and -- quite reasonably -- felt that she was being extorted.
<br /><br />
From the lawsuit:
<blockquote><i>
Ms. Hansen demanded that Ms. Barker pay money to settle the lawsuit or she would be identified publicly as having downloaded pornography and would be subject to hundreds of thousands of dollars as a judgment if the suit went forward because there were multiple downloads. Numerous individuals on the Internet report receiving a phone call from the same telephone number as that provided by Ms. Hansen to Ms. Barker with a demand that they pay money to settle a lawsuit against them.
<br /><br />
Ms. Barker refused to pay any money because she did not know what BitTorrent was and had never downloaded any pornography from the Internet. On information and belief, many other members of the class have paid sums of money in settlement with the pornography purveyors even though they had never downloaded any pornography from the Internet, and certainly had never unlawfully downloaded any pornography from the Internet.
<br /><br />
Subsequently, Ms. Hansen and others associated with her called Ms. Barker's place of employment and left messages on the voicemail to which several of Ms. Barker's co-workers also had access and continued to contact Ms. Barker on her personal telephone. Class members have been subjected to the same or similar treatment.
</i></blockquote>
This is hardly the first attempt to use racketeering/RICO laws to counter copyright shakedowns, but to date, most have not been very effective.  There is the <a href="http://www.techdirt.com/articles/20120302/12214917952/lawsuit-against-us-copyright-group-fraud-extortion-moves-forward.shtml">ongoing</a> lawsuit by  Dmitriy Shirokov against US Copyright Group and its parent company Dunlap, Grubb &#038; Weaver, but that was a really fact-specific case, involving the fact that the copyright holder (Uwe Boll) had failed to register the copyright in question in the US in a timely manner, leading to some specific legal questions.
<br /><br />
There were also similar attempts to <a href="http://www.techdirt.com/articles/20070817/012924.shtml">bring a class action racketeering case</a> against the RIAA for its own practice of suing end users for allegedly making works available on file sharing networks.  Those lawsuits <a href="http://www.techdirt.com/articles/20080224/175035335.shtml">flopped</a> pretty badly, though.
<br /><br />
Again, the case seems to allege some pretty specific facts that <i>potentially</i> could distinguish it from those other ones in the past, though it seems like a pretty massive longshot.  The filing focuses on the use of the telephone to seek the money, claiming that it was "wire transmission in a scheme or artifice to attempt to fraudulently obtain money from another" under the law.  But, that's actually a pretty high bar to meet, and the porn companies can and will argue that they weren't trying to "fraudulently" obtain money, but legitimately do so.  I'd be surprised if the courts allowed this one to go very far.<br /><br /><a href="http://www.techdirt.com/articles/20120710/12331219649/class-action-racketeering-lawsuit-filed-against-copyright-trolling-porn-companies.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120710/12331219649/class-action-racketeering-lawsuit-filed-against-copyright-trolling-porn-companies.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120710/12331219649/class-action-racketeering-lawsuit-filed-against-copyright-trolling-porn-companies.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>tough-slog</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120710/12331219649</wfw:commentRss>
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<pubDate>Mon, 18 Jun 2012 03:03:00 PDT</pubDate>
<title>Slovak Collecting Society Sends Village Invoice For Singing Folk Song About Itself</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml</link>
<guid>http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml</guid>
<description><![CDATA[ <p>Performing rights societies probably don't have the best reputations here on Techdirt, but just when you think they can't get any more outrageous in their demands, they do.  Here are <a href="http://www.thedaily.sk/villages-furious-about-copyright-fees-for-folk-songs/">two stories from the Slovak Republic</a>, both involving SOZA, the Slovak Performing and Mechanical Rights Society: 

<i><blockquote>The recent case of the local village of Pohorela being charged EUR 62.40 [about $75] by copyright association SOZA because children sang copyrighted songs on Mothers&#8217; Day has to be one of the most absurd cases of copyright being enforced in Slovakia.
<br /><br />
TheDaily first drew attention to the Pohorela case by sharing it on Facebook at the end of May, but the case is not unique. Other villages and towns may also receive the same kinds of bills, like the one sent to the village of Helpa, which is being charged possibly for singing the well-known folk song celebrating the village called "To ta Helpa!", for instance.</blockquote></i>

Although the first paragraph mentions "copyrighted songs", the Facebook page referred to talks about "our folk songs", which would presumably not be in copyright (<a href="https://www.facebook.com/photo.php?fbid=10151135806705828&#038;set=a.10151135806140828.538033.196658540827&#038;type=1&#038;theater">Slovak original</a>.)  In either case, it seems a bit extreme to charge for children singing to their own mothers.  The second story seems more clear-cut: SOZA is trying to charge a village for singing a "well known" folk song about itself, which adds insult to injury.
</p><p>
The article quoted above notes that this is not the only problem with SOZA's invoicing habits:

<i><blockquote>Cinemas in particular are not happy with the fees, which are charged regardless of what film is showing, if there is any music in the film, and even though copyright fees are covered already in the film rental.</blockquote></i>

Paying for something you didn't have, or being forced to pay twice: sounds like collecting societies are the same everywhere.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120612/09035819289/slovak-collecting-society-sends-village-invoice-singing-folk-song-about-itself.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>same-old-story</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120612/09035819289</wfw:commentRss>
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<pubDate>Fri, 15 Jun 2012 13:05:00 PDT</pubDate>
<title>When Even Comcast Is Refusing To Identify Those Accused Of Infringement...</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120615/11072519342/when-even-comcast-is-refusing-to-identify-those-accused-infringement.shtml</link>
<guid>http://www.techdirt.com/articles/20120615/11072519342/when-even-comcast-is-refusing-to-identify-those-accused-infringement.shtml</guid>
<description><![CDATA[ We've seen various ISPs <a href="http://www.techdirt.com/articles/20100827/16465610806.shtml">push back</a> (mostly successfully) on attempts by copyright trolls to lump together hundreds, or even thousands, of separate IP addresses into a single lawsuit for the sake of being able to subpoena identities (and then send threatening "settlement" demand letters).  But, still, it's a bit of a surprise to <a href="http://torrentfreak.com/comcast-protests-shake-down-of-alleged-bittorrent-pirates-120612/" target="_blank">see Comcast get into the game as well</a>, filing a motion with a district court arguing that it shouldn't have to provide such info in response to subpoenas from various copyright trolls.  Yes, Comcast has the same basic argument as other ISPs... but Comcast is also the owner of NBC Universal, who is very much on the other side of this issue, and has been one of the strongest copyright maximalists out there.  So it's a bit surprising to see them using an argument that, in theory, could come back to make NBC Universal's life more difficult whenever it goes after people for allegedly infringing on its works online.  In fact, Comcast argues pretty strongly against copyright trolling in the filing:
<blockquote><i>
Plaintiffs should not be allowed to profit from unfair litigation tactics whereby they use the offices of the Court as an inexpensive means to gain Doe defendants&#8217; personal information and coerce &#8220;settlements&#8221; from them. It is evident in these cases &#8211; and the multitude of cases filed by plaintiffs and other pornographers represented by their counsel &#8211; that plaintiffs have no interest in actually litigating their claims against the Doe defendants, but simply seek to use the Court and its subpoena powers to obtain sufficient information to shake down the Doe defendants. The Federal Rules require the Court to deny discovery &#8220;to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense.&#8221; Fed. R. Civ. P. 26(c)(1). This case requires such relief.
