Megaupload founder Kim Dotcom has announced the development of many projects since the destruction of his file-hosting platform in 2012.

With a stated aim of revolutionizing the file-sharing space, one of the most prominent was initially dubbed Megaupload 2 (MU2). Utilizing investment platform BnkToTheFuture, in 2016 it raised over a million dollars from 354 investors in just two weeks.

MU2 and the associated BitCache platform were originally penciled in for a January 2017 launch but like many complex projects, ultimately missed its target. With the project still under development, MU2 was later renamed K.im, a clear reference to Kim Dotcom’s well-known name and its greatest marketing asset.

Conveniently, Kim Dotcom had previously bought ‘K.im’ back in 2013, acquiring the Isle of Man domain name for a reportedly record-setting $20,000 via Sedo. This was put to use as the project’s main homepage but now, several years later, things are not going to plan.

Visitors to K.im are no longer greeted by all the details of the K.im, Bitcache and associated Kimcoin project. Instead, they are treated to an insecure site (no https) that delivers an anti-Google SEO-based rant penned by Bulgarian expired domain specialist Kalin Karakehayov.

An almost identical piece to that shown above was previously published on Karakehayov’s own domain at Karakehayov.com but the version on K.im replaces references to the original domain with references to K.im.

Having previously used Cloudflare’s services as a front to its hosting, K.im now uses servers in Bulgaria to display the anti-Google sentiments. Unfortunately, due to the GDPR, it’s hard to state conclusively that the domain is now under Karakehayov’s personal control, despite hosting his content.

For the K.im team, however, that detail might be the least of their worries. The entire project has been built around the Kim Dotcom brand and it now seems fairly clear that the K.im domain isn’t under its control anymore. Awkwardly, that is also more than obvious on Twitter, with dozens of Dotcom’s posts mentioning the K.im project and linking to the K.im domain now showing the message “PURE SPAM”.

Whether this PR catastrophe can be reversed is currently unclear but adding insult to injury, the K.im domain has now been put up for sale by its owner on Sedo, the marketplace from where Dotcom bought it. There’s no reserve price but the domain is being offered by an account opened in 2014 with a stated location of ‘Georgia’.

While the apparent loss of this domain can probably be overcome, the future of the entire K.im project is somewhat up in the air.

In November 2019, Bitfinex declared that due to a rapidly evolving “regulatory environment”, the K.im token sale had been indefinitely postponed.

“After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional,” the statement read.

Since then, no one associated with the project, including Dotcom himself, has made any public statement on the future of K.im or the Kimcoin token. TorrentFreak has requested comments from both Kim Dotcom and Kalin Karakehayov and will update this article should they arrive.

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American satellite and broadcast provider Dish Network has fought several legal battles against alleged pirate streaming tools in recent years.

The company filed a lawsuit against the people behind TVAddons, for example. More recently the company went after multiple pirate streaming sites and IPTV reseller Boom Media.

In addition to using well-established legal options, the company is also thinking ahead. That became clear this week when we spotted a new patent application from Dish, which envisions a blockchain-based anti-piracy system.

According to the company, piracy has become increasingly problematic. It’s not just limited to dedicated pirate sites but also plagues legitimate platforms such as YouTube and Facebook, it notes.

“The distribution of infringed material on content sharing platforms such as Facebook and YouTube has grown rapidly,” Dish writes in its patent application.

“For example, viewers can easily find links to live sporting events, hosted on someone’s Facebook account, find the newest episodes of their favorite series on YouTube or Dailymotion or even join groups like `mobile movies` on Telegram..,” the company adds.

Dish writes that “millennials” and the “next generation” are increasingly turning their backs on the traditional bundle service system, opting for less-costly alternatives instead. These cheaper alternatives include the consumption of unlicensed content on legitimate services.

While most large companies have their own anti-piracy solutions, these often have shortcomings, such as requiring rightsholders to actively search for pirated content. While a few large outfits use hash recognition to automatically detect content, those systems are often proprietary and not freely available.

