Saturday, September 19, 2020

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YouTube Rippers 'Flvto' and '2Conv' Will Take Legal Battle to US Supreme Court
Ernesto Van der Sar, 19 Sep 10:12 PM

In 2018, a group of prominent record labels sued two very popular YouTube rippers, FLVTO.biz and 2conv.com.

The labels, including Universal, Warner Bros, and Sony, accused the sites of copyright infringement and hoped to quickly shut them down.

That didn't go as expected. The owner of the sites, a Russian man named Tofig Kurbanov, lawyered up and fought back. Before the copyright issues were even discussed in court, the complaint was already dismissed.

A Battle over Jurisdiction

A Virginia federal court ruled that the music companies lacked personal jurisdiction. The sites were operated from abroad and didn't 'purposefully' target or interact with US users, it concluded.

This finding was not without controversy. The music companies disagreed and appealed the matter at the Fourth Circuit Court of Appeals, which sent the case back to the district court a few months ago.

The appeals court found that there are more than sufficient facts to conclude that Kurbanov purposefully conducted business in the US, specifically, the state of Virginia. Kurbanov and his legal team disagreed but their request for a rehearing was denied.

Going to the Supreme Court

Faced with this decision, which could potentially affect many other websites operated outside the United States, the owner of FLVTO.biz and 2conv.com has decided to petition the Supreme Court to take on the case.

The petition is expected to be filed later this month, but the plans were revealed this week. In a motion submitted at a Virginia federal, Kurbanov asks to put the district court case on hold until the Supreme Court has had a chance to rule on it.

The question that will be put to the Supreme Court is whether Kurbanov can be subjected to the jurisdiction of a US federal court when he lives in Russia, operates his sites from there, and doesn't specifically target US citizens.

According to his legal team, the appeal court's decision contradicts other rulings in similar cases. As such, they are confident that they have a strong case.

"In the present case, there is little question but that Mr. Kurbanov's jurisdictional challenge could be rationally resolved in his favor – indeed, this Court did resolve the issue in Mr. Kurbanov's favor," they write.

"Viewed in the context of the Supreme Court's traditional jurisprudence, however, it appears clear that this Court's original dismissal of the present case was proper and that – given the opportunity – the Supreme Court would reinstate that dismissal."

Staying the Case Until Further Order

If the district court case was allowed to continue while the Supreme Court is looking into the matter it would be a waste of resources. Kurbanov, therefore, is requesting that the discovery process and other proceedings are placed on hold for now.

"Mr. Kurbanov, a Russian national and citizen, who has never set foot in the United States, has a right to challenge this Court's exercise of jurisdiction over him as violative of the Due Process Clause. And, of course, with that comes his right to be free from the expensive and onerous discovery obligations inherent in U.S. litigation."

Aside from the Supreme Court decision, the lawyers also remind the district court that the original motion to dismiss is still in play. The court initially chose not to conduct a "reasonability test" because the other arguments were sufficient to warrant a dismissal. That changed when the appeal overturned that decision.

As such, Kurbanov's legal team has filed a request to stay the case until the reasonability analysis is finalized and the Supreme Court has had its say.

kurbanov stay case

A copy of Tofig Kurbanov's memorandum in support of the motion to stay the federal court proceeding pending the outcome of the Supreme Court matter is available here (pdf)

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

Pirate IPTV Operator Hid Away With Mountains of Food to Avoid Coronavirus
Andy Maxwell, 19 Sep 10:16 AM

IPTV2020 has developed into one of the most memorable years in living memory for the entire planet but for mostly the wrong reasons.

Not a day goes by without news of the coronavirus pandemic and its devastating effect on individuals, families, the economy, and health in general. In common with many industries, coronavirus has hit the entertainment sectors too, with few new films and TV shows coming out (with notable exceptions such as Mulan) as people are either forced or inclined to stay home and stay safe.

Throughout all of this, however, pirate operations have remained mostly online, with notable spikes in interest reported earlier in the year.

IPTV Raid and Arrest But Authorities Didn't Expect This

As part of European efforts to crack down on the supply of IPTV, a few weeks ago officers in the National Tax and Customs Administration raided a pirate IPTV provider. What they found was extraordinary to say the least.

Situated in what appeared to be a fenced-off barbed wire compound with CCTV surveillance, the outside of the building was perhaps not much of a surprise. Adorned with a large number of satellite dishes used to source original programming from the skies, the walls of the structure gave away what may lie inside.

Hungary IPTV1

Indeed, the main contents of the building were as expected, such as an office with desks, chairs and various computers, plus a separate area containing what appear to be rows of servers used for capturing TV content from official providers and redistributing it over the Internet.

In total, the authorities seized 52 computers, several decoders, TV cards, plus six servers dedicated to redistribution.

Hungary IPTV 2

The image above suggests that the operation wasn't set up on the large budgets usually witnessed in police footage from raids elsewhere in Europe but with at least 8,000 paying customers, it was clearly functional.

However, in a video released by the authorities, it is apparent that on some of the server shelves also sit items of food, including dozens and dozens of packets of flour. A panning camera shot also reveals a large refrigerator and then a small mountain of stacked canned food.

Hungary IPTV 3

Another shot, possibly in another area, reveals little floor space due to yet more stacked cans, a significant area occupied by box upon box of dried pasta packets, plus additional shelves loaded with soft drinks, other foodstuffs, and the coronavirus pandemic staple – dozens of toilet rolls.

Hungary IPTV 4

An Operator of the Service Was Scared of the Coronavirus

According to the National Tax and Customs Administration, the service was founded by a man from Nagykanizsa who first set out to "redirect" his mother's paid TV package to his own home for free. He teamed up with a man from Budapest to create a service that was subsequently offered to close friends too.

Over time, however, they realized they could make money from the operation and began offering it on an invitation-only basis to outsiders. The network of customers grew and ultimately became available worldwide via the Internet.

However, earlier this year, when the coronavirus started to sweep across Europe, one of the people in charge of the operation reacted like many across the region. In fear of catching what could be a deadly virus, he stockpiled the mountains of food detailed above – hundreds of pounds/kilos – so that he could keep the service running but without having to venture far outside.

"In addition to IT equipment, durable food was in the Budapest property. The young man had accumulated hundreds of kilos of flour, canned food and pasta in fear of the coronavirus epidemic, and had not ventured into the streets for months," the authorities explain.

Damage to Copyright Holders But Also Paying No Taxes

According to estimates provided by the tax authorities, the service is alleged to have generated around HUF 6 million (US$1.97m) for the pair but for reasons that aren't explained, they "forgot" to pay the necessary duties to the state. This explains why the tax authorities were involved in the raid.

"An illegal IPTV service that is provided without payment of royalties infringes copyright or copyright-related rights, which is a criminal offense. The offender can be sentenced to up to eight years in prison," the National Tax and Customs Administration says.

Whether the self-imposed prison sentence of a few months will now be extended to a forced sentence of a few years is currently unknown.

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

 
 
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