RIAA Targets Large Polish File-Hosting Site Chomikuj


Image result for Chomikuj

In English-speaking countries, file-hosting sites such as the defunct Megaupload and its successor MEGA need little introduction.

These platforms allow(ed) users to upload files into a digital storage locker, to be shared with others as they so choose.

In Poland, Chomikuj is a similar household name. Translated roughly as “hamster”, the platform has been around since 2006 and is very popular. It’s currently receiving around 17 million visits per month, placing it just outside the top 50 most-popular sites in the country.

Like many platforms operating in the same niche, Chomikuj has to deal with users uploading content to which they don’t own the rights. It’s unclear how much infringing content is present on the platform but according to Google’s Transparency Report, with close to 27 million URLs targeted only four domains in the world are listed with more complaints against them.

After issuing takedowns for more than 7.7 million URLs, the BPI is the most active sender. In second place is the RIAA, having sent in excess of 4.2 million, which may be why the music industry group has gone to court in the United States to find out more about the platform.

In common with several other actions in recent weeks, the RIAA filed for a subpoena at a Columbia federal court ordering Cloudflare to hand over whatever personal information it holds on the operators of Chomikuj.

Citing the DMCA (17 U.S.C § 512(h)), the RIAA stated its case by declaring that it needs the information to protect its members’ copyrights.

“The purpose for which this subpoena is sought is to obtain the identities of the individuals assigned to these websites who have reproduced and have offered for distribution our members’ copyrighted sound recordings without their authorization.

“This information will only be used for the purposes of protecting the rights granted to our members, the sound recording copyright owner, under Title II of the Digital Millennium Copyright Act,” the RIAA told the Court.

The music group then listed three musical works – Karma Kameleon by Culture Club, Chains of Love by Erasure, and Edge of Heaven by Wham! – stating that these titles had not been authorized for use on Chomikuj.

As was the case in several previous applications, the Court clerk was happy to sign off on the request and a letter was sent to Cloudflare demanding IP and email addresses and all other identifying information. What happens next remains unclear.

The letter to Cloudflare can be found here (pdf)

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Court Orders Danish ISPs to Block Copyright-Infringing News Site


For more than a decade, Denmark has been a testbed for pirate site blockades.

The first blocks date back to 2006, when music industry group IFPI filed a complaint targeting the unlicensed Russian MP3 site AllofMP3.

Not much later, Denmark became the first European country to force an ISP to block access to The Pirate Bay.

Since then, many other pirate sites have received the same treatment. These are typically download or streaming portals, which have been targeted in other countries as well. However, this week, a Fredriksberg court issued a new order that’s more unusual.

The verdict, handed down on Monday, requires local Internet provider TDC to prevent its subscribers from accessing a news portal called ‘The World News‘. Under the Danish ISP Code of Conduct, other major ISPs in Denmark will also implement a similar block.

The news site in question doesn’t offer access to any movies, music or games, but republishes articles from news websites from all over the world, often with photos included.

The site has an archive of millions of articles and can be tailored based on the reader’s location. The news articles all credit their source, but the link that’s included is often not clickable, so the site doesn’t send traffic back to many original publications.

The World News positions itself as a decentralized anti-fake news platform, built on a blockchain, and says it provides readers with ‘verified’ news. The site’s domain is registered in Panama, it’s managed by the U.S. corporation “World News LLC,” and is reportedly operated by people from Ukraine.

While it looks like a rather useful news aggregator, many articles on the site are republished without permission, according to rightsholders. In Denmark, this prompted the anti-piracy group RettighedsAlliancen (The Rights Alliance) to take the matter to court. 

Representing the Danish Media Association, RettighedsAlliancen asked the court to order local Internet provider TDC to block the site. The anti-piracy group has previously submitted similar requests, but this is the first time a news site is targeted. 

After reviewing the complaint, this week the Fredriksberg court decided that the site should indeed be blocked by TDC. 

“TDC is required to implement a technical solution, for example, DNS blocking, which is suitable to prevent TDC customers from accessing the Internet services that the website mentioned in the claim currently gives access to,” the order reads.

