Unintended consequences of winning the war against trolls.

[2017 UPDATE: Little did I know that I accurately predicted what would happen, but I got the entities wrong.  Since the April 2016 breakup of the Lipscomb/Guardaley relationship, new Guardaley kingpin Carl Crowell has created a new entity called RIGHTS ENFORCEMENT which has reverse-engineered CEG-TEK’s proprietary DMCA copyright infringement notice system.  Many of you have visited this link thinking that RIGHTS ENFORCEMENT was somehow related to CEG-TEK (at first, I thought so too), but really it is an ‘evil twin’ competitor.  In sum, apparently my concerns about CEG-TEK becoming corrupted where one bittorrent click would result in tens/hundreds of infringement notices may have actually have happened, but I got the entity wrong.  It wasn’t CEG-TEK, it was Crowell’s reverse-engineered ‘evil twin’ copy of CEG-TEK which we now see in RIGHTS ENFORCEMENT. Still, read on so that you’ll understand the issues.]

Every pirate knows that the only way to block the copyright trolls from identifying their true IP addresses (and thus sending out DMCA copyright infringement notices, as outfits such as CEG-TEK have been known to do) is through the use of a Virtual Private Network (VPN) [, and not just any VPN, but a paid VPN provider which does not track their subscribers’ activities*].

In recent weeks, I have heard from various copyright trolls that bittorrent users are “winning the piracy war,” in that their activities have thwarted the copyright holders from learning who they are. Armed with what is becoming common knowledge of free software which can be configured to stream pirated content (e.g., Kodi, formerly XBMC), internet users who wish to “unplug” from the cable companies are able to do so in a way in which it becomes difficult if not next to impossible to be caught viewing streamed content**. Not only this, but many have even purchased Amazon Fire sticks which can be jailbroken to allow the Kodi software to be installed on it, and they are watching pirated videos from their HDTV without even needing a computer.***

But what is the effect of “winning the war” on those who are left behind and don’t realize that they need to use a VPN if they are going to bittorrent their favorite movie, software, or video game? This is the point of the article.

The unintended consequence of bittorrent users learning to use a VPN, or migrating away from bittorrent and towards free streaming services is that copyright holders [who for three years now have enjoyed easy settlement money] are realizing that there simply are not enough people to send DMCA / copyright infringement notices to in order to line their pockets with gold and dirty cash. As a result, it is my experience that they are becoming “less nice” and they are trying to make more money from fewer downloaders. Case-in-point: Girls Gone Wild DMCA notices used to ask for one $300 settlement for a whole page of 60+ videos, but now they are asking for tens of thousands of dollars for that same “click” of a bittorrent file.

I am also noticing that CEG-TEK is acting differently, perhaps in response to what has been described to me as a steep decline in numbers of “pirates” to whom they can send DMCA notices. In the past few weeks, it has been my experience that Copyright Enforcement Group (CEG-TEK) is now sending multiple notices out to the ISPs for the same download. In one case regarding their Girls Gone Wild client that I mentioned above, CEG-TEK sent literally over 1,000 notices to one ISP for the alleged download of one bittorrent file.

At first I thought this was a glitch in their computer system, but then it occurred to me that maybe CEG-TEK somehow benefits from keeping the numbers of DMCA notices sent to the ISPs artificially high. Is there any benefit to them to be doing this? I have been racking my brain on this topic and I still cannot come up with a reason.

Honestly, here is my concern. When an animal is backed against the wall, what does it do? It attacks. If indeed we are winning the bittorrent piracy war, I am concerned that CEG-TEK will begin taking on new clients who thrive on stacking their bittorrent files with hundreds of adult films. Those who are sophisticated will understand exactly who I am speaking about.  

They will then trap the unsuspecting bittorrent user who “clicks on a bittorrent file” in their spider web, and that user will receive hundreds of DMCA notices which will scare the b’jeebies out of him.  Then they will give in to the urging of their less-than-ethical client, and they will agree to start charging more than the $300 per title that they currently do (remember, at one point, CEG-TEK used to charge $200 per title, and then at what I understood to be the urging of their client, they raised the settlement amount to $300 per title).  So they are pliable, as we have seen in the past.

In the end, just as we saw hints of this with the recent Girls Gone Wild debacle, CEG-TEK will morph from a $300 per title copyright enforcement outfit (lamb) into a $3,500 per title shakedown outfit (wolf) where they base their settlement amounts on the client’s ability to pay rather than what they believe is a “fair” amount to compensate the copyright holders.

Last, but not least, I learned that CEG-TEK threatened an accused downloader with criminal prosecution this week. For those of you who know me, I have spent almost every day since 2010 working on copyright infringement cases. NEVER until last week have I seen a copyright holder threaten an accused internet user with criminal charges for a copyright infringement matter.

In sum, the times they are a changin’. If we are indeed winning the war, what will CEG-TEK turn into in order to survive?  And, what will their copyright holders (who for the most part have been docile and lazy these past few years) do when their easy income stream dries up?