The new patent application envisions a technology that is supposed to be superior. While it can’t really be used to stop pirate sites, it proposes a blockchain-based anti-piracy system that legitimate services can use to check whether the content is published with permission, or not.

“The inventors have conceived and reduced to practice a software and/or hardware facility that can be used by content owners to assert ownership of content so that copyright friendly websites and services can take action against copyright piracy effectively, efficiently and is scalable,” Dish writes.

“The facility makes available to all content owners watermarking/fingerprinting technology so an identifier can be embedded in the content. The facility utilizes blockchain technology to add information related to each unique identifier in a database and allows an authorized user (e.g., the owner) to update the information through a blockchain transaction.”

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There are several practical implementations possible, but it’s clear that Dish is in favor of a widely available system that sites and services can use to determine whether content is authorized. The watermark or fingerprint-based system should interact with a blockchain to verify ownership details.

Without a practical implementation, it’s hard to determine whether this approach will succeed or not. However, blockchain-based copyright management itself is not a new idea, as others have proposed this as well. The same is true for watermarking and fingerprinting.

It’s interesting to see that Dish is actively pursuing an alternative anti-piracy approach. Time will tell if it comes to fruition, and if so, how effective it will be. One thing’s almost guaranteed though, there will be plenty of attempts by pirates to get around it.

A copy of the patent application titled “Content anti-piracy management system and method” is available here (pdf).

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Over the past several years, adult entertainment company Malibu Media has been one of the most active copyright litigants in the United States. Targeting large numbers of alleged file-sharers, the company has received potentially huge sums in cash settlements.

But while the company usually makes the headlines for its file-sharing cases, a dispute with a former business partner is now shining a light behind the scenes. This week, Florida-based The Lomnitzer Law Firm sued California-based Malibu Media over their business dealings.

According to the lawsuit, in May 2017 Lomnitzer and Malibu entered into an agreement for the former to provide legal services to the latter.

While the precise details are to be submitted under seal, the outline is that Lomnitzer would coordinate Malibu’s litigation against pirates across the United States, receive settlements and pay them into a trust account, pay court filing fees, pay process server fees and investigators, and pay expenses related to the deposition of Malibu.

The law firm claims that it issued invoices to Malibu on a regular basis, using money in the trust account to pay some while dispensing settlement funds back to Malibu. However, the lawsuit claims that a date currently unknown, Malibu “began a program of circumventing the agreement.”

According to the complaint, this came in the form of instructing attorneys in other jurisdictions, that were previously instructed by Lomnitzer, to “bypass” the law firm. This involved sending settlement money directly to Malibu rather than Lomnitzer, “while still expecting the Firm to pay court filing fees, process server fees, etc., all incurred for and on behalf of and for the benefit of Malibu.”

Faced with these circumstances, on August 30, 2019, Lomnitzer terminated its representation of Malibu. Since then it claims to have received invoices from third-parties incurred as a result of its representation of Malibu while its own invoices to Malibu itself (totaling more than $262,500) remain unpaid.

The bottom line according to Lomnitzer’s suit is that Malibu owes the law firm $280,05.32 plus additional interest accruing after December 31, 2019. It is demanding a judgment from the court to that end, an order allowing it to use funds in the trust account towards that amount, plus an order “confirming the Firm’s lien against all proceeds of all pending litigation in which Malibu is a Plaintiff.”

To address the allegations that other law firms are paying settlements directly to Malibu rather than Lomnitzer, Malibu’s former legal team are also seeking an order to prevent Malibu from “disbursing any settlement monies from any and all pending litigation nationwide to anyone other than the Firm.”

On top, of course, Lomnitzer is demanding attorney fees and costs plus any other relief the court deems “just and proper”.

The lawsuit filed by Lomnitzer against Malibu can be found here (pdf)

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During the early years, The Pirate Bay promoted an ‘official’ clothing store, which sold t-shirts and hoodies for reasonable prices.

