Category Archives: SBO Pictures Inc.

What is AGENCY? Can an entity enforce a copyright they do not own? (Think, CEG-TEK.)

There was a point where someone raised the question, “should I be afraid that a copyright troll might try to sue or collect money for copyrights they don’t own?” That is an interesting question and certainly this could happen, but apparently CEG-TEK took it seriously since they represent so many copyright holders, and they have altered some of the DMCA letters that they send to accused internet users through their ISPs.

As a response to this question (which I suppose was asked enough times to inspire them to take action upon it), in the most recent versions of the CEG-TEK DMCA letters, there is now often a link to a “certification page” which affirms that CEG-TEK is authorized to collect settlements on behalf of a particular copyright holder.

I clicked on a few of the links, and while a few of them were innocuous (containing only the certification from the copyright holder’s website), some of them were pretty explicit as far as the graphics they show on their websites. I thought it would be a good idea to take a few screenshots and post them here, but after seeing a few of the sites, posting the screenshots here would put our website into the “Not Safe For Work (‘NSFW’)” category (as if it is not already in that category from its content).  I have pasted one below just to show an example of what they look like:

Reality Kings

For some of their other clients, below are some of the links I have collected over the past few weeks (and by NO MEANS is this a complete list of CEG-TEK’s client list. I tried to create such a “List of CEG-TEK clients” in June, 2014, and it backfired because immediately afterwards, so many of the copyright holders scattered and changed their name completely confusing the issue of who is a copyright troll and who is not a copyright troll.) I am merely providing this list as a quick sample to prove the existence of an AGENCY AGREEMENT between CEG-TEK and various copyright holders:

Digital Sin Inc. (a known copyright troll which carries the following brands: Digital Sin Inc, Greedy, Hot Boxxx, Lesbian Provocateur, New Sensations Inc*, The Romance Series, Vengeance XXX, X-Play)
http://www.digitalsindvd.com/distro/agent-cert.php

MG Premium Ltd DBA Mofos (formerly, “Froytal Services Ltd.” which carries the following brands: Canshetakeit, Iknowthatgirl, Ingangwebang, Latinasextapes, Letstryanal, Milfslikeitblack, Mofos, Mofosnetwork, Mofosoldschool, Mofosworldwide, Pervsonpatrol, Publicpickups Realslutparty, Shesafreak, Teensatwork)
http://www.mofos.com/cegtek-cert/

Porn Pros [also seen as AMA Multimedia, LLC] (which carries the following brands: Drive Shaft, Gay Castings, Gay Room, Man Royale, Men POV, Porn Pros, Pure Passion, Thick and Big, Tiny4K)
http://pornpros.com/cegtek-cert

MG Premium Ltd DBA Brazzers (formerly, “Froytal Services Ltd.” which carries the following brands: Asses In Public, Baby Got Boobs, Big Butts Like It Big, Big Tits At School, Big Tits At Work, Big Tits In Sports, Big Tits In Uniform, Big Wet Butts, Brazzers, Brazzers Vault, Brazzers Network, Busty And Real, Bustyz, Butts And Black, Day With A Pornstar, Dirty Masseur, Doctor Adventures, Hot And Mean, Hot Chicks Big Asses, HQ Honeys, Jizz On My Juggs, Jugfuckers, Milfs Like It Big, Mommy Got Boobs, Pornstars Like It Big, Racks And Blacks, Real Wife Stories, Sex Pro Adventures, Shes Gonna Squirt, Teens Li)
http://www.brazzers.com/cegtek-cert/

MG Content RK Limited DBA Reality Kings (formerly, “Manwin Content RK Ltd.” which carries the following brands: 40inchplus, 8thStreetLatinas, Bignaturals, BigTitsBoss, Bikini Crashers, CaptainStabbin, CFNM Secret, Cum Girls, CumFiesta, Cumfu, Dangerous Dongs, EuroSexParties, Extreme Asses, Extreme Naturals, FirstTimeAuditions, FlowerTucci, Footville, Girls of Naked, Happy Tugs, Hot Bush, InTheVip, Itsreal, Kingdong, Kristinslife, Manueluncut, MegaCockCravers, MikeInBrazil, MikesApartment, MilfHunter, MilfNextDoor, Mollyslife, Moms Bang Teens, MoneyTalks, MonsterCurves, Muffia, Mysexylife, Nakedmovie, etc.)
http://www.realitykings.com/cegtek-cert.htm