</i></blockquote>
Now, of course, NBC Universal hasn't gone all the way to the level of pure trolling and forcing settlements out of people, but I've yet to see a single situation where the lawyers at NBC Universal were willing to support anything that might make it more difficult for them to go after people for infringement.  Perhaps now that they're under the Comcast umbrella NBC Universal will have to tone down its aggressiveness on these issues?<br /><br /><a href="http://www.techdirt.com/articles/20120615/11072519342/when-even-comcast-is-refusing-to-identify-those-accused-infringement.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120615/11072519342/when-even-comcast-is-refusing-to-identify-those-accused-infringement.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120615/11072519342/when-even-comcast-is-refusing-to-identify-those-accused-infringement.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>copyright-trolls-gone-too-far</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120615/11072519342</wfw:commentRss>
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<pubDate>Fri, 18 May 2012 10:20:00 PDT</pubDate>
<title>Copyright Troll Demands $8,500 From Rarely Visited Lindsay Lohan Fansite</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120515/07173918924/copyright-troll-demands-8500-rarely-visited-lindsay-lohan-fansite.shtml</link>
<guid>http://www.techdirt.com/articles/20120515/07173918924/copyright-troll-demands-8500-rarely-visited-lindsay-lohan-fansite.shtml</guid>
<description><![CDATA[ We've covered plenty of copyright trolling operations, and the Copyright Enforcement Group is <a href="http://www.techdirt.com/articles/20100401/0846028831.shtml">one of the earliest</a> to show up in the US, though there are few details as to who is actually behind it.  We recently have been in contact with someone on the receiving end of a shakedown threat letter from CEG for their Lindsay Lohan fan page.  The person who ran the site was, not surprisingly, a Lindsay Lohan fan, and tried to use the site to "promote the good things in Lindsay's life" rather than the typical schadenfreude surrounding Lohan these days.  It was, in other words, the kind of site that Lindsay Lohan herself might appreciate.  But it no longer exists, thanks to copyright trolling.
<br /><br />
Like most fan sites, this one had some graphics, and the company that holds the copyright on those graphics, AKM Images, apparently hired CEG to start demanding cash from people, including the operator of this Lindsay Lohan fansite.  Upon receiving the email, the owner of the site completely deleted it out of fear.  However, he also saw that, according to Google analytics, the page that had the images had a grand total of <i>nine</i> pageviews from <i>six</i> unique visitors (and the operator of the site notes that one or two of the visits likely came from his own computer).  In other words, even if the images were "infringing," you could make a pretty strong argument for either fair use or de minimis use.
<br /><br />
The threat letter, of course, makes no mention of the details or possible defenses.  It just says that each image requires a "settlement" fee of $500, and if you total up the 17 images (sent across two separate demand letters) that were hosted on the site, the owner is expected to pay $8,500.
<br /><br />
It does seem likely that this individual did, in fact, post images without a license, though this is quite common across the internet.  You could see a pretty strong fair use/de minimis use claim here, in that the site was non-commercial, was designed to help promote Lohan and was basically just a fan expressing appreciation.  But, these days, expressing appreciation of someone famous can get you threat letters like this one (we've included one of the two threat letters below).
<br /><br />
While there is, perhaps, an argument that the site infringed, the "harm" on the copyright holder is non-existent (there is no way this person would have paid to license such images).  If I were a part of Lindsay Lohan's "publicity" team, at the very least I would probably look into paying off this settlement and supporting the site operator.  In the meantime, it seems like actions like this could do a  lot of harm to celebrities, as copyright trolls try to "crackdown" on fan sites, not only forcing many of those sites closed, but pissing off some of the celebs' biggest fans.<br /><br /><a href="http://www.techdirt.com/articles/20120515/07173918924/copyright-troll-demands-8500-rarely-visited-lindsay-lohan-fansite.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120515/07173918924/copyright-troll-demands-8500-rarely-visited-lindsay-lohan-fansite.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120515/07173918924/copyright-troll-demands-8500-rarely-visited-lindsay-lohan-fansite.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that'll-win-fans</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120515/07173918924</wfw:commentRss>
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<pubDate>Fri, 4 May 2012 16:04:00 PDT</pubDate>
<title>Yet Another Judge Slams Copyright Trolls; Warns That Courts Should Not Be Used To 'Bludgeon' People Into Settling</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120502/12464018743/yet-another-judge-slams-copyright-trolls-warns-that-courts-should-not-be-used-to-bludgeon-people-into-settling.shtml</link>
<guid>http://www.techdirt.com/articles/20120502/12464018743/yet-another-judge-slams-copyright-trolls-warns-that-courts-should-not-be-used-to-bludgeon-people-into-settling.shtml</guid>
<description><![CDATA[ Reminiscent of the Righthaven cases, where once judges realized what was really happening they quickly started dumping them, it seems that we're reaching the tipping point with porn companies playing the copyright trolling game as well.  More and more of the attempts to seek expedited discovery are getting rejected in sternly worded rulings from judges who recognize that the sole purpose of the lawsuit isn't to go to trial, but to get expedited discovery in order to shake people down for cash.  The latest such ruling in an increasingly long line comes out of the Eastern District of NY, where judge Gary Brown <a href="http://fightcopyrighttrolls.com/2012/05/02/new-york-judge-blasts-trolls-practices-recommends-banning-mass-bittorent-lawsuits-in-the-district/" target="_blank">issued a nice smackdown on copyright trolls</a>.  The judge first notes the ridiculousness of relying on IP addresses to identify the individuals, citing a bunch of cases, before noting that an IP address simply does not indicate the "true identity" of the defendant.
<blockquote><i>
In sum, although the complaints state that IP addresses are assigned to &#8220;devices&#8221; and thus by discovering the individual associated with that IP address will reveal &#8220;defendants&#8217; true identity,&#8221; this is unlikely to be the case. Most, if not all, of the IP addresses will actually reflect a wireless router or other networking device, meaning that while the ISPs will provide the name of its subscriber, the alleged infringer could be the subscriber, a member of his or her family, an employee, invitee, neighbor or interloper
</i></blockquote>
There are a number of issues specific to the claims of the plaintiff, K-Beech in this case, including its failure to register the copyrights in question, and a weak attempt at lumping in a trademark claim after this came to light.  However, what becomes clear pretty quickly is that the judge isn't buying any of this, and sees that it's really just an attempt to use the courts to shake people down.  It starts off with the discovery request going far beyond what's necessary to take a case to trial:
<blockquote><i>
However, not all the information sought is required to advance the claim. For example, in addition to names and addresses, plaintiffs seek both the home telephone numbers and email addresses of the putative John Does...  information which is clearly not required to proceed with this action. In particular, obtaining the home telephone numbers seems calculated to further plaintiffs&#8217; settlement strategies, discussed above, rather than advancing their claims by allowing them to effect service.
</i></blockquote>
But the larger point is that the court recognizes these kinds of copyright trolling lawsuits as "abusive litigation tactics."  While the court notes that it can and should encourage settlements, it also notes that the rules say those settlements should be "just" and it's not clear that's what's happening here:
<blockquote><i>
Our federal court system provides litigants with some of the finest tools available to assist in resolving disputes; <b>the courts should not, however, permit those tools to be used as a bludgeon.</b>
</i></blockquote>
The court then goes on to agree with many other courts in noting that lumping a bunch of defendants together in the same lawsuit is improper joinder, and agrees to only allow discovery on the very first IP address named in each of the lawsuits being considered.
