Suspecting a common troll is behind the movie-based copyright lawsuits.

Introducing a ‘common troll’ theory of copyright trolling.

In this article, I elaborate a ‘common troll’ theory.  This ‘common troll’ theory suggests that copyright troll attorneys are not soliciting copyright holders to find clients for their law firm to sue.  Rather, it appears as if some ‘common troll’ is providing them the list of copyright holder names to sue under.

It is now three days later, and I am unhappy with the “ME2 Productions, Inc. Texas-based Copyright Infringement Lawsuits” article I wrote on Friday. For this purpose, I am providing a quick summary of the case and my thoughts about a ‘common troll’ theory.  That way, those implicated in this lawsuit will understand what appears to really be going on ‘under the surface.’

ME2 Productions, Inc. is the legal entity suing Comcast ISP subscribers for the download of the “Mechanic: Resurrection” movie with Jason Statham (think, “The Transporter”). This ME2 movie appears to have been shared on the Popcorn Time software at the same time as the Septembers of Shiraz movie, the “The Cell” movie, among others.

You might think the plaintiff attorneys were using the Popcorn Time app to solicit who to sue.

On Friday, I referred to this lawsuit as the “third leg” because the three movies were often mentioned within the context of the other two when defending a John Doe Defendant in Gary Fischman and Josh Wyde‘s concurrent lawsuits (September Productions, Cell Film Holdings). My ‘gut’ understanding was that someone who inadvertently clicked on the “The Cell” movie also downloaded the Mechanic: Resurrection movie. Why? Because they were likely next to each other on the Popcorn Time PC or cell phone app.

WHY POPCORN TIME USERS CAN GET ACCUSED OF COPYRIGHT INFRINGEMENT

Popcorn Time developers and I have exchanged a number of heated arguments over the years. My primary objection to them is that they lure users in with their professional appearance, they offer a VPN claiming to ‘hide’ the identity of the user when searching for the movie, but as far as I can recall, the VPN is not used when the Popcorn Time software connects to the internet via BITTORRENT and creates a conduit through which the user can watch the copyrighted movie without a license. Because Popcorn Time connects to BITTORRENT to serve the movie to their end user (making the end user the downloader for copyright infringement and liability purposes), the end user’s internet IP address is shared by the software in the bittorrent swarm (which is then monitored by the copyright holder), which is how the end user gets ‘caught’ and sued in federal court for copyright infringement.

Again, my arguments with Popcorn Time happened over two years ago, and I do not monitor their software.  All I know from the attorney perspective is that I am still getting clients sued as “John Doe” defendants in a number of cases, and too many of them are telling me they never used bittorrent — only Popcorn Time on their phone, or on their computer.

Popcorn Time might be how defendants are getting caught, but this is not where the plaintiffs are getting their clients.

Now I do not know whether the plaintiff attorneys solicited the copyright holders for the Mechanic: Resurrection movie and sold their services to enforce the copyrights just as they are doing so for the other production companies.  What is becoming apparent to me is that attorneys Gary Fischman and Josh Wyde are working for a common copyright troll.  This ‘common troll’ seems to be behind each of the movie lawsuits.

I suspect there is a common ‘copyright troll’ behind each of the lawsuits.

Just as one tugs at a string until the whole thing unravels, I have been tugging at the various ‘copyright troll’ cases for years now, and the ME2 lawsuit just smells like a Voltage Productions, Inc. scenario.

What does that mean in the conspiracy world of copyright trolling? In the copyright troll world, you usually have one or more entities, most popularly, a German company named Guardaley with various companies here in the US who employ local attorneys to ‘shake down’ downloaders of their copyrighted films. Similarly, there is the Voltage Pictures, Inc. company (possibly linked with Guardaley, possibly not), which contacts copyright holders in the US, and offers to monetize the copyrights owned by those production companies.

This Voltage Pictures entity would be the ‘common troll’ in this theory.  Why?  Because Voltage Pictures is not loyal to Dallas Buyers Club.  There is nothing that would stop them from soliciting other movie copyright holders, and monetizing their copyrights as well.

How a common copyright troll would sue under many movie production studios

Whether Voltage Pictures, Inc. (or whoever is this ‘common troll’ — at the time of writing this article, I suspect them to be Voltage), here are the steps:

  1. This ‘common troll’ entity signs an agreement with a movie company to allow them to create an entity using that movie company’s name.
  2. The ‘common troll’ engages in business parading as that movie company when really they are merely the licensee (the one receiving the license from the movie company to make as much money as possible for that company).
  3. The ‘common troll’ sues downloaders of the copyrighted movie while parading to be that movie studio, when really, they are not the holder of the copyright rights.
  4. The ‘common troll’ then solicits other movie companies to repeat steps 1-3.

This ‘common troll’ theory, and the idea of one ‘common troll’ filing lawsuits pretending to be another company is a scam which evaded many people and judges, myself included, for a long time.

My source for suspecting Voltage as being the ‘common troll’ behind this scam: The Dallas Buyers Club vs. Dallas Buyers Club lawsuit.  Couple this with the commonalities I have been seeing between each case, it is becoming apparent that there is a ‘common troll’ suing under the names of different copyright holder movie companies and running the same scheme as we saw with the Dallas Buyers Club cases.

Specifically, how was this scam applied to the Dallas Buyers Club, LLC cases

When a client was sued by Dallas Buyers Club, LLC, unbeknownst to anyone, they were sued by Voltage Pictures, Inc.

Voltage Pictures Inc. masqueraded as Dallas Buyers Club, LLC.   They even set up local Texas business entities using the name “Dallas Buyers Club, LLC.”  The movie company itself could have been called “Dallas Buyers Club, Inc.” incorporated in some other state. This sounds like minutia, but in the eyes of the law, this is a serious misrepresentation, maybe even rising to the level of fraud.

Why Agency Law applies settlements made to a ‘common troll’ apply to the real copyright holder.

For the clients I defended over the years, a dismissal against Dallas Buyer’s Club, LLC is binding on the real Dallas Buyer’s Club copyright holder.  This is true regardless of whether Dallas Buyers Club was cheated by the Voltage attorneys who signed the agreement.  Whether in the end they did or did not pay Dallas Buyers Club the royalties and settlement payments they were due according to their agreement is not your concern.

The reason for this is because the Dallas Buyer’s Club attorneys were acting as the agents of the real Dallas Buyers Club movie entity.

Moving Forward with knowledge of their scheme.

Nevertheless, the ‘behind the scenes’ activity which is hidden from even my eyes until one entity sues the other still is interesting to one implicated in the lawsuit (and it is useful in the defense as well should we begin inquiring as to the identity of the so-called copyright holder suing the John Doe Defendants).

Why I rejected the idea that Gary Fischman solicited ME2 Productions to be his client.

Because I did not properly explain how the Dallas Buyers Club scam applied to the ME2 Productions cases, I was unhappy with last week’s article.

Based on the growing evidence behind the hypothesis that there was a ‘common troll’, I threw out the suspicion that the attorneys were soliciting their copyright holder clients.  Specifically, the ME2 client did not materialize because Gary Fischman (ME2’s local counsel here in Texas) went from one copyright holder to another trying to “drum up business” and acquire new clients.

Rather, I am sensing that each of the lawsuits they are filing are coming from the same singular entity.  My best guess is that this ‘common troll’ entity is Voltage Pictures, Inc.  Alternatively or concurrently, I also suspect the German company Guardaley, IPP, or some shell entity of theirs.

This ‘common troll’ entity would instruct their network of lawyers across the US to “sue these internet users for the download of this or that movie,” and not much effort would go into actual contact with the movie company itself who spent the time and effort to make, produce, and film that movie.

My gut feeling is that this “Voltage / Guardaley / IPP” ‘scheme’ of licensing copyright rights for the purpose of suing defendants using the same attorneys for each copyright lawsuit is a scam which goes to the heart of possibly ALL of the “copyright troll” lawsuits filed across the US.