MG Content DP Limited DBA Digital Playground (formerly, “Manwin DP Corp.”)
http://www.digitalplayground.com/cegtek.html

E.A. Productions / Evil Angel
http://www.evilangelvideo.com/copyright/

Addicted 2 Girls
http://www.addicted2girls.com/cegtek.php

New Sensations Inc. (a known copyright troll which carries the following brands: Digital Sin Inc*, Greedy, Hot Boxxx, Lesbian Provocateur, New Sensations Inc, The Romance Series, Vengeance XXX, X-Play)
http://www.newsensations.com/tour_ns/cert.html

MG Cyprus Ltd DBA Men
http://www.men.com/cegtek-cert/

*[UNRELATED, BUT FUN TO NOTICE: Note the overlap between these companies as far as which brands are owned by which companies. Many of the popular names have the same parent company, e.g., MG Content, MG Premium, or more plainly, Manwin.  Also notice that some “brands” which market themselves to be separate and apart from one another are actually owned by the same entity, e.g., New Sensations, Inc. and Digital Sin, Inc.; as much as they tried to pretend that they were different entities when suing in the federal courts, we now know that they are the same entity. It is also interesting to see what a “small world” the adult industry is, and who the power players are behind the scenes of the “large” brand names. Unrelated to this article, when defending clients in federal court and in settlement negotiations, I have often found it funny to find that “old man grandpa” or “innocuous family woman grandma” is the CEO or power behind a large multi-million dollar adult company.]

What to take away from this article is simply that CEG-TEK’s role is as an “Intellectual Property Monetization” company, where the copyright holders hire them to track instances of copyright infringement using the bittorrent networks (hence the “CEG” portion of their name stands for “Copyright Enforcement Group,”), to collect and record the IP addresses of the accused infringers, identify the internet service providers (ISPs) associated with those IP addresses (and yes, they now contact ISPs not only in the U.S., but also in Canada and Australia), and request, pay, pressure, or threaten the ISPs to forward their copyright infringement notices to the subscribers which invites the accused internet user to visit their CopyrightSettlements.com website in order to view the claims against them and to pay a settlement fee to avoid potential legal action that may be taken against the internet users.

What is also important to note is that the legal role CEG-TEK plays is the authorized AGENT of the copyright holder. This means that whatever CEG-TEK agrees to (e.g., when an attorney negotiates a settlement on behalf of a client, or when CEG-TEK agrees to make one or more cases “go away” as part of a settlement negotiation), all of their activities are binding on their client, the copyright holder. Thus, if you pay CEG-TEK*, it is as if you paid the copyright holder. I am obviously simplifying the law of Agency here (where there are nuances), but what to take away is that anything CEG-TEK does, they do on behalf of their client and with the implicit [and in many cases, explicit] authorization of their client. That means that no, a copyright holder cannot turn around and sue you if you paid CEG-TEK to satisfy that copyright holder’s claim of copyright infringement against you where that client has hired CEG-TEK to enforce the copyright holder’s copyrights on their behalf (now you know the term, as their “agent.”).

*NOTE: I don’t need to toot my own horn and solicit my own services, but before you decide to pay CEG-TEK or visit their website, please do your research and contact an attorney who is familiar with their operation.  There are things to be aware of specifically with regard to capabilities CEG-TEK and ISPs have as far as geolocation technologies to identify the location where a download is claimed to have taken place, and how a company can dig into your past browsing history (with the help of an ISP providing your past IP addresses) in order to discover past acts you may or may not have taken part in.  Each of these impact your anonymity when settling a claim against you, and ultimately what a copyright holder can or can not later claim against you.  Your lawyer should understand this to help you understand the limits of CEG-TEK’s knowledge so that whether you choose to ignore or settle a claim, you will be aware of who is allowed to do what before, during, and after a settlement, and what are the time limits they face before information they may have on you is purged from your ISP’s records, sometimes making it unnecessary to worry about a settlement or a lawsuit.

[2017 UPDATE: 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 CEG-TEK links thinking that RIGHTS ENFORCEMENT was CEG-TEK, but really they are an ‘evil twin’ competitor.  Since the two entities operate almost the same way, and since Crowell has effectively taken CEG-TEK’s clients, this article about sending demand letters and suing for copyrights one does not own becomes very relevant.]


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

CEG-TEK: Naughty or Nice?

