With the devices hitting the headlines on an almost weekly basis, it probably comes as no surprise that ‘pirate’ set-top boxes are quickly becoming public enemy number one with video rightsholders.

Typically loaded with the legal Kodi software but augmented with third-party addons, these often Android-based pieces of hardware drag piracy out of the realm of the computer savvy and into the living rooms of millions.

One of the countries reportedly most affected by this boom is the UK. The consumption of these devices among the general public is said to have reached epidemic proportions, and anecdotal evidence suggests that terms like Kodi and Showbox are now household terms.

Today we have another report to digest, this time from the Federation Against Copyright Theft, or FACT as they’re often known. Titled ‘Cracking Down on Digital Piracy,’ the report provides a general overview of the piracy scene, tackling well-worn topics such as how release groups and site operators work, among others.

The report is produced by FACT after consultation with the Police Intellectual Property Crime Unit, Intellectual Property Office, Police Scotland, and anti-piracy outfit Entura International. It begins by noting that the vast majority of the British public aren’t involved in the consumption of infringing content.

“The most recent stats show that 75% of Brits who look at content online abide by the law and don’t download or stream it illegally – up from 70% in 2013. However, that still leaves 25% who do access material illegally,” the report reads.

The report quickly heads to the topic of ‘pirate’ set-top boxes which is unsurprising, not least due to FACT’s current focus as a business entity.

While it often positions itself alongside government bodies (which no doubt boosts its status with the general public), FACT is a private limited company serving The Premier League, another company desperate to stamp out the use of infringing devices.

Nevertheless, it’s difficult to argue with some of the figures cited in the report.

“At a conservative estimate, we believe a million set-top boxes with software added
to them to facilitate illegal downloads have been sold in the UK in the last couple
of years,” the Intellectual Property Office reveals.

Interestingly, given a growing tech-savvy public, FACT’s report notes that ready-configured boxes are increasingly coming into the country.

“Historically, individuals and organized gangs have added illegal apps and add-ons onto the boxes once they have been imported, to allow illegal access to premium channels. However more recently, more boxes are coming into the UK complete with illegal access to copyrighted content via apps and add-ons already installed,” FACT notes.

“Boxes are often stored in ‘fulfillment houses’ along with other illegal electrical items and sold on social media. The boxes are either sold as one-off purchases, or with a monthly subscription to access paid-for channels.”

While FACT press releases regularly blur the lines when people are prosecuted for supplying set-top boxes in general, it’s important to note that there are essentially two kinds of products on offer to the public.

The first relies on Kodi-type devices which provide on-going free access to infringing content. The second involves premium IPTV subscriptions which are a whole different level of criminality. Separating the two when reading news reports can be extremely difficult, but it’s a hugely important to recognize the difference when assessing the kinds of sentences set-top box suppliers are receiving in the UK.

Nevertheless, FACT correctly highlights that the supply of both kinds of product are on the increase, with various parties recognizing the commercial opportunities.

“A significant number of home-grown British criminals are now involved in this type of crime. Some of them import the boxes wholesale through entirely legal channels, and modify them with illegal software at home. Others work with sophisticated criminal networks across Europe to bring the boxes into the UK.

“They then sell these boxes online, for example through eBay or Facebook, sometimes managing to sell hundreds or thousands of boxes before being caught,” the company adds.

The report notes that in some cases the sale of infringing set-top boxes occurs through cottage industry, with suppliers often working on their own or with small groups of friends and family. Invetiably, perhaps, larger scale operations are reported to be part of networks with connections to other kinds of crime, such as dealing in drugs.

“In contrast to drugs, streaming devices provide a relatively steady and predictable revenue stream for these criminals – while still being lucrative, often generating hundreds of thousands of pounds a year, they are seen as a lower risk activity with less likelihood of leading to arrest or imprisonment,” FACT reports.

While there’s certainly the potential to earn large sums from ‘pirate’ boxes and premium IPTV services, operating on the “hundreds of thousands of pounds a year” scale in the UK would attract a lot of unwanted attention. That’s not saying that it isn’t already, however.

Noting that digital piracy has evolved hugely over the past three or four years, the report says that the cases investigated so far are just the “tip of the iceberg” and that many other cases are in the early stages and will only become known to the public in the months and years ahead.