<br /><br />
On the whole, there isn't that much different about this ruling from a bunch of other recent rulings, but it's another one to add to the pile, and it gets clearer and clearer every day that the courts are now aware of how trolls are abusing the system, and less and less likely to allow such abuse.<br /><br /><a href="http://www.techdirt.com/articles/20120502/12464018743/yet-another-judge-slams-copyright-trolls-warns-that-courts-should-not-be-used-to-bludgeon-people-into-settling.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120502/12464018743/yet-another-judge-slams-copyright-trolls-warns-that-courts-should-not-be-used-to-bludgeon-people-into-settling.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120502/12464018743/yet-another-judge-slams-copyright-trolls-warns-that-courts-should-not-be-used-to-bludgeon-people-into-settling.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>down-they-go</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120502/12464018743</wfw:commentRss>
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<pubDate>Fri, 27 Apr 2012 09:08:00 PDT</pubDate>
<title>ISPs Ask Judge To Reconsider Order Allowing Copyright Trolling To Move Forward</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120426/17335918673/isps-ask-judge-to-reconsider-order-allowing-copyright-trolling-to-move-forward.shtml</link>
<guid>http://www.techdirt.com/articles/20120426/17335918673/isps-ask-judge-to-reconsider-order-allowing-copyright-trolling-to-move-forward.shtml</guid>
<description><![CDATA[ There have been a bunch of rulings in a variety of district courts around the country <a href="http://www.techdirt.com/articles/20120402/04022118323/court-says-bittorrent-users-connected-to-same-swarm-are-not-involved-any-conspiracy.shtml">rejecting</a> a variety of ways in which copyright trolling operations have been seeking to use the judicial system as a part of their business model -- not to actually take anyone to court, but merely to (a) identify people they can threaten and (b) threaten them with the <i>possibility</i> of a lawsuit if they don't pay up.  Thankfully, an increasing number of judges have been calling the trolls out on this, and saying they won't be a part of this.  Usually this comes in the form of rejecting a request for expedited discovery (which would allow the trolls to subpoena subscriber info from ISPs) or arguing that lumping together so many users into a single case was improper.
<br /><br />
 However, there has been one major exception to these rejections: the case in the DC district court by <a href="http://www.techdirt.com/articles/20110323/16344113603/judge-says-mass-suing-people-infringement-is-perfectly-fine-even-benefits-defendants.shtml">Judge Beryl Howell</a>... who just happens to have been a <a href="http://www.techdirt.com/articles/20110329/04174413675/judge-who-said-lumping-together-unrelated-copyright-cases-is-fine-is-former-riaa-lobbyist.shtml">former RIAA lobbyist</a>, who only recently left that job to take a seat on the bench.  The Howell ruling is regularly cited by trolls as proof that there's nothing wrong with the way in which they pursue these lawsuits -- ignoring a massive number of rulings that say otherwise.  
<br /><br />
The ISPs in that original case, though, filed by AF Holdings, represented by Prenda Law (which, you may recall, is connected to John Steele), are <a href="https://www.eff.org/deeplinks/2012/04/isps-ask-judge-quash-subpoena-troll-case-or-let-them-appeal" target="_blank">asking Judge Howell to reconsider</a> (especially in light of all those other rulings).  On top of that, they're saying that if she won't reconsider, they'd like to take the issue up to the appeals court before proceeding with the rest of the case.  That could become important, as it would be the first time an appeals court weighs in on this.  Some public interest groups, including the ACLU and EFF, have filed an amicus brief as well, asking Judge Howell to change her decision concerning discovery.
<br /><br />
The hearing on this is today, and we'll let you know what happens.<br /><br /><a href="http://www.techdirt.com/articles/20120426/17335918673/isps-ask-judge-to-reconsider-order-allowing-copyright-trolling-to-move-forward.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120426/17335918673/isps-ask-judge-to-reconsider-order-allowing-copyright-trolling-to-move-forward.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120426/17335918673/isps-ask-judge-to-reconsider-order-allowing-copyright-trolling-to-move-forward.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>time-to-reconsider</slash:department>
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<pubDate>Thu, 26 Apr 2012 08:39:00 PDT</pubDate>
<title>Hurt Locker Producers Now Understand The Copyright Troll Shakedown Better: Sue 2,514 More Defendants</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml</link>
<guid>http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml</guid>
<description><![CDATA[ Voltage Pictures, the maker of <i>The Hurt Locker</i>, was one of the first companies to bring ridiculous copyright trolling practices to the US, where they <a href="http://www.techdirt.com/articles/20100528/1044069619.shtml">sue thousands</a> of people based solely on a questionably-sourced IP address.  In fact, last year, the company <a href="http://www.techdirt.com/articles/20110524/01034514410/us-copyright-group-breaks-its-own-record-sues-24583-allegedly-sharing-hurt-locker.shtml">sued nearly 25,000 people</a> in one shot for supposedly file sharing the movie.  Of course, the goal is not to actually go to court on any of these cases.  Instead, it's just about getting people to pay up -- and so these "companies" are adapting..  And, as TorrentFreak noes, it appears that Voltage Pictures, (with an assist from Dunlap, Grubb and Weaver -- the tiny DC law firm that started "US Copyright Group" to do these kinds of cases, but which has gone nowhere) hasn't learned not to do this any more.  It's just <a href="http://torrentfreak.com/hurt-locker-makers-return-to-sue-2514-bittorrent-users-120423/" target="_blank">suing another 2,514 people for sharing</a>, pretty much guaranteeing that no kids ever want to work for them in the future.  However, it's also learned a few other things -- including how to get around the fact that many ISPs are pushing back on these kinds of things.  For example, while plenty of ISPs have fought back against these lawsuits, in this lawsuit, Voltage Pictures only sued users who were subscribers of Charter Communications.  Charter has shown a willingness to hand over such data when asked.  So one way to avoid having ISPs challenge you in court is to focus on the ISP least likely to challenge your notices.  Also, the new lawsuit is filed in Florida, which seems to have become the breeding ground for these kinds of troll fights lately -- so apparently Voltage and Dunlap, Grubb and Weaver think that perhaps this case might last long enough for them to get enough names and get enough people to pay to make it worthwhile.  It would be nice if the court were to kill off the subpoena and note that it appears to be an abuse of power again.<br /><br /><a href="http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120424/01184018623/hurt-locker-producers-now-understand-copyright-troll-shakedown-better-sue-2514-more-defendants.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>follow-the-bounding-ball</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120424/01184018623</wfw:commentRss>
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<item>
<pubDate>Mon, 23 Apr 2012 11:10:00 PDT</pubDate>
<title>Facebook Buys Most Of The AOL Patents From Microsoft That It Bought Just Weeks Ago</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120423/10261318610/facebook-buys-most-aol-patents-microsoft-that-it-bought-just-weeks-ago.shtml</link>
<guid>http://www.techdirt.com/articles/20120423/10261318610/facebook-buys-most-aol-patents-microsoft-that-it-bought-just-weeks-ago.shtml</guid>