[2017 UPDATE: 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 CEG-TEK links thinking that RIGHTS ENFORCEMENT was CEG-TEK, but really they are an ‘evil twin’ competitor.  Since their methodologies are nearly identical, this article is still very useful.]

Copyright Enforcement Group (CEG-TEK) has sent possibly hundreds of thousands of letters to internet users accused of downloading copyrighted content via bittorrent. In their letters, they invoke the Digital Millenium Copyright Act (DMCA) as the justification for their “intellectual property (IP) enforcement” activities. They claim to be the good guys, but are they?  Are they “naughty or nice”?

CEG-TEK claims to be the good guys — they stop piracy, and as a result of their efforts, fewer people download on the ISPs’s networks (a social “good” and a “win” for the copyright holders). They have stopped the copyright troll lawsuits, for the moment. And, although they are charging $300 per title for each downloaded movie (sometimes higher) for what is often an accidental “click of the mouse,” they claim that they are not “bad” or “vindictive” like their Rightscorp competitor, which charges only $20 per title, but then sues the accused downloaders in federal courts, and then even go so far as contacting the ISPs in order to attempt to shut down the internet accounts of those accused of downloading their clients’ copyrighted titles via bittorrent.

But then again, CEG-TEK is a business. While I have had success negotiating away cases against veterans, the elderly, and in many cases, college kids, CEG-TEK has taken a number of steps which at best would be questionable.

Most relevant is the “admission of guilt” clause in their settlement agreements, which at the time of writing this article has flipped back to the version which does not include this clause. Months ago, when CEG-TEK expanded into Canada and then Australia, the settlement agreements which released those who have settled from liability included the following clause:

111715 Admission of Guilt in CEG-TEK Settlement Agreement

[For those of you who cannot see the image, it says, “…in the event of a (i) failure to clear, (ii) chargeback, (iii) cancellation, (iv) failure to complete…this Release shall be considered admissible and conclusive evidence of RELEASEE’s infringement of the copyright in the Work and that RELEASEE will be liable to CONTENT COPYRIGHT OWNER for all damages, statutory and/or otherwise, for such infringement plus attorney fees plus costs as of the Settlement Date…” (emphasis added)]

[Now as a side note, for those who are particular about formatting and details, note that CEG-TEK placed that inflammatory clause at the bottom of Page 2, and they split it up where half of it is at the bottom of the page, and the other half is at the top of the next page, where even a careful individual might not read the clause in its entirety because the inflammatory clause is separated by being on different pages.]

The problem with such a clause admitting guilt is that it is binding on an unsuspecting individual who tries to settle the claims against him by paying with a credit card. How?  These contracts are available to the individual paying the settlement fee on the CopyrightSettlements.com website to review, and upon processing the credit card payment, they agree to the terms contained within the contract.

Then, when their credit card transaction fails (either because their card is not accepted by CEG-TEK’s website, or because the transaction is declined, or, if through no fault of their own, because of the website itself the bank flags the transaction as suspicious (fraud alert for a large online charge) and fails to approve the transaction), at that point, the individual has admitted guilt to copyright infringement, which carries a $150,000 statutory fine for each title downloaded. Assume for the moment that the individual has five (5) cases.  Multiply this $150,000 amount by five separate copyright holders, and the individual could be looking at 5 x $150,000 lawsuits (= $750,000 in statutory damages separated into multiple lawsuits filed by different copyright holders all of whom hired CEG-TEK as their agent to enforce their copyrights) where the internet user has already admitted guilt.

Then, when the confused internet user who tried to settle calls CEG-TEK on the phone already having admitted guilt, what sort of leverage does the individual have if they are asked for more than $300 per title? Legally, they likely have no defense because according to the terms of the agreement, they already admitted guilt — even if the credit card transaction failing was not their fault.

So… Copyright Enforcement Group may be the “good guys” because they let attorneys negotiate away cases for vets, old ladies, and elderly gentlemen who don’t realize that they should be using a VPN when they download adult content, and CEG-TEK may serve the public good by demonstrating that piracy has gone down because of their efforts. While this is all true, remember: watch their contract, because caveat emptor still applies.

I don’t want to make this into a “you should have hired an attorney for your $300 matter” blog entry, but really, this is but one example of how even the “good guys” need to be approached with caution, and better yet, through a proxy by using an attorney. [I won’t even go into the conspiracy theories about CEG-TEK trying to get more than the $300 per title that is listed on the website.] Let’s stick to the facts and look at their contract to judge them on whether they are truly “naughty or nice.”


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.