Indeed, the Intellectual Property Office hints that some kind of large-scale enforcement action may be on the horizon.

“We have identified a significant criminal business model which we have discussed and shared with key law enforcement partners. I can’t go into detail on this, but as investigations take their course, you will see the scale,” an IPO spokesperson reveals.

While details are necessarily scarce, a source familiar with this area told TF that he would be very surprised if the targets aren’t the growing handful of commercial UK-based IPTV re-sellers who offer full subscription TV services for a few pounds per month.

“They’re brazen. Watch this space,” he said.

FACT’s full report, Cracking Down on Digital Piracy, can be downloaded here (pdf)

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

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The idea of collaboration in the anti-piracy arena isn’t new but an announcement this summer heralded what is destined to become the largest project the entertainment industry has ever seen.

The Alliance for Creativity and Entertainment (ACE) is a coalition of 30 companies that reads like a who’s who of the global entertainment market. In alphabetical order its members are:

Amazon, AMC Networks, BBC Worldwide, Bell Canada and Bell Media, Canal+ Group, CBS Corporation, Constantin Film, Foxtel, Grupo Globo, HBO, Hulu, Lionsgate, Metro-Goldwyn-Mayer (MGM), Millennium Media, NBCUniversal, Netflix, Paramount Pictures, SF Studios, Sky, Sony Pictures Entertainment, Star India, Studio Babelsberg, STX Entertainment, Telemundo, Televisa, Twentieth Century Fox, Univision Communications Inc., Village Roadshow, The Walt Disney Company, and Warner Bros. Entertainment Inc.

The aim of the project is clear. Instead of each company considering its anti-piracy operations as a distinct island, ACE will bring them all together while presenting a united front to decision and lawmakers. At the core of the Alliance will be the MPAA.

“ACE, with its broad coalition of creators from around the world, is designed, specifically, to leverage the best possible resources to reduce piracy,”
outgoing MPAA chief Chris Dodd said in June.

“For decades, the MPAA has been the gold standard for antipiracy enforcement. We are proud to provide the MPAA’s worldwide antipiracy resources and the deep expertise of our antipiracy unit to support ACE and all its initiatives.”

Since then, ACE and its members have been silent on the project. Today, however, TorrentFreak can pull back the curtain, revealing how the agreement between the companies will play out, who will be in control, and how much the scheme will cost.

Power structure: Founding Members & Executive Committee Members

Netflix, Inc., Amazon Studios LLC, Paramount Pictures Corporation, Sony Pictures Entertainment, Inc., Twentieth Century Fox Film Corporation, Universal City Studios LLC, Warner Bros. Entertainment Inc., and Walt Disney Studios Motion Pictures, are the ‘Founding Members’ (Governing Board) of ACE.

These companies are granted full voting rights on ACE business, including the approval of initiatives and public policy, anti-piracy strategy, budget-related matters, plus approval of legal action. Not least, they’ll have the power to admit or expel ACE members.

All actions taken by the Governing Board (never to exceed nine members) need to be approved by consensus, with each Founding Member able to vote for or against decisions. Members are also allowed to abstain but one persistent objection will be enough to stop any matter being approved.

The second tier – ‘Executive Committee Members’ – is comprised of all the other companies in the ACE project (as listed above, minus the Governing Board). These companies will not be allowed to vote on ACE initiatives but can present ideas and strategies. They’ll also be allowed to suggest targets for law enforcement action while utilizing the MPAA’s anti-piracy resources.

Rights of all members

While all members of ACE can utilize the alliance’s resources, none are barred from simultaneously ‘going it alone’ on separate anti-piracy initiatives. None of these strategies and actions need approval from the Founding Members, provided they’re carried out in a company’s own name and at its own expense.

Information obtained by TorrentFreak indicates that the MPAA also reserves the right to carry out anti-piracy actions in its own name or on behalf of its member studios. The pattern here is different, since the MPAA’s global anti-piracy resources are the same resources being made available to the ACE alliance and for which members have paid to share.

Expansion of ACE

While ACE membership is already broad, the alliance is prepared to take on additional members, providing certain criteria are met. Crucially, any prospective additions must be owners or producers of movies and/or TV shows. The Governing Board will then vet applicants to ensure that they meet the criteria for acceptance as a new Executive Committee Members.

