Court Orders TorrentSpy To Pay $110 Million To MPAA

from the don't-destroy-evidence dept

Just as IsoHunt is gearing up to fight its MPAA lawsuit, a judge has ordered TorrentSpy to pay $110 million to the MPAA in a similar lawsuit. However, despite the MPAA's Dan Glickman giving the expected "this is a warning to other such sites" quote, this actually shouldn't have much of an impact on other such cases -- as the details are somewhat different here. The problem with TorrentSpy's case was that the company was found to have destroyed evidence, which resulted in the ruling. It had little to do with the actual issues at hand. And, yes, while the "destroyed evidence" claim was somewhat exaggerated when the judge included TorrentSpy's refusal to spy on its users, the destruction of evidence went further than just not spying on users. The company was found to have deleted specific evidence, including forum posts and directory info. So, unless all the other torrent search engines out there also deleted evidence, it's hard to see how this case acts as a warning to anyone over anything other than the stupidity of destroying evidence. As for getting any money, given that TorrentSpy has shut down, the MPAA probably won't be getting any money -- not that they'd be giving it to moviemakers anyway.

Filed Under: bittorrent, lawsuits, mpaa, trackers
Companies: mpaa, torrentspy

isoHunt Tries The 'Just A Search Engine' Defense

from the let's-see-how-this-works dept

isoHunt, one of the BitTorrent tracker sites that the MPAA generated publicity for with a lawsuit a couple of years ago, has filed a response to the judge's request for more information on how BitTorrent and BitTorrent tracker sites work. The MPAA, of course, positioned isoHunt as a den of piracy. But isoHunt, following the lead of TorrentSpy, has pointed out to the judge that it's no different than a search engine, indexing the various BitTorrent files out there. isoHunt, itself, is never involved in copyright infringement and, of course, there are plenty of authorized BitTorrent trackers out there. It will be interesting to see a judge finally rule on this issue. TorrentSpy lost its case, but not over this issue. In that case, the guys at TorrentSpy destroyed evidence -- which is a huge no-no. Hopefully a judge recognizes why search engines shouldn't be blamed for infringement that results from the use of the website.

Filed Under: bittorrent, search engines, trackers
Companies: isohunt, mpaa

MPAA Decides Pullmylink.com Doesn't Have Enough Publicity

from the definition-of-insanity dept

The MPAA really is somewhat dense sometimes, isn't it? Despite the fact that every time it sues some website for linking to unauthorized content, that site ends up with a ton more traffic, the MPAA keeps on suing. These lawsuits don't slow the pace of unauthorized sharing one bit, but they do generate a ton of publicity for the activity the MPAA thinks it's "cracking down" on. The latest is Pullmylink.com. It's a site I've never heard of, but thanks to a brand new lawsuit from the MPAA, plenty of people are learning all about the site. Even worse, like some of its ilk, Pullmylink appears not to actually host any infringing content. It merely links to it -- which makes the claims of copyright infringement even more questionable. Surprisingly, even the Reuters report notes how questionable this is, quoting people pointing out that making linking illegal has all sorts of unintended consequences. In the meantime, the folks at Pullmylink should be happy. They're about to get a ton more traffic.

Filed Under: copyright, lawsuits, link sites, mpaa, publicity
Companies: mpaa, pullmylink.com

TorrentSpy Gives Up; Shuts Down

from the there-goes-another-one dept

The saga between TorrentSpy and MPAA will certainly be declared a "win" (if not a "significant blow") by the MPAA, but it's really more of a sad statement on the way the entertainment industry goes about its business. TorrentSpy announced earlier this week that it was shutting down and giving up, not due to any court order, but mainly because it was sick of the whole process and it didn't seem likely that the judge was going to see its side of the story. If you recall, TorrentSpy lost its case, but not on the copyright claim. Instead it was based on TorrentSpy potentially having destroyed some important evidence. It does look like the company (stupidly) did destroy some evidence, though some of the "destroyed evidence" was TorrentSpy's refusal to keep log files on its users, something it felt would be a violation of its own privacy policy. Based on the destruction of evidence problem, it's not too surprising that the company shut down -- but there really was no ruling at all on the more important question of whether or not simply operating a search engine counts as "inducement." This case also highlighted some of the MPAA's more unethical moves, including having someone hack into TorrentSpy's email servers and forward internal emails to the MPAA. So, while the MPAA will surely declare victory, all the case actually showed was (a) how unethical the MPAA can be (b) that it was able to shut down a site with owners who stupidly destroyed evidence and (c) that no ruling was made on the actual claims concerning copyright.

