China's Public Prosecutors Complain About Leak Of Anti-Corruption TV Series They Bankrolled To Raise Awareness

from the in-the-name-of-the-people dept

As further evidence of how things are changing in China when it comes to attitudes to piracy, here's a news item from Caixin about the leak of the hottest TV series there at the moment:

A glossy Chinese television drama, inspired by the country's ongoing anti-graft campaign, has become the latest victim of rampant piracy, fueled by slack laws, weak enforcement and the absence of punitive fines.

A story about China's public prosecutors who dredge up a series of scandals as they investigate shady land deals, organized crime and [state-owned enterprise] reforms, In the Name of the People became an instant hit when it debuted on March 28 and has become one of the most-watched TV programs in Chinese history.

What makes an otherwise humdrum story about popular TV episodes turning up on video-sharing sites rather unusual is who is doing the complaining:

China's state prosecutors' office, which bankrolled the $12 million production, and other producers said they had reported the copyright infringement to police, and urged platforms including cloud services, e-commerce shops and video hosting sites to remove all unauthorized versions, in a joint statement last Thursday.

China's state prosecutors are not normally in the business of bankrolling TV productions. Presumably, they took that unusual step on this occasion because it was important to increase public support for Xi Jinping's long-running fight against corruption's "tigers" and "flies" using a medium that would reach a much wider audience than dull government speeches or press articles exhorting them to do the same.

One of the best ways to ensure the widest possible audience for that message would be to allow the TV series to appear on sites for people to download freely. So asking the companies running them to remove copies in order to "protect" the official broadcasts seems perverse. If anything, it shows that respect for copyright in China has now gone so far as to be harmful to more serious matters like tackling the country's corruption.

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Filed Under: anti-corruption, china, copyright, corruption, piracy

Movie Studios Considering Tightening Release Windows When They Should Be Eliminating Them

from the closer dept

The very idea of major movie studios simultaneously complaining about movie piracy during the initial release of a film and instituting long release windows so that films are only in the theater for legitimate viewing has never made a bit of sense. As study after study has shown, one great way to reduce piracy for a film is to make it available for home viewing as early as possible. The reason for this should be obvious: in this case, piracy of a film is a sort of market study, one which informs the studios that a part of the public really wants to watch the movie at home as opposed to in the theater. Trying to force that part of the market into the theater by delaying home rentals or purchases no longer works, because piracy is an option. Stamping out piracy has never worked, but making the film product available the way the customer wants would, at least to decent percentages.

And it seems this decades long lesson may finally be finding purchase by its students in the film studios, as several major studios are reportedly considering slashing release windows by a third.

According to a Variety report, six of the seven biggest Hollywood studios are considering plans to allow new movies to be delivered via VOD into the living room between 30 and 45 days after launch for around $30. Fox and Warner are said to favor this structure but other plans are also floating around. Universal are reported to be pushing for a VOD release less than three weeks after launch, with Warner Bros. suggesting a shorter 17-day delay but with a larger $50 rental price.

Of course, any move to bring content to the home more quickly could have a profound effect on the many theater chains around the United States and present a serious stumbling block in negotiations. However, a proposal from Warner would see exhibitors receiving a cut of VOD revenues, if they agree to a narrowing of the theatrical release window.

Getting the theaters on board will indeed face headwinds and it's important to note that these plans are reportedly very early on in the negotiating process. Still, this only makes sense. The job of moviemakers is to give the public movies the way they want them. The job of theaters is to create an experience that makes people want to go to the theater. It can't only be the movie itself. The movie is the studio's job. It has to be the theater attracting viewers. If it isn't, that's on the theater companies, not the studios.

Still, it's frustrating that even these baby steps are facing so much pushback, because what the studios should actually do is much more severe than a 33% cut in the windows. There's a joke in atheist circles that goes like this: first there was polytheism, then there was monotheism, and they're getting closer to the right number all the time. This joke ports nicely to the case of release windows, where the best number available is zero windows at all. With that kind of innovation being too much to hope for from entrenched industries, let's at least hope that some of the more forward-thinking studios can convince the one studio that you already know is against this whole idea.

