Saturday, August 8, 2020

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Convicted Copyright Troll Lawyer Sues US Attorney General Over His Right to 'Trap' Pirates
Ernesto Van der Sar, 08 Aug 10:29 PM

prenda lawThe now-defunct Prenda Law firm became notorious for taking alleged BitTorrent pirates to court.

These copyright lawsuits were not illegal in themselves, but Prenda crossed criminal lines when it lied to courts and trapped people by uploading self-made adult content on The Pirate Bay. They were effectively running a honeypot scheme.

The matter landed on the desk of the FBI and with help from The Pirate Bay, eventually resulted in two criminal convictions. Last summer, Prenda lawyer John Steele was sentenced to five years in prison, and his colleague Paul Hansmeier received a 14-year sentence.

The different terms in part reflect the lawyers' cooperation with the authorities. Steele was remorseful and admitted guilt while Hansmeier fought back, something he continues to do to this day.

Hansmeier Sues US Attorney General

This week, the convicted lawyer filed a new lawsuit at a federal court in Wisconsin. In a handwritten complaint, filed from prison, the disbarred attorney sues US Attorney General William Bar, requesting a declaratory judgment that harkens back to the honeypot scheme.

As we reported a few weeks ago, Hansmeier has plans to sue alleged BitTorrent pirates again. He obtained the copyrights to a small adult video and informed the court that he would like to upload this to pirate sites with help from an investigator, so he can track down and prosecute pirates.

In order to set this honeypot up, the former Prenda attorney wants the court to rule that his strategy is not illegal. Because it's similar to the original scheme he ran, Hansmeier requests a declaratory judgment ruling confirming that various criminal statutes violate his first amendment rights, among other things.

US Government is Powerless Against Torrent Sites

The complaint starts by describing the economic losses caused by piracy. A lot of this harm is done by torrent sites, he writes, pointing out that the government is well aware of the problem as it shut down the popular KickassTorrent site a few years ago. While this site remains offline, it hasn't solved the larger problem.

"Ultimately, though, the government is powerless to stop the proliferation of these websites. Whenever one website is shut down, another website just pops up in place of the old one – after all, the new website need only copy the links from the old website," Hansmeier writes.

The convicted attorney believes that, in the long run, his own honeypot scheme is the only effective enforcement tool. The complaint describes a 'testing strategy' where the rightsholder uses an investigator to populate pirate sites with copyrighted material to track and prosecute pirates.

Trapping Pirates Works

"The only strategy that has been effective is the testing strategy described above," Hansmeier argues, noting that the torrents will be posted anonymously, so users won't know which ones are linked to the honeypot.

hansmeier testing strategy

"Once pirates believe that links on torrent websites were posted by copyright holders as a lawsuit trap then, in Plaintiff's personal experience, the pirates will warn each other and stop using the site. And, since it is easy and free to post links on torrent websites, new sites that pop up can easily get any inundated with testing links."

When enough lawsuits are filed around the world, traffic to torrent sites should decrease, which results in less advertising revenue for the site's operators. This strategy should eventually lead to the demise of torrent sites, Handmeier envisions.

"With robust testing efforts, copyright holders could very quickly make piracy websites unprofitable to operate by deterring lucrative advertising targets (Americans, Europeans and some Asians) from using the sites. Anti-piracy claims can readily be filed in most countries which were signatories to international copyright treaties."

Hansmeier Has Started Tracking Pirates Already

Hansmeier says he already started up the scheme. An investigator recently uploaded a torrent to a popular piracy site, tracking three downloaders. He would like to prosecute them but is worried that the US Attorney General may come after him for doing so.

With the current lawsuit, the convicted attorney effectively asks the court to greenlight his strategy. Specifically, he asks for a declaration that paragraphs 1341, 1343, and 1951 of the US Criminal Code violate his First Amendment rights, the due process clause of the Fifth Amendment, as well as the Constitution's separation of powers.

Given the position Hansmeier is in, this lawsuit is likely a defensive move. While he may indeed want to prove a point by going after pirates in a similar, but more open, fashion as Prenda did. The ulterior motive is likely to get a ruling he can use to fight his own prison sentence.

