For the past several years, anti-piracy outfit Rightscorp has been trying to turn piracy into profit. The company monitors BitTorrent networks, captures IP addresses, then attempts to force ISPs to forward cash settlement demands to its subscribers.

Unlike other companies operating in the same area, Rightscorp has adopted a “speeding fine” type model, where it asks for $20 to $30 to make a supposed lawsuit go away, instead of the many hundreds demanded by its rivals. To date, this has resulted in the company closing more than 230,000 cases of infringement.

But despite the high numbers, the company doesn’t seem to be able to make it pay. Rightscorp’s latest set of financial results covering the three months ended September 30, 2017, show how bad things have got on the settlement front.

During the period in question, Rightscorp generated copyright settlement revenues of $45,848, an average of just $15,282 per month. That represents a decrease of 67% when compared to the $139,834 generated during the same period in 2016.

When looking at settlement revenues year to date, Rightscorp generated $184,362 in 2017, a decrease of 48% when compared to $354,160 generated during the same nine-month period in 2016.

But as bleak as these figures are, things get much worse. Out of these top-line revenues, Rightscorp has to deal with a whole bunch of costs before it can put anything into its own pockets. For example, in exchange for the right to pursue pirates, Rightscorp agrees to pay around 50% of everything it generates from settlements back to copyright holders.

So, for the past three months when it collected $45,848 from BitTorrent users, it must pay out $22,924 to copyright holders. Last year, in the same period, it paid them $69,143. For the year to date (nine months ended September 30, 2017), the company paid $92,181 to copyright holders, that’s versus $174,878 for the same period last year.

Whichever way you slice it, Rightscorp settlement model appears to be failing. With revenues from settlements down by almost half thus far this year, one has to question where this is all going, especially with BitTorrent piracy volumes continuing to fall in favor of other less traceable methods such as streaming.

However, Rightscorp does have a trick up its sleeve that is helping to keep the company afloat. As previously reported, the company has amassed a lot of intelligence on pirate activity which clearly has some value to copyright holders.

That data is currently being utilized by both BMG and the RIAA, who are using it as evidence in copyright liability lawsuits filed against ISPs Cox and Grande Communications, where each stand accused of failing to disconnect repeat infringers.

This selling of ‘pirate’ data is listed by Rightscorp in its financial reports as “consulting services” and thus far at least, it’s proving to be a crucial source of income.

“During the three months ended September 30, 2017, we generated revenues of $76,666 from consulting services rendered under service arrangements with prominent trade organizations,” Rightscorp reports.

“Under the agreements, the Company is providing certain data and consultation regarding copyright infringements on such organizations’ respective properties. During the three months ended September 30, 2016, we had no consulting services revenue.”

Year to date, the numbers begin to add up. In the nine months ended September 30, 2017, Rightscorp generated revenues of $224,998 from this facet of their business, that’s versus zero revenue in 2016.

It’s clear that without this “consulting” revenue, Rightscorp would be in an even worse situation than it is today. In fact, it appears that these services, provided to the likes of the RIAA, are now preventing the company from falling into the abyss. All that being said, there’s no guarantee that won’t happen anyway.

To the nine months ended September 30, 2017, Rightscorp recorded a net loss of $1,448,899, which is even more than the $1,380,698 it lost during the same period last year. As a result, the company had just $3,147 left in cash at the end of September. That crisis was eased by issuing 2.5 million shares to an investor for a purchase price just $50,000. But to keep going, Rightscorp will need more money – much more.

“Management believes that the Company will need an additional $250,000 to $500,000 in 2017 to fund operations based on our current operating plans,” it reports, noting that there is “substantial doubt” whether Rightscorp can continue as a going concern.

But despite all the bad news, Rightscorp manages to survive and at least in the short-term, the piracy data it has amassed holds value, beyond basic cash settlement letters. The question is, for how long?

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons





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A few weeks ago, Epic Games released Fortnite’s free-to-play “Battle Royale” game mode for the PC and other platforms, which proved to be quite popular.

It also attracted attention from thousands of cheaters, many of whom were subsequently banned. In addition, Epic Games went a step further by taking several cheaters to court over copyright infringement.

One of the accused is Caleb Rogers, who was banned at least 14 times since he started playing. Every time Epic took action, he simply created new accounts under false names and continued to play and cheat at Fortnite.

What Epic Games probably didn’t know is that the cheater in question is a minor. The company likely obtained his name via YouTube or elsewhere, without knowing his real age.