While the rest of the major studios are keen to move forward, Disney is reported to be against the proposal. For a company that came up with the artificial restrictions embodied in the Disney Vault, for example, that probably won’t come as too much of a surprise.

In which case I would kindly ask Disney to stop bitching about piracy. The other studios are at least trying something new instead of pushing the same doomsday talking points.

Filed Under: hollywood, movie windows, movies, piracy, theaters

eBook Pirates Tend To Be Older And Well Off, Which Means They Pirate Because Of Human Intuition On Economics

from the the-infinite dept

People tend to have a hard time discussing the two mathematical concepts of zero and infinity. It's not hard to understand why this is, of course, with reality being a material thing and both the lack of and the infinite amount of something being somewhat foreign. And this manifests itself in all sorts of disciplines, from cosmology to spirituality to physics. And, of course, economics, particularly in the digital age where many of the axioms surrounding physicality no longer apply to digitized goods. Zero and infinity play heavy roles here, both in the discussion of free content (zero) and the concept of digital and freely copyable goods as a resource (infinity). The economic nature of these concepts have long vexed established industries, even as some of us have pointed out how efficient and useful infinite digital goods can be if properly applied.

Industry rebuttals to the economics of all of this have mostly amounted to facile derision in the form of slandering younger generations who either "just want free stuff" or "want stuff they cannot afford." Neither makes much sense, with both claims easily disproven given statistics demonstrating how much more is spent by "pirates" than those who don't pirate content. The truth is that, while the average citizen likely can't speak eloquently about the economic laws at work for digital goods, they certainly can understand them intuitively. And this can be shown with piracy statistics for eBooks, which a recent study shows that eBook pirates tend to be both older and relatively affluent.

A new study, commissioned by anti-piracy company Digimarc and conducted by Nielsen, aims to shine light on eBook piracy. It was presented yesterday at The London Book Fair and aims to better understand how eBook piracy affects revenue and how publishers can prevent it.

In previous studies, it has been younger downloaders that have grabbed much of the attention, and this one is no different. Digimarc reveals that 41% of all adult pirates are aged between 18 and 29 but perhaps surprisingly, 47% fall into the 30 to 44-year-old bracket. At this point, things tail off very quickly, as the remaining ~13% are aged 45 or up. There are also some surprises when it comes to pirates’ income. Cost is often cited as a factor when justifying downloading for free, and this study has similar findings. In this case, however, richer persons are generally more likely they are to download.

With nearly half of eBook pirates falling into their thirties or forties, and the study later showing that two-thirds of eBook pirates have household incomes of at least $30k per year, and almost a third having incomes in six figures, this simply isn't a situation that can be explained away by pointing at young poor people. So, why do older, more affluent people pirate eBooks?

I would argue it's instinctual. Most of these people may not even be able to explain the term "marginal cost", but by instinct they feel that something that costs nothing to reproduce ought not to require payment. Their brains do this calculation behind the scenes, not thinking about the sunk costs of initial production, nor the sweat-equity spent by the content creator. Marginal cost is the term used by economists to explain pricing laws that emerged organically through human instinct.

This isn't to say that unauthorized downloading is somehow acceptable when eBook publishers wish against it. But it certainly does suggest that any eBook publisher, or publisher of other digital content, has a very high hill which it must roll its old business model wagon up to make it work. Human intuition is one hell of a thing to overcome. So much so, in fact, that it's likely the better strategy is to figure out how to make that intuition and infinite digital goods a boon rather than the enemy.

Now, it's worth noting that the price of eBooks was still a factor for those responding in the study, but not nearly the factor that convenience played.

Given the majority of pirates’ ability to pay, it comes as no surprise that convenience is the number one driver for people obtaining content from torrent sites. Cost still takes the number two position but a not inconsiderable four out of ten still believe that online retailers are lacking when it comes to content availability.

In other words, a huge amount of eBook piracy could likely be done away with immediately, if the content cost closer to what the buyer instinctually believes it ought to be and the content was at least as readily available for purchase as it is through pirated means. That really can't be that hard for eBook publishers to understand.

