[3/2017 UPDATE: Little did I know that I accurately predicted what would happen, but I got the entities wrong. Since the April 2016 breakup of the Lipscomb/Guardaley relationship, new Guardaley kingpin Carl Crowell has created a new entity called RIGHTS ENFORCEMENT which has reverse-engineered CEG-TEK’s proprietary DMCA copyright infringement notice system. Many of you have visited this link thinking that RIGHTS ENFORCEMENT was somehow related to CEG-TEK (at first, I thought so too), but really it is an ‘evil twin’ competitor. In sum, apparently my concerns about CEG-TEK becoming corrupted where one bittorrent click would result in tens/hundreds of infringement notices may have actually have happened, but I got the entity wrong. It wasn’t CEG-TEK, it was Crowell’s reverse-engineered ‘evil twin’ copy of CEG-TEK which we now see in RIGHTS ENFORCEMENT. Still, feel free to read on to understand the idea.]
I have been sitting on this article for a few days because I was not sure what to make of it.
I don’t know if what I am noticing is based on greed on behalf of the “Girls Gone Wild” copyright holder (a.k.a., GGW Brands LLC) based on their corporate shakeup and recent bankruptcy, or whether CEG-TEK’s computer system has been going haywire sending sometimes hundreds of DMCA copyright infringement notifications for one “click” of a bittorrent file, or if there is a shift coming where CEG-TEK will be using the DMCA notices in a new way to extort larger and larger settlements from accused downloaders.
BACKGROUND [SKIP IF YOU KNOW HOW BITTORRENT WORKS]:
CEG-TEK has always tried to be a modestly clean organization. While an internet user downloads a video using bittorrent software, CEG-TEK’s servers are “dipping in and out” of the various bittorrent swarms which share their 100+ clients’ [usually adult] videos, and while CEG-TEK is “in the room” (so to speak, meaning, while CEG-TEK’s servers are connected to the bittorrent swarm [in which the internet users’ bittorrent software downloads file fragments from multiple individuals also in that same bittorrent swarm, and in which the bittorrent software shares (“seeds”) file fragments it has acquired to other bittorrent users in the swarm who are lacking that particular file fragment in order to obtain the entire shared file(s)), CEG-TEK writes down the IP addresses of each of the file sharers, they identify which ISP that IP address belongs to, and their computer sends a DMCA notice to that ISP. That DMCA “scare letter” notice is then forwarded to the account holder who was assigned that IP address at that particular date and time.
So with the Girls Gone Wild copyright holder, in the olden days (meaning up until two weeks ago), an internet user would click on a bittorrent file which contained something like 20-30 GGW videos, but when we logged into the CopyrightSettlements.com website to view the claims against my client, there would only be a few claims of copyright infringement. Why? Because GGW was having CEG-TEK ask for $300 per copyrighted DVD (which it itself contained many “files” or “scenes”). Point being, one click, one copyrighted DVD pirated, one $300 settlement.
This is no longer the case. Now when an internet user clicks a download link on a bittorrent website (sample screenshot of a GGW bittorrent link below — this one containing 95 video files), the same 20-30 video files are downloaded, but instead of ONE (1) DMCA notice being sent to the internet subscriber’s ISP, these past few weeks, 20-30 DMCA notices are being sent.
To make the effect of downloading Girls Gone Wild videos more egregious, instead of asking for $300 for each GGW DVD pirated, the copyrightsettlements.com website now lists 20-30 “cases,” asking for $300 for each file downloaded, rather than $300 for each DVD. Thus, in the 20-30 file example, now an accused internet user will see a settlement request of $6,000-$9,000 for one click of a bittorrent website (or in the example shown above with 95 video files, CEG-TEK would now be asking for a $28,500 settlement, when before it would have been just a few hundred dollars).
Now, let’s take the scenario further, because I’ve seen settlement amounts as high as $78,000 in the past few days. How?
That same internet user who clicked on this link above containing 95 titles leaves his bittorrent software running in the background. He does not realize that after the downloads are complete, his software is set to “seed” (upload) the files to other bittorrent users who have not yet acquired all 64.02 Gigabytes of data (as if someone actually has that amount of free space on their hard drive to download all of those videos, and as if each and every video was actually downloaded — both topics outside the scope of this article).
It takes roughly 4-5 days for a Charter or a CenturyLink subscriber to receive his DMCA notice, so by the time he learns that he has done something wrong by that “one click,” his ISP has changed his IP address 5 times (IP addresses are leased to subscribers for 24 hours, although this differs from ISP to ISP), that means that CEG-TEK “thinks” he has 475 instances of infringement (MATH: 95 videos * 5 days seeded = 475 instances of infringement). Thus, when those 29 downloaders and 5 uploaders shown in the image above (listed as “29 leechers” and “5 seeders”) get their DMCA copyright infringement notice for this particular torrent five (5) days later, each one of them will see a settlement amount of $142,500. Obscene.
Now obviously a lawyer (myself or anyone else) can negotiate the amount of the settlement, or, based on the copyright holder’s tendency to sue or knowing the limitations of CEG-TEK’s abilities to know who you are [taking into consideration the ISP and the known information such as geolocation data as to where you live, etc.], I may just as easily suggest that you ignore the claims against you, but quite frankly, if CEG-TEK is really expecting to get a $142K settlement (or even a $10K settlement), well, this suggests to me that maybe they are getting a bit greedy.
In sum, here is what I know:
1) Girls Gone Wild and CEG-TEK (as their agents) are now asking for $300 settlements for each and every video file downloaded.
2) CEG-TEK’s computer systems are going haywire, and ISPs are receiving HUNDREDS of DMCA violation notifications for files contained within one bittorrent file.
3) CEG-TEK’s computer systems lock out users who have more than ten (10) claims against them with a note to call their 800 number to discuss the claims with them. This means that your claims WILL LIKELY BE LOCKED when you try to log in and you will get their “Please contact Ira Siegel” notice.
4) If you made the mistake and called them, you would be faced with an obscenely high settlement amount to negotiate down from.
Here is my interpretation of what is going on. I see two possible causes for what we are seeing.
The founder of Girls Gone Wild appears not to be an upright citizen. He has been reportedly convicted of tax evasion, bribery, false imprisonment, assault causing great bodily injury, dissuading a witness, record-keeping violations, and he has even reportedly pleaded no contest to child abuse and prostitution. It does not jolt me to add copyright trolling to his list of indiscretions, and thus if this new development is coming from CEG-TEK’s “Girls Gone Wild” client rather than from CEG-TEK itself (management), I am not surprised by what I am seeing.
From 2007 – 2013, GGW advertised up the wazoo on late night infomercials, and they used to sell their DVDs, but there was a point where something happened to their business — the internet happened, and people stopped purchasing their videos.
In 2013, I remember hearing about a lot of drama and “shake-ups” on the corporate level, where Girls Gone Wild was talking about filing for bankruptcy, and where they were no longer putting their focus on the sale of DVDs. Rather, moving forward, they would be focusing on “intellectual property monetization,” which is another way of saying that they hired a number of lawyers and copyright enforcement entities (e.g., CEG-TEK, or Copyright Enforcement Group) to elicit settlements from those internet users who they blame for the collapse of their company.
In sum, either Girls Gone Wild is tired of collecting a few bucks here and there, or CEG-TEK is no longer happy with the $300 settlement and they are trying to increase the settlement amounts to lawsuit levels without having to file a lawsuit. Either way, be aware that things are changing, and I will let you know as I see the shift reveal itself in a more pronounced way.
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