ACE Operations

The nine Governing Board members will meet at least four times a year, with each nominating a senior executive to serve as its representative. The MPAA’s General Counsel will take up the position of non-voting member of the Governing Board and will chair its meetings.

Matters to be discussed include formulating and developing the alliance’s ‘Global Anti-Piracy Action Plan’ and approving and developing the budget. ACE will also form an Anti-Piracy Working Group, which is scheduled to meet at least once a month.

On a daily basis, the MPAA and its staff will attend to the business of the ACE alliance. The MPAA will carry out its own work too but when presenting to outside third parties, it will clearly state which “hat” it is currently wearing.

Much deliberation has taken place over who should be the official spokesperson for ACE. Documents obtained by TF suggest that the MPAA planned to hire a consulting firm to find a person for the role, seeking a professional with international experience who had never been previously been connected with the MPAA.

They appear to have settled on Zoe Thorogood, who previously worked for British Prime Minister David Cameron.

Money, money, money

Of course, the ACE program isn’t going to fund itself, so all members are required to contribute to the operation. The MPAA has opened a dedicated bank account under its control specifically for the purpose, with members contributing depending on status.

Founding/Governing Board Members will be required to commit $5m each annually. However, none of the studios that are MPAA members will have to hand over any cash, since they already fund the MPAA, whose anti-piracy resources ACE is built.

“Each Governing Board Member will contribute annual dues in an amount equal to $5 million USD. Payment of dues shall be made bi-annually in equal shares, payable at
the beginning of each six (6) month period,” the ACE agreement reads.

“The contribution of MPAA personnel, assets and resources…will constitute and be considered as full payment of each MPAA Member Studio’s Governing Board dues.”

That leaves just Netflix and Amazon paying the full amount of $5m in cash each.

From each company’s contribution, $1m will be paid into legal trust accounts allocated to each Governing Board member. If ACE-agreed litigation and legal expenses exceed that amount for the year, members will be required to top up their accounts to cover their share of the costs.

For the remaining 21 companies on the Executive Committee, annual dues are $200,000 each, to be paid in one installment at the start of the financial year – $4.2m all in. Of all dues paid by all members from both tiers, half will be used to boost anti-piracy resources, over and above what the MPAA will spend on the same during 2017.

“Fifty percent (50%) of all dues received from Global Alliance Members other than
the MPAA Member Studios…shall, as agreed by the Governing Board, be used (a) to increase the resources spent on online antipiracy over and above….the amount of MPAA’s 2017 Content Protection Department budget for online antipiracy initiatives/operations,” an internal ACE document reads.

Intellectual property

As the project moves forward, the Alliance expects to gain certain knowledge and experience. On the back of that, the MPAA hopes to grow its intellectual property portfolio.

“Absent written agreement providing otherwise, any and all data, intellectual property, copyrights, trademarks, or know-how owned and/or contributed to the Global Alliance by MPAA, or developed or created by the MPAA or the Global Alliance during the Term of this Charter, shall remain and/or become the exclusive property of the MPAA,” the ACE agreement reads.

That being said, all Governing Board Members will also be granted “perpetual, irrevocable, non-exclusive licenses” to use the same under certain rules, even in the event they leave the ACE initiative.

Terms and extensions

Any member may withdraw from the Alliance at any point, but there will be no refunds. Additionally, any financial commitment previously made to litigation will have to be honored by the member.

The ACE agreement has an initial term of two years but Governing Board Members will meet not less than three months before it is due to expire to vote on any extension.

To be continued……

With the internal structure of ACE now revealed, all that remains is to discover the contents of the initiative’s ‘Global Anti-Piracy Action Plan’. To date, that document has proven elusive but with an operation of such magnitude, future leaks are a distinct possibility.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

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Our coverage of Golden Eye International dates back more than five years. Much like similar companies in the copyright troll niche, the outfit monitors BitTorrent swarms, collects IP addresses, and then heads off to court to obtain alleged pirates’ identities.

From there it sends letters threatening legal action, unless recipients pay a ‘fine’ of hundreds of pounds to settle an alleged porn piracy case. While some people pay up, others refuse to do so on the basis they are innocent, the ISP bill payer, or simply to have their day in court. Needless to say, a full-on court battle on the merits is never on the agenda.