Filed Under: ebooks, infinite goods, non-excludable, non-rivalrous, piracy, studies

Film Distributor Creates Torrent Site Clone That Gives Away Movie Tickets To Combat Piracy

from the not-bad dept

Much of the way the movie industry looks to combat film piracy will seem familiar to readers of this site. It typically involves shakedown threat letters, games of DMCA whac-a-mole, and a paint-by-numbers approach that mostly amounts to film studios shaking their lawyers' fists at the sky. All that produces the status quo, where piracy is still a thing, films still make gobs of money, and regular observers of it all are left scratching our heads wondering how so much noise could be made over it all.

But I will give credit where credit is due as Costa Rican film distributor Romaly deserves some style and creativity points for its new anti-piracy tactic.

Romaly has employed an extremely creative tactic to reach out to would-be pirates. Their work can be seen over at LegalTorrents.net, a site that has clearly been modeled on one of the most famous torrent indexes ever. As the screenshot below shows, it is a semi-convincing KickassTorrents clone with a similar logo, color scheme and word cloud.

Here's how nice a job Romaly did in dressing the site up to look like KAT.

And the torrents on the site are actually real, except they aren't torrents for the actual movies in question. Instead, the downloads play trailers for those movies along with messaging about how piracy has a negative impact on the film industry. But the coup de grace is the inclusion of an email address where the downloader can request two free movie tickets for the film they attempted to pirate.

The cloning of a torrent site feels a little shady, but it also feels somewhat innocuous. The attempt to educate pirates that piracy is bad is also rather "meh", as that's been tried before. But attempting to build up some goodwill in the form of getting downloaders to the theaters is actually pretty smart, relying on positive actions rather than threats and tales of doom and gloom.

“With the creation of our own torrent download page we seek to approach all those who try to carry out this type of illegal action and create awareness on the subject through positive reinforcement,” says Alonso Solís, marketing manager of Romaly.

“By providing tickets we want you to remember that cinema is an experience that goes beyond a computer. In the cinema, people enjoy an entertainment space that allows them to get rid of their occupations and dedicate one or two hours to themselves.”

That's the kind of thing we've been saying for years, in fact, and it's something the movie industry should be pushing on even harder. Now, it's worth noting that the folks at TorrentFreak attempted to put this whole concept through its paces and found a lot left to be desired. It seems the seeds on these torrents are limited, resulting in failed downloads all over the place. That sort of defeats the purpose of the educational information and the free tickets.

Still, points for the effort, and for trying to forge a connection with downloaders rather than relying on the mere shaking of legal fists.

Filed Under: copyright, fake torrents, films, free tickets, piracy
Companies: romaly

Aussie Film Distributor That Pledged To End Movie Release Delays To Combat Piracy Delays Movies Anyway

from the lego-my-movies dept

Back in 2014, much was made about piracy in Australia, specifically whether Aussies using VPN services to get the American flavor of Netflix should be more heavily combatted and how release windows for movies in Australia were pushing the public to pirate the film instead of waiting for it. While much of the conversation about Netflix was unfortunate, we did see some positive signs about release windows coming from distributors in Australia. One distributor, Village Roadshow, even had its CEO admit how badly a delayed-release window had boned them when it came to the wildly popular The Lego Movie.

Burke admitted last night that the delayed release of The Lego Movie in Australia after the release in the United States to coincide with the school holidays was a mistake.

"We made one hell of a mistake with Lego. It was an Australian film, we financed it together with Warner Brothers, it was made here in King's Cross. Because it was so important, we held it for a holiday period; it was a disaster," he said.

"It caused it to be pirated very widely, and as a consequence — no more. Our policy going forward is that all of our movies we will release day and date with the United States."

These kinds of revelations are a positive sign. Rather than shouting about piracy and copyright law, Burke realized that what spurred much of the piracy was his company's refusal to release the movie as soon as it became available. Instead, the company delayed the release to coincide with school holidays, theorizing that this would create a better opening for the film in Australia. The public, however, demonstrated that it would much rather see the film as soon as it should have been available, as it was heavily pirated in Australia.