WHY A FINANCIAL INCENTIVE TO LITIGATE CREATES AN OVERZEALOUS COPYRIGHT TROLL ATTORNEY

The difference between the other copyright infringement attorneys I have fought against and Gary Fischman (including his counterpart, Josh Wyde) is that these two are zealous in their representation of their client. They are quick to name and serve a defendant, and they are quick to drum up paperwork in a court proceeding.  This is why I suspected that they weren’t just running a commission-based copyright troll scheme, as some other copyright trolls clearly do.  Rather, I suspect that they are actually getting paid by the hour by the copyright holders (or the entities masquerading as the copyright holders), and thus their incentive to be litigious is higher than the average copyright troll.

This is relevant to the John Doe Defendant because unlike the usual copyright troll attorneys who file lawsuits across the US using templates provided to them by the copyright troll, in Texas, the plaintiff attorneys appear to be more litigious and more aggressive because they appear to be paid for their time.  Either that, or they really care about suing downloaders accused of piracy and believe in what they are doing.

TO VILIFY GARY FISCHMAN & JOSH WYDE, THE TEXAS ‘COPYRIGHT TROLL’ ATTORNEYS, OR NOT TO VILIFY…

Unfortunately, as much as I would like to vilify the Texas-based ‘copyright troll’ attorneys Gary Fischman and Josh Wyde for even taking on the clients who sue defendants for the download of copyrighted videos, I cannot do so without also mentioning that they have *helped* a number of my clients get out of precarious situations. On the flip side, one of them has grossly misrepresented articles I have written on this blog to the point of their filing to the court being an intentional misrepresentation — taking words I have written on the blog [about the option to ‘ignore’ a copyright infringement lawsuit and its repercussions] completely out of context for their own benefit, and they have sometimes been unfairly harsh and overzealous towards clients of mine for no apparent reason, …akin to a lawyer who zealously fights to defend a rapist because that lawyer believes that even the rapist has the right to a fair trial. Now copyright trolling is far less offensive than representing a rapist, but because a copyright infringement lawsuit can devastate the savings of the average family, I have seen too many lives destroyed by copyright infringement lawsuits and thus I see the copyright holders not as rapists, but rather, as predatory.

On my end, whether the John Doe Defendant downloaded the copyrighted title or not, I still feel good about defending them against the copyright holders. I acknowledge the damage piracy does to the copyright holders (as do many of my clients), but I do not believe someone who clicks on a link should be held liable for statutory damages of $150,000 in a copyright infringement lawsuit, and so I defend them; any of them, even the worst ‘offenders’. And yet, as damaging as piracy is said to be for the copyright holders, a John Doe Defendant is not a predator. Rather, the other side — the Voltage Pictures / Guardaley entities of the world — are the predators, so to speak, and I would not represent a predator just as I would not represent a rapist. But my opposing counsel would, which is what separates us.

Vilifying the attorney who sues you feels good to do, but really, it is their client who is the predator. And while I wouldn’t take such a predator as a client in my practice, I stop myself from vilifying the attorney who takes them on as a client.

This isn’t a “defense attorney, good, copyright troll attorney, bad” article. Rather, I am hoping that this article will serve to be an insight for the Texas John Doe Defendant into the mindset of the attorneys on the plaintiff attorney’s side (especially since most movie-based copyright infringement lawsuits are filed by the same attorney working for what I believe is the Voltage/Guardaley/IPP entity as their client), because understanding the motivations of both the attorneys and their underlying clients (and true nature of the entities filing the lawsuits and their motivations, sometimes for a ‘quick buck’) can be helpful when defending a John Doe Defendant who is accused of copyright infringement or negotiating a settlement when “the deed (the unlawful download) is known and can be proven.”

KNOWN Texas Southern District Court ME2 Cases [Filed in 2017]:
Attorney: Gary Fischman (Fischman Law PLLC)

ME2 Productions, Inc. v DOES (Case No. 4:17-cv-00695)
Filed: March 4, 2017, Judge: Vanessa D. Gilmore

ME2 Productions, Inc. v. DOES (Case No. 4:17-cv-00501)
Filed: Feb 15, 2017, Judge: TBA

ME2 Productions, Inc. v. Does 1-12 (Case No. 4:17-cv-00404)
Filed: Feb 09, 2017, Judge: TBA

ME2 Productions, Inc. v. DOES (Case No. 4:17-cv-00275)
Filed: Jan 27, 2017, Judge: TBA

ME2 Productions, Inc. v. Does (Case No. 4:17-cv-00143)
Filed: Jan 17, 2017, Judge: TBA

Again, for an analysis of the other ME2 Productions, Inc. bittorrent-based cases filed across the US, click here. I hope this article has been insightful.


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.

ME2 Productions Bittorrent Lawsuits Have Come To Houston, TX

Introducing the ME2 Productions (“Mr. Church”) Move Lawsuits

Because the “ME2 Productions, Inc.” copyright infringement lawsuits appear to be the ‘third leg’ to the “September Productions, Inc.” (leg 1) and the “Cell Film Holdings, LLC” (leg 2) lawsuits, I felt compelled to write something about it.

This third leg of cases, each of which have been filed by Gary Fischman and Josh Wyde consist of four cases (and counting), each filed here in the TX Southern District Court. ME2 Productions, Inc. itself [through their local counsel across the US] has filed 112 cases so far, and each case appears to be following the same template. There are 10-20 John Doe Defendants per case, and the cases are spaced apart when filed, hoping that no proactive judge receives and consolidates all of the cases in one federal district (this has not yet happened in Texas).

ME2 CASES ARE STILL IN THEIR INFANCY IN TEXAS.

In Texas, the ME2 cases are still in their infancy, and all that has happened is that judges have rubber stamped what are called “expedited discovery” requests to allow the plaintiff attorneys to force the ISP(s) to send subpoenas to the account holders of those IP addresses where unlawful downloading is claimed to have happened.

As of writing this message, the Comcast / XFinity ISP has received three subpoenas, and has sent letters to the accused account holders (the “John Doe Defendants”) indicating that they should file an objection to the subpoena with the court before the ISP is forced to hand out the subscriber information to the plaintiff attorney.

As of now, there are three known ‘deadlines’ to file an objection (e.g., motion to quash) with the court — 3/2, 3/16 and 3/20 — corresponding to three of the four cases so far filed in Texas. I’ll update this article with the fourth date as soon as I get it.

WHAT MOVIE IS BEHIND THE ME2 CASES?

More generally, ME2 Productions, Inc. is suing for copyright infringement based on the the illegal download of the Mechanic: Resurrection movie, starring Jason Statham and Jessica Alba. (NOTE: If you are considering downloading any of the Transporter movies also with Jason Statham, I wouldn’t be surprised if we see lawsuits from the production companies for those movies as well in the near future based on a trend I’ve noticed in the past. Also be on the lookout for lawsuits for the ‘Transporter’ movies as well for this same reason).

NOTICING A CONNECTION BETWEEN THE ME2 AND EARLIER LAWSUITS.

Based on my conversations with the plaintiff attorneys who are attempting to sue downloaders of the Mechanic: Resurrection title, I understand that a number of those implicated in these lawsuits may have also been implicated in the September Productions, Inc. v. Does lawsuits for the download of the Septembers of Shiraz video and possibly also the Cell Film Holdings, LLC v. Does lawsuit for the download of the “The Cell” video.

For some reason, these three videos appear to be a trio, perhaps because they were shared on the piracy websites or Popcorn Time software platforms at the same time, or that there is some ‘contractual’ connection between the three movies (e.g., perhaps Voltage Pictures has signed an agreement with each of the three copyright holders giving Voltage a right to take on the movie production’s company name as they did with Dallas Buyers Club, LLC, to act and to sue on their behalf in order to ‘monetize’ and enforce the copyright rights those productions companies have from the creation of the copyrighted films).