This site has since disappeared, but it’s not hard to find Pirate Bay-themed clothing elsewhere. Dozens of vendors have copied the iconic logo to sell cheap merchandise to fans.

However, when the Switzerland-based fashion brand Vetements joined in with their own variant last year, they upped the ante.

Experts regard Vetements as one of the 10 hottest fashion brands at the moment, which means that it can only be afforded by the happy few. That’s also the case for their Pirate Bay clothing.

The company started by selling a fashionable hoodie for just under $900 and it currently has a whole range of Pirate Bay clothing, including a €550 t-shirt and €540 shorts. The top item, however, must be the comfortable hacker hoodie dress, which currently goes for €980.

“Channelling the theme of a digital dystopia, the piece has a print of ‘The Pirate Bay’ — one of the biggest services for torrenting digital content,” Vetements explains, noting that it pairs well with some sneakers.

Vetements seem to understand that their clothing is overpriced, but as long as it sells they have little to complain about. What they may not be happy with though, is that counterfeiters are using their Pirate Bay design to create cheap knock-offs.

Apparently, the Pirate Bay hoodie was hot enough to be ripped off, as people have been openly requesting cheaper replicas online. This demand was filled by several ‘unauthorized’ vendors including the well-known rep-store Reon District, which now sells a ‘pirated’ Pirate Bay hoodie for a fraction of the price.

These ‘copyright-infringing’ Pirate Bay hoodies come in different qualities and prices. The Reon one is still not cheap, selling at €130, but does it match up to the original quality? At TorrentFreak, we are in no position to review it, but luckily someone else took up the challenge.

Reddit user ‘plexor666’ posted the findings in the FashionReps subreddit, a community of hundreds of thousands of knock-off enthusiasts. The detailed side-by-side comparison shows that the copy is pretty decent, but not perfect. The wash tag, for example, has a plastic feel and the wrong font.

Whether these differences are worth €750 is up for debate. However, based on two reviews, including one from the Redditor above, it’s a pretty good copy. Only the ‘thick’ cords may need a replacement.

“Reon’s hoodie is amazing, nobody will call it out. Only thing that really bothers me are the thick cords on the hood. Looks really shitty I will look for a replacement,” plexor666 writes.

These open discussions are quite common in the subreddit, as opposed to /r/piracy which is under heavy pressure from rightsholders. Counterfeiting is not new for Vetements either. That said, they might not appreciate their Pirate Bay gear being pirated.

It’s hard to see what’s next, but at this point, it wouldn’t surprise us if Vetements sued Reon over their ‘pirated’ hoodie. Or perhaps it may be more fitting if they try to have the domain seized, or blocked by ISPs. True Pirate Bay style.

And perhaps The Pirate Bay can then take action against Vetements for copying its logo without permission?

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This week we have three newcomers in our chart.

Maleficent: Mistress of Evil is the most downloaded movie.

The data for our weekly download chart is estimated by TorrentFreak, and is for informational and educational reference only. All the movies in the list are Web-DL/Webrip/HDRip/BDrip/DVDrip unless stated otherwise.

RSS feed for the articles of the recent weekly movie download charts.

This week’s most downloaded movies are:
Movie Rank Rank last week Movie name IMDb Rating / Trailer
Most downloaded movies via torrents
1 (…) Maleficent: Mistress of Evil 6.8 / trailer
2 (1) Joker 8.8 / trailer
3 (…) Frozen 2 (DVDScr) 7.2 / trailer
4 (2) Zombieland Double Tap 7.1 / trailer
5 (…) Black and Blue 5.9 / trailer
6 (4) Jexi 6.2 / trailer
7 (3) Ad Astra 6.9 / trailer
8 (6) Once Upon a Time … in Hollywood 7.9 / trailer
9 (9) The Addams Family 5.8 / trailer
10 (8) Ford v Ferrari (DVDScr) 8.3 / trailer

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The Tribler client has been around for nearly 15 years. During that time it has developed into the only truly decentralized BitTorrent client out there.

