Tuesday, March 30, 2021

TorrentFreak's Latest News

 

California Suspended 'Copyright Troll' Malibu Media's Corporate Status
Ernesto Van der Sar, 30 Mar 10:14 PM

taxJust two years ago, Malibu Media was one of the most active 'copyright trolls' in the United States.

The Los Angeles-based company behind the 'X-Art' adult movies filed thousands of lawsuits targeting Internet subscribers whose accounts were allegedly used to share Malibu's films via BitTorrent.

Then, seemingly out of nowhere, the lawsuits stopped. For more than a year there haven't been any new John Doe complaints. In fact, the only notable case dates back to January 2020, when Malibu's former law firm sued the company over breach of contract and unpaid bills.

This doesn't mean that all outstanding "John Doe" cases have been resolved. At the time of writing, there are a few still pending. This includes one where Malibu Media has to defend itself against a counterclaim of abuse of process, among other things.

Malibu Media Suspended over Tax Troubles

In a recent filing, this case brought an interesting finding to the forefront. As it turns out, the California Secretary of State has suspended Malibu Media LLC's corporate status because the company failed to meet its tax obligations.

Malibu suspended

The "John Doe" sees the suspension as a problem because, under California law, a suspended company may not prosecute or defend a legal action. That could spell trouble for the ongoing case.

Adding Malibu's CEO to the Countersuit

To fix this issue, John Doe now asks the court if he can add Malibu Media CEO Colette Pelissier as a counter-defendant. This allows the case to be resolved, even if Malibu can't defend itself. That is important, as Doe hopes to make the company or its CEO pay for his attorney's fees and damages.

"Not only does Doe have a right to add a defense and counterclaim allegations based on his recent discovery about Malibu, but he also should have a chance to protect his request for attorney's fees and damages if Malibu goes defunct.

"Joining Pelissier affords this. She has always pulled the company's strings including in this dispute, making her a proper counterclaim defendant even at this stage," the Doe adds.

Assets Being Transferred?

The accused file-sharer isn't convinced that Malibu Media is able to resolve the suspension. In fact, he questions whether the company is preparing to transfer its intellectual property and other assets to then go bankrupt.

This week, Malibu Media responded in court. The company notes that its suspension is not much of an issue, accusing John Doe of wasting the court's time.

"In essence, Defendant is using a small, technical irregularity to attempt another bite at the abuse of process apple, to multiply the proceedings unnecessarily," the company writes.

'Inadvertently Missed Payment'

Malibu admits that it "inadvertently" missed a California Franchise Tax Board payment. However, the company stresses that this can be resolved, after which the case should be able to continue as usual.

"A suspended corporation can revive itself […] by simply paying its back taxes and filing the appropriate paperwork. Further, once a corporation has been revived, its tax delinquencies, upon correction, are viewed as mere irregularities," the company writes.

Interestingly, Malibu Media doesn't mention whether it's actively resolving these tax issues. At the moment, it also remains unclear when the company's corporate status was suspended. According to OpenCorporates this happened somewhere between July last year and January 2021.

In any case, Malibu Media's CEO is no stranger to this type of suspension. One of her other companies, Colette Productions, has been suspended in California over tax troubles since 2019. In addition, Colette Holdings and Colette Properties were suspended by the California Secretary of State.

Meanwhile, a new corporation named Malibu Media Holdings LLC has become active in Nevada, listing Pelissier as the director.

A copy of John Doe's request to add Colette Pelissier to the countersuit is available here (pdf) and Malibu Media's opposition can be found here (pdf)

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

SEGA Lawyers Demand "Immediate Suspension" of Steam Database Over Alleged Piracy
Andy Maxwell, 30 Mar 10:44 AM

SEGAWith millions of visitors every month, Steam Database (SteamDB) has established itself as a formidable resource for gaming fans.

The third-party service's aim is to promote Steam by providing insight into the gaming platform and the masses of data made available via its official APIs. SteamDB's front page provides data on Steam's most-played games, displays real-time player stats, plus lists of trending games, popular releases, and other data. The site also embeds direct links for people to buy titles legally.

As of yesterday, however, the entire platform was at risk of being taken offline following errors by one of the best-known brands in gaming.

SEGA Believes Steam Database is a Pirate Site

Yesterday afternoon, SteamDB creator Pavel Djundik took to Twitter with an appeal, asking if someone was able to get in touch with SEGA over a pressing matter. SEGA had apparently identified SteamDB as a pirate site illegally distributing its game Yakuza: Like a Dragon and had issued DMCA notices to have the game taken down.

Of course, SteamDB was not hosting or linking to pirate copies of SEGA's game but the situation was already reaching crisis point.

Initial Complaint Sent to Cloudflare

To find out more about the situation, TorrentFreak spoke with Djundik who informs us that SEGA sent a copyright complaint to Cloudflare on March 12, 2021, which eventually made its way to SteamDB, via its host, on March 19, 2021.

"We replied to the e-mail address that sent it to Cloudflare asking for clarification [..] and explained that SteamDB doesn't actually sell or provide any game downloads. Apparently they ignored said e-mail because today we got a longer and more serious DMCA notice that went out to our host directly," Djundik says.

The Allegedly-Infringing SteamDB PageYakuza SteamDB

Since SteamDB could not comply with the original notice and SEGA wasn't registering that fact (or the fact that SteamDB had already responded) SEGA then turned up the pressure with a more strongly worded letter, this time to SteamDB's hosting provider.

Letter to SteamDB's Host Gets Serious

TorrentFreak was able to review the notice sent by SEGA to SteamDB's host and it pulls no punches. SEGA doubles down by stating that SteamDB is illegally distributing the game Yakuza: Like a Dragon, noting that it has tried to inform SteamDB but was "not able" to resolve the issue.

Worryingly, it then implies that legal action might be taken against SteamDB for non-compliance, adding that the host should "immediately suspend" SteamDB due to the alleged ongoing infringement. Which, of course, is not taking place.

This puts SteamDB's host in a tough position. Failure to act against an allegedly infringing customer can put the host at risk in terms of liability but disabling a customer's website can cause a whole new set of problems, especially when that customer has not infringed anyone's rights.

In an effort to sort the problem out, SteamDB's host asked for additional input from the operators of SteamDB but nevertheless warned that if that information was not received, it may still block the SteamDB server within 24 hours, as demanded in the SEGA takedown notice.

SteamDB Takes Down The Non-Infringing Page

In order to defuse the situation, SteamDB