So, lesson learned, right? Nooooooooope. Instead, Village Roadshow recently performed the exact same delayed-for-school-holidays release for a movie. The name of that movie? Lego Batman, because if you're going to do the exact opposite of what you pledged, you might as well make it as ironic a flipflop as possible.

AUSTRALIAN moviegoers were left with a bitter, yet familiar, taste in their mouth in December when the distributor of the The Lego Batman movie announced it would have a delayed release date, premiering Down Under more than six weeks after it hits US cinemas.

According to the Village Roadshow CEO, “99 per cent” of the films distributed by the company line up with the US release date. But in this instance, they believe the loss of sales due to piracy will not outweigh the boon of the school holidays when Aussie families fork out at the box office.

So it's the exact same theory that the exact same CEO said didn't work a mere two years ago? Come on, guys. What has changed in two years to make them think it's going to be any different this time around? And, perhaps more importantly, what can the company possibly say when Lego Batman is being heavily pirated in the exact same way as The Lego Movie? It can't scream about piracy, or the public will simply refer them back to that thing they said two years ago when they admitted it was the fault of the delayed release. It can't pledge to kill the delayed windows, because it already did that and it turns out that it was a pledge worth nothing. Instead, Village Roadshow will be able to merely stay silent and not count the money it should have been making.

The statements coming from Burke this go around are far less encouraging.

“Yes, we will lose a lot to piracy, but the other side of the coin is the film is available when the audience that goes to these sort of films wants to see it,” he said. “When certain films go out in non-holiday periods, our audiences get very cross because the kids are not available to take them.”

Aside from the fact that this line of thinking didn't work with a nearly identical movie delayed in an identical way a mere two years ago, nothing about this statement makes sense. If you're losing a lot of viewers to piracy, that's because they don't want the release delayed. It can't be both that the film is heavily pirated and the public wants the delay causing the piracy. That makes zero sense.

I can't wait to see Burke's reaction in the window between the American release and the Australian release.

Filed Under: australia, copyright, lego batman, lego movie, movies, piracy, windowing, windows
Companies: village roadshow

Cogent Accidentally Blocks Websites In Global Ham-Fisted Piracy Filtering Effort

from the scorched-earth dept

Last week, reports began to emerge that internet users were unable to access The Pirate Bay and other BitTorrent-focused websites. Ultimately it was discovered that this was courtesy of transit provider Cogent, which was blackholing an undetermined number of IP addresses allegedly linked to copyright infringement. The IP addresses in question didn't belong to the websites -- but to popular CDN provider Cloudflare. All told, Cogent's blockade impacted around twenty different websites -- but the impact was global, with ISP users worldwide unable to access these IP addresses if they traveled the Cogent network.

Initially, Cogent wouldn't comment whatsoever on why this was occurring, but later confirmed to Ars Technica that the company had received a Spanish court order (it's not clear if it's the same 2015 order demanding Cogent block access to music streaming website Goear.com). Cogent was vague about the order itself, but did confirm that The Pirate Bay was blocked -- despite it not being a target of the court order. Subsequent routing checks confirmed the impact was global across Cogent's footprint.

As we've seen time and time again, actual pirates with just a modicum of technical knowledge utilize a variety of tools (VPNs most specifically) to tap dance around such restrictions, making these filtering efforts ham-fisted "solutions" that cause more problems for the internet and end users than they traditionally solve. In talking to Ars, Cogent acknowledged the potential "collateral impact" that such orders and filters can cause, especially when applied globally at scale to multihosting transit operators like Cloudfare, where one IP address may be home to multiple, unrelated websites:

"Cogent went on to say that “as a general matter, courts may require Cogent, as an ISP, to take certain actions with respect to a third-party website, an IP address or block of IP addresses. If Cogent’s customer decides to commingle traffic from the website that is the target of the court order with the traffic of other websites, the other websites that point to the same block of IP addresses may be adversely affected. When a Cogent customer controls the affected IP addresses, Cogent does not have the ability to know ahead of time what other websites may be affected or to control the collateral impact on these other websites. When collateral effects occur, we do work with our customer to try and mitigate the effects on others websites."