Even if all torrent sites were shut down today, Tribler users would still be able to find and add new content.

The project is managed by dozens of academic researchers, which is a guarantee for continued development. In recent years alone, the Tribler team added a built-in Tor network to the client, as well as a blockchain that can function as an internal currency.

This week Delft University of Technology announced that its research group has secured an additional €3.3 million to continue building an ‘Internet-of-Trust.’ A large part of this new cash flow will be used to improve the Tribler client.

With financial backing secured for the years to come, project leader Professor Johan Pouwelse has set some big goals. With Tribler, he hopes to lay the groundwork for a new ecosystem that can replace the powerful multi-billion dollar companies that currently dominate the entertainment industries.

Pouwelse wants to put the artists back in control. They, and only they, should be in charge of monetizing and distributing content.

This idea isn’t new. Artists increasingly want to take back their rights. Taylor Swift, for example, spoke up when she learned that her former record label wanted to prevent her from performing her own songs. Meanwhile, Imogen Heap is trying to create a fairer music ecosystem powered by a blockchain.

Professor Pouwelse has followed these developments closely and believes that artists should ultimately be in control of their own work. This means cutting out the middlemen.

“Every artist should be self-published and self-promoted. Without profiteers, more artists will earn their living from their passion. Without profiteers, fans will get more content creation from their idols,” Pouwelse says.

“The music industry is driven by intermediaries that keep the biggest slice of the pie to themselves. Pioneers such as Imogen Heap are creating new business models where artists receive fair compensation for their creativity.”

The ideal to overthrow powerful entertainment industry companies sounds very much like The Pirate Bay’s message during the mid-2000s. However, while Tribler’s torrent client does list a lot of Pirate Bay content, its goal isn’t to advocate piracy.

On the contrary, decentralization may be a step towards limiting piracy, as content can become much cheaper when artists distribute it directly. Right now labels, but also YouTube, Apple, Twitch and many other platforms, take a big cut. According to Pouwelse, that’s a waste of money.

The professor sees a future where content storage and distribution are put back into the hands of individuals. It’s a world where people set their own rules instead of being dictated to by major companies, which also includes Google and Facebook, which often restrict what people can publish.

While this all sounds very ambitious and promising, there is a major problem. In theory, it’s not hard for creators, or people in general, to store and publish everything themselves. The real problem is the exposure and adoption of decentralized alternatives.

Tribler does indeed have all the crucial elements for an artist to release an album and keep 100% of the profits. But when there are only a few thousand users on the platform, these profits are minimal. In fact, they would likely make more if they only made 5% through the regular “middlemen” channels.

This is a real dilemma. In order for decentralized alternatives to work, they need a substantial user base, one that can rival the existing options. Getting there at once will require a miracle of sorts.

Pouwelse understands the challenges but firmly believes that change is possible, especially when BitTorrent and the blockchain work in tandem.

“BitTorrent has not eliminated the golden profits that sit between the artist and your ears. BitTorrent and blockchain are perhaps the perfect mixture for change in the entertainment industry.

“Blockchain might be powerful enough to break the corporate stranglehold on the business and set artists free,” Pouwelse adds.

Whether this vision will eventually become a reality is uncertain. However, the Triber project does provide an excellent use case for what’s possible when it comes to decentralized publishing. In addition, it will also aid the development of other decentralized digital infrastructures.

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For most game developers around the world, piracy is no laughing matter. Particularly on PC, games are pirated in their millions, diverting large revenues away from creators thus damaging the market, many believe.

But for Warhorse Studios, the developer behind Kingdom Come: Deliverance, having a laugh at piracy isn’t off-limits. The fun began early January 2020 when Daniel Vávra, a Czech video game designer and director who co-founded Warhorse Studios, took to Twitter to reveal a revamp of the company’s headquarters in Prague.

“So after a year, we finally decorated walls of our office. And since I hate looking at ‘work’ when going to toilets, I chose some old school classics,” Vávra wrote. “But since it’s impossible to get those covers in hi-res I had to upscale them with AI software and the results are unbelievable!”