A copy of Hansmeier's complaint against US Attorney General William Barr is available here (pdf).

From: TF, for the latest news on copyright battles, piracy and more.

Disney Reminds Court That Pirate Megavideo Indexing Site Still Owes $500K from 2010
Andy Maxwell, 08 Aug 01:20 PM

Disney PirateEvery year, movie and TV show companies, broadcasters, and other rightsholders take legal action against pirate sites.

This action can take various forms, from threats that result in private settlement agreements to full-blown lawsuits.

In some cases, litigation can drag on for years, with a tendency to prove both costly and damaging to those who lose the fight. In most cases, these are the operators of unlicensed sites who initially put up a fight before being overwhelmed with costs and subsequent damages awards.

Another option, when it's available, is to settle cases with the plaintiffs relatively early on. This is what happened in a lawsuit filed by Disney Enterprises and Universal City Studios against indexing site 66Stage.com back in 2008.

66Stage was a One-Stop-Shop For Piracy

Filed in a California court, the complaint described 66Stage as a "for-profit 'one-stop-shop'" for infringing copies of the plaintiffs' movies including Finding Nemo, Mulan, Pirates of the Caribbean: At World's End and several others.

"Defendants own and operate the website www.66stage.com…whose purpose is to promote, facilitate, aid and abet, and profit from the infringement of Plaintiffs' copyrighted works," the complaint alleged.

"Specifically, Defendants post, organize, search for, identify collect and index links to infringing material that is available on third-party websites (including, for example, the third party website Megavideo.com)."

As this image from the Wayback Machine's archives shows, 66Stage acted as a front-end to hosting sites like Megavideo, which was later dismantled as part of the Megaupload raids early 2012.

66stage.com

Disney and Universal identified Nasri Faical as the person behind 66Stage, noting that he was a citizen of Morocco who at the time was living in Japan. According to the amended complaint, his site offered thousands of links to hundreds of motion pictures released in 2008 and 2009, with new content being added all the time.

As a result, the plaintiffs alleged contributory copyright infringement and inducement of copyright infringement, plus aiding and abetting copyright infringement under the Copyright Act of Japan. The docket reveals that the case went through the motions until August 2010, at which point it was revealed that the parties had agreed to a consent judgment to settle the case.

$500,000 Settlement Agreement

That agreement didn't come cheap. Faical agreed to a global injunction preventing him from running 66Stage or any similar site, being involved in any activity that infringed the plaintiffs' rights, and/or participating in any marketing or advertising program designed to drive traffic or generate revenue from infringement.

With that, Faical agreed to pay Disney and Universal $500,000 in damages for copyright infringement. He also agreed to be bound by the orders of any other court in the world "with competent jurisdiction" to enforce the consent judgment.

66stage consent

Whether this significant debt is still on the mind of Faical is unknown. However, if carefully waiting it out was indeed on his agenda, this week the former site operator would've been holding his breath. According to the California courts website, money judgments have an expiry date – 10 years to be precise – and the deadline was this week.

A Decade On and Disney's Time Was Running Out

"Money judgments automatically expire (run out) after 10 years. To prevent this from happening, you as the judgment creditor must file a request for renewal of the judgment with the court BEFORE the 10 years run out. If the judgment is not renewed, it will not be enforceable any longer and you will not be able to get your money," it reads.

Given that the consent judgment was signed off by the judge on August 5, 2010, Faical would not have owed Disney a penny if ten years were allowed to pass without the company taking further action. As it happens, however, it Disney's lawyers were absolutely on the ball.

This week the company filed the necessary paperwork to keep the matter and the substantial debt alive, just a day before Disney would've had to wave goodbye to $500K and Faical would've been a 'free' man again.

"There have been no payments received from any of the Defendants towards the Judgment, through the judgment enforcement process or otherwise. Accordingly, the total amount due to Defendants under the renewed judgment is $500,000.00," the renewal of money judgment reads.

Like Dumbo, it seems, Disney never forgets.

The original amended complaint, judgment and renewal can be found here (1,2,3 pdf)

From: TF, for the latest news on copyright battles, piracy and more.

 
 
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