Instead of responding to the complaint through an attorney, it’s the kid’s mother who’s come out in his defense.

“This company is in the process of attempting to sue a 14-year-old child,” Caleb’s mother informs the court.

In addition, she points out that Epic has no proof that her son modified the game and violated copyright law in the process. Perhaps more importantly, she highlights that the EULA, which the game publisher relies heavily upon in the complaint, isn’t legally binding.

The EULA states that minors require permission from a parent or legal guardian, which is not the case here.

“Please note parental consent was not issued to Caleb Rogers to play this free game produced by Epic Games, INC,” the mother writes in her letter.

Epic claims that cheaters cause the company to lose money, but the mother doesn’t buy this since it’s a free game. Instead, she believes that the company is trying to blame her son for its failure to curb cheaters.

“It is my belief that due to their lack of ability to curve cheat codes and others from modifying their game, they are using a 14-year-old child as a scape goat to make an example of him.”

Letter

The cheaters shouldn’t be the ones that are targeted, the mother additionally informs the court. Instead, Epic should go after the websites that offer the cheats themselves.

“The company is in the process of suing a multitude of players for this game Fortnite. Instead of Epic Games INC suing the websites providing the cheat codes, they are going after the individuals using these codes,” she notes.

The boy is accused of using cheat software that injects unauthorized code into the active memory of the game as it runs, not just codes. While he didn’t write the cheat himself, through his YouTube channel he showed others where to download it and asked for donations.

The mother is convinced that the case should be thrown out.

Epic Games has yet to reply to the mother’s letter. The fact that they sued a 14-year-old boy is a problem though, as minors can’t be sued directly. It’s possible that the game publisher will drop the case for this reason, unless they want to take it up with his mom.

The mother’s full letter is available here (pdf).

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You can get the Beelink GT1 16GB version TV Box with an extra discount by using the coupon Bfriday212 for just $49.99 / €42.72 / £38.20 free world-wide shipping included! It is one of the most popular Android TV Boxes sporting the brand new Octa-core Amlogic S912 CPU clocked at 2.0Ghz, a Mali-T820MP3 GPU, 2Gb of RAM and 16Gb of internal storage. Also comes with Dual Band WiFi 2.4Ghz and 5Ghz and 1000M LAN Ethernet for super fast streaming content, a micro SD card slot for an extra storage extension up to 64Gb, HDMI 2.0, 2 X USB, Bluetooth v4.0 2.0 and SPDIF output! Read more


Late October 2016, we reported on an alarming situation in Poland, where police had visited hundreds of homes across the country, seizing computers alleged to have been involved in the sharing of a comedy movie titled “Screwed“.

In some cases, police reportedly advised suspects to settle with copyright holders rather than face legal action, something critics felt was particularly inappropriate in an unproven copyright case. Now it appears that history is repeating itself in the region, with people being targeted over downloads of a local thriller titled “Drogówka”.

While this is of concern in itself, the alleged offenses took place via BitTorrent way back in 2013, four whole years ago. Local journalist Marcin Maj at Bezprawnik, who’s also an IT security instructor at Niebezpiecznik, has been documenting the activities of copyright trolls in Poland for some time. He picked up the story this week after he learned that police had seized an alleged file-sharer’s computer.

After speaking with local police, he subsequently discovered that 200 to 300 other people had been given the same treatment.

Maj says that after presenting a long list of questions to authorities, he learned that these seizures have been going on continuously for about a year, following a criminal complaint filed by a law firm. It’s that this point that the uncomfortable nature of this whole operation becomes apparent.

“In 2013-2014, lawyer Artur Glass-Brudziński reported numerous copyright infringements (movie sharing) to the prosecutor’s office, and the prosecutor’s office started to identify people behind the indicated IP addresses,” Maj informs TF.

“It’s important to understand that in the Polish legal system, it’s impossible to sue someone who is unknown to a plaintiff [John Doe]. But you can always start a criminal proceeding.”

Such a criminal proceeding was filed in 2014 but it appears that Glass-Brudziński used the process to gain a secondary advantage.

“As a barrister of the [copyright holder], Artur Glass-Brudziński had access to the prosecutor’s documentation. So he used this to obtain identified names and addresses, without waiting for the end of the criminal proceeding. Those people were just witnesses, but Glass-Brudziński sent thousands of letters to them, suggesting they are suspects, which was not true,” Maj says.