The results of these efforts are indeed impressive but the best was yet to come. A special presentation, taking pride of place in what looks like a luxurious kitchen area at the developer’s offices, was this week posted to Twitter.

“Among posters with some classic old school games, we put this poster on a very special spot,” Vávra revealed along with a ‘crying/laughing’ emoji.

For those unfamiliar with this image, it’s an exact replica of the NFO file (information file) created by the infamous cracking group ‘Codex’ after the group cracked the minimal protection on Kingdom Come: Deliverance and placed a pirated version on the Internet.

Of course, this shows that Warhorse has a wicked sense of humor but perhaps the developer has already had the last laugh.

The pirated PC version of the game appeared online within hours of the official Steam release on February 13, 2018 but shortly after an official copy was put on sale completely DRM-free via GOG. This suggests that spending lots of money on something like Denuvo wasn’t on the agenda and the developer wasn’t overly concerned about the effects of piracy on the title.

In the event, sales were excellent. According to an IGN report published two days after launch, the game had already sold half a million copies including more than 300,000 on Steam, a feat that pushed it to the top of the best-sellers list. Within a week it had sold a million copies.

Then, on the first anniversary of the game’s release, two other interesting pieces of news landed at the same time.

The first was that despite day-and-date piracy, Kingdom Come: Deliverance had sold an impressive two million copies. The second was that Warhorse Studios had been acquired by THQ Nordic for €33.2 million after the Czech studio generated €42 million in revenue during 2018 alongside €28 million in pre-tax earnings.

Not bad at all when one considers that Kingdom Come: Deliverance was Warhorse’s first release after raising funding for the title via a 2014 Kickstarter campaign.

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For the past several weeks, some ‘pirate’ IPTV services have been subjected to ‘hacks’ carried out by as-yet unidentified people.

In early December, Helix Hosting became the first reported case. Its homepage was defaced with a message explaining that the service had been asked to pay a ransom or face having its customer database leaked online.

Just a few days later, PrimeStreams became the victim of similar blackmail efforts. Its operator revealed that a weak password had been exploited and that 10 bitcoin was being demanded in order to prevent the service’s confidential data from being exposed to the world.

Unconfirmed reports indicated that other services were also targeted in December, which may or may not have settled in the face of similar threats. However, PrimeStreams’ situation appears to be ongoing as a quick visit to what used to be its main servicing domain (PrimeStreams.store) reveals a rather ominous message.

This countdown-timer message usually indicates that a domain has been taken over by the Alliance for Creativity and Entertainment, the global anti-piracy coalition headed up by the MPA. It is currently displayed on dozens of file-sharing and IPTV platforms, commonly after they have reached some kind of settlement with the world’s largest entertainment groups. Vaders and Openload are two of the most obvious examples.

Of course, seeing that message will probably be enough to send many customers running for the hills but the truth is relatively easy to uncover. This isn’t a domain seizure carried out by ACE but most probably the work of a malicious actor, as a dive into the domain’s details reveal.

As the image above shows, at the time of writing the PrimeStreams domain is using the services of Njalla, the domain registration and hosting service closely associated with Pirate Bay co-founder Peter Sunde. That doesn’t mean that Njalla has anything to do with the issue, of course, but it does indicate in a particularly clear way that ACE isn’t the entity in control here.

When ACE does take control of a domain, Openload.co for example, there are many tell-tale signs that the seizure is legitimate, including the use of the MPA’s own nameservers, redirection to certain banks of servers in the United States, not to mention contact details that relate to bodies and individuals at the MPA.

If we rule out the highly unlikely possibility that the operator of PrimeStreams redirected his own domain to ACE’s anti-piracy servers, then we’re left with a situation that was most probably engineered by a malicious actor. Whether that was the same person who threatened the site in December is unknown but losing a domain to an unauthorized third-party is an extremely serious matter.