I wrote this last paragraph very quickly, without much explanation. Do you even care if the company suing you is really Voltage Pictures, Inc. who has contacted the movie companies and said, “sign a contract with me — I’ll sue in your name and get lots of settlement money for you”? Bottom line, you are implicated as a John Doe Defendant in what looks to be a copyright troll lawsuit, Comcast is about to hand over your information to plaintiff attorneys Joshua Wyde and Gary Fischman, and you are staring down the barrel of a $150,000 copyright infringement for clicking and possibly watching a movie that may not have been any good.

WHY THESE CASES ARE BOTH SIMILAR AND SLIGHTLY DIFFERENT FROM CONVENTIONAL COPYRIGHT TROLL CASES.

In sum, whether this lawsuit indeed falls under “copyright troll” status or not, the plaintiff attorneys have taken great strides to mask the true nature of this lawsuit, namely, that this lawsuit will likely not go to trial for any of the defendants, because it is not economically profitable for the copyright holder (or Voltage Pictures, if this is the case) to spend the money to chase some student in Houston, TX and force a $150,000 judgment on them that the student will never and could never pay. Yet based on the documents I have seen these attorneys file in the court (sometimes even quoting this blog), they seem to want to litigate.

Whether they are paid hourly by their copyright holder clients (the production companies) or whether the simply take a commission based on a percentage of the settlement amount they elicit from the defendants (my gut feeling is that they are actually being paid hourly by their clients which gives them an incentive to spend more time filing documents in the court) they do spend significant amounts of time drafting motions, and they do spend the money to name and serve defendants, and they DO fight the case *as if* they were taking each John Doe Defendant to trial. Whether this is because they are trying to overcome the bias the federal judges in Texas have against the pornography bittorrent cases which wasted the past seven years of the court’s time or because they are trying to prove the legitimacy of bittorrent based copyright infringement lawsuits, bottom line, they are fighting these cases differently from the way other plaintiff attorneys have fought them in recent years.

What to do if you are sued for a movie you did not download?

So here is the solution. If you did not download the Mechanic: Resurrection movie, then fight back. Hire an attorney (me, or any other attorney) to fight your case. If you did the download, well, there are also solutions found with an attorney, but you knew this already, and it will require both sides to be reasonable to come to an amicable solution.

I did not mention this before, so I am mentioning this here since it is relevant — it is not profitable for a movie company to bring a copyright infringement lawsuit to trial. This gives us on the defense side leverage to either come to an amicable solution, or to fight back and force them to dismiss. The plaintiff attorneys Josh Wyde and Gary Fischman will fight back, but facts are facts, and justice is for the most part blind. If they cannot prove that it is more likely than not that you were the downloader of the copyrighted movie, then they cannot find you guilty for copyright infringement.

An unintended consequence of fighting back.

NOTE: An unintended consequence of fighting back from a purely academic perspective is that doing so forces the copyright holders to focus their set of John Doe Defendants to those downloaders to whom they can prove did the download, because each ‘misfire’ (meaning, each John Doe Defendant who did not do the download and who fights back) costs the copyright holder severely, and we have said for years that this would be the demise of the ‘copyright troll’ model if they sue without vetting their data as to which John Doe Defendants apparently did what and when. Make it too expensive to blindly name and serve (without vetting the John Doe Defendants first), and their model falls. However, fight back, and they will focus and limit their list of John Doe Defendants to those who subscribers (or their family members) who actually did the downloading, and this will only feed back into their cash stream by encouraging settlements to avoid being named and served, sued, and found liable for copyright infringement. It’s a messy problem.

Known Mechanic:Engineering Movie Lawsuits Filed in TX

KNOWN Texas Southern District Court ME2 Cases [Filed in 2017]:
Attorney: Gary Fischman (Fischman Law PLLC)

ME2 Productions, Inc. v DOES (Case No. 4:17-cv-00695)
Filed: March 4, 2017, Judge: Vanessa D Gilmore

ME2 Productions, Inc. v. DOES (Case No. 4:17-cv-00501)
Filed: Feb 15, 2017, Judge: TBA

ME2 Productions, Inc. v. Does 1-12 (Case No. 4:17-cv-00404)
Filed: Feb 09, 2017, Judge: TBA

ME2 Productions, Inc. v. DOES (Case No. 4:17-cv-00275)
Filed: Jan 27, 2017, Judge: TBA

ME2 Productions, Inc. v. Does (Case No. 4:17-cv-00143)
Filed: Jan 17, 2017, Judge: TBA

For an analysis of the other ME2 Productions, Inc. bittorrent-based cases filed across the US, click here.


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.

How an attorney should handle a Siemens PLM Software Lawsuit

Because software-based copyright infringement cases are especially concerning the John Doe Defendants who are accused of using pirated software (such as what is going on right now with the Siemens PLM Software v. Does [4:16-cv-03552] case in Texas), I thought it would be beneficial to take a few moments and simplify the process. That way, when you pay an attorney, you will know exactly what the attorney will be doing.

Steps an attorney should take in representing a defendant in a Siemens PLM case.

Here are the steps your attorney (us, or anyone else) should be taking on your behalf — specifically with the Siemens Product Lifecycle Management Software Inc. v. Does 1-100 (Case No. 4:16-cv-03552) case:

STEP 1) STOP PLAINTIFF FROM CONTACTING YOU OR ANYONE ELSE ON YOUR BEHALF (WORKPLACE) ABOUT THE CLAIMS AGAINST YOU.

Once your plaintiff attorney learns that you are represented by an attorney, all communication must be with that attorney alone. Phone calls or letters to client directly once a notice of representation is provided can jeopardize that attorney’s law license.

STEP 2) RESEARCH AND DISCUSS CLAIMS COMPARING PLAINTIFF ATTORNEY’S DATA OF USE VERSUS ACTUAL USE OR NON-USE.

Siemens PLM likes to research the claims, and they take their time in getting the entire picture before discussing settlement. It is important to share truthful information with your defense attorney so that claims against you can be disputed with facts and dates. And obviously, your attorney should have the common sense to discuss the claims without admitting guilt on your behalf.

STEP 3) DISCUSS AND NEGOTIATE SETTLEMENT OPTIONS WITH PLAINTIFF ATTORNEY, WHETHER A SOFTWARE PURCHASE, A LICENSE, A SETTLEMENT FEE, OR NO SETTLEMENT (PROCEED WITH LAWSUIT).

Normally the plaintiff attorneys in a copyright infringement lawsuit (or more frequently, a bittorrent-based “copyright troll” lawsuit) will immediately approach a settlement regardless of guilt or wrongdoing. This is not the case with the Siemens PLM Software lawsuits. Rather, it appears as if they are seeking to convert those using unlicensed versions of their software into paying customers. For this reason, once the investigation is completed and claims are discussed, settlement options are discussed as well. This might include purchasing software, paying a settlement, or negotiating a license based on the limited past use of the software.

The “no settlement” option is obviously the scenario where the client did not do the download. Because Siemens PLM software is expensive (costs can range from a few thousand dollars to over ten thousand dollars), there is no reason to negotiate a settlement if the accused John Doe Defendant did not download or use the software. Rather, the alternative is to provide proof that the John Doe Defendant is not the individual Siemens PLM is looking for (it is difficult to prove a negative, but it is doable), or to help Siemens PLM come to the realization that the actual software user is the engineer next door running his business from his home.

Obviously if neither side can agree on anything, then yes, it makes sense to proceed to allow the plaintiff attorney to name and serve your client, file an answer with the court, and proceed with defending your client’s interests in the courtroom.

STEP 4) NEGOTIATE PRICE (IF BENEFICIAL, CONSIDERING CLIENT’S ABILITY TO PAY). PROVIDE DOCUMENTATION OR STATEMENT IF NECESSARY TO SUBSTANTIATE CLAIMS.