CONTENT CUT FROM THE ARTICLE:

*[UNRELATED PERSONAL NOTE: I am a fan of such VPN providers not because they make piracy more difficult to detect, but because I believe strongly in a person’s right to be anonymous. The amount of snooping that happens with internet trackers, cookies, and newer methods literally sickens me, and I do not believe that advertising companies and ISPs should have so much knowledge about their customers. For this reason, I have nothing wrong with sharing for privacy purposes that examples of VPNs that you can rely on can be easily found by searching “torrentfreak secure vpn” on Google, or just by going to TorrentFreak’s website where they review VPN providers which take your anonymity seriously. Just be sure to have some mechanism in place that if the VPN connection goes down, even for a second, that your real IP isn’t exposed to whatever site you happen to be visiting, or to whatever server you happen to be connected to. This is called a “DNS leak,” and there are easy ways to configure your system to lock down the connection if or when the VPN goes down, even for a second.]

** NOTE: There is a popular software called PopcornTime which I am sad to share has given our firm many clients who have been caught downloading mainstream movies (e.g., The Dallas Buyers Club cases, Voltage Pictures’ Fathers & Daughters Nevada, LLC cases, and most recently, Millennium Film’s London Has Fallen (“LHF”) movie cases, etc.). Most recently, I have been seeing new CEG-TEK notices for Millennium Film’s “Criminal” movie which the copyright holders have already started suing in “Criminal Productions, Inc. v. John Doe” copyright infringement lawsuits . The reason for so many getting caught is that PopcornTime appears to be a software which allows you to stream video content, but it uses bittorrent as its back-end to download the movies.

*** NOTE: The Amazon Fire sticks which have Kodi installed in my opinion can still get you caught for copyright infringement. The reason for this is that they connect directly to the internet exposing your real IP address. Most people don’t realize that they need to also configure their ROUTER to connect to the internet through their paid VPN provider.


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.

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    The Giganews VPN Problem

    The first rule of Usenet is “you do not speak about usenet.”  While writing something like this can upset those I would not want to upset, there is a bigger problem — what happens when the Usenet service provider (or more accurately, newsgroup service provider) fingers you as the internet user who is accused of committing a crime you did not do?

    My mind can swirl with the possible implications of the above inquiry (oh what crimes can one commit), but in the context of this TorrentLawyer blog, there is a Usenet provider which is causing problems for their subscribers by identifying them as being the users who downloaded one or more copyrighted videos.

    Many privacy-minded individuals flock to a service called Giganews because the content they provide is parallel to none.  The problem is that Giganews providers their subscribers with a Virtual Private Network (“VPN”) called VyprVPN (in conjunction with their Golden Frog service), where their VPN is supposed to hide the identity and the activities of the users while they are logged into the Giganews service.  This is effective for privacy-minded individuals who wish to communicate with others privately (e.g., stream a VoIP phone conversation over an encrypted connection) or mask their IP address from websites they visit.  Similarly, a VPN is useful when your ISP monitors your connection for the purposes of what is known as “traffic shaping” — making certain activities happen faster, and slowing down less-favored activities.

    [To those that have been paying attention, VPN providers are not created equally.  Notoriously, some (e.g., HideMyAss) have turned over the identities of their subscribers causing their arrest and incarceration.  Giganews has also been implicated as being infiltrated by the FBI, and they are known to track and log all of their subscribers’ activities, even those activities apparently masked through their VyprVPN service.]

    To the chagrin of those who have placed their trust in the VyprVPN service, many have received notices from Giganews implicating them as being the downloaders of copyrighted materials.  They are sent one or more DMCA settlement demand letters from companies (such as CEG-TEK), even when they have not done any downloading at all.

    While in this case I cannot fault any of the parties (accused subscriber, CEG-TEK) who are now enmeshed in a “yes you did,” “no I didn’t” fight, I can fault Giganews / Golden Frog / VyprVPN for mistakenly pointing the finger at one of their users for activities that user did not partake in.

    Now obviously as an attorney, I represent many accused internet users, many of whom “have always been downloaders, and will always be downloaders,” but specifically with Giganews, too often there is an inaccuracy where the wrong user is accused of downloading copyrighted media when that user was not even logged into the Giganews service at the time the downloads allegedly happened.

    This is a problem with timekeeping and recordkeeping, something Giganews (or Golden Frog) should remedy ASAP.


    UPDATED COPYRIGHT ENFORCEMENT GROUP (CEG-TEK) ARTICLES (from this blog):
    Canada begins receiving CEG-TEK DMCA settlement letters. (3/12/2015)
    How time limits / purged records stop a copyright holder from learning a downloader’s identity. (12/18/2014)
    CEG-TEK’s growing list of participating ISPs, and their NEW alliance with COX Communications. (11/12/2014)
    The Giganews VPN Problem (11/12/2014)
    CEG-TEK is now your friendly “photo” copyright troll. (6/13/2013)
    CEG-TEK’s new “you didn’t settle” letters sent from Marvin Cable. (3/22/2013)
    CEG-TEK’s DMCA Settlement Letters – What are my chances of being sued if I ignore? (2/22/2013)
    Why CEG-TEK’s DMCA settlement system will FAIL. (2/22/2013)

    [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 they will likely be having the same issues as CEG-TEK did with VPN providers, this article is 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.

      shalta book now cta
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