The double-edged sword here is the involvement of Njalla. While there’s a possibility that there might be an element of sympathy at the sight of an unlawful hack (not to mention that some of the team were previously involved in The Pirate Bay and Piratbyrån), Njalla is utterly militant when it comes to the privacy of its users so may not even be able to help.

That might have played a part in PrimeStreams’ decision to dump this domain entirely and transfer to a new one. The big question, however, was whether the service had any more big security headaches waiting to kick in. Sure enough, within hours of going live, incredibly that domain was ‘hacked’ as well.

In the meantime, ACE gets yet another traffic boost.

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Last November Canada’s Federal Court approved the first piracy blockade in the country.

Following a complaint from major media companies Rogers, Bell and TVA, the Court ordered several major ISPs to block access to domains and IP-addresses of the pirate IPTV service GoldTV.

A few days after the order was issued the first blockades were active. These prevented GoldTV customers from accessing the IPTV portal directly, as intended, but it didn’t take long before several alternative domains popped up.

These new domains are managed by GoldTV or its resellers and point to the access portal, allowing subscribers an unblocked route to access the IPTV service.

This wasn’t entirely unexpected. While IPTV blockades are relatively rare, we have seen similar ‘proxy’ workarounds in the past when traditional pirate sites were blocked in other counties. Having learned from this experience, the Canadian court order specifically allowed Bell and the other companies to expand the blocklist.

Specifically, they can amend the original blocklist with any “domain, subdomain or IP address that has as its sole or predominant purpose to enable or facilitate access to the Target Websites,” provided that the IP-address is “not associated with any other active domain.”

Such an update was requested early last month and two weeks later the Canadian Federal Court approved it. An overview of the new blocking requirements was published this week by Andy Kaplan-Myrth, TekSavvy’s vice-president of regulatory affairs.

This shows that, after some IP-addresses and a domain name were previously removed, several new ones were added with the latest order.

The newly added addresses include gold.myiptvplanet.com, live4k.online, and several pctvhd.net and beex.me subdomains. When we checked these, all indeed redirected to the GoldTV access portal. According to reports we received, the new domains have been added to the blocklist of several Canadian ISPs, as expected.

Avvidavids reveal that the new domains were tracked down by posing as a customer or reseller of the GoldTV service.

Interestingly, the rightsholders asked to keep the names of the new domains secret until the order was granted. The Wire Report notes that they sent a letter (pdf) to the ISP asking them to “refrain from publicizing” the new domains until the Court made a decision.

Keeping possible updates out of the public eye is in the interest of the copyright holders, as it prevents GoldTV from anticipating new blocks. However, it raises concerns among some legal experts who believe that information in a public case should be out in the open. If not, that should be up to a court to decide.

That said, the Canadian procedure is much more transparent than in other countries such as the UK, where new blocklist updates aren’t published at all, making it impossible for the public to check for potential overblocking.

While the expanded blocks are certainly frustrating for GoldTV customers, there will likely be new domains to replace them, continuing the whack-a-mole. The downside for the copyright holders is that there’s a significant delay in the process.

Bell and the others first have to file for an amended order, which then has to be approved by the court. After that, it can take up to two weeks before ISPs implement the blockade. This whole process can take more than a month. In this timeframe, new domain names may have already been put into use.

While website blocks are far from perfect, the continued frustration of switching to new domains may be enough for some pirates to throw in the towel. Or they may switch to more permanent circumvention alternatives, such as VPNs.

Meanwhile, the bigger blocking battle continues as well. Internet provider TekSavvy has appealed the blocking order and hopes to have it overturned. It clearly violates network neutrality and undermines the open Internet, the ISP previously said.

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When it comes to targeting infringement, Facebook has rolled out a few anti-piracy initiatives over recent years.

In addition to processing regular takedown requests, the company has a “Rights Manager” tool that detects infringing material automatically and allows owners to take down or monetize the content.

In a recent meeting organized by the European Commission, Facebook explained in detail how this automated system works. The meeting was organized to create a dialogue between various parties about possible solutions for the implementation of Article 17.