Many accused defendants installed the software for educational purposes — to ‘tinker’ with the software, to learn the software, or to become conversant with the software. While the intention of the unlicensed use is noble (e.g., that user would later be working with a licensed version of the software at their workplace or in their business), for the moment, there was folly in their initial use of the software. This is our goal — to have these specifics be relevant and useful in a negotiation with Siemens PLM to arrive at a settlement price the client can afford.

STEP 5) NEGOTIATE TERMS OF SETTLEMENT AGREEMENT. NEGOTIATE A SOFTWARE LICENSE IF NEEDED OR REQUIRED.

These are two separate steps. The settlement agreement should be specific to the claims of copyright infringement, and they should include the nuances of Texas contract law in order to ensure the agreement is enforceable. The software license also is full of nuances and words that requires an attorney who knows what terms mean in software licenses (because certain words have meanings in the context of a software license which are contrary to the plain meaning of the word), and who is forceful enough to be willing to argue for terms or clauses which protect the client’s rights. Lastly, the software license should provide the accused John Doe Defendant the right to use the software in the way the accused defendant wants or needs to use the software in the future. It makes no sense to negotiate a limited software license to cover only past use when the defendant is an engineer and will be needing to use the software again in the future.

STEP 6) HAVE PLAINTIFF ATTORNEY SIGN AGREEMENT(S), THEN HAVE CLIENT SIGN AGREEMENT(S) AND PROCESS SETTLEMENT PAYMENT.

This is self explanatory. Siemens PLM is not bound to an agreement until they sign it (or until their attorney with authority to sign signs it on their behalf as their agent). Attorneys generally try to get the John Doe Defendant to sign first and pay their settlement fee, and then ‘maybe’ the plaintiff attorney will sign it, and ‘maybe’ the attorney will accept the payment, and ‘maybe’ the attorney will release that defendant from liability once the settlement is received. These are games a plaintiff attorney may play, and for this reason, it is advisable to have the defense attorney insist that the plaintiff attorney sign the agreement first in order to bind their client to the terms of the agreement… before their client signs the agreement or pays a penny in settlement of the claims against them.

STEP 7) FOLLOW-UP WITH PLAINTIFF TO HAVE CLIENT’S “JOHN DOE” ENTITY DISMISSED FROM CASE.

Once again, this is self explanatory, but unfortunately, it must be a step. Too often, plaintiff attorneys have the clients sign first and pay first, and then when they get around to it, they’ll sign the agreement and release that defendant from liability. However, this could take weeks or months.

The reason for this is because once their client has their money, without being contract-bound to release the defendant from the lawsuit, the John Doe Defendant who paid their settlement fee becomes a lower priority to the busy plaintiff attorney (who is juggling sometimes hundreds of defendants in multiple cases) who is more worried about the due dates for their other cases, or who is more worried about extracting settlements from other defendants. This is why it is important in STEP 6) for the plaintiff attorney to sign the agreement first.

Nevertheless, even with a signed agreement, sometimes the plaintiff attorneys need ‘reminders’ to do what they are duty-bound to do. Thus, your attorney should not close the client’s file when payment is sent, but rather, the attorney should stay on top of the plaintiff attorney until the dismissal is actually filed in the court dismissing that John Doe Defendant from liability.

In sum, copyright infringement cases are all similar, but each one has its nuances. The steps described in this article apply to any John Doe Defendant in any copyright infringement lawsuit, and for this reason, I wrote this article 1) to not only give the client an understanding of the steps which are required in representing a client prior to being named and served in a John Doe lawsuit, but more importantly, 2) to allow that client to hold their lawyer’s toes to the fire and make sure they are being represented carefully and individually.

LEVERAGE:

ONE LAST THING — I wanted to discuss LEVERAGE. A copyright infringement lawsuit is in federal court, which means that out-of-state attorneys may attempt to solicit clients to engage in settlement negotiations only. However, with a client as large as Siemens PLM, especially with the financial backing of the corporation and the millions of dollars they can pour into their lawsuits, it is probably a good idea to retain an attorney who can step foot into the courtroom if something goes wrong (and things DO go wrong). The Siemens PLM attorneys can recognize an out-of-state attorney who has little leverage to negotiate versus an in-state attorney who is willing to pull the settlement off of the table and proceed with defending the case if the plaintiff is not being cooperative in resolving the claims against the client. In short, an attorney with leverage will get a better result for his client as compared to an out-of-state attorney without leverage.

OTHER ARTICLES ON THE SIEMENS PLM SOFTWARE CASES:

Siemens PLM NX-based lawsuits – converting accused engineers into loyal customers, on 1/9/2017.

Software Developers are now tracking piracy through the USE of downloaded software, on 9/9/2016.

Siemens Software Case IS a Bittorrent Case, on 6/20/2016.

What to do about the Siemens Product Lifecycle Management Software Inc. v. Does case (TX), on 1/16/2016.


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.

Siemens PLM converting NX software pirates into customers.

Siemens PLM has been suing engineers as “John Doe” Defendants

Siemens PLM Software has been suing engineers as ‘John Doe’ Defendants in federal courts.  The lawsuits are for the piracy of their NX software since it was in version 7 (so far, I have seen claims against users of NX 7, NX 8, NX 8.5?, but not yet for NX 9, NX 10, or NX 11 — all of which are available on the bittorrent networks). Most recently, I have seen lawsuits focusing in on the unlawful use of the Solid Edge ST9 Foundation software.

In June, I wrote the “What to do about the Siemens Product Lifecycle Management Software Inc. v. Does case (TX)” article which provided specific information surrounding the lawsuit from information acquired from the Siemens PLM lawyers themselves. However, back then, there was much still unknown, and now (almost 6 months later), I have a much better idea of how this is happening, what Siemens PLM is doing to catch those using the software illegally, whether claims of piracy are leaking over to the employers of the engineers who use the pirated software at their workplace, and how they are handling claims against those defendants, both in and out of the courtroom.

What you need to know about these lawsuits is that the Siemens PLM lawsuits still deceptively look like “copyright troll” lawsuits, but they are not. I will get into this momentarily.

*UPDATED* LIST OF FEDERAL COURT CASES FILED:

IN THE CONNECTICUT DISTRICT COURT:
Siemens Product Lifecycle Management Software Inc. et al v. Demin (Case No. 3:16-cv-00553)

IN THE NEW YORK SOUTHERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. Does 1 – 100 (Case No. 1:14-cv-01926)
Siemens Product Lifecycle Management Software, Inc. v. Does 1-50 (Case No. 1:11-cv-08469)

IN THE OHIO SOUTHERN DISTRICT COURT:
Siemens Product Lifecycle Management Software In v. Manufacturing Services International, Inc. (Case No. 3:16-cv-00182)

IN THE PENNSYLVANIA EASTERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. Does 1-50 (Case No. 2:12-cv-06795)

IN THE TEXAS EASTERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. BTL Machine, Inc. (Case No. 4:14-cv-00506)
Siemens Product Lifecycle Management Software, Inc. v. Does (Case No. 4:15-cv-00582)
Siemens Product Lifecycle Management Software, Inc. v. Mercury Metal Forming Technologies, LLC (Case No. 4:14-cv-00002)
Siemens Product Lifecycle Management Software Inc. v. Does (Case No. 4:15-cv-00017)
Siemens Product Lifecycle Management Software Inc. v. TWIVision Engineering Group, LLC (Case No. 6:11-cv-00679)

IN THE TEXAS SOUTHERN DISTRICT COURT:
Siemens Product Lifecycle Management Software Inc. v. Does (Case No. 4:16-cv-03552)
Siemens Product Lifecycle Management Software, Inc. v. Does 1-100 (Case No. 4:16-cv-01422)

JOHN DOE DEFENDANTS ARE GETTING CAUGHT THROUGH THE *USE* OF THE SOFTWARE, NOT THROUGH THE ACQUISITION OF THE SOFTWARE.