While U.S. net neutrality rules do prohibit network providers from blocking specific websites, exceptions were carved into the rules governing copyright infringement. Cloudfare, which helps websites improve performance and fend off DDoS attacks, can manage its IP addresses in such a way to help Cogent comply with court orders more narrowly. But this becomes arguably untenable when dealing with multiple court orders, all dealing with different websites and ISPs at global scale. Take the kind of filtering collateral damage we've long seen, and apply it globally in disjointed chorus.

Cloudfare often pops up as an entertainment industry bogeyman simply because its services often obscure the real origin server from the end users. But Cloudfare's General Counsel Doug Kramer was quick to complain that these sorts of orders, especially if poorly crafted and targeting core transit networks, can have a broad impact on the general health of the internet:

"This is part of the danger you get into when you start to censor the Internet or you get orders to pull things down,” Kramer said. “It may not be so easy to limit access to a specific domain," or to make sure a block applies only in a certain country. Cogent, and not Cloudflare, is the company that had to implement the block, but Cloudflare is “trying to set up a technical system where Cogent can respond to the order that they’ve been given, but within the narrow scope of that and not have impacts that go beyond that," Kramer said."

Kramer also pointed out that it might be important to understand how the internet works before you set about chopping giant holes in it via court order:

"It’s important for courts to understand how Internet systems work so they can write orders that don’t end up having unintended consequences,” Kramer stresses. "As a company, Cloudflare believes strongly in an open, free, and secure Internet. And it is also our policy to fully comply with legitimate court process," Cloudflare’s General Counsel says. "This can be challenging at times, especially when courts target backbone providers and don’t understand fully how they work. Cloudflare takes steps to make sure those court orders don’t lead to unintended impacts."

Take the non-transparent, ham-fisted, and ultimately futile filtering efforts we've come to know and love, and apply them at global scale, with little to no real concern about the obvious unintended impact on the health of the internet itself. What could possibly go wrong?

Filed Under: blocking, censorship, copyright, piracy
Companies: cloudflare, cogent, the pirate bay

Funcom Responds Well To Mixup Over Denuvo DRM Resulting In Piracy Of Conan Exiles Game

from the good-guys dept

With the way the past couple of weeks have gone for Denuvo, the DRM that was supposed to end piracy but instead only ended the industry's brief resurgence in faith in DRM, you would be forgiven if you thought this was going to be yet another post about another Denuvo-protected game being cracked and released to the pirating masses. This isn't that kind of story. Instead, it's the story of game publisher Funcom accidentally stripping Denuvo out of the latest build of its early access game, Conan Exiles, and having that be released to the pirating masses.

In Conan Exiles' case, Denuvo Anti-Tamper was temporarily removed - and accidentally. An updated version of the game was suddenly without protection. Denuvo Anti-Tamper returned soon enough, via another update, but not quickly enough. Pirates pounced and the damage was done.

Remember, Conan Exiles isn't solely an online game, which tend to prevent piracy by requiring game versions to match that of the official servers. In Conan Exiles you can host your own worlds and play them alone or with others, or join their private worlds. In other words, a pirate can play the game.

I'm having trouble thinking up a way to construct a more frustrating experience for a game publisher. To have a game not susceptible to server check-ins, to have tried to infuse that game with DRM only to have it stripped in error and released, and to then have that game very much playable by the people you had specifically tried to prohibit via the DRM is like some kind of trifecta from hell for a game publisher. Remember, Nintendo lost its shit comnpletely when its free app was found to be "pirated." You're probably expecting Funcom to be cheesed off at equal or greater levels.

Except, at least from the company's first public statements on the matter, not so much.

"There is unfortunately not much we can do about those who choose to download and play unauthorised copies," Funcom said, "but we hope they make the jump to the official version so they can stay up to date with the latest patches and improvements. Being an Early Access title, there will be a lot of updates going forward!"