Filed Under: copyright, evidence, mpaa, torrentspy
Companies: mpaa, torrentspy

How Reliable Are Industry Announced Piracy Statistics?

from the depends-on-your-definition-of-reliable dept

Eric Goldman sent in a link to a recent research paper that aimed to look at the reliability of industry-released reports on piracy. That sounded interesting, as we've spent plenty of posts picking apart why almost all of their released numbers are bogus. In particular, we've pointed out how incredibly bogus the BSA's statistics are. So, it was somewhat surprising to have the study say that the BSA's were the most reliable, when compared to other groups like the RIAA and MPAA. If anything, though, that really just suggested that the RIAA's and MPAA's stats were even more bogus (remember, things actually got so bad for the MPAA that it had to admit how bogus its own stats were). That actually seems likely, as the BSA is the most upfront about the methodology used.

However, reading through the actual report, it does little to vindicate the piracy numbers that the industry reports always trumpet. That's because the report actually focuses on the rate of unauthorized use, rather than the cost or impact of that unauthorized use -- which is the key point to come out of these reports. The rate of unauthorized use is fairly meaningless, so it doesn't matter that much who is the most accurate. It's the impact that matters. While reports used to do silly things like count every unauthorized copy as a lost sale, most have stopped that, and now use a multiplier. Some have started using a questionable ripple effect that counts the same loss multiple times and ignores the "ripple effects" in the other direction that benefit the industry. So, yes, perhaps the BSA is the best of a bad bunch, but even if the rate of unauthorized use is somewhat accurate, that has little bearing on the actual impact of those unauthorized copies.

Filed Under: copyright, impact, piracy stats, reliability
Companies: bsa, mpaa, riaa

Antigua Says It's Going To Start Ignoring US Copyrights (For Real This Time)

from the no,-really,-really,-really dept

Officials in Antigua are now trying to draw a line in the sand, claiming that if the US doesn't finally agree to allow some forms of online gambling by the end of this month, it will go ahead with its threats to ignore US copyrights with the approval of the WTO. As you may recall, back in December, the WTO granted Antigua that right, after a loooooooong series of battles with the US over whether or not the US was violating free trade agreements by banning online gambling. Of course, every time the WTO sided with Antigua, the US would stall, claim the WTO sided with the US (when it clearly did not) and (my personal favorite) claim that even if it had broken trade agreements, it didn't matter any more because the US was unilaterally changing its trade agreements so that it was no longer violating them.

Of course, when Antigua won the final decision in December, allowing the country to ignore US intellectual property rights, the US government and the entertainment industry quickly warned Antigua not to follow through on those plans -- but the US government still won't shift in its position on the matter. Thus, Antigua is agitating to get this show on the road. While it first needs to get one last permission slip from the WTO, once that's in place, it can start ignoring the copyright on American movies and music. Of course, while some are suggesting that it may make sense for The Pirate Bay to move to Antigua, that's not accurate. After all, the WTO has said that Antigua can only violate $21 million worth of intellectual property, and with the way the entertainment industry counts damages, that's like half an album or so.

In fact, that seems to be exactly the angle that the entertainment industry is taking in this fight. An MPAA letter warning: "The proposed retaliation would be impossible to manage. The real and resulting economic harm would vastly exceed any amount the (WTO) might approve, even the grossly exaggerated amount ($3.4 billion) for which Antigua seeks approval, plus the economic harm would extend to other WTO members."

Filed Under: antigua, copyright, intellectual property, mpaa, online gambling, wto
Companies: mpaa, wto

Why Is The Hollywood Tail Wagging The Dog Of Academia?

from the that-seems-backwards dept

Hollywood's admission last week that its campus piracy stats were bogus raises an interesting question: why have colleges been so quick to roll over and accede to Hollywood's demands? Greg Sandoval points out that universities could have done their own studies a long time ago and had hard numbers to dispute the industry's accusations. If, as now appears to be the case, colleges are only responsible for a fairly small fraction of illegal file sharing, it makes the industry's demands that academia bend over backwards to help Hollywood in its anti-piracy fight a little unreasonable. The really screwy thing about this is that the movie industry is a relatively small part of the American economy. The industry's revenues in 2006 were just $42 billion. For comparison, Harvard alone has an endowment of $35 billion, and altogether the higher education sector has assets in the hundreds of billions of dollars. If they chose to stand up to Hollywood's bullying techniques, they would have little trouble mounting an effective legal defense. And given that Hollywood seems determined to paint students—academia's customers—in the worst possible light, it seems only appropriate that colleges be more proactive about countering unfair negative stereotypes of college campuses.