In September of 2016, I was still piecing together how a person can get caught not through the download of pirated software via BitTorrent, but through the USE of that software (that article is still available for viewing, although the picture is more clear to us now as I describe my current understanding of it here, specifically tailored to the Siemens PLM Software-based lawsuits).

As we’ve learned, most Siemens PLM NX Software available for download on the piracy websites comes with a serial number (“SN”) and an “activator” which modifies the application to allow it to accept a random password that the SN activator generated.  (Not relevant, but still interesting to know:  The serial number + details about the computer or laptop upon which it is installed creates a “Unique ID” which can be checked with valid IDs on the server; this circumvents a computer from using a “valid” registration code for a computer for which that registration code was not licensed to.  Thus, even though the serial number activator provided the software with a valid serial number, the company servers know the software is pirated.)

This application modifier is known as a “crack,” and software which is altered to accept the serial number generated by the crack thinks locally (that is, on the laptop in which it was installed) that the software was properly acquired, purchased, and lawfully registered. Most cracks also revert the executable file used to run the file back to its original unaltered state once the software has been registered.

The problem is that even cracked software connects to the internet, for example, to access libraries in the program file which are stored on the company’s servers. In other words, for economy purposes, it would take up too much hard drive space to store every piece of a large multi-gigabyte-sized program on each person’s hard drive. Thus, companies now store core components of their software on their servers. This is generally referred to as “cloud-based software,” but what exactly is stored online with the Siemens PLM software is still unknown (and they keep this purposefully undisclosed because they track the IP addresses of the computers who run the software and access these files online).

EVEN IF THE SOFTWARE HAS BEEN REGISTERED using a “SN and an activator,” (as provided on the bittorrent websites), when the software connects to Siemens PLM’s servers to access pieces of the software to run, if the registration code (or more accurately, the Unique ID, as described above) does not match a valid paid registration from their own records, that software unbeknownst to the user is flagged as being unlicensed, and the IP address is recorded.  We now understand that the software user is not made aware of this until he is implicated as a John Doe Defendant in a copyright infringement lawsuit.

EVERY TIME that user uses the NX software, another entry of unlicensed use is recorded (date, time, etc.) and the IP address of the internet connection used when accessing the software is also logged. This is how a Siemens PLM lawsuit against a John Doe engineer can leak over to his employer receiving letters for the infringement of their software, even when the software was acquired at the accused John Doe engineer’s home.

WHO IS THE TARGET OF THESE LAWSUITS.

I mentioned above that the Siemens PLM lawsuits look deceptively like “copyright troll” lawsuits, but they are not. Rather than extorting a few thousand dollars from every John Doe Defendant regardless of guilt, Siemens is looking for a particular defendant.

Siemens PLM Software wants to find the engineer who is providing “paid” engineering services, either 1) from his own laptop in his own small business, or 2) from his employer’s place of business where unbeknownst to the employer, that employee is bringing his unlicensed software to his workplace and using that pirated software at work [noting that his work does not own or pay for a license for the software].

In other words, Siemens PLM wants to find those engineers who are using their software but who are not paying a license for the use of that software, and they want to turn that enterprising engineer into a paying customer. Moreso, Siemens PLM wants to find that company (the employer of that engineer) who is benefiting from the unlicensed use of their software, and to turn that corporate entity into a “volume license” paying customer. This is where the “big bucks” are made.

WHAT IF YOU ARE A STUDENT?

Students are a different story than paid engineers. Just as law students are fed unlimited free case lookup services and are encouraged with points and free coffee mugs for using as much of services as they can [only to be hit with a multi-thousand-dollar subscription upon graduation for what a few days ago was free (think, WestLaw, LexisNexis)], engineering students are seen as the same “cash cows” for Siemens PLM as law students are seen by the WestLaw/Nexis case lookup services. A poor engineering student today is seen by Siemens as a future subscription-based customer for the rest of his working career, and if not, that engineer’s employer will be a “volume license” customer which is even more profitable for Siemens.

If you have not yet figured this out, I have found that engineering students (and those individuals who are smart enough to figure out that the NX software has specific applications for use in conjunction with their 3D printers) find themselves in the spider web of these lawsuits more than anyone else. These individuals ‘mess around’ with the software in ways which do not provide them an income (what we call “non-revenue-producing use,” or “personal use”). Rather, they use the NX software (or more recently, the Solid Edge ST9 software) to gain professional skills knowing that if and when these students do find employment, use of the Siemens PLM software will become a necessity. So the students download it, play around with it, then get sued and call me fearing that their professional lives are over.

But no attorney at Siemens PLM — not Robert Riddle, and certainly not Steven Dietz — wants to end the financial life of a future customer. Aside from the fact that a student has no assets to seize, it is my understanding that Steven Dietz would rather turn that student into a loyal customer. For this reason, I have been able to accomplish resolutions of claims with students in a way in which is simply not available to the engineer who uses Siemens PLM’s unlicensed software for profit.

That is not to say that an engineer won’t be able to “get out” of this lawsuit — it simply takes a bit more work, perhaps paying Siemens PLM a settlement fee based on their particular circumstances (read that again carefully), and based on what software was allegedly used, what module add-ons were used or needed, whether the use was for personal or business reasons, and whether use of the software is still needed in the future.

The Engineer-Student Roommate Scenario

Lastly, [since I am listing scenarios I’ve seen over the past few months,] non-engineering students who have roommates or suitemates who are engineering students also have been the recipients of the subpoena letters from their ISP (most recently, Comcast). While Siemens does not see the non-engineering student or enterprising 3D printer genius as a future customer, your engineering roommate or suitemate is still seen as such, and thus involving him or her as part of the solution can easily fix a $150,000 copyright infringement lawsuit against you.

In sum, Siemens wants to convert those illegally using their software into customers.

So as you see, Siemens PLM looks like a copyright troll, but they are not. Their attorneys are often not interested in merely a settlement, but in converting the accused John Doe software user into a customer (or, as a future customer). This means that settlements are accepted where there is a future benefit to Siemens PLM, as they are not looking to use the lawsuits as a means to “cash out” or to “punish pirates.” Obviously this could change, and there have been circumstances where it is more feasible to simply defend a client by representing him or her in the federal court rather than having him agree to anything he or she did not do, but for the most part, Siemens PLM seems to be straightforward on what they seek to accomplish with these lawsuits.

OTHER ARTICLES ON THE SIEMENS PLM SOFTWARE CASES:

How an attorney should handle a Siemens PLM Software, Inc. lawsuit, on 1/11/2017.

Siemens PLM NX-based lawsuits – converting accused engineers into loyal customers, on 1/9/2017.

Software Developers are now tracking piracy through the USE of downloaded software, on 9/9/2016.

Siemens Software Case IS a Bittorrent Case, on 6/20/2016.

What to do about the Siemens Product Lifecycle Management Software Inc. v. Does case (TX), on 1/16/2016.


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.

Malibu Media, LLC cases facing hard scrutiny in California.

Let’s take this one step deeper, and delve into the 100 most recent cases filed in October, because these are the Malibu Media, LLC cases most relevant to people now (the July-August batch of cases have likely been disposed of by now).

Of the 109 cases, roughly EIGHTY of them were filed in the California Northern District Court, and EACH AND EVERY CALIFORNIA CASE was assigned to Judge William Alsup (going back to even 2011, I referred to him as ‘Judge Rocket Docket’ by the way he handles and disposes of cases). In my humble opinion, it appears to me as if Malibu Media here stepped in the mud.

[FOR IMMEDIATE CONTACT AN ATTORNEY: Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.  To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.]