<description><![CDATA[ You may recall that, a few weeks ago, Microsoft <a href="http://www.techdirt.com/articles/20120409/04105618423/aol-sells-its-patents-to-microsoft-1-billion-microsoft-now-owns-netscape-ip.shtml">bought all of AOL's patents</a> for about a billion dollars.  Last week, the news came out that <a href="http://www.bloomberg.com/news/2012-04-19/facebook-said-to-have-bid-for-aol-patents-before-microsoft-s-win.html" target="_blank">Facebook had bid on the patents too</a>, but lost.  However, it's now worked out a deal to <a href="http://news.cnet.com/8301-1023_3-57419056-93/facebook-buys-aol-patents-from-microsoft-for-$550m/" target="_blank">buy a bunch of those patents from Microsoft anyway</a> for about $550 million.  There's also some sort of cross-licensing as a part of this.  The end result is that it's more like Microsoft and Facebook teamed up to pool resources to buy the patents from AOL.  It's unclear who now has the Netscape patents, or what's going to be done with these patents.  It's good that they didn't end up in the hands of pure trolls, but it still seems like a shame that these companies have to spend so much money on something of which the only value is in either keeping them from getting sued or in shaking down others for innovating.  What happened to the days when companies could just compete with products in the marketplace?<br /><br /><a href="http://www.techdirt.com/articles/20120423/10261318610/facebook-buys-most-aol-patents-microsoft-that-it-bought-just-weeks-ago.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120423/10261318610/facebook-buys-most-aol-patents-microsoft-that-it-bought-just-weeks-ago.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120423/10261318610/facebook-buys-most-aol-patents-microsoft-that-it-bought-just-weeks-ago.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>patent-shuffling</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120423/10261318610</wfw:commentRss>
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<pubDate>Fri, 6 Apr 2012 18:33:00 PDT</pubDate>
<title>Nathan Myhrvold's Delusions: Patent Wars 'Vindicate' The Importance Of Patents</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120405/13061818392/nathan-myhrvolds-delusions-patent-wars-vindicate-importance-patents.shtml</link>
<guid>http://www.techdirt.com/articles/20120405/13061818392/nathan-myhrvolds-delusions-patent-wars-vindicate-importance-patents.shtml</guid>
<description><![CDATA[ Nathan Myhrvold, the founder of the world's largest patent troll, Intellectual Ventures, has been known to make ridiculous statements concerning patents in the past, but <a href="http://www.geekwire.com/2012/highlights-nathan/" target="_blank">he's at it again</a>.  He's now claiming that the concerns and complaints about how patents hinder innovation are really just a vindication of his efforts.  He was asked a question about all the criticism, including <i>This American Life's</i> brilliant <a href="http://www.techdirt.com/articles/20110724/22250715225/when-patents-attack-how-patents-are-destroying-innovation-silicon-valley.shtml">expose</a> on just how ridiculous patents are today -- which focused quite a bit on how Intellectual Ventures appears to be little more than a massively funded shakedown scheme -- and he responded by insisting that these criticisms were actually a good sign:
<blockquote><i>
Not only do you have to be willing to fail, you have to be willing for people to ridicule you and call you names. And most great endeavors have exactly that.... When you change the status quo, people get upset, and there are very powerful vested interests that feel threatened by the idea of people who will just go an invent a lot of new stuff, and ask you to pay for it. Here&#8217;s the interesting thing: When we started Intellectual Ventures, it was even more true that there was all of this, and big technology companies were publicly saying, patents are terrible... If you look today, some of the most active litigants are big tech companies. Apple is out there very actively trying to protect the iPhone.... Intellectual property is actually more important to big companies every day, and I think that actually is vindication.
</i></blockquote>
Let's unpack that a bit.  Intellectual Ventures isn't "changing the status quo."  It's doing the opposite, it's taking the "status quo" -- a completely broken law that gets lawyers and investors rich but massively hinders actual innovation -- and scaling it up to massively harmful proportions.  Intellectual Ventures has done nothing to help drive innovation forward.  It has only taken money <i>out</i> of the innovation economy.  No one is threatened by inventors inventing new stuff.  They're threatened by companies wielding a virtual nuclear weapon allowing them to demand money for doing the obvious.  Patents that are broadly worded, having little to do with actual inventions, are wielded against the companies that actually innovate.
<br /><br />
The fact that big companies are involved in patent battles doesn't vindicate Myhrvold.  They've always been involved in patent battles.  The only reason patents are important in the tech industry is <i>because</i> everyone else has them and you need them to avoid a bogus lawsuit from a competitor.  Or, as <a href="https://twitter.com/#!/joelgrus" target="_blank">Joel Grus</a> insightfully paraphrased in the comments to the Geekwire article linked above:
<blockquote><i>
"All those big companies that said patents were terrible?  Now they&#8217;re trying to destroy each other with patents.  Which somehow demonstrates that patents aren&#8217;t terrible!"
</i></blockquote>
Using patents in lawsuits and patents being "useful" are two totally different things.  Myhrvold must understand this.  Either he doesn't care because scamming the system is making him filthy rich, or he's completely out of touch with how patents impact the tech industry.<br /><br /><a href="http://www.techdirt.com/articles/20120405/13061818392/nathan-myhrvolds-delusions-patent-wars-vindicate-importance-patents.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120405/13061818392/nathan-myhrvolds-delusions-patent-wars-vindicate-importance-patents.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120405/13061818392/nathan-myhrvolds-delusions-patent-wars-vindicate-importance-patents.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>economically-clueless</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120405/13061818392</wfw:commentRss>
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<item>
<pubDate>Thu, 22 Mar 2012 00:14:58 PDT</pubDate>
<title>Scammers Mimic Copyright Troll Shakedowns In Targeting Megaupload Users</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120321/14220118189/scammers-mimic-copyright-troll-shakedowns-targeting-megaupload-uses.shtml</link>
<guid>http://www.techdirt.com/articles/20120321/14220118189/scammers-mimic-copyright-troll-shakedowns-targeting-megaupload-uses.shtml</guid>
<description><![CDATA[ We've noted in the past the similarities between mass IP infringement trolling lawsuits and shakedown scams -- and have even seen some out-and-out scammers mimic the techniques of copyright trolls.  Torrentfreak now reports that <a href="http://torrentfreak.com/criminals-target-megaupload-users-with-fake-settlement-demands-120321/" target="_blank">some scammers are specifically targeting Megaupload users</a>, pretending to be lawyers demanding payment for infringements on Megaupload.  While these are pure scams, given the MPAA's own statements about <a href="http://www.techdirt.com/articles/20120321/12073218187/mpaa-asks-megaupload-data-to-be-retained-so-it-can-sue-users-then-insists-it-didnt-really-mean-that.shtml">possibly suing</a> Megaupload users, combined with the success rate that copyright trolls often have in getting some people to just pay up, it seems likely that a fair number of recipients of such a scam letter are actually falling for it.<br /><br /><a href="http://www.techdirt.com/articles/20120321/14220118189/scammers-mimic-copyright-troll-shakedowns-targeting-megaupload-uses.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120321/14220118189/scammers-mimic-copyright-troll-shakedowns-targeting-megaupload-uses.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120321/14220118189/scammers-mimic-copyright-troll-shakedowns-targeting-megaupload-uses.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-of-course</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120321/14220118189</wfw:commentRss>
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<pubDate>Fri, 13 Jan 2012 16:20:00 PST</pubDate>
<title>CD Projekt Listens To Fans, Abandons Piracy Witch Hunt</title>
<dc:creator>Zachary Knight</dc:creator>
<link>http://www.techdirt.com/articles/20120112/17414917393/cd-projekt-listens-to-fans-abandons-piracy-witch-hunt.shtml</link>
<guid>http://www.techdirt.com/articles/20120112/17414917393/cd-projekt-listens-to-fans-abandons-piracy-witch-hunt.shtml</guid>
<description><![CDATA[ You may remember that back in December, CD Projekt (the developers of The Witcher 2) had been sending out <a href="http://www.techdirt.com/articles/20111213/18342017072/cd-projekt-shakes-down-suspected-file-sharers.shtml">legal shake down letters</a> to suspected copyright infringers. This move was not received very well by the gaming press and more importantly CD Projekt's very fans. The major concern over this was that it is nearly impossible to prove that a person illegally downloaded the game based off just an IP address. We now learn that <a href="http://www.gameinformer.com/b/news/archive/2012/01/12/witcher-ii-dev-backs-off-pirate-hunt.aspx" target="_blank">CD Projekt has listened to its fans' concerns and has ended its shake down program</a>. In a letter sent to the gaming press, CD Projekt states:
<blockquote>
<i>Being part of a community is a give-and-take process. We only succeed because you have faith in us, and we have worked hard over the years to build up that trust. We were sorry to see that many gamers felt that our actions didn't respect the faith that they have put into CD Projekt RED. Our fans always have been and remain our greatest concern, and we pride ourselves on the fact that you all know that we listen to you and take your opinions to heart. While we are confident that no one who legally owns one of our games has been required to compensate us for copyright infringement, we value our fans, our supporters, and our community too highly to take the chance that we might ever falsely accuse even one individual. <br /><br /> So we've decided that we will immediately cease identifying and contacting pirates. </i>
</blockquote>
Too many entertainment, and in this case gaming, companies, get so caught up in fighting piracy that they ignore the concerns of their fans. As of December, it had looked as if CD Projekt, the poster boys of DRM-free gaming, were headed down that path as well. Based on this letter, they have seen the folly of that path and have decided to put their fans first. I am so glad to hear this news. You will never win fans for life by brushing aside their concerns. I am also glad to see that CD Projekt has recognized the damage that false positives can have on a community. <br /><br /> While the concerns of copyright infringement are a very real thing, and CD Projekt has some idea of <a href="http://www.techdirt.com/articles/20111201/05251816942/despite-being-pirated-45-millions-times-witcher-2-developer-refuses-to-annoy-paying-customers-with-drm.shtml">its scope</a>, it has never resorted to DRM in order to handle the problem. It stands by that business decision. This promise to stop pursuing suspected copyright infringers is the next step toward building on the good will of its fans. While it may take time for some former fans to forgive, they will be happy with this change. However, CD Projekt wants to make sure it is clear. This move does not mean that it condones copyright infringement:
<blockquote>
<i>Let's make this clear: we don't support piracy. It hurts us, the developers. It hurts the industry as a whole. Though we are staunch opponents of DRM because we don't believe it has any effect on reducing piracy, we still do not condone copying games illegally. We're doing our part to keep our relationship with you, our gaming audience, a positive one. We've heard your concerns, listened to your voices, and we're responding to them. But you need to help us and do your part: don't be indifferent to piracy. If you see a friend playing an illegal copy of a game--any game--tell your friend that they're undermining the possible success of the developer who created the very game that they are enjoying. Unless you support the developers who make the games you play, unless you pay for those games, we won't be able to produce new excellent titles for you. </i>
</blockquote>
I think that is a positive message to express. This is a human response to the problem of copyright infringement. We have seen <a href="http://www.techdirt.com/blog/casestudies/articles/20111213/04081117065/louis-ck-connecting-with-fans-giving-them-reason-to-buy-being-polite-awesome-human.shtml">such pleas</a> succeed in turning a pirate into a paying customer, and there is no doubt that this honest plea for support will garner CD Projekt more sales and more fans. This honest apology and plea for support has certainly made a fan for life out of me.<br /><br /><a href="http://www.techdirt.com/articles/20120112/17414917393/cd-projekt-listens-to-fans-abandons-piracy-witch-hunt.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120112/17414917393/cd-projekt-listens-to-fans-abandons-piracy-witch-hunt.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120112/17414917393/cd-projekt-listens-to-fans-abandons-piracy-witch-hunt.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>winning-fans-for-life</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120112/17414917393</wfw:commentRss>
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<pubDate>Fri, 4 Nov 2011 08:41:29 PDT</pubDate>
<title>Court Says That Outing Closeted Gays Through Mass Infringement Lawsuits Not A Big Deal</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20111103/19074316628/court-says-that-outing-closeted-gays-through-mass-infringement-lawsuits-not-big-deal.shtml</link>
<guid>http://www.techdirt.com/articles/20111103/19074316628/court-says-that-outing-closeted-gays-through-mass-infringement-lawsuits-not-big-deal.shtml</guid>
<description><![CDATA[ We already, briefly, touched on the recent district court ruling in Massachussetts, in one of Liberty Media's mass infringement cases, covering the tangential legal question of whether or not <a href="http://www.techdirt.com/articles/20111103/18353216627/court-wonders-if-porn-can-even-be-covered-copyright.shtml" target="_blank">porn can even be covered by copyright</a>, but the actual legal issues raised in the case are pretty interesting as well.  
<br /><br />
Marc Randazza, Liberty Media's lawyer on these cases, and I disagree over whether lumping together a bunch of unrelated individuals is proper "joinder."  Randazza has argued that many other mass infringement lawyers do this wrong, but his decision to focus on those in a single swarm makes it a more effective argument.  In this case, the court certainly bought Marc's argument, and became one of a small number of courts not to throw out most of the Does sued.  Though I find it a little disingenuous in that the judge notes a few other cases that have allowed the joinder to stand... but leaves out the many, many cases where all but one of the Does was dismissed from the suit. 
<br /><br />
One of my issues with this kind of joinder is that the defendants are all unique and may have very different arguments and defenses.  It seems inappropriate to lump them all together.  The court rejects that, saying that defendants can raise their separate defense later in the case, but that the basic questions of law are identical across the cases.
<br /><br />
The bigger issue to me is a different point raised by the defendants in this and many other cases involving gay pornography.  For better or worse, one of the fears of many (including myself) is that such cases work even better as a "shakedown" game, because defendants who either are in the closet or are not gay and fear being sued for downloading gay porn are more likely to just pay up to avoid the embarrassment.  I raised this issue with Randazza directly, who argues that my argument is actually homophobic, suggesting that there is something wrong with being gay.  To be clear: I don't think there's anything at all wrong with being gay, and, in fact, think that those who are gay should be proud and comfortable with that fact.  But, I also think one's sexual orientation and preferences are a personal and private matter -- and that bringing them out through a legal process, as part of an effort to put pressure on someone to pay up, is highly questionable (and morally dubious).  If someone has made the decision not to "out" themselves, that's their decision.
<br /><br />
Unfortunately, the court doesn't buy this argument, and says that the names of defendants should be made public, rather than allowing them to remain anonymous.  In fact, the court suggests there's no evidence that Liberty Media intends to use this info to pressure people into paying up:
<blockquote><i>
Unnumbered Doe suggests that Liberty Media sought the public identities of Does 1-38 to coerce pretrial settlements. Unnumbered Doe&rsquo;s Mot. 7 (&ldquo;While we cannot know for certain how the Plaintiff intends to proceed . . . the likely course of action is to contact each of the individuals and demand a monetary payment for settlement of the claims in question.&rdquo;). This allegation is not supported in the motion papers or by Liberty Media&rsquo;s actions to date. It is purely speculative and not grounds for allowing the moving defendants to proceed anonymously.
</i></blockquote>
I find this part to be the most questionable, seeing as Liberty Media, in the past, has actually been quite active in trying to get people to "settle" to avoid lawsuits -- including its infamous <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">pay us before we even accuse you</a> plan. 