The Danish Media Association is very pleased with the court’s ruling, According to Holger Rosendal, Chief Legal Officer at the industry group, it will help media outlets to protect their copyrights as well as their income.

“It is expensive to produce credible, informative and independent journalism, and thus there is a great need to stop the illegal exploitation of media content, which undermines the media economy and thereby the possibility of continuing news production,” Rosendal says.

The news site…

At the time of writing, there are over 170,000 Danish news articles featured on The World News. The site only had a few hundred Danish readers per day in recent weeks, but the media companies believe that it had a negative impact nonetheless. 

The World News itself appears to be surprised by the blocking order and states that it will remove content when prompted to do so by rightsholders.

“The World News is one of the biggest news aggregators in the world. We gather and analyze news from all media to detect fake news and facts manipulation,” a spokesperson form the site informed TorrentFreak. 

“If we break the law in any jurisdiction, we remove any content from our servers for the first request in a few hours. We didn’t receive any notifications about rules violation from Danish media. We are completely on the side of authors and ready to work together.”

RettighedsAlliancen says that it tried to contact the site using the four email addresses listed on the website, as well as the domain name registrant address.

The Danish anti-piracy organization sent the website a cease and desist notices (pdf) and informed its operators about the lawsuit (pdf), giving them an opportunity to defend themselves. RettighedsAlliancen informs TorrentFreak that these emails remained unanswered. 

Technically, RettighedsAlliancen is not a media outfit, so both statements may be accurate. However, that doesn’t change the fact that the site will have to be blocked by Internet provider TDC.

RettighedsAlliancen stresses that, in addition to enforcing the news outlets’ copyrights, the blocking order will help to make sure that these publications get the revenue they’re entitled to. 

“A blockade will also effectively prevent cash flows from ending up in the hands of criminal backers. The blocked illegal Panama-based service has, among other things, earned money from advertising revenue from visitors to the website – revenue that Danish news media misses,” the anti-piracy group notes.

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Rightsholders Want to Completely Delist ‘Pirate’ Domains From Search Results


The anti-piracy wars are fought on many fronts, from plugging leaks to issuing millions of takedown notices to both sites and search engines.

Despite no deliberate role in piracy, the latter are often described as facilitators of piracy who could do more, by making pirate sites less visible in search results, for example.

While companies like Google have taken such steps both voluntarily (UK) and in response to legal requirements (Australia 1,2), rightsholders would like more. In Russia, where new anti-piracy legislation is currently being debated, there’s an opportunity to set the standard.

Last year, several rightsholders and Internet platforms signed a memorandum of understanding which set out a basic framework for cooperation moving forward. The terms of that agreement are now the subject of negotiations before being turned into law sometime in the next few months.

During a closed-door meeting this week, held at telecoms watchdog Roscomnadzor and reported by a Kommersant source, rightsholders set out new tough demands. In order to limit traffic being sent to pirate sites by search engines, they want companies like Yandex (and ultimately Google) to completely delist ‘pirate’ domains from search results.

Under the current terms of the memorandum, signatory companies delist search results (typically URLs) when they appear in a centralized database populated with links provided by content companies and their anti-piracy partners. The new proposals demand that sites considered as repeat infringers should disappear altogether.

Alexei Byrdin, General Director of the Internet Video Association, said that his group had identified a number of measures taken by pirate sites to limit the effectiveness of current measures. This means a more aggressive approach is needed.

“Our response is a draft rule on the removal of the entire domain of a site that systematically violates copyrights [from search results],” he told Kommersant.

While not all sites that receive multiple complaints will be affected (social networks and video hosting platforms would be excluded, for example), Internet companies are said to be opposed to the proposals. Among them Yandex, Russia’s largest search engine.

“It is necessary that any measures that entail inaccessibility to users of entire sites are based on a court decision. We are sure that such a solution will be found,” the company’s press office commented.