Here are a list of the cases. I’ll write my opinion about them in just a moment.:

80 CASES FILED IN 10/2016 IN THE CA NORTHERN DISTRICT COURT (CAND) — [I’m not formatting these.  Just note the filing dates.]
Malibu Media LLC v. Doe (Case No. 3:16-cv-05741) Oct 06, 2016
Malibu Media LLC v. Doe (Case No. 4:16-cv-05742) Oct 06, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05742) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05737) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05738) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-05741) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05739) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 4:16-cv-05735) Oct 06, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05735) Oct 06, 2016
Malibu Media, LLC v. John Doe (Case No. 5:16-cv-05743) Oct 06
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-05743) Oct 06
Malibu Media LLC v. Doe (Case No. 3:16-cv-05825) Oct 09, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05829) Oct 09, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05827) Oct 09, 2016
Malibu Media LLC v. Doe (Case No. 4:16-cv-05828) Oct 09, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-05826) Oct 09, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-05829) Oct 09, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05826) Oct 09, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05828) Oct 09, 2016
Malibu Media, LLC v. John Doe (Case No. 5:16-cv-05824) Oct 09
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-05824) Oct 09
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-05823) Oct 09
Malibu Media LLC v. Doe (Case No. 4:16-cv-05850) Oct 11, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05845) Oct 11, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05848) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05847) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 4:16-cv-05845) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05849) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 4:16-cv-05848) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05850) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 4:16-cv-05849) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-05855) Oct 11, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05855) Oct 11, 2016
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-05843) Oct 11
Malibu Media, LLC v. John Doe (Case No. 4:16-cv-05843) Oct 11
Malibu Media LLC v. Doe (Case No. 3:16-cv-05925) Oct 13, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05926) Oct 13, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05920) Oct 13, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05927) Oct 13, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05921) Oct 13, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05922) Oct 13, 2016
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-05923) Oct 13
Malibu Media LLC v. Doe (Case No. 3:16-cv-05974) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05976) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 5:16-cv-05975) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05975) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 4:16-cv-05977) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-05977) Oct 17, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05970) Oct 17, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05972) Oct 17, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-05973) Oct 17, 2016
Malibu Media LLC v. Doe (Case No. 4:16-cv-06108) Oct 23, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06110) Oct 23, 2016
Malibu Media LLC v. Doe (Case No. 4:16-cv-06109) Oct 23, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06111) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06106) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-06110) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-06111) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06107) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06108) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06112) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06109) Oct 23, 2016
Malibu Media, LLC v. Doe (Case No. 4:16-cv-06107) Oct 23, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06160) Oct 25, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06146) Oct 25, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06147) Oct 25, 2016
Malibu Media, LLC v. Doe (Case No. 5:16-cv-06160) Oct 25, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06155) Oct 25, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06141) Oct 25, 2016
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-06144) Oct 25
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-06143) Oct 25
Malibu Media LLC v. Doe (Case No. 3:16-cv-06241) Oct 28, 2016
Malibu Media LLC v. Doe (Case No. 3:16-cv-06242) Oct 28, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06245) Oct 28, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06239) Oct 28, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06247) Oct 28, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06240) Oct 28, 2016
Malibu Media, LLC v. Doe (Case No. 3:16-cv-06249) Oct 28, 2016
Malibu Media, LLC v. John Doe (Case No. 3:16-cv-06243) Oct 28

My first impression when reviewing these cases was… why did they file them in batches of 10-13 cases or less?  Were they trying to ‘play’ the case distribution game in order to make sure the cases were equally distributed between all of the California Northern District federal judges?  Because this backfired on them.  Judge Alsup has all of their California cases.

I actually smiled when I saw that each of the cases are now assigned to Judge Alsup, because he has been known to question Malibu Media’s tactics. Let me say this more clearly — Judge Alsup knows exactly who Malibu Media, LLC is, what kind of copyright trolls they are, and he makes no secret about it. He is even on the record in casting doubt on the reliability and the accuracy of the geolocation data that Malibu Media uses to file their lawsuits.

Most recently, on December 1st (see, Case No. 3:16-cv-05738 (Document 8), Judge Alsup denied 53 requests by Malibu Media to send letters to the ISPs ordering them to turn over the identity of the accused internet users, which means that 53 of the 80 California ‘John Doe’ defendants in these cases (maybe more by now) will be shielded from Malibu Media, LLC’s copyright infringement lawsuits and tactics.

IN SUM, BECAUSE JUDGE ALSUP DENIED MALIBU MEDIA LLC’S MOTION FOR EXPEDITED DISCOVERY, MALIBU MEDIA LLC WILL NOT BE PERMITTED TO SEND SUBPOENAS TO THE ISPs ORDERING THEM TO HAND OVER THE CONTACT INFORMATION FOR THESE DEFENDANTS.

I have not checked whether anything has happened since 12/8, but in short, if you live in California, Malibu Media is not doing so well.

Sources and Kudos to:
Fight Copyright Trolls, “Judge Alsup questions accuracy of Malibu Media’s geolocation technology, stays subpoena” on 6/20/2016, updated on 12/6/2016.

Fight Copyright Trolls, ““Malibu Media’s geolocation accuracy: more scrutiny” on 6/21/2016.

Techdirt, “Judge Calls Out Malibu Media For Its Attempt To Cut And Run When Faced With Challenge To Its Infringement Claims” on 6/27/2016.

More Recent TorrentLawyer Articles on Malibu Media, LLC:

Malibu Media, LLC appears to be adhering to an ‘Old Guard, New Guard’ distinction between their older and newer attorneys,” written on 3/13/2017.

Confirmed: Malibu Media invests in $400 filing fees at $20,000/month,” written on  3/13/2017.

2017 Malibu Media – Where Cases Are Filed and Who are the Attorneys?” written on 3/13/2017.


FOR MORE INFORMATION ABOUT MALIBU MEDIA, LLC:  Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.

FOR IMMEDIATE CONTACT AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.

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.

Malibu Media, LLC appears to be on a $20K/mo. filing budget.

Yesterday, I wrote about how the Malibu Media, LLC filings stopped dead towards the end of April 2016, and continued for three months (~90 days) to be SILENT… NOT EVEN ONE new case was filed.

Until July 21st, where over the next month, Malibu filings came in with a rush of 134 new cases — 75 in the last ten (10) days of July, and then another 59 cases in August — and then again… SILENCE.

Until October, where someone at Malibu pulled a lever, and each of their local attorneys filed roughly ten cases every few days until a total of 109 cases were filed, but then again… SILENCE.

[FOR IMMEDIATE CONTACT WITH AN ATTORNEY: Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.  To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.]

So I thought Malibu Media, LLC was dead… until they started filing again.

After Lipscomb and Malibu Media, LLC parted ways in April, I thought Malibu Media — the largest copyright troll ever (have you ever known any person or entity to file 6,800 cases for ONE CLIENT?) — was dead. But rather than being a dead copyright troll, it occurred to me that not only is Malibu Media, LLC still “alive,” so to speak, but the pattern in which they are filing their cases actually replicates a monster [or troll] BREATHING.

You might ask yourself whether I just claimed that Malibu Media is breathing, and I am answering YES. Every 90 days, they are coming out with roughly 100 cases, like the breath of a dragon, or in in the spirit of their name, like the ebb and flow of the waves that crash across the Malibu shores.

That sounds all artistic, but really, there appears to be a hard-nosed money number behind their filings. $20,000. Malibu Media, LLC appears to be trying to keep their monthly filings costs to $20,000/month.

How? (admittedly, this is a stretch, but there is a point.)
July = 75 filings x $400 per filing = $30,000
August = 59 filings x $400 per filing = $23,600 (-16 cases)
September = ZERO FILINGS. (-75 cases)
October = 109 filings x $400 per filing = $43,600
November = ZERO FILINGS. (-75 cases)
December = ZERO FILINGS. (-75 cases)

TOTAL CASES FILED in two quarters: 243 cases / 5 months = avg 48.6 cases/mo.
~50 cases/mo (rounding up) /6 months = $20,000/mo.

Okay, so what does that mean for me or for you? Nothing… except to expect another 100 filings in January 2017 ...but not in California.


FOR MORE INFORMATION ABOUT MALIBU MEDIA, LLC:  Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.