Filed Under: academia, movies, mpaa, piracy, students, studies
Companies: mpaa

MPAA Actually Admits That Some Of Its Piracy Stats Are Bogus

from the not-going-far-enough dept

For years, we've pointed to the bogus stats claimed by the MPAA concerning what kind of impact "piracy" is having. The stats incorrectly count "ripple effects" in a rather troubling manner. First, they only look at the ripple effects in one direction (those that hurt the movie studios). They don't bother to count ripple effects that go the other way (such as cheaper movies for everyone, allowing them to spend more money elsewhere, helping the economy). More importantly, though, using ripple effects is merely double, triple or quadruple-counting the actual losses, as Tim Lee brilliantly explained. Of course, that hasn't stopped reporters from citing these bogus stats as fact or politicians from using those stats to justify ridiculously awful legislation. Given all that, it's rather shocking to hear the MPAA finally admit that the stats in a recent report are bogus -- but only one specific number. Apparently, via some unexplained "human error," an MPAA study reported that 44% of "losses" due to piracy came from college campuses -- which explains the recent efforts to get new legislation forcing colleges to filter internet connections. However, the MPAA is now admitting that the real number is actually just 15%. The MPAA insists all the other numbers are perfectly fine, but didn't bother to address all of the criticisms of the methodology. This likely means that the mistake made here was so egregious that even the MPAA couldn't wait for the new legislation to pass before admitting the error. That alone, is fairly surprising. Hopefully, though, this will start convincing the press and politicians to be at least a little skeptical of numbers coming from biased industry associations.

Filed Under: bogus stats, mpaa
Companies: mpaa

MPAA Finally Realizes That Proprietary DRM'd Screener DVDs Are A Waste

from the it-took-this-long? dept

Way back in 2003, then head of the MPAA, Jack Valenti, got so worried about "piracy" of movies coming from insiders that he banned the use of "screener" DVDs for those voting for the Academy Awards. If you're unaware, traditionally, Motion Picture Academy members received "screener" copies of the movies up for awards on DVD or VHS tape so they could watch them at home and decide how to vote. Yet, in Valenti's twisted world, this had to be stopped because screener copies were appearing online. Of course, banning screeners created quite a mess for the folks who actually had to vote on the awards, as there was no longer an easy way to actually see the movies. It also really upset smaller studios, who knew that their movies were less likely to be seen by Academy members if they couldn't send out screeners. Eventually, the MPAA relented, but the following year came up with a new ridiculous solution. Rather than sending DVD screeners that members could watch with their existing home theater setup, it hired a company to make special DRM'd DVDs that would only play on special DVD players. Then it sent these special DVD players with the screeners to the Academy members. Of course, this was both a huge expense and still a tremendous pain in the ass for voters, who had to hook up this special DVD player that could only be used for screeners. It also made it difficult if the Academy member wanted to take the DVD somewhere else (say on vacation) and watch it elsewhere without dragging along this "special" DVD player. Apparently it only took 3 years of complaints before the MPAA realized that perhaps this was a dumb idea (that also didn't stop the movies from getting online anyway). This year, it's apparently phasing out the special DVD players and will provide (gasp!) normal DVDs for voting members.

Filed Under: drm, dvds, oscars, screeners
Companies: cinea, mpaa

TorrentSpy Loses To The MPAA... But For The Wrong Reasons

from the bad-news dept

TorrentSpy has lost the first round of its case against the MPAA, but the details suggest that it's for all the wrong reasons. TorrentSpy, of course, is like many other torrent trackers: it's a search engine. While the MPAA went after TorrentSpy claiming that it was violating copyright laws like Grokster/Morpheus, TorrentSpy pointed out (correctly) that the Supreme Court only said that service providers who actively encourage copyright infringement can be held liable. Instead, TorrentSpy noted, it was a search engine, just like Google -- which is quite accurate. However, the court seemed to have difficulty understanding this -- and when the court ordered TorrentSpy to spy on its users (against TorrentSpy's own terms of service), the company instead chose to cut off US users. This seemed quite admirable and reasonable. It was, in fact, a lot more admirable than the MPAA, who hired someone to hack into TorrentSpy's servers and pass on internal emails. However, it appears that TorrentSpy's decision to not spy on its users and to block access to US users is part of what caused it to lose the case. The ruling isn't on the merits of the actual copyright claim, but on the claim that TorrentSpy destroyed evidence -- such as the IP addresses of its users. There does appear to be some additional egregious destruction of evidence from TorrentSpy beyond just the IP addresses of users -- which was incredibly stupid for the company. That certainly hurt the company's position. However, that does not address the merits of the original lawsuit. The MPAA, of course, is claiming this is a huge win, but that's just its usual press release quote and has little to connect it to reality: which is that the MPAA won this case on a technicality rather than the merits. TorrentSpy plans to appeal, so this is hardly over -- but the destruction of evidence will hurt the rest of TorrentSpy's position, no matter how reasonable it may have been.

Filed Under: copyright, file sharing, legality, mpaa
Companies: mpaa, torrentspy