Having gone quiet for an extended period of time, it was assumed that Golden Eye had outrun its usefulness as a ‘fine’ collection outfit. Just lately, however, there are signs that the company is having another go at reviving old cases against people who previously refused to pay.

A post on Slyck forums, which runs a support thread for people targeted by trolls, reveals the strategy.

“I dealt with these Monkeys last year. I spent 5 weeks practically arguing with them. They claim they have to prove it based on the balance of probability’s [sic]. I argue that they actually have to prove it was me,” ‘Matt’ wrote in August.

“It wasn’t me, and despite giving them reasonable doubt it wasn’t me. (I’m Gay… why would I be downloading straight porn?) They still persuaded it, trying to dismiss anything that cast any doubt on their claim. The emails finished how I figured they would…. They were going to send court documentation. It never arrived.”

After months of silence, at the end of August this year ‘Matt’ says GoldenEye got in touch again, suggesting that a conclusion to another copyright case might encourage him to cough up. He says that Golden Eye contacted him saying that someone settled out of court with TCYK, another copyright troll, for £1,000.

“My thoughts…Idiots and doubt it,” ‘Matt’ said. “Honestly, I almost cried I thought I had got rid of these trolls and they are back for round two.”

This wasn’t an isolated case. Another recipient of a Golden Eye threat also revealed getting contacted by the company, also with fresh pressure to pay.

“You may be interested to know that a solicitor, acting on behalf of Robert Kemble in a claim similar to ours but brought by TCYK LLC, entered into an agreement to settle the court case by paying £1,000,” Golden Eye told the individual.

“In view of the agreement reached in the Kemble case, we would invite you to reconsider your position as to whether you would like to reach settlement with us. We would point out, that, despite the terms of settlement in the Kemble case, we remain prepared to stand by our original offer of settlement with you, that is payment of £500.00.”

After last corresponding with the Golden Eye in January after repeated denials, new contact from the company would be worrying for anyone. It certainly affected this person negatively.

“I am now at a loss and don’t know what more I can do. I do not want to settle this, but also I cannot afford a solicitor. Any further advice would be gratefully appreciated as [i’m] now having panic attacks,” the person wrote.

After citing the Robert Kemble case, one might think that Golden Eye would be good enough to explain the full situation. They didn’t – so let’s help them a little bit in that respect, to help their targets make an informed decision.

Robert Kemble was a customer of Sky Broadband. TCYK, in conjunction with UK-based Hatton and Berkeley, sent a letter to Kemble in July 2015 asking him to pay a ‘fine’ for alleged Internet piracy of the Robert Redford movie The Company You Keep, way back in April 2013.

So far, so ordinary – but here’s the big deal.

Unlike the people being re-targeted by Golden Eye this time around, Kemble admitted in writing that infringement had been going on via his account.

In a response, Kemble told TCYK that he was shocked to receive their letter but after speaking to people in his household, had discovered that a child had been downloading films. He didn’t say that the Redford film was among them but he apologized to the companies all the same. Clearly, that wasn’t going to be enough.

In August 2015, TCYK wrote back to Kemble, effectively holding him responsible for other people’s actions while demanding a settlement of £600 to be paid to third-party company, Ranger Bay Limited.

“The child who is responsible for the infringement should sign the undertakings in our letter to you. Please when replying specify clearly on the undertakings the child’s full name and age,” the company later wrote. Nice.

What took place next was a round of letter tennis between Kemble’s solicitor and those acting for TCYK, with the latter insisting that Kemble had already admitted infringement (or authorizing the same) and demanding around £2000 to settle the case at this later stage.

With no settlement forthcoming, TCYK demanded £5,000 in the small claims court.

“The Defendant has admitted that his internet address has been used to infringe the Claimant’s copyright whereby, through the Defendant’s licencees’ use of the Defendant’s internet address, he acquired the Work and then communicated the Work in a digital form via the internet to the public without the license or consent of the Claimant,” the TCYK claim form reads.

TorrentFreak understands that the court process that followed didn’t center on the merits of the infringement case, but procedural matters over how the case was handled. On this front, Kemble failed in his efforts to have the case – which was heard almost a year ago – decided in his favor.