In Facebook’s presentation Dave Axelgard, product Manager for Rights Manager, explained how automated matching of copyrighted content takes place on the social media network. He also detailed what actions rightsholders can take in response, and how users can protest misuse and abuse of the system.

The EU meeting was attended by a wide range of parties. In addition to copyright holders, it also included various people representing digital rights organizations. Facebook made it clear that it keeps the interests of all sides in mind. It specifically highlighted, however, that abuse of Rights Manager is a serious concern.

“We spend much of our time building systems to avoid blocking legitimate content,” Axelgard mentioned during his presentation.

“The way that inappropriate blocks occur is when rightsholders gain access to Rights Manager despite our application process, who attempt to upload content to the tool that they do not own.”

Another form of overblocking that takes place is when copyright holders upload content that they don’t own. This can happen by mistake when a compilation video is added, which also includes content that’s not theirs.

Facebook works hard to catch and prevent these types of misuse and abuse, to ensure that its automated detection system doesn’t remove legitimate content. This is also something to keep in mind for the implementation of possible ‘upload filters’ with the introduction of Article 17.

“Misuse is a significant issue and after operating Rights Manager for a number of years, we can tell you it is one of the most sensitive things that need to be accounted for in a proportionate system,” Axelgard says.

Facebook tries to limit abuse through a variety of measures. The company limits access to its Rights Manager tool to a select group of verified copyright holders. In addition, it always requires playable reference files, so all claims can be properly vetted.

The social media network also limits the availability of certain automated actions, such as removal or blocking, to a subset of Rights Manager users. This is in part because some smaller rightsholders may not fully understand copyright, which can lead to errors.

Finally, Facebook points out that misuse of its Rights Manager tool constitutes a breach of its Terms of Service. This allows the company to terminate rightsholders that repeatedly make mistakes.

“If we find that Rights Manager is being misused, then under our Rights Manager terms we have the ability to terminate someone’s access to the tool. We really do want to stress how important it is that platforms have the ability to adjust access and functionality related to these powerful technologies to avoid misuse,” Axelgard notes.

The strong focus on misuse was welcomed by digital rights groups, including Communia. However, it also raised some eyebrows among rightsholders.

Mathieu Moreuil of the English Premier League, who represented the Sports Rights Owner Coalition, asked Facebook whether the abuse of Rights Manager really is the company’s main challenge.

“I think it’s definitely one of our main challenges,” Axelgard confirmed, while noting that Facebook also keeps the interests of rightsholders in mind.

Overall, Facebook carefully explained the pros and cons of its system. Whether it is an ideal tool to implement Article 17 in EU countries is another question. In its current form Rights Manager isn’t, as it doesn’t allow all copyright holders to join in.

Also, Rights Manager works with audio and video, but not with digital images, which is another major restriction.

On the other hand, there are pitfalls from a consumer perspective as well. Automated systems may be very good at detecting copyrighted content, but Facebook confirmed that they currently can’t make a determination in respect of copyright exemptions such as parody and fair use.

“Our matching system is not able to take context into account. It’s just seeking to identify whether or not two pieces of content matched to one another,” Axelgard said, responding to a question from Communia’s Paul Keller.

This shortcoming of automated filters was also confirmed by Audible Magic, the popular music matching service that’s used by dozens of large companies to detect copyright infringements.

“Copyright exceptions require a high degree of intellectual judgment and an understanding and appreciation of context. We do not represent that any technology can solve this problem in an automated fashion. Ultimately these types of determinations must be handled by human judgment,” Audible Magic CEO Vance Ikezoye said.

As noted by Communia, the most recent stakeholder meeting once again showed that automated content recognition systems are extremely powerful and very limited at the same time.

If any of these technologies become the basis of implementing Europe’s Article 17 requirements, these shortcomings should be kept in mind. Or as Facebook said, a lot of time and effort should go into preventing legitimate content being blocked.

A video of the full stakeholder meeting is available on the European Commission’s website. A copy of Facebook’s slides is available here (pdf).

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