<br /><br />
Still, the most troubling idea is that the court seems to think that outing someone who does not want to be outed is "mere embarrassment."
<blockquote><i>
Unnumbered Doe further argues that the anonymity of Does 1-38 should be protected because the disclosure of their identities in conjunction with this lawsuit, which involves homosexual pornography, may cause reputational harm and intrusion upon their privacy. Id. Unnumbered Doe asserts that being named as a party to this action amounts to &ldquo;a public accusation&rdquo; that the defendants downloaded and viewed homosexual pornography. Id. Doe 15 similarly argues that their public identification in the lawsuit will expose the defendants to &ldquo;intrusive public scorn.&rdquo; Doe 15&rsquo;s Mot. 3.
<br /><br />
The potential embarrassment to Does 1-38 of being associated with allegations of infringing hardcore pornography does not constitute an exceptional circumstance that would warrant allowing the defendants to proceed anonymously. As the Superior Court of Massachusetts stated, &ldquo;mere embarrassment [is] not sufficient to override the strong public interest in disclosure.&rdquo; Roe, 2011 WL 2342737, at *1. Thus, the potential embarrassment or social stigma that Does 1-38 may face once their identities are released in connection with this lawsuit is not grounds for allowing them to proceed anonymously.
</i></blockquote>
Now, personally, I don't think such a revelation should even be considered "embarrassing," at all.  But, I'm not in a position to talk. And, from what we've seen of folks -- especially younger people -- who have had such info exposed against their will to family and friends who might not be accepting, the idea that this is a "mere embarrassment" doesn't seem accurate at all.  Such revelations have resulted in suicides.  That's not mere embarrassment.  Even if we all agree that no one should be embarrassed about their sexual orientation, or even their interest in pornography, to make that decision on those individuals' behalf just seems questionable to me, and fraught with potential trouble.<br /><br /><a href="http://www.techdirt.com/articles/20111103/19074316628/court-says-that-outing-closeted-gays-through-mass-infringement-lawsuits-not-big-deal.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20111103/19074316628/court-says-that-outing-closeted-gays-through-mass-infringement-lawsuits-not-big-deal.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20111103/19074316628/court-says-that-outing-closeted-gays-through-mass-infringement-lawsuits-not-big-deal.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>disagree</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20111103/19074316628</wfw:commentRss>
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<pubDate>Fri, 23 Sep 2011 13:49:54 PDT</pubDate>
<title>Entertainment Industry Now Shaking Down People At $10 Per Infringement</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110923/11373516066/entertainment-industry-now-shaking-down-people-10-per-infringement.shtml</link>
<guid>http://www.techdirt.com/articles/20110923/11373516066/entertainment-industry-now-shaking-down-people-10-per-infringement.shtml</guid>
<description><![CDATA[ A few months back, I met with the CEO of a rather successful indie label, talking about business models and strategy.  His label had already done a number of really creative and innovative things with its artists, and had found a fair bit of success that way.  The label was trying out a number of cool technologies, and I was pretty impressed at the overall strategy.  However, he was also debating if he wanted to sign up with a company called Digital Rights Corp, which he said had done a really compelling presentation to him recently, in which it claimed that it would hit up everyone filesharing unauthorized copies of his label's music... and ask them to pay $10 per infringement.  He claimed that the company was successful in getting most ISPs to pass on such a monetary request.  At the time I hadn't heard of the company, and in looking into it, many of the claims seemed pretty unbelievable.
<br /><br />
However, now it appears the company is getting some press coverage, and indeed claims that <a href="http://paidcontent.org/article/419-10-settlement-offers-the-entertainment-industrys-new-copyright-tactic/" target="_blank">lots of ISPs have been passing on its "pay up" letters</a>.  The company says it has no plans to sue at all.  It's sort of a new tactic in copyright trolling: just send a bill and get the ISP to pass it along.  The $10 per infringement is certainly a hell of a lot cheaper than what copyright trolls have asked for in the past.  And, of course, the reason this system works is it's mostly automated.  They put together a list of IP addresses that they assume are infringing, send it to the ISP, and get the ISP to pass along the demands for cash.  Two ISPs who have refused have been taken to court (but no individuals have been taken to court).
<br /><br />
I do wonder how many people actually pay up when receiving such a letter -- probably a pretty good number, even if there's no legal basis for them to do so.  Either way, it seems like the latest evolution in copyright trolling.  Don't file lawsuits, but automate, and keep the amounts low to try to make it up in volume.<br /><br /><a href="http://www.techdirt.com/articles/20110923/11373516066/entertainment-industry-now-shaking-down-people-10-per-infringement.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110923/11373516066/entertainment-industry-now-shaking-down-people-10-per-infringement.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110923/11373516066/entertainment-industry-now-shaking-down-people-10-per-infringement.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>price-is-dropping,-but-it's-automated</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110923/11373516066</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 2 Jun 2011 07:11:08 PDT</pubDate>
<title>Can You Support An Entire Recording Industry By Shaking Down Music Fans?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110601/16274214512/can-you-support-entire-recording-industry-shaking-down-music-fans.shtml</link>
<guid>http://www.techdirt.com/articles/20110601/16274214512/can-you-support-entire-recording-industry-shaking-down-music-fans.shtml</guid>
<description><![CDATA[ A bunch of folks have been sending in the various reports concerning how German industry association ECO claims that ISPs in that country are currently <a href="http://gigaom.com/broadband/germany-mass-p2p-lawsuits/" target="_blank">handing over names of 300,000 users per month</a> based on accusations (not proof) that their IP addresses are involved in unauthorized file sharing.  In response, the various copyright holders, or their agents, are using the info for a <i>massive</i> shakedown of those users, sending them letters and demanding cash:
<blockquote><i>
Rights holders have long pursued countless German file sharers with legal means, often going after tens of thousands of users at a time. Initially, this was done through ordinary lawsuits, but revisions to local copyright law now make it possible to simply get court approval for requests to ISPs to unveil a subscriber's identity. Content owners then send threatening letters to alleged infringers, asking them to pay anywhere between &euro;300 to &euro;1200 ($430 to $1720 USD) per unlawfully-shared file.
</i></blockquote>
Basically, this is like ACS:Law or US Copyright Group on a much larger scale -- without ever involving any actual proof or conviction.  Apparently, the rights holders in Germany are thrilled with this situation, since it's making them a lot of money.  But, can it really last?  This entire "business model" appears to be based on the idea of shaking down your biggest fans, and making them hate you for it.  It's hard to see how that's a "growth" model, and the inevitable backlash is going to be fierce.
<br /><br />
Last year, when I was in Berlin for Berlin Music Week and various associated events like All2getherNow and Popkomm, one thing that struck me was how industry-centric the German music world is -- and how the artists themselves are feeling stifled.  It amazed me how many German musicians told me of how ridiculous it was that they <i>weren't allowed</i> to offer up their own music for free on their own websites, thanks to the rules that collective licensing agency GEMA setup.  A few even showed me their official websites, with no music, and their "unofficial" websites, which had streams and downloads, which they couldn't admit to without running into trouble from GEMA.