It's a nearly perfect response. First, the company admits that piracy is a thing that's going to happen. Then the company makes both a logical case for why fans of the pirated versions have a reason to buy an authorized copy, while maintaining a cool demeanor and enthusiasm that can only ingratiate the publisher to its fans, paying customers or otherwise. And keep in mind that it would be totally understandable if Funcom had a negative emotional response to all of this. But this way is better business.

It may be a little light on the connecting with fans part of the equation, but Funcom has focused on giving those who might pirate the game -- and like it! -- a reason to buy. Well done.

Filed Under: conan exiles, denuvo, drm, infringement, piracy, reality
Companies: funcom

New Study Essentially Suggests That Publishers Should Do CwF + RtB Instead Of Going Legal To Combat Piracy

from the yup dept

We have talked about the power of connecting with fans and giving them a reason to buy, along with using public shaming, as tools for combating piracy in its various forms. Tools far better, in fact, than twisting in litigious winds hoping that the construct of law will be sufficient to curb natural human behavior... and finding out that it isn't. What these routes offer content producers is a way to ingratiate themselves with their fans, building a community that not only wants to buy content themselves, but also will decry any attempt to pirate that content by others. Morality is shaped by the herd, in other words, so having the herd on your side finds content producers a powerful ally.

But philosophy like that doesn't penetrate industry in and of itself. Perhaps, then, data and academic studies may. The International Journal of Business Environment recently released just such a study suggesting that content providers are far better off reaching out and connecting with fans, including those pirating their works, rather than trying to fight piracy legally.

According to Eva Hofmann of the Centre for Trust, Peace and Social Relations, Coventry University, UK and Elfriede Penz of the Institute for International Marketing Management, at Vienna University of Economics and Business, in Austria, the unauthorised sharing of digital content is well-entrenched in popular culture. However, they have discerned a difference in the way those downloading pirated content and the legal downloaders decide on how to obtain the content they desire from the Internet.

The researchers note that inherent in the problem for copyright holders is that digital goods can be duplicated endlessly without loss of fidelity, making piracy easy but also suggesting that the value of such goods as being less than traditional, physical items in the realm of content, such as CDs and DVDs.

This nicely outlines why piracy exists at the levels it does: there is something natural in deciding that something that can be reproduced infinitely in a digital manner at no cost differs from a physical good that cannot. It's the reason why piracy and theft simply aren't the same thing. This doesn't make copyright infringement or piracy morally acceptable, of course, but it explains why the moral equation for those doing the piracy is inherently different. Everyone knows this intrinsically, even if some major content industry players want to pretend otherwise.

The study's abstract itself suggests that the best method for combating this is to engage with the public to change that moral equation.

Respondent groups differ in the effect of social consensus on the decision-making process. Additionally, the entire issue-contingent model is important in internet piracy research. From a practical view and based on social consensus results, it is essential for companies to establish sentiments that unauthorised downloading is an unacceptable behaviour within a specific social group that is highly relevant to downloaders.

In other words, creating a real connection with fans that are also given a real reason to buy content alters the moral equation for those that seek out that content. If enough minds are changed in that manner, it will have an exponential moral effect as those fans of the producer both promote the buying of the content and speak out or subvert attempts to pirate it. It works on both levels: convincing more people to buy the product and creating a fan-base hungry for the content provider to succeed so as to get more content.

CwF + RtB, in other words, along with a fan-based army willing to publicly shame pirates.

Filed Under: artists, community, connect with fans, copyright, fans, piracy, reason to buy

Rightscorp Rings In The New Year By Vowing To Find New Ways To Lose Money In 2017

from the penny-stock-that-could! dept

Rightscorp is doing some aggressive whistling in the dark. The company that thought it could tackle piracy with threatening letters, threatening robocalls, and suing ISPs for contributory infringement has been bleeding money since its inception.

By the middle of 2015, Rightscorp's letter-writing campaign to torrenters had led to nothing resembling a viable business model.

