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Lawyers Sent 109,000 Piracy Threats in Germany During 2013

Posted: 04 Mar 2014 02:53 AM PST

The file-sharing settlement business has humble roots, but is now turning into big business. As revealed last week, Rightscorp is growing its operation in leaps and bounds, obtaining tens of thousands of settlements from US-based users on behalf of rightsholders.

While Rightscorp seeks small settlements of a few dollars per alleged offense, other companies really do earn their copyright troll label with demands for thousands of dollars/euros per infringed item. US citizens have parted with millions of dollars in recent years but spare a thought for the people of Germany, who were introduced to this model in the middle of the last decade.

Information supplied to TorrentFreak by Christian Solmecke of the Wilde Beuger Solmecke law firm, shows that plenty of well-known companies are involved in the German settlement market. Record companies EMI, Sony and Warner, US porn trolls Malibu Media, plus big movie companies including Universal and Twentieth Century Fox were all active last year.

New figures made available by IGGDAW, an interest group that works with targets of predatory rightsholders, reveal that the business has shown little sign of let up during the past 12 months.

During 2013, a total of 108,975 threat letters were sent out to Internet users, a modest decrease of 1.3% over the number sent in 2012. As can be seen in the chart below, the number is thankfully just a fraction of the huge numbers sent in 2009 and 2010.

While the number of threats sent is slightly down, rightsholders and law firms involved are both on the rise. A total of 446 rightsholders employed 72 law firms to send out letters in 2013, versus 422 and 65 respectively in 2012.

Content-wise, the greatest number of settlement requests were sent out for regular movies (‘spielfilm’) with 43.9% of the total. Adult movies (‘porno’) trailed quite a way behind in second place with 24.2%. Music tracks came a close third with 22.8% of the total.

For yet another year the all-important settlement numbers make for bleak reading. In 2012 the average amount demanded from letter recipients was 796.87 euros ($1,094), an amount that increased to 829.11 euros ($1,140)in 2013.

Multiply that by the number of threats sent (108,975) and we reach a figure in excess of 90.3 million euros, or around $124 million. How many people actually settle remains unclear but German law is geared up to put pressure on Internet users to pay up.

So where now for Germany?

It was hoped that new legislation (Improper Business Practices Act) introduced last October would assist by imposing transparency requirements on law firms sending out letters and capping the amounts they can claim. But according to Christian Solmecke, the law firms involved have adjusted accordingly.

"The new rules do not go far enough. The position in which internet users find themselves is hardly any better than that in which they were in before the legislation came into force,” he concludes.

Source: TorrentFreak, for the latest info on copyright, file-sharing and VPN services.

Warner Bros. DMCA Abuse Records Should be Unsealed, EFF Tells Court

Posted: 03 Mar 2014 10:17 AM PST

In a retaliatory move, three years ago file-hosting service Hotfile sued Warner Bros., accusing the movie studio of repeatedly abusing the DMCA takedown process.

Hotfile alleged that after giving Warner access to its systems, the studio removed hundreds of files that weren’t theirs, including games demos and Open Source software.

In a response, Warner Bros. admitted the accusations. However, the movie studio argued that they were not to blame because a computer made the mistakes, not a person. As a result, the false takedown requests were not "deliberate lies."

Warner Bros. asked the court for summary judgment in its favor but Florida District Court Judge Kathleen Williams eventually decided to let the issue be heard before a jury, stating that there was sufficient evidence to suggest that Warner intentionally took down files it didn’t own.

With instances of automated abuse becoming more frequent in recent years the case promised to be crucial. But last November, a few weeks before the trial was due to begin, it was closed as part of a settlement between Hotfile and the MPAA.

The decision was a disappointment to the Electronic Frontier Foundation (EFF) who have now asked the court to unseal documents regarding Warner’s alleged abuse. According to the group, the public has the right to know what mistakes Warner made.

“Judge Williams’ decision was encouraging, but mysterious – we don't get to see evidence of how Warner’s system works and which of its improper DMCA takedown notices gave rise to liability. So we know that Warner may have crossed a line, but not how or why,” EFF notes.

EFF’s interest in the matter is heightened because Congress and the Patent and Trademark Office have asked the public for input on the DMCA’s notice-and-takedown procedure. Details about Warner’s alleged abuse can help to shape these discussions, the group explains.

“Without seeing the facts that went into Judge WIlliams’s decision, it doesn’t help people design takedown systems that comply with the law, and it doesn’t help anyone make informed arguments about the DMCA when Congress takes it up,” EFF says.

According to EFF, public interest trumps Warner’s motivations to keep the court documents under seal. In fact, EFF believes that one of Warner’s main reasons not to disclose the details is to avoid embarrassment.

“There are indications that Warner simply seeks to avoid embarrassment that might follow from public disclosure of abusive practices that the Court's summary judgment order strongly suggest were taking place. Avoiding embarrassment of a corporate litigant is not a legitimate reason for denying the public its right of access,” EFF tells Judge Williams.

The EFF is convinced that some copyright holders are abusing the DMCA to censor free speech. If this is the case with Warner, then lawmakers should know about it, so these violations can be stopped in the future.

“Lawmakers need to hear about how well the system is actually working, and whether it protects Internet users against having their speech curtailed by takedown-bots or overzealous and poorly trained reviewers.”

“Actual data about major DMCA users like Warner is vital,” EFF concludes.

Source: TorrentFreak, for the latest info on copyright, file-sharing and VPN services.