<br /><br />
This is what the recording industry is driving for elsewhere.  A scenario where the only beneficiaries are the gatekeepers, and the consumers and the artists themselves are made to feel like interlopers.  It may work for a short period of time, but I have trouble believing that such models are sustainable at all, in the long term.  We're seeing more and more success stories from artists and forward-thinking labels who are happy to embrace what the technology allows and embrace what fans want.  It seems like a bad idea for the entire German industry to be moving in the exact opposite direction.<br /><br /><a href="http://www.techdirt.com/articles/20110601/16274214512/can-you-support-entire-recording-industry-shaking-down-music-fans.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110601/16274214512/can-you-support-entire-recording-industry-shaking-down-music-fans.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110601/16274214512/can-you-support-entire-recording-industry-shaking-down-music-fans.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-the-plan-in-germany</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110601/16274214512</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 10 May 2011 03:28:36 PDT</pubDate>
<title>Judge Allows US Copyright Group To Shakedown 23,322 IP Addresses For Downloading The Expendables</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110509/14493614216/judge-lets-us-copyright-group-subpoena-23322-ip-addresses-to-shakedown-over-expendables-download.shtml</link>
<guid>http://www.techdirt.com/articles/20110509/14493614216/judge-lets-us-copyright-group-subpoena-23322-ip-addresses-to-shakedown-over-expendables-download.shtml</guid>
<description><![CDATA[ We've seen a good trend in the various mass file sharing lawsuits lately, with judges <a href="http://www.techdirt.com/articles/20110430/00274114096/judge-slams-copyright-troll-lawyer-john-steeles-latest-fishing-expedition.shtml">blocking</a> so-called "fishing expeditions" by the various lawyers filing these things.  The judges are properly recognizing that these lawsuits are more about scaring people into settling, rather than any sort of reasonable lawsuit.  However, not <i>all</i> the judges feel that way, and apparently the judge handling the latest (and biggest) lawsuit from the US Copyright Group, representing the <a href="http://www.techdirt.com/articles/20110208/15510213010/expendables-producers-begin-process-shaking-down-thousands-cash.shtml">producers of <i>The Expendables</i></a>, has apparently <a href="http://www.wired.com/threatlevel/2011/05/biggest-bittorrent-case/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A wired27b %28Blog - 27B Stroke 6 %28Threat Level%29%29" target="_blank">allowed subpoenas to go out on 23,322 IP addresses</a>, the largest single group of people sued in one of these lawsuits.  It's really unfortunate that the judge didn't realize how improper it is to lump all these defendants together and didn't realize how this is really just a business model choice by the company, rather than a reasonable lawsuit.<br /><br /><a href="http://www.techdirt.com/articles/20110509/14493614216/judge-lets-us-copyright-group-subpoena-23322-ip-addresses-to-shakedown-over-expendables-download.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110509/14493614216/judge-lets-us-copyright-group-subpoena-23322-ip-addresses-to-shakedown-over-expendables-download.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110509/14493614216/judge-lets-us-copyright-group-subpoena-23322-ip-addresses-to-shakedown-over-expendables-download.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>shakedown</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110509/14493614216</wfw:commentRss>
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<pubDate>Fri, 25 Feb 2011 10:32:19 PST</pubDate>
<title>P2P Shakedown Lawyers Apparently Still Sending Subpoenas To Get Info On Defendants Who Had Cases Dismissed</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110224/23310313252/p2p-shakedown-lawyers-apparently-still-sending-subpoenas-to-get-info-defendants-who-had-cases-dismissed.shtml</link>
<guid>http://www.techdirt.com/articles/20110224/23310313252/p2p-shakedown-lawyers-apparently-still-sending-subpoenas-to-get-info-defendants-who-had-cases-dismissed.shtml</guid>
<description><![CDATA[ About a month ago, we pointed out an effort by an anonymous concerned citizen who has been <a href="http://www.techdirt.com/articles/20110129/23354512882/just-under-100000-sued-mass-copyright-infringement-suits-since-start-2010.shtml">tracking</a> the massive increase in these P2P file sharing shakedown lawsuits, that are all about sending "pre-settlement" letters and getting people to pay up, rather than really taking all these people to court.  So far, the courts have been pretty good about dumping many of the cases that involved thousands of defendants, noting that it makes little sense to put them all together in a single case.  The person who made that epic spreadsheet is <a href="http://tinyurl.com/fslitigate" target="_blank">continuing to keep it updated</a>, and it shows about 110,000 people sued:
<center>
<img src="http://i.imgur.com/VqLH1.png" />
</center>
Of course, what this also shows is that approximately 40,000 defendants have been dropped from these cases, mainly after judges pointed out how bogus it was to join so many defendants into single cases.  However, the EFF is noting that it's received reports that some of the law firms involved in these schemes may <a href="https://www.eff.org/deeplinks/2011/02/over-40-000-does-dismissed-copyright-troll-cases" target="_blank">still be sending subpoenas to defendants already dismissed from cases</a>.  Similar to Evan Stone's <a href="http://www.techdirt.com/articles/20110201/02582912905/mass-copyright-lawsuit-lawyer-petulantly-drops-lawsuit-after-called-out-apparent-ethics-violations.shtml">sending subpoenas</a> before a judge had okayed it, this suggests a massive breach of legal ethics.  Sending a subpoena on someone that a judge has already dismissed from the case?  That seems like a strategy for trouble.<br /><br /><a href="http://www.techdirt.com/articles/20110224/23310313252/p2p-shakedown-lawyers-apparently-still-sending-subpoenas-to-get-info-defendants-who-had-cases-dismissed.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110224/23310313252/p2p-shakedown-lawyers-apparently-still-sending-subpoenas-to-get-info-defendants-who-had-cases-dismissed.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110224/23310313252/p2p-shakedown-lawyers-apparently-still-sending-subpoenas-to-get-info-defendants-who-had-cases-dismissed.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>there's-an-ethical-issue-here</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110224/23310313252</wfw:commentRss>
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<pubDate>Tue, 15 Feb 2011 15:49:49 PST</pubDate>
<title>Woman Hits Back At Liberty Media; Asks For Dismissal From P2P Shakedown Saying She Never Downloaded Gay Porn</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110215/05093813105/woman-electrician-hits-back-liberty-media-asks-dismissal-p2p-shakedown-saying-she-never-downloaded-gay-porn.shtml</link>
<guid>http://www.techdirt.com/articles/20110215/05093813105/woman-electrician-hits-back-liberty-media-asks-dismissal-p2p-shakedown-saying-she-never-downloaded-gay-porn.shtml</guid>
<description><![CDATA[ Porn producer Liberty Media has been <a href="http://www.techdirt.com/search.php?cx=partner-pub-4050006937094082%3Acx0qff-dnm1&#038;cof=FORID%3A9&#038;ie=ISO-8859-1&#038;q=liberty+media">quite aggressive</a> of late in jumping into the whole mass infringement lawsuits business, with some really questionable moves, including a questionable <a href="http://www.techdirt.com/articles/20110107/16025712574/guy-agrees-to-pay-250000-just-days-after-being-sued-uploading-movies.shtml">quiet settlement</a>, targeting <a href="http://www.techdirt.com/articles/20110119/02103212713/third-parties-increasingly-targeted-infringement-cases.shtml">third parties</a> and a laughable <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">demand that people pay $1,000</a> and confess to file sharing its movies <i>before</i> it even accused them of doing so.
<br /><br />
However, copyright lawyer Ray Dowd points us to <a href="http://copyrightlitigation.blogspot.com/2011/02/copyright-lawsuit-is-alleged-to-be.html" target="_blank">one woman's response to the accusation that she had downloaded gay porn</a>.  While the filing is technically pro se from this woman, who notes that her profession is as an electrician, Dowd notes that the motion is surprisingly well-written for a non-lawyer (and also refers to herself in the third person), raising questions if there's an anonymous lawyer helping out.  Either way, she points out that she never downloaded the film in question and had never even heard of it or the company.  She notes that she lives in New Jersey and any such lawsuit should be in New Jersey.  She also notes that Liberty failed to follow basic civil procedure rules for serving her with the lawsuit, and says that the lawsuit fails the statute of limitations test, because it does not provide a date when she was supposed to have infringed.