According to 10-K documents filed with the SEC earlier this month, the total loss from Rightscorp operations for 2014 was $3,398,873, with revenues of just $930,729 for the year. "As of December 31, 2014, our accumulated deficit was approximately $7,093,377," states the filing, adding that the company lacks the revenue to allow it to "continue as a going concern." Rightscorp stock price, meanwhile, similarly isn't much to write home about. Not so viable for a company that on a recent earnings call declared itself "one of the only viable solutions to the multi-billion dollar problem of peer-to-peer piracy."

One year later, Rightscorp itself was finally questioning its own viability.

The company, which monitors and targets repeated copyright infringers with extralegal payment notices, reported an operating loss of $784,180 during the three months ended March 31, a slight improvement from the $930,000 loss a year earlier. Rightscorp only generated revenues of $68,283, a 78 percent drop from 2015 Q1’s $307,904, and its services accrued only $49,142 due to copyright holders -- a third of the $153,952 gathered during the first three months of 2015.

There's another 10-K from the company due in March. Chances are there will be nothing in it to reassure whatever investors the company has left. Its stock price is lower than it's ever been… which isn't really saying much as it's spent the last couple years south of the 25-cent mark.

With more bad news on the near horizon, perhaps that's why it appears to be acting as its own cheerleader ahead of its eventual mandated disclosures. Its December 26 press release contains some questionable assertions, not the least of which is that it's the "content creator's champion."

In the notice of infringement, Rightscorp offers a choice between paying a small settlement fee of $30 facing a possible lawsuit for damages of around $150,000 USD under the Digital Millennium Copyright Act (DMCA), the current law.

It's a false choice. Rightscorp and the artists signed to it aren't going to sue individual infringers for $150,000 in statutory damages. (Instead, Rightscorp has intervened in questionable lawsuits against ISPs for contributory infringement.) The RIAA found out long ago that dragging people IP addresses to court generated more antagonism than revenue. There are a few copyright trolls out there milking porn/terrible films with speculative invoices filed in federal court against fistfuls of Does, but none of them have shown this reliably generates revenue, much less deters piracy.

So far, Rightscorp is only chasing down music pirates. That plan of attack has worked so poorly the company can barely keep its doors open. Naturally, it's decided it isn't wasting its limited funds fast enough. (All grammatical/spelling errors in the original.)

A small growing company with modest revenue, Rightscorp has by no means conquered the problem of Internet piracy. But with proven technology, a unique way monetize digital loss prevention, and an astute management team at the helm, investors should take a serious look at Rigthscorp. In 2017, the Company is pursuing an aggressive growth strategy in focused on expanding its reach in the film and television arenas.

"Modest revenue." That's an understatement.

Rightcorp's statement is accurate when it says it hasn't conquered internet piracy. The next sentence, however, is filled with assertions so blatantly wrong, the only way they could possibly be made with a straight face is via this exact form of communication: a self-congratulatory press release.

The only thing "proven" about its "technology" is that it's able to uncover IP addresses. This is where its form of speculative invoicing originates, with letters going to ISPs, which are then asked to forward them to the subscribers at the listed IP addresses. Rightscorp doesn't know who the alleged infringers are, so there's not a lot technical wizardry going on here.

And yes, Rightscorp has found a "unique way [to] monetize" its anti-piracy effort. It all depends on how you choose to define "unique." And "monetizaton." "Hardly at all" seems to be a fairly accurate summation of its "unique monetization." "Doesn't make much money at all, actually" is another tagline that could be applied to it.

As for the "astute management" at the helm? I don't know. Rightscorp has already seen what isn't working and wants to do more of it for more forms of content. That's the definition of "insanity," not astuteness.

I don't think Rightscorp has much left in the tank. Its decision to build its business model on something that has failed for many others was never a good idea, even if it routed its demand letters through ISPs, rather than federal courtrooms. Once you've suckered in the easily-intimidated and the poorly-informed, you're faced with the considerably more-uphill battle of talking file sharers out of $30 per alleged infringement using nothing more than boilerplate and the ethereal threat of statutory damages. It hasn't worked so far for Rightscorp. Adding movies and TV shows to the mix isn't going to fix what's fundamentally wrong with its strategy. It's only going to give Rightscorp new ways to fail.

Filed Under: copyright, copyright trolling, piracy
Companies: rightscorp