Friday, December 11, 2020

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Movie Pirate Has US$15m in Crypto Seized By New Zealand Authorities
Andy Maxwell, 11 Dec 10:18 PM

Pirate KeyBack in 2016, police in New Zealand received information from the Internal Revenue Service in the United States that a movie piracy website was being operated by a local man.

According to the IRS, the man and his associates were using online international money transfer services to send remittances between the USA, Canada, New Zealand and Vietnam. What followed was a three-year investigation and a raid on the man in 2019.

Police Raid Alleged Movie Pirate's Home, Seize Crypto Haul

In June 2019, police swooped on software programmer Jaron David McIvor, making two visits to his home in New Zealand. The then-31-year-old reportedly lived in a modest rental property with no obvious wealth or expensive assets such as luxury vehicles.

Several months later in November 2019, it was revealed that McIvor had cooperated with police, handing over the keys to access $6.2m in cryptocurrencies and NZ$6.2m (US$4.4m) and NZ$800,000 (US$568,320) in banked funds. The assets were seized under the Criminal Proceeds (Recovery) Act.

Later that month, police seized a further NZ472,000 (US$335,308) in cryptocurrency and NZ377,000 (US$267,820) in cash from a McIvor 'associate', later revealed to be his brother.

At the time, Detective Senior Sergeant Keith Kay, head of the Asset Recovery Unit in Waikato, said McIvor had helped to create a movie piracy site (which has still not been named) from which he received significant funds.

The site allegedly operated in the United States and when funds were deposited into various bank accounts via wire transfers, Stripe, and PayPal, a money-laundering investigation was launched. After "suspicious activity" was discovered on an account linked to McIvor, the raids and seizures took place.

Court Orders Seizure of Cash and Cryptocurrency

In a brief judgment handed down by the New Zealand High Court this morning, it is noted the McIvor was investigated for his role in the movie piracy scheme and as a result, significant funds would be forfeited to the state after he admitted profiting from copyright infringement.

According to the Court, the Commission of Police ultimately restrained funds in McIvor's bank account totaling NZ$818,000 (US$581,066) and cryptocurrencies now worth an eye-watering NZ$21 million (US$14.9m). Additional funds "found their way" into his brother's account too – almost NZ$386,000 (US$274,195) and cryptocurrency now worth NZ$1.77 million (US$1.25 million)

"The brothers recently agreed to forfeiture of all crypto-currencies and all but $400,000 (US$284,140). I approved their agreement with the Commissioner on 16 November 2020," the judge wrote.

"I was satisfied this outcome was consistent with the purposes of the Criminal Proceeds (Recovery) Act 2009, and the overall interests of justice. I reached this conclusion because the overwhelming majority of restrained funds were forfeited, and litigation over the balance (of $NZ400,000) would be disproportionately expensive and time consuming.

"In short, I considered settlement met the public interest," he concluded.

Movie Piracy Site Still Not Named

The High Court judgment makes no mention of any further legal action against McIvor and mentions no ongoing investigations or court cases in respect of his copyright-infringing activities. Neither does it mention the name of the site, which seems a little unusual given the apparent scale of the operation.

However, there are some similarities with a case in the United States, also based in movie piracy and involving large volumes of cryptocurrency. Just a month before the crypto seizures in New Zealand, United States authorities confirmed that they had seized around US$4 million worth of cash and cryptocurrency as part of an investigation into alleged movie piracy.

That investigation ended last November with a guilty plea from Oregon resident Talon White and the forfeiture of $3.9 million seized from his bank accounts, $35,000 in cash, cryptocurrency worth around $424,000, plus his home in Oregon, then valued at $415,000. On top, White was ordered to pay $669,557 in restitution to the MPAA and $3,392,708 in restitution to the IRS.

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

New U.S. Streaming Piracy Bill Focuses on Commercial Services
Ernesto Van der Sar, 11 Dec 10:45 AM

Streaming KeyUnder U.S. law, streaming and file-sharing are seen as two different offenses. Not just from a technical point of view, but also in the way they are punished.

Streaming is categorized as a public performance instead of distribution, which can only be charged as a misdemeanor, not a felony.

Lawmakers tried to change this with the Commercial Felony Streaming Act in 2011, and later with the SOPA and PIPA bills. These bills were shelved after public outrage, with many people fearing that uploading copyrighted YouTube videos could possibly land them in jail.

As a result the gap between streaming and traditional file-sharing still remains today. This makes it hard to prosecute pirate streaming services. However, a new bill introduced by Senator Thom Tillis aims to change this.

The bill, titled the 'Protecting Lawful Streaming Act of 2020', has bipartisan support and was drafted based on input from copyright holders, tech companies, and public rights experts. This resulted in a final draft that is less broad than previously proposed bills.

In short, the bill proposes to amend US copyright law by adding a section that allows streaming piracy services to be targeted. It is tailored towards services that exploit streaming piracy for commercial gain, leaving individual streamers out of the crosshairs.

Specifically, the bill makes it unlawful to provide a service that's primarily designed to show copyright-infringing content, has no significant commercial purpose other than piracy, or is intentionally marketed to promote streaming piracy.

Protecting Lawful Streaming Act of 2020

The bill is targeting people or organizations that provide a "digital transmission service." This means that it doesn't apply to ordinary users who stream something on YouTube, Twitch, or any other streaming platform.

This distinction is crucial as the opposition to previous bills focused on the fear that new legislation would send ordinary people to jail for accidentally streaming a copyrighted video or music track.

Instead, the 'Protecting Lawful Streaming Act of 2020' intends to criminalize commercial streaming piracy services. Those who are caught face fines and a prison sentence, which for repeat offenders can extend to ten years.

Commenting on the bill, Senator Tillis notes that pirate streaming services are costing the US economy billions of dollars every year. The new legislation should help to change this without criminalizing regular streamers.

"This commonsense legislation was drafted with the input of creators, user groups, and technology companies and is narrowly targeted so that only criminal organizations are punished and that no individual streamer has to worry about the fear of prosecution," Tillis said.

Lawmakers received input from rightsholders as well as the CCIA, which includes prominent members such as Amazon, Cloudflare, Facebook, and Google. The CCIA has previously been critical of streaming felony bills, but it will now remain neutral.

The same applies to the civil rights group Public Knowledge, which also helped in shaping the new bill. While Public Knowledge isn't in favor of adding criminal penalties for copyright infringement, it sees the new proposal as a reasonable solution.

"[T]his bill is narrowly tailored and avoids criminalizing users, who may do nothing more than click on a link, or upload a file. It also does not criminalize streamers who may include unlicensed works as part of their streams," says Meredith Rose, Public Knowledge's Senior Policy Counsel.

With a more limited scope, the latest streaming piracy bill has a greater chance of passing than its predecessors. However, that doesn't mean that there's no opposition.

Aside from its contents, which not everyone will agree with, there is fierce critique on the process. Instead of letting the bill pass through the regular process, it will be added to the must-pass spending bill, together with other copyright proposals. That is not how copyright law should be created, opponents warn.

A copy of the text of the Protecting Lawful Streaming Act of 2020 can be found here. The bill is co-sponsored by Senators Patrick Leahy (D-VT), Marsha Blackburn (R-TN), Mazie Hirono (D-HI), Catherine Cortez Masto (D-NV), John Cornyn (R-TX), Richard Blumenthal (D-CT), Chris Coons (D-DE), Kelly Loeffler (R-GA), and David Perdue (R-GA)

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

 
 
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