<br /><br />
You can read her entire filing below.
<br /><br />
On a separate note, reading this, it's the first time I realized that Marc Randazza is apparently representing Liberty Media.  That's unfortunate, as Randazza quite frequently does really good work in favor of protecting people's First Amendment rights -- and, as a reader recently noted, Randazza's firm is even <a href="https://www.eff.org/issues/file-sharing/subpoena-defense" target="_blank">listed</a> on the EFF's website of law firms that are willing to help those accused of file sharing in lawsuits exactly like this one!  It's too bad.  I usually support the work that Randazza does, but supporting Liberty Media in this overreaching campaign seems like a mistake.<br /><br /><a href="http://www.techdirt.com/articles/20110215/05093813105/woman-electrician-hits-back-liberty-media-asks-dismissal-p2p-shakedown-saying-she-never-downloaded-gay-porn.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110215/05093813105/woman-electrician-hits-back-liberty-media-asks-dismissal-p2p-shakedown-saying-she-never-downloaded-gay-porn.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110215/05093813105/woman-electrician-hits-back-liberty-media-asks-dismissal-p2p-shakedown-saying-she-never-downloaded-gay-porn.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-work</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20110215/05093813105</wfw:commentRss>
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<pubDate>Mon, 9 Aug 2010 06:30:27 PDT</pubDate>
<title>A Day In The Life Of Legalized Extortion: How The BMI Shakedown Works</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100806/15462810537.shtml</link>
<guid>http://www.techdirt.com/articles/20100806/15462810537.shtml</guid>
<description><![CDATA[ A bunch of you sent in this NY Times puff piece that basically <a href="http://www.nytimes.com/2010/08/08/magazine/08music-t.html?_r=1&#038;hp=&#038;pagewanted=all" target="_blank">follows around a BMI "enforcer,"</a> for a day, watching as she tries to get restaurants, clubs, bars, skating rinks, etc. to pay up for playing music in their establishments.  It's all legal, but it has all the hallmarks of a pure shakedown -- which is why operations like BMI and ASCAP are notorious for <a href="http://www.techdirt.com/articles/20090109/1823043352.shtml">doing more harm than good</a>, by making it much more difficult for up-and-coming musicians to find venues to play in.  Many venues simply stop playing music, rather than deal with expensive BMI/ASCAP licenses.  On top of that, because of the way these systems work, they tend to funnel money disproportionately to <a href="http://www.techdirt.com/articles/20090909/0318406140.shtml">big name artists</a>, again harming less well known songwriters.  BMI, in fact, has been particularly obnoxious about this.  Last year, when a songwriter who had not received any of the promised royalties was brought up, BMI <a href="http://www.techdirt.com/articles/20091118/0916136988.shtml">responded</a> that it wasn't their problem, and "I would like to tell him is that he needs to write a hit song."  Nice, huh?
<br /><br />
The NY Times piece highlights a few interesting points.  I don't know if it was on purpose or not, but a VP from BMI in the article refers to one of the large group of folks who call and visit these venues as "salespeople."  We've seen this before.  The role that is supposed to be an auditor or an investigator is <a href="http://www.techdirt.com/articles/20090421/0328544592.shtml">actually defined as a sales role</a>, meaning that they often have a specific stake in squeezing as much money as possible out of the people they talk to. I don't know if BMI's compensation is structured that way, but certainly other Performance Rights Organizations (PROs) are set up that way.
<br /><br />
As such, it's no surprise that BMI uses cheesey motivational techniques found in sales training:
<blockquote><i>
One afternoon, I sat with Baker at her cubicle. Besides pictures of her fiance, Mike, and her nieces, she also has a smiley-face chart. Her boss made it up for all the licensing executives, to remind them that their moods and their tones will determine their success. The chart is like a traffic light. There’s a green smiley face, a straight face in yellow, then a face in red, frowning. "You never wanna be on the red," Baker said. 
</i></blockquote>
Then there's the new tools that BMI is using to track down everyone who's playing music.  It's spying on more and more areas where music is played, and the reporter discussed with a few people, and they all found it creepy.  BMI's response?  They <b>like</b> that people refer to them as "Big Brother."
<blockquote><i>
Friends I talked to had a similar reaction. To a one, they said: "Jesus. Sounds like Big Brother." When I mentioned this to DeBusk, he smiled ominously. "Yes. Well. We're here to help." 
</i></blockquote>
Finally, the closing vignette is really kinda sickening.  The reporter follows the "salesperson" as she goes to talk to a struggling restaurant who has trouble paying the bills.  After a bit of "negotiation" she gets them to pay up and then admits she knows she's taking money that the owners really need:
<blockquote><i>
Baker accepted Ross's invitation and sat down in the booth with Ross and her pug, Frank. Out came the checkbook. "I could tell she was low on money," Baker told me later. "I could tell it was hard for her to shell out the money."
</i></blockquote>
Sickening.  This is legalized extortion.  And, make no mistake.  It's all very legal.  But we should be asking why.<br /><br /><a href="http://www.techdirt.com/articles/20100806/15462810537.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100806/15462810537.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100806/15462810537.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>sickening</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100806/15462810537</wfw:commentRss>
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<pubDate>Mon, 11 May 2009 03:39:00 PDT</pubDate>
<title>Has Davenport Lyons' Copyright Shakedown Business Gone Under A New Name?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090508/1944054795.shtml</link>
<guid>http://www.techdirt.com/articles/20090508/1944054795.shtml</guid>
<description><![CDATA[ We've had a <a href="http://www.techdirt.com/search.php?site=&#038;cx=partner-pub-4050006937094082%3Acx0qff-dnm1&#038;cof=FORID%3A9&#038;ie=ISO-8859-1&#038;q=davenport+lyons">bunch</a> of stories about UK law firm Davenport Lyons, who build up quite a reputation for sending "shakedown" style letters to people accused of copyright infringement.  However, the letters were sent out so broadly that they were <a href="http://www.techdirt.com/articles/20081030/0222502686.shtml">sent to many innocent people</a>, leading to widespread claims that the whole thing was a shakedown.  Rather than actually gathering evidence, the company was just making money by getting a certain percentage of recipients to pay up.  Highlighting this point: the law firm never actually took anyone to court over those letters.
<br /><br />
As the firm was exposed, it led some customers to <a href="http://www.techdirt.com/articles/20081201/0233572982.shtml">back away</a>, realizing the harm it was doing to its own brand.  The firm hadn't made much noise on this front lately, but the folks over at TorrentFreak heard about a bunch of very similar letters going out recently and, after investigating them, noticed <a href="http://torrentfreak.com/new-anti-piracy-lawyers-chase-uk-file-sharers-090508/" target="_new">way too many similarities to Davenport Lyons</a> -- including an identical customer list and the fact that a Word doc on this new firm's (ACS Law) site was created in a copy of Word registered to... Davenport Lyons.
<br /><br />
Apparently, rather than reforming, they just decided that it would be better to try to appear as someone different and start pulling the same trick all over again.<br /><br /><a href="http://www.techdirt.com/articles/20090508/1944054795.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090508/1944054795.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090508/1944054795.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hunting-and-pecking</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090508/1944054795</wfw:commentRss>
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