Channel One, the National Media Group, Gazprom-Media, the Internet Video Association, the Association of Film and Television Producers, Yandex, Rambler Group, Mail.Ru Group, vKontakte, and RuTube, are all signatories of the current memorandum.

The framework is set to expire on September 1, 2019, but could be extended if consensus isn’t reached by that date. However, aside from the deletion of entire domains from search results, it’s reported that the parties are largely in agreement, meaning that Russia is on course to expand its anti-piracy laws significantly, once again.

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Stream-Ripping Giant Convert2MP3 Settles With Music Industry and Shuts Down


The music industry views stream-ripping as one of the largest piracy threats, worse than torrent sites or direct download portals.

In 2016, the RIAA, IFPI, and BPI filed legal action against YouTube-MP3, the largest stream ripping site at the time. This case eventually resulted in a settlement in which the site agreed to shut down voluntarily.

This was a clear victory for the music industry, which swiftly moved on to its next targets. This included Convert2MP3, which was sued in Germany with backing from the music groups IFPI and BVMI.

With dozens of millions of monthly visitors, Convert2MP3 is one of the largest stream-rippers on the Internet. Thus far, its legal battle in Germany has mostly remained under the radar, but today it becomes clear that it has far-reaching consequences. 

Music group IFPI just announced that in a combined effort with the German industry group BVMI, it has reached a settlement with the stream-ripping site. The settlement requires the site to shut down immediately and hand over its domain name to IFPI. 

The settlement agreement further requires the operator to pay financial compensation but the actual amount is not mentioned.

The agreement comes after a German court issued a preliminary injunction against Convert2MP3. The court concluded that the site circumvented technological protection measures, using software it owned or produced.

Convert2MP3

IFPI’s Chief Executive Frances Moore is pleased with the outcome and hopes that it will motivate other stream-rippers to follow suit.

“Stream ripping is a threat to the entire music ecosystem. Sites such as Convert2MP3 show complete disregard for the rights of artists and record companies and take money away from those creating and investing in music.

“The successful outcome if this case sends a clear signal to other stream ripping sites that they should stop their copyright infringing activities or face legal action,” Moore adds.

Not everyone agrees that these type of sites are by definition copyright-infringing. In a letter to the US Trade Representative, digital rights group EFF previously stressed that there are plenty of legal use cases as well.

“[M]any audio extractions qualify as non-infringing fair uses under copyright. Providing a service that is capable of extracting audio tracks for these lawful purposes is itself lawful, even if some users infringe,” EFF wrote.

That said, the music industry is determined to keep challenging these sites. There is an ongoing court case against FLVTO.biz and 2conv.com in the US, and in Denmark and Australia stream-rippers including Convert2MP3 are blocked by court order.

The latter blockades are less useful now that Convert2MP3 has agreed to shut down. The domain currently displays a message from the music industry groups and the site’s Facebook and Twitter profiles have been removed.

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Video Piracy Study Estimates Billions in Lost Revenue, But Misses Crucial Data


Despite the growing availability of legal options, online piracy remains rampant. Every day pirate sites and services are used by millions of people worldwide.

This is a serious problem for major content producers, Hollywood included. At the same time, it’s also seen a threat to the wider U.S. economy, which generates hundreds of billions of dollars from video entertainment.

How copyright infringement affects the economy in actual numbers is hard to measure, especially since the piracy landscape changes rapidly. That said, the U.S. Chamber of Commerce Global Innovation Policy Center, in partnership with NERA Economic Consulting, attempted an estimate.

In a report titled “Impacts of Digital Piracy on the U.S. Economy” they combine multiple data sources, paired with a broad range of assumptions, to estimate how much revenue video piracy is costing the U.S. economy.

In order to calculate how much piracy costs, the researchers first had to determine the global piracy volume. They did so by combining data from two known piracy tracking firms.

Specifically, the number of pirated movies and TV-shows are estimated using data from the German BitTorrent tracking outfit Tecxipo. These are then extrapolated to estimate the volume of other piracy sources, such as streaming and direct downloads, based on data from the UK outfit MUSO.

