Are There More Copyright 'Pre-Settlement' Groups Setting Up Shop In The US?

from the warning-letters dept

We recently covered how a recently created outfit going by the name US Copyright Group, had launched tens of thousands of lawsuits (some of which appear to be quite questionable 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 widely condemned). 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.

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 the Copyright Enforcement Group, 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 CopyrightSettlements.com, 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 all copyright holders for a piece of content? Will it indemnify users if they're threatened or sued again?

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:
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.

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.

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.
Looks like this new form of "monetizing" content is spreading. And not in a good way.

Filed Under: copyright, pre-settlement
Companies: digiprotect, us copyright group


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    Anonymous Coward, 9 Apr 2010 @ 9:20am

    Copyright Settlements TOS?? You agree to watch porn?

    Did anyone even read their terms of service?? It sounds like it's a cover for an online adult website:

    Legal Terms & Content Warning

    The settlement pages of CopyrightSettlements.com may contain references to adult titles and/or content that could be offensive to some users. Additionally, users settling copyright infringement cases via CopyrightSettlements.com are entering into a legally binding contract and as a result are required to be 18 years of age or older. If you are not 18 years of age or older please have your parent(s) or legal guardian(s) sign in on your behalf.

    Please read the following carefully; Under the penalty of perjury, by clicking on the sign in button you agree to these terms:

    1. I am an adult, 18 years of age or older.
    2. I am requesting and agreeing to view sexually explicit material for my personal use in my private home or office.
    3. I personally and without coercion will make selections of such material and these images and products without violating the community standards of the area in which I live.
    4. I will not exhibit these images to minors or anyone else who might be offended by them.
    5. I have read and agree to the Terms of Use.


    Really? "I am requesting and agreeing to view sexually explicit material?" Sign in with your case number and password for a fake copyright threat, and you automatically agree to have porn thrusted (sorry) into your harddrive and onto your screen??

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Show Now: Takedown
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.