FOR IMMEDIATE CONTACT AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.

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.

Was Malibu Media’s settlement extortion scheme profitable?

Lipscomb claimed that the Malibu Media, LLC cases were not profitable.

In my last article, I mentioned that “On April 18th, 2016, Keith Lipscomb told all of his local counsel that he is no longer representing Malibu Media, LLC (citing a lack of profitability).”

[FOR IMMEDIATE CONTACT WITH AN ATTORNEY: Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.  To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.]

Was Lipscomb right? Were the Malibu Media LLC v. Doe lawsuits no longer profitable?:

I thought a lot about this one, and I will answer it using fuzzy numbers (rough estimates).

Malibu Media, LLC filed 6,800+ lawsuits in federal courts.  Since the start of their lawsuit, the cost of filing a lawsuit increased to $400.

$400 filing fee/case x 6,800 cases = $2.7 Million in filing fees (likely $2.4 mil based on the fee change because the filing fee was not always $400).

6,800 cases, estimate 10% pay a settlement fee (one out of every ten John Doe Defendants), and assume an average settlement amount of $10,000.  [6,800 cases x .1 settlement rate = 680 settlements x $10K/settlement = $6.8 Million in settlement funds received].

But what if the average settlement was $8,000 but they didn’t tell you about that, and only 5% actually paid the settlement?  Then the numbers would look like this: [6,800 cases x .05 settlement rate = 340 settlements x $8K/settlement = only $2.72 Million in settlement funds received].

Now the local attorneys who “extract” the settlement likely get a 30% piece of the settlement.  So let’s assume 30% in commissions goes to the local counsel. [$2.72 Million in settlements received x .7 [that’s 70% after the 30% attorney cut] = $1.9 Million Left for Lipscomb].

Subtract the $1.9 Million Left for Lipscomb from the $2.7 Million in filing fees paid, and Lipscomb has a loss.  Likely a businessman like Lipscomb would see this coming and would not allow 6,800 cases to be filed if they were not significantly more profitable.  Thus, I think my original numbers were more accurate (if not, Lipscomb was not a smart businessman and is about to file for bankruptcy).

Going back to the original numbers, even if you take the original assumptions of a 10% settlement rate, and an average settlement of $10K (=$6.8 Million), minus the local counsel’s 30% cut, that leaves a net profit of $4.76 Million Left for Lipscomb.  Minus the $2.7 Million in filing fees from the $4.76 Million Left for Lipscomb, and that leaves a $2 Million Net Profit, but Lipscomb only paid Malibu Media $100,000 (which would be a 5% commission rate to Malibu Media, LLC).

Thus, based on what the real numbers actually were, I do see how Lipscomb may be able to claim that the copyright trolling campaign was not profitable for him.  My best guess is that the truth of what the numbers really were are somewhere in between my estimations, however, the only way we will be able to learn the truth is 1) if it comes out in discovery in the Malibu v. Lipscomb lawsuit, or 2) if the feds analyze their books.


FOR MORE INFORMATION ABOUT MALIBU MEDIA, LLC:  Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.

FOR IMMEDIATE CONTACT WITH AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.

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.

Did Malibu Media almost go out of business in April 2016?

So we all thought the Malibu Media, LLC lawsuits were dead this summer after Malibu Media sued their attorney Keith Lipscomb (a.k.a., the “kingpin” and “mastermind” behind the 6,800+ lawsuits filed against single “John Doe” defendants)). If you want a quick summary, here seems to be the jist of what happened.

  • Malibu Media, LLC hired Lipscomb to run their copyright infringement / settlement extortion scheme utilizing his network of attorneys spanning the federal courts across the US.
  • Lipscomb appeared to have pulled in hundreds [maybe thousands] of settlements, each settlement likely amounting to $10,000-$30,000, or more.
    (NOTE: This dwarfs the settlement monies collected by Steele & Hansmeier, now arrested for mail fraud, wire fraud, and perjury allegedly committed in the furtherance of their copyright troll scheme.)
  • Lipscomb apparently paid Malibu Media, LLC only $100,000 in commissions (the equivalent of ten settlements [10 x $10,000 = $100K]), but then never paid Malibu Media again.

[HINDSIGHT: MALIBU MEDIA LLC CONTINUED FILING AFTER THIS, BUT JUST WITH A NEW ‘INVESTOR’.  FOR IMMEDIATE CONTACT WITH AN ATTORNEY: Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.  To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.]

What caused the lawsuit between Malibu Media, LLC and Lipscomb?

The relationship between Lipscomb and Malibu became sour when Malibu Media, LLC became suspicious as to how they only earned $100K in commissions.  They demanded an accounting to determine whether they were being paid properly (this is still being litigated, but my guess is no; namely, that Malibu was being cheated by the lawyers they hired to extort others). Lipscomb claims that Malibu actually owes him money (to simplify the numbers, think — 6,800 lawsuits filed x est. $400/filing = $2.7 Million in filing fees alone). Malibu sued Lipscomb, they went to court, and in late April 2016, new Malibu Media, LLC filings stopped dead.

On April 18th, 2016, Keith Lipscomb told all of his local counsel that he is no longer representing Malibu Media, LLC (citing a lack of profitability), meaning that each of his local counsel were no longer representing Malibu Media, LLC, or so we thought. Wrong. Various local counsel continued the lawsuits already filed, but very few new suits were filed.

Here are the number of case filings since:
April 2016 Filings: 97
May 2016 Filings: ZERO!
June 2016 Filings: ZERO!
July 1- July 20 Filings: ZERO!
July 21 -> [end of month] filings: 75
August Filings: 59
September Filings: ZERO!
October Filings: 109 — FULL SPEED AHEAD? Nope.
November Filings: ZERO.
December Filings: ZERO…?

So, we are now in December (six months later), and Malibu Media LLC lawsuits are far from dead, or are they?!?

Here’s what I understand:
1) Lipscomb is no longer in charge of the Malibu Media, LLC lawsuits.
2) Individual attorneys (formerly, local counsel) appear to have taken Malibu Media, LLC as their own client, meaning that Malibu is creating relationships with each attorney, and each attorney appears to have a “territory” or a federal district court in which s/he practices.
3) I still think there is someone at Malibu Media, LLC headquarters (maybe Elizabeth Jones) still directing all of the attorneys.

In sum, Malibu Media, LLC and their lawsuits are not dead, at least not yet, but they continue to plague the federal courts and the accused downloaders with their high-ticket settlement prices, and thus they still need to be taken seriously, at least for now.

NEXT: Let’s go into the recent cases themselves to get an idea of what is going on with the last set of cases filed…

Sources:
Arstechnica: “File-sharing lawsuit numbers drop by more than half; both Malibu Media and Prenda Law have run into different roadblocks.” on 7/19/2016.

Techdirt: “Malibu Media Sues Its Former Lawyer Over Missing Funds, Breach Of Bar Rules,” on 6/29/2016.

Arstechnica: “Porn studio that sued thousands for piracy now fighting its own lawyer,” on 6/28/2016

Fight Copyright Trolls: “Malibu Media sues its former counsel Keith Lipscomb and his firm for professional negligence and breach of fiduciary duty,” on 6/28/2016


FOR MORE INFORMATION ABOUT MALIBU MEDIA, LLC:  Click here for more general information about Malibu Media, LLC lawsuits, their tactics, and their strategies.

FOR IMMEDIATE CONTACT WITH AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at [email protected], or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.

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 and Lipscomb – Star Crossed Lovers

As an attorney, unfortunately there is often information that I need to be tight-lipped about when discussing a case or a particular copyright holder. Malibu Media, LLC and their implosion with Keith Lipscomb (who ran each of their thousands of lawsuits filed across the US) was one such example, but not for the reasons you might consider.