So, in effect, a criminal action was used to gain access to personal details that were subsequently used in civil actions. That’s completely legal and quite common in Poland but many view the process as problematic.

“Polish lawyers see this as something not quite ethical,” Maj reports. “Now Glass-Brudziński faces a disciplinary court because his letters were quite misleading. Regardless of that, however, criminal proceedings are still underway.”

A hearing took place before the Disciplinary Court November 13 but a resolution will take some time to reach since there around 80 people involved in the case. In the meantime the current criminal case continues, with several problems.

For example, it’s quite likely that many people will have changed their computers since 2013, but the police are required to seize the ones people currently have. Also, Maj reports that after speaking to people who received demands for cash payment, many report having had nothing to do with the alleged offenses. But there is a broader problem around such cases in general.

As we reported last year, prosecutors admit that they do not verify the technical processes that the copyright holders use to identify the alleged infringers, meaning that hundreds of members of the public are subjected to property seizures based on untested evidence.

“Polish prosecutors often decide to seize computers just because they got an IP address list from a lawyer. Sometimes even prosecutors don’t want to do that, but copyright owners complain to the courts, and the courts issue an order to seize machines. That’s deeply absurd,” Maj says.

“Many times I have asked prosecutors if they check the method used to track pirates. Many times I have asked prosecutors if they have found evidence on every seized computer. The answers? No. They don’t check the method of tracking pirates, and evidence is found only ‘sometimes’.”

There are clearly mounting problems in Poland with both evidence and discovery-based loopholes providing copyright holders with a significant advantage. While questionable, it’s currently all legal, so it seems likely that as long as ‘victims’ can gain access to private information via criminal cases, the cash threats will continue. It’s a topic covered in a report compiled by Maj and the Modern Poland Foundation (Polish, pdf)

“Computer seizures and our report were discussed in the lower house of the Polish parliament in 2016, at the meeting of the Commision of Digitalization, Innovation and New Technologies. Many politicians are aware of the problem and they declare we should do something to stop bullying and seizures. Unfortunately, it all ended with was declarations,” Maj concludes.

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Movie studio Voltage Pictures is no stranger to suing BitTorrent users.

The company has filed numerous lawsuits against alleged pirates in the United States, Europe, Canada and Australia, and is estimated to have made a lot of money doing so.

Voltage and other copyright holders who initiate these cases generally rely on IP addresses as evidence. This information is collected from BitTorrent swarms and linked to an ISP using an IP-database.

With this information in hand, they then ask the courts to direct Internet providers to hand over the personal details of the associated account holders, in order to go after the alleged pirates.

In Canada, this so-called copyright trolling practice hasn’t been without controversy.

Last year Voltage Pictures launched a “reverse class action” to demand damages from an unspecified number of Internet users whom they accuse of sharing films, including The Cobbler, Pay the Ghost, Good Kill, Fathers and Daughters, and American Heist.

The application of a reverse class action in a copyright case was unprecedented in itself. In a single swoop, many of Internet subscribers were at risk of having their personal details exposed. However, Internet provider Rogers was not willing to hand over this information freely.

Instead, Rogers demanded compensation for every IP-address lookup, as is permitted by copyright law. The provider asked for $100 per hour of work, plus taxes, to link the addresses to subscriber accounts.

The Federal Court agreed that the charges were permitted under the Copyright Act. However, when Voltage Pictures appealed the decision, this was reversed. The Appeals Court noted that there’s currently no fixed maximum charge defined by law. As long as this is the case, ISPs can charge no fees at all, the argument was.

In addition, the court stressed that it’s important for copyright holders to be able to protect their rights in the digital era.

“The internet must not become a collection of safe houses from which pirates, with impunity, can pilfer the products of others’ dedication, creativity and industry,” the appeal court Justice David Stratas wrote.

Not happy with the decision, Rogers decided to take the matter to the Supreme Court, which just decided that it will hear the case.

The Supreme Court hasn’t given an explanation for its decision to take the case. For the accused BitTorrent pirates in Canada, it’s certainly one to watch though.

The case will in large part determine how profitable the copyright trolling scheme is in Canada. When ISPs can charge a substantial fee for the IP-address lookups the efforts might not bring in enough money through settlements, making them less likely to continue.