Now, according to Golden Eye at least, Kemble has settled with TCYK for £1000, which is just £300 more than their final pre-court offer. Hardly sounds like good value for money.

The main point, though, is that this case wouldn’t have gotten anywhere near a court if Kemble hadn’t admitted liability of sorts in the early stages. This is a freak case in all respects and has no bearing on anyone’s individual case, especially those who haven’t admitted liability.

So, for people getting re-hounded by Golden Eye now, remember the Golden Rule. If you’re innocent, by all means tell them, and stick to your guns. But, at your peril tell them anything else on top, or risk having it used against you.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

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A few weeks ago MetalKettle, one of the most famous Kodi addon developers of recent times, decided to call it quits.

Worried about potential legal risks, he saw no other option than to halt all development of third-party Kodi addons.

Two months before this announcement, the developer proceeded to remove the GitHub account which was used to distribute his addons. However, he didn’t realize that this might not have been the best decision.

As it turns out, GitHub allows outsiders to re-register names of deleted accounts. While this might not be a problem in most cases, it can be disastrous when the accounts are connected to Kodi add-ons that are constantly pinging for new updates.

In essence, it means that the person who registered the Github account can load content onto the boxes of people who still have the MetalKettle repo installed. Quite a dangerous prospect, something MetalKettle realizes as well.

“Someone has re-registered metalkettle on github. So in theory could pollute any devices with the repo still installed,” he warned on Twitter.

“Warning : if any users have a metalkettle repo installed on their systems or within a build – please delete ASAP,” he added.

MetalKettle warning

It’s not clear what the intentions of the new MetalKettle user are on GitHub, if he or she has any at all. But, people should be very cautious and probably remove it from their systems.

The real MetalKettle, meanwhile, was contacted by TVAddons regarding the situation and they have placed the repository on their Indigo blacklist of banned software. This effectively disables the repository on devices with Indigo installed.

GitHub on their turn may want to reconsider their removal policy. Perhaps it’s smarter to not make old usernames available for registration, at least not for a while, as it’s clearly a vulnerability.

This is also shown by another Kodi repo controversy that appeared earlier today. Another GitHub account that was reportedly deleted earlier, resurfaced today pushing a new version of the Exodus addon and other sources.

According to some, the GitHub account is operated by the original Exodus developers and perfectly safe, but others warn that the name was reregistered in bad faith.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

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Every day millions of people enjoy fan-made subtitles. They help foreigners understand English-speaking entertainment and provide the deaf with a way to comprehend audio.

Quite often these subtitles are used in combination with pirated files. This is a thorn in the side to copyright holder groups, who see this as a threat to their business.

In Sweden, Undertexter was one of the leading subtitle resources for roughly a decade. The site allowed users to submit their own translated subtitles for movies and TV shows, which were then made available to the public.

In the summer of 2013, this reign came to an end after the site was pulled offline. Following pressure from Hollywood-based movie companies, police raided the site and seized its servers.

The raid and subsequent criminal investigation came as a surprise to the site’s founder, Eugen Archy, who didn’t think he or the site’s users were offering an illegal service.

“The people who work on the site don’t consider their own interpretation of dialog to be something illegal, especially when we’re handing out these interpretations for free,” he said at the time.

The arrest made it clear that the authorities disagreed. The Undertexter founder was prosecuted for distributing copyright-infringing subtitles, risking a possible prison sentence. While Archy was found guilty this week, luckily for him he remains a free man.

The Attunda District Court sentenced the now 32-year-old operator to probation. In addition, he has to pay 217,000 Swedish Kroner ($27,000), which will be taken from the advertising and donation revenues he collected through the site.

While there were millions of subtitles available on Undertexter, only 74 movies were referenced by the prosecution. These were carefully selected to ensure a strong case it seems, as many of the titles weren’t commercially available in Sweden at the time.

During the trial, the defense had argued that the fan-made subtitles are not infringing since movies are made up of video and sound, with subtitles being an extra. However, the court disagreed with this line of reasoning, the verdict shows.

While the copyright holders may have hoped for a heftier punishment, the ruling confirms that fan-made subtitles can be seen as copyright infringements. Prosecutor Henrik Rasmusson is satisfied with the outcome, IDG reports, but he will leave the option to appeal open for now.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

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