In addition, the researchers use academic studies to approximate the displacement rate. This is a crucial variable, as it estimates the percentage of pirated files that can be counted as a lost sale. The report settled on a lower bound of 14%, which means that roughly one in seven pirate downloads or streams are seen as lost revenue.

All this information, paired with location data, the average price per source, and a variety of other variables, ultimately leads the researchers to conclude that in 2017 online video piracy resulted in a revenue loss of at least $29.2 billion.

“The study shows that all of the benefits that streaming brings to our economy have been artificially capped by digital piracy. Using macroeconomic modeling of digital piracy, the study estimates that global online piracy costs the U.S. economy at least $29.2 billion in lost revenue each year,” the report reads.

In raw numbers, the researchers put the number of pirated  U.S.-produced movies at $26.6 billion, while they estimate that roughly 126.7 billion U.S.-produced TV episodes are pirated digitally each year. This piracy takes place mostly from outside the United States. 

The impact on the broader economy is even larger. According to the researchers, online video piracy costs the U.S. economy between 230,000 and 560,000 jobs and between $47.5 billion and $115.3 billion in reduced gross domestic product (GDP) each year.

Jobs ‘lost’

Not all types of piracy are the same of course. A pirated Netflix movie results in lower losses than a Hollywood blockbuster. Similarly, a pirated Bollywood film doesn’t impact the U.S. economy much.

Interestingly, the report notes that piracy by U.S. citizens doesn’t necessarily have to be detrimental to the economy. The money these people ‘save’ by pirating is likely spent locally, which, depending on various factors, could even be beneficial to the economy as a whole.

Or as the researchers put it:

“Consumers spend the income gained from displaced legal consumption on other goods and services, many of which are produced in the U.S. Therefore, the net effect on the U.S. economy of this component of piracy could be either positive or negative, depending on the relative magnitudes of the multipliers for the revenue losses and the revenue gains.”

The most significant impact comes from foreigners who pirate U.S. content, as the money they save is likely not being spent in America.

Overall the report provides a detailed overview of the potential revenue losses. Displacement rates are complex, of course, as there are probably hundreds of other variables that could have been taken into account, but it looks like the researchers did a good job at factoring in the most crucial elements.

Unfortunately, however, there is a glaring error that can’t easily be ignored.

The report specifically set out to provide an up-to-date overview of the new piracy ecosystem, one that includes apps and illicit streaming devices. No surprise, as dedicated streaming boxes are generally seen as the biggest threat to Hollywood.

“These rapid changes necessitate up-to-date estimates of the impact of digital piracy,” the report notes. 

The problem, however, is that most app and streaming device piracy isn’t covered by the study. The report relies on category data from MUSO, which only covers regular browser visits to pirate sites.

This typically excludes most apps and pirate set-top boxes. Also, the boom in IPTV piracy isn’t covered by these data either.

TorrentFreak reached out to the researchers, who informed us that they weren’t aware of this. This means that their overall estimate of the impact of video piracy is even more reserved than they initially assumed. Needless to say, that has not been left out intentionally.

Whether it’s complete or not, these types of studies are generally welcomed by rightsholders. As such, the report will likely be mentioned frequently in future lobbying campaigns.

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More Kodi Add-On Repos Shut Down in Wake of UK Arrest


Developers of Kodi add-ons, including those who maintain places to download them (repositories), have long been at risk of legal action, should they provide access to infringing content.

Many have been targeted directly, having received cease-and-desist letters from groups including the massive Alliance for Creativity and Entertainment (ACE). Until recently, action through the civil courts has been the assumed course of action for rightsholders but that changed with the news that police in the UK became involved.

As per our report published yesterday, the Covert Development and Disruption Team of the UK’s North West Regional Organised Crime Unit recently arrested a 40-year-old man on suspicion of developing and maintaining an add-on designed to facilitate access to infringing content.

Nobody has yet been able to publicly verify the precise target but on the same day the arrest took place, the popular Supremacy repository (repo) went down in mysterious yet coincidental circumstances. During the past few hours, news of the arrest appears to have prompted other developers to rethink their futures.