This summer, I sat back and watched what was once one of the biggest copyright trolls and their scheme implode as the relationship between the attorney hired to represent their cases across the US (Keith Lipscomb) and Malibu Media, LLC crumbled. Regardless of the screams of autonomy each local counsel hired by Lipscomb claimed in the courts, it was still plain and obvious to me that Lipscomb was running each of the thousands of lawsuits filed against single “John Doe” defendants (not only because the filings were identical, and the court documents allegedly filed by different attorneys had the same spelling errors in each filing, but because every settlement payment — regardless of which local counsel was allegedly in charge of the lawsuit — went to Lipscomb’s Florida office).

Recognizing that there is ‘no honor among thieves‘, I laughed when I learned that Malibu Media sued Lipscomb for not paying them the settlement monies him and his attorneys extorted from hundreds if not thousands of John Doe Defendants across the US, and… he appears to have kept the settlement monies for himself.

However, the reason I stayed quiet was because I knew of something going on internally at Copyright Enforcement Group (CEG-TEK), and I saw a possible reality where Keith Lipscomb got into negotiations with CEG-TEK, and he got them to agree to send DMCA letters to thousands of accused downloaders through their ISPs, but instead of asking for a $300 settlement for one copyrighted title allegedly downloaded, he would list each-and-every title from his X-Art.com siterips.

Instead of CEG-TEK sending a notice for each title allegedly downloaded, Keith would have them send one notice for the siterip [when accessed by clicking a link on a bittorrent website, and that bittorrent file wold contain possibly 100+ titles to be downloaded]. However, when that unsuspecting user logged into CEG-TEK’s copyrightsettlements.com website using the username and password provided in the DMCA notice, each-and-every title in the X-Art Malibu Media siterip would have appeared. Thus, a $300 per accused downloader settlement could have easily turned into a $30,000+ per accused downloader settlement ($300/title x 100+ titles in the siterip). This could have even been exacerbated if Lipscomb asked for higher per-title settlement amounts, as his attorneys are accustomed to negotiate with other attorneys in the $750-$500/title range.

In my opinion, a Lipscomb-Siegel/CEG-TEK marriage would have been a nightmare, and because at the time CEG-TEK was changing their business model and shifting how they send out letters and to whom (remember the Girls Gone Wild fiasco?), the timing was right for Lipscomb to reach out to them, and I was concerned that they would have accepted his plan.

[In passing, I want to note that CEG-TEK had a shake-up as well over the summer. They were changing their business model from sending DMCA notices and soliciting small $300 settlements for copyright infringement claims for just a few titles to sending notices only to “more egregious downloaders” which in turn would increase the per-person settlement amount paid to CEG-TEK on behalf of their clients. They also appear to have been changing their client base by transitioning away from little porn companies to more well-known copyright trolls (e.g., Millennium Films, LHF Productions, etc.) — copyright holders who threatened to sue downloaders (and in at least one circumstance did sue at least one client of mine in federal court.) The point is that they were changing their image from being a company who’s clients didn’t sue to a company who’s clients do sue. Lipscomb fit their former profile of bringing pornography copyright holders to the table, and he matched their new profile because he brings a strong proclivity to sue defendants who ignored the notices. Thus in a possible reality, I saw Lipscomb meeting with CEG-TEK, and I did everything I could behind the scenes to avert this reality.]

Now we are roughly six-months later, and I am happy to share that the marriage between Lipscomb and CEG-TEK never took place, and CEG-TEK is no longer in a place where they would accept Keith Lipscomb or the $10K/client+ settlement amounts he would have brought to the table.

For this reason, I am sharing the story of this nightmare which — even though the ‘stars aligned’ — never happened (and thankfully, will never happen).

…there is new news for Lipscomb’s former Malibu Media, LLC client. I will post about that next.

[2017 UPDATE: This is bad news.  In my article, I wrote about how former Guardaley kingpin Lipscomb might have corrupted CEG-TEK.  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’s DMCA notice system getting corrupted may actually have happened, but I got the entity wrong.  It wasn’t CEG-TEK’s system that was corrupted, it was Crowell’s reverse-engineered ‘evil twin’ copy of CEG-TEK which we now see in RIGHTS ENFORCEMENT.]


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.

JOHN STEELE ARRESTED.

johnsteelearrested

We learned this morning that John Steele was arrested under 17 counts of mail fraud, wire fraud, money laundering, and perjury. I have detailed the charges lower down in the article, and a link to the Star Tribune article can be found here (and sincere kudos to both DTD & SJD for breaking this story).  The link to the indictment itself can be found here.

For those of you who became readers more recently, one of the first prolific copyright trolls was John Steele, formerly from Steele Law Firm PLLC, then from Steele|Hansmeier, then most popularly, from #Prenda Law Inc. (that last name even earned itself a hashtag and a group of followers on Twitter).

John Steele hired many lawyers across the US who acted as his “local counsel” just as Keith Lipscomb later did on a larger scale with the Malibu Media, LLC [x-art.com] copyright holder. [As I’ve written before, I believe that Voltage Pictures, Inc. is doing the same thing in a manner which has not yet become public knowledge with their Dallas Buyers Club, Fathers & Daughters, September Productions, Cell Productions, and a number of other non-pornographic copyright infringement cases slowly making their way through the federal courts.]

The relevance here is that John Steele was the original kingpin, and TODAY HE WAS ARRESTED for the following:

COUNT #1) Conspiracy to Commit Mail Fraud and Wire Fraud (18 USC §1349) [using the U.S. mail to extort settlements from bittorrent defendants]

sh-clip1-mailfraud

COUNTS #2-6) Mail Fraud 18 USC §1341 [using the U.S. mail to send “scare letters” threatening to sue accused John Doe Defendants unless they settled the claims against them.]

sh-clip2-mailfraud
COUNTS #7-16) Wire Fraud 18 USC §1343 [using the internet to process settlement checks and upload torrent files containing porn which they would later track and sue defendants for the download thereof]

sh-clip3a-wirefraudsh-clip3b-wirefraud

COUNT #17) Conspiracy to Commit Money Laundering (18 USC §1956(h)) [for the transfer of settlement funds received, knowing that those funds were proceeds from unlawful activity, and disguising the nature, source, ownership, and control of those proceeds.]

and,

COUNT #18) Conspiracy to Commit and Suborn Perjury (18 USC §371) [by scheming to conceal and disguise their involvement by providing false and misleading testimony and declarations, for example, and Mark Lutz (the paralegal) was really the CEO behind all of their activities, etc.]

In short, there is so much to say about this story which has been an evolving saga since 2010 (now six years and counting).  Many internet users were hurt by their activities, and the injustices that John Steele, the Hansmeier brothers, Mark Lutz, and the others more well known as “the Prenda gang” perpetrated on so many thousands of accused John Doe Defendants are still being copied by many copyright troll attorneys even today.

My personal opinion is that this arrest should be a warning sign to other copyright troll attorneys who are still filing lawsuits against John Doe defendants even today using the same tactics described here.  The scheme described in the indictment has not been stopped, and it continues (albeit in more hidden forms where attorneys go through such great lengths to make their outfit appear legitimate).  

My only message to the other copyright trolls perpetuating this scheme is not that “I’m watching,” or that “you’re being seen by the internet bloggers for what you are,” but that the U.S. Federal Government is watching.  

John Steele’s problems are not over.  There are still other departments likely analyzing their activities.  The one department that comes to mind is the Criminal Law Enforcement arm of the Internal Revenue Service (IRS).

Other Links of interest relating to this topic:

DieTrollDie: John Steele & Paul Hansmeier (Steele|Hansmeier, AKA: Prenda Law) Arrested – December 2016
Fight Copyright Trolls: Steele and Hansmeier Have Been Indicted On Fraud, Money Laundering Charges
ArsTechnica: Prenda Law ‘copyright trolls’ Steele and Hansmeier arrested

…and likely many others to come.


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.

Motions to Quash ISP Subpoena Letters, Malibu Media Lawsuits, Rightscorp DMCA Settlement Notices, and Helping John Does.