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A lot of great Black Friday deals also this year! Starting with TV Boxes, some amazing offers come from Gearbest. The W95 TV Box – 2GB RAM and 16GB of storage Android 7.1 TV Box is selling for just $21.99 just add the coupon BlackFriday128. The smaller version of the same device the W95 TV Box – 1GB RAM + 8GB has also an incredible price of $18.99 by using the coupon BlackFriday129. This is the lowest price I have ever seen for an Android 7 TV Box!!!

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While Switzerland sits geographically in the heart of Europe, the country is not part of the European Union, meaning that its copyright laws are often out of touch with those of the countries encircling it.

For years this has meant heavy criticism from the United States, whose trade representative has put Switzerland on the Watch List, citing weaknesses in the country’s ability to curb online copyright infringement.

“The decision to place Switzerland on the Watch List this year is premised on U.S. concerns regarding specific difficulties in Switzerland’s system of online copyright protection and enforcement,” the USTR wrote in 2016.

Things didn’t improve in 2017. Referencing the so-called Logistep Decision, which found that collecting infringers’ IP addresses is unlawful, the USTR said that Switzerland had effectively deprived copyright holders of the means to enforce their rights online.

All of this criticism hasn’t fallen on deaf ears. For the past several years, Switzerland has been deeply involved in consultations that aim to shape future copyright law. Negotiations have been prolonged, however, with the Federal Council aiming to improve the situation for creators without impairing the position of consumers.

A new draft compromise tabled Wednesday is somewhat of a mixed bag, one that is unlikely to please the United States overall but could prove reasonably acceptable to the public.

First of all, people will still be able to ‘pirate’ as much copyrighted material as they like, as long as that content is consumed privately and does not include videogames or software, which are excluded. Any supposed losses accrued by the entertainment industries will be compensated via a compulsory tax of 13 Swiss francs ($13), levied on media playback devices including phones and tablets.

This freedom only applies to downloading and streaming, meaning that any uploading (distribution) is explicitly ruled out. So, while grabbing some streaming content via a ‘pirate’ Kodi addon is just fine, using BitTorrent to achieve the same is ruled out.

Indeed, rightsholders will be able to capture IP addresses of suspected infringers in order to file a criminal complaint with authorities. That being said, there will no system of warning notices targeting file-sharers.

But while the authorization of unlicensed downloads will only frustrate an already irritated United States, the other half of the deal is likely to be welcomed.

Under the recommendations, Internet services will not only be required to remove infringing content from their platforms, they’ll also be compelled to prevent that same content from reappearing. Failure to comply will result in prosecution. It’s a standard that copyright holders everywhere are keen for governments to adopt.

Additionally, the spotlight will fall on datacenters and webhosts that have a reputation for being popular with pirate sites. It’s envisioned that such providers will be prevented from offering services to known pirate sites, with the government clearly stating that services with piracy at the heart of their business models will be ripe for action.

But where there’s a plus for copyright holders, the Swiss have another minus. Previously it was proposed that in serious cases authorities should be able to order the ISP blocking of “obviously illegal content or sources.” That proposal has now been dropped, meaning no site-blocking will be allowed.

Other changes in the draft envision an extension of the copyright term from 50 to 70 years and improved protection for photographic works. The proposals also feature increased freedoms for researchers and libraries, who will be able to use copyrighted works without obtaining permission from rightsholders.

Overall the proposals are a pretty mixed bag but as Minister of Justice Simonetta Sommaruga said Wednesday, if no one is prepared to compromise, no one will get anything.

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SCHISM TV SERENITY

The TVOSX / Apple TV-like Build by Schism TV, Serenity for KODI 17.6 has been updated and has some big changes. As always the looks are still the same but we had a lot of content changes. New addons, new repositories and also some departures since the 3rd party world of KODI addons has been shaken a lot in the last few days.

SCHISM TV SERENITY APPLE TV KODI BUILD GREY

The main changes are:

  • TVOne1 addon updated
  • Death Streams, Project D, Planet MMA, Revved Up, Falcon IPTV, Not FilmOn addons added
  • cCloudTV, DuckPool, M4U, 123Movies, Bennu, FilmOn removed
  • updated new repositories
  • new URL Resolver version 4.0.12
  • fixed all icons and small skin fixes

The build’s size is less than previous by 10MB for a total of around 260MB as a zipped file. Enjoy and as always remember the build is FREE and we do not accept donations. Happy streaming and Boom Shakalaka!

SCHISM TV SERENITY APPLE TV KODI BUILD ADDONS

How to install the SCHISM TV SERENITY Build v1.9 on KODI 17.6 KRYPTON

1. On a fresh installation of KODI (do always a Fresh Start before installing builds) go under SYSTEM and select FILE MANAGER from the submenu
2. Select ADD SOURCE
3. Click on NONE and enter https://dimitrology.com/repo and click on DONE
4. Select OK
5. Go to HOME
6. Select SYSTEM
7. Select ADDONS
8. Select INSTALL FROM ZIP
9. Click on repo from the list and select plugin.video.dimitv.zip
10. Wait for the notification that Dimitrology TV has been installed
11. Go to HOME
12. Select PROGRAMS
13. Open Dimitrology TV Wizard
14. Now select SETTINGS and enter the code which you can find at https://dimitrology.com/getcode
15. Select INSTALL
16. Select Serenity ver: 1.9
17. Select FRESH INSTALL and wait for the installation to finish.
18. When asked to, select OK and then go to SETTINGS, INTERFACE and select the SERENITY skin. No force close is required.
19. If you do not see the thumbnails after setup, this is perfectly normal as the wizard removes all the thumbnails. Simply exit from KODI, now open it once again and BOOM SHAKALAKA BABY!!!

SCHISM TV SERENITY APPLE TV KODI


Ten years ago we uncovered that Comcast was systematically slowing down BitTorrent traffic to ease the load on its network.

The Comcast case ignited a broad discussion about net neutrality and provided the setup for the FCC’s Open Internet Order, which came into effect three years later.

This Open Internet Order then became the foundation of the net neutrality regulation that was adopted in 2015 and still applies today. The big change compared to the earlier attempt was that ISPs can be regulated as carriers under Title II.

These rules provide a clear standard that prevents ISPs from blocking, throttling, and paid prioritization of “lawful” traffic. However, this may soon be over as the FCC is determined to repeal it.

FCC head Ajit Pai recently told Reuters that the current rules are too restrictive and hinder competition and innovation, which is ultimately not in the best interests of consumers

“The FCC will no longer be in the business of micromanaging business models and preemptively prohibiting services and applications and products that could be pro-competitive,” Pai said. “We should simply set rules of the road that let companies of all kinds in every sector compete and let consumers decide who wins and loses.”

This week the FCC released its final repeal draft (pdf), which was met with fierce resistance from the public and various large tech companies. They fear that, if the current net neutrality rules disappear, throttling and ‘fast lanes’ for some services will become commonplace.

This could also mean that BitTorrent traffic could become a target once again, with it being blocked or throttled across many networks, as The Verge just pointed out.

Blocking BitTorrent traffic would indeed become much easier if current net neutrality safeguards were removed. However, the FCC believes that the current “no-throttling rules are unnecessary to prevent the harms that they were intended to thwart,” such as blocking entire file transfer protocols.

Instead, the FCC notes that antitrust law, FTC enforcement of ISP commitments, and consumer expectations will prevent any unwelcome blocking. This is also the reason why ISPs adopted no-blocking policies even when they were not required to, they point out.

Indeed, when the DC Circuit Court of Appeals decimated the Open Internet Order in 2014, Comcast was quick to assure subscribers that it had no plans to start throttling torrents again. Yes, that offers no guarantees for the future.

The FCC goes on to mention that the current net neutrality rules don’t prevent selective blocking. They can already be bypassed by ISPs if they offer “curated services,” which allows them to filter content on viewpoint grounds. And Edge providers also block content because it violates their “viewpoints,” citing the Cloudflare termination of The Daily Stormer.

Net neutrality supporters see these explanations as weak excuses and have less trust in the self-regulating capacity of the ISP industry that the FCC, calling for last minute protests to stop the repeal.

For now it appears, however, that the FCC is unlikely to change its course, as Ars Technica reports.

While net neutrality concerns are legitimate, for BitTorrent users not that much will change.

As we’ve highlighted in the past, blocking pirate sites is already an option under the current rules. The massive copyright loophole made sure of that. Targeting all torrent traffic is even an option, in theory.

If net neutrality is indeed repealed next month, blocking or throttling BitTorrent traffic across the entire network will become easier, no doubt. For now, however, there are no signs that any ISPs plan to do so.

If it does, we will know soon enough. The FCC will require ISPs to be transparent under the new plan. They have to disclose network management practices, blocking efforts, commercial prioritization, and the like.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN discounts, offers and coupons





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