Given its popularity, Kodi add-on enthusiasts will be disappointed to hear that the Exodus-forked 13 Clowns add-on is one of the casualties. The end of the add-on was announced via Twitter and also in a slightly unorthodox fashion, via the Kodi software itself.

Rather than take the associated repo down, the developer pushed an update which reportedly disabled the add-on and delivered a shutdown message.

https://platform.twitter.com/widgets.js

Goodbye 13 Clowns

The Maverick TV add-on also disappeared last evening. No disabling ‘update’ of the add-on appears to have been pushed but the associated repository was deleted. That was followed by an announcement on Twitter which indicated the show is over.

https://platform.twitter.com/widgets.js

Maverick TV, no more….

Another casualty is the Exodus-forked Overeasy add-on. That tool was previously available from the Eggman repo but both have gone down, with the latter currently displaying an empty directory.

Overeasy and Eggman repo call it quits

Some of the now-discontinued repos also contained add-ons in addition to their own, so the full fallout may not be known for a while. Some add-ons will find new homes but others may yet decide to throw in the towel.

It’s important to note that none of the above cited the arrest as a reason for closure but again, in common with the disappearance of the Supremacy repo, there are a number of coincidences that appear to fit recent developments.

Whatever the reasons for the closures, having an organized crime unit become involved in taking down a Kodi add-on developer is a massive escalation in the UK and will certainly prompt pause for thought among those in a similar position.

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File-Sharing Giant Openload Has its Domain Suspended


With millions of regular visitors, file-hosting site Openload generates more traffic than popular streaming services such as Hulu or HBO Go.

While the site has plenty of legal uses it is also a thorn in the side of many copyright holders, due to the frequent appearance of pirated content.

This pirate stigma most recently resulted in a mention on the US Government’s list of “Notorious Markets”. 

While the site has been spared from any legal action, that we know of, it suffered a major setback this week. As of a few hours ago the site’s main Openload.co domain is no longer responsive.

Instead of the regular homepage featuring the browser uploader, users see an error message in their browser, explaining that the site’s IP-address can’t be found.

Openload is missing

The error message is the result of missing DNS entries, which is also apparent from the ‘serverHold’ status message in the domain’s Whois details.

According to ICANN, the serverHold domain status is uncommon and “usually enacted during legal disputes, non-payment, or when your domain is subject to deletion.”

This status is set by the domain registrar, which is Tucows in this case, and renders the domain inaccessible.

serverHold

It’s unclear why this this action was taken. We’ve reached out to Tucows but the company didn’t immediately reply to a request for comment.

Interestingly, Malwarebytes currently blocks the Openload.co domain name because it may contain a Trojan. Whether that’s related to the broader domain issue is unknown.

Openload hasn’t made any public statement on the issue, as far as we know. However, it is worth noting that the site’s official status page is unreachable as well. The status page downtime is not tied to a domain problem but appears to be server related.

This isn’t the first time Openload has had a domain name suspended. The same happened in 2016, when domain registrar Namecheap presumably took action after “too many DMCA complaints.”

Openload was eventually able to regain control over the domain and Namecheap publicly admitted that its legal team “was too heavy handed,” adding that Openload should be fine as long as they properly respond to DMCA notices.

Openload is believed to have some backup domains. Oload.stream and Oload.life are working alternatives that serve the same content, it seems, but we were unable to confirm 100% that these are official. 

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Kodi Add-On Developer Arrested On Same Day as Popular Repo Goes Down


While overall interest in Kodi appears to be on a downward trend, millions of people still use the software to organize their media.

Larger numbers still augment Kodi with software add-ons which allow them to stream movies, TV shows, and sports events, often in a way that infringes copyright. As a result, entertainment companies and their agents are keen to reduce the use of such tools.

With little fanfare, the Covert Development and Disruption Team of the UK’s North West Regional Organised Crime Unit recently announced that there had been an arrest in connection with this kind of activity.

According to police, a 40-year-old man was detained in Winsford, Cheshire, following a joint investigation with anti-piracy outfit Federation Against Copyright Theft. The unit said that man was arrested in connection with creating and maintaining a Kodi add-on configured to supply illegal online streams.

“The scale of the offending was significant and affected broadcasters and rights owners in the UK and worldwide. Police searched an address, seized evidence, and interviewed the suspect has later been released on police bail pending investigation,” a statement reads.

Typically for this kind of announcement, details are scarce. Other than location and age, no further details were made available on the alleged offender, or the add-on that had triggered the referral from FACT. As a result, it’s not currently possible to positively identify the person or the add-on in question.

What we do know is that last Friday, on the very same day that the police say they carried out the arrest of the man in Cheshire, a very popular add-on and associated repository (repo) went down without warning or explanation.

Supremacy is a popular Kodi add-on that provides access to a wide range of content, from movies and TV shows to live sports. The add-on works by ‘scraping’ or aggregating content from existing online sources, presenting them inside the add-on for users to select.

Supremacy add-on (historic)

While other repos have also offered the add-on, Supremacy was once available for download from the Supremacy repo, previously located at https://2Supremacy.uk. That domain was registered with Namecheap on March 25, 2019 and isn’t set to expire until March 25, 2021.

However, there is an additional note in the domain’s WHOIS which suggests something is wrong.

2Supremacy.uk – SUSPENDED

Other signs of changes on June 13, 2019 can be found on the repo itself.

While no longer accessible, cached versions of the site show that the repo did indeed disappear on the same day, with the /addon and /repo directories both modified at 08:01 am. An associated Facebook page and Telegram group also disappeared in a similar fashion.

TorrentFreak contacted several sources, none of which were able or willing to provide us with the precise location of the Supremacy developer or his exact age, so definitively connecting the dots isn’t possible. We were told that there are rumors of an arrest but that’s a common occurrence when established and thriving projects go down with no explanation.

Returning to the confirmed arrest last week, it’s unclear why FACT chose to refer the add-on developer, whoever he is, to the police. There is yet to be a successful criminal prosecution of an add-on developer in the UK or elsewhere. Several have been threatened privately, however.

TorrentFreak requested comment from the North West Regional Organised Crime Unit and FACT but at the time of publication neither had responded.

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GeekBuying 7th Anniversary Sale Part 2

Following the Part 1, the GeekBuying Anniversary Sale Part 2 is now live! You can get up to $77 OFF coupons from 17th of June until 23th of June 2019. All the coupons from the daily check-in now can be accumulated and used. But even if you haven’t accumulated anything until now, no worries! There is a list of excellent coupons that I will write them down below so you can have extra discounts on plenty of gadgets!

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Steal This Show S04E18: ‘You’ll See This Message When It Is Too Late’


In this episode we meet Josephine Wolff, who wrote a new book on financial and economic cybercrime, You’ll See This Message When It Is Too Late.

We discuss two important case studies from the book. First, the massive financial fraud botnet GameOver Zeus, which innovated by using P2P to distribute its command and control infrastructure, and a network of money mules to route funds to its owners, making it extremely hard to detect.

Moving on to the case of PLA 61398, we discuss the Chinese deployment of hacking resources for economic advancement via China’s so-called APT or Advanced Persistent Threat Units. Wrapping up, we discuss the question of international law and order in the context of massive, distributed cyber operations that remain extremely hard to detect and police.

—

Steal This Show aims to release bi-weekly episodes featuring insiders discussing crypto, privacy, copyright and file-sharing developments. It complements our regular reporting by adding more room for opinion, commentary, and analysis.

Host: Jamie King

Guest: Josephine Wolff

If you enjoy this episode, consider becoming a patron and getting involved with the show. Check out Steal This Show’s Patreon campaign: support us and get all kinds of fantastic benefits!

Produced by Jamie King
Edited & Mixed by Lucas Marston
Original Music by David Triana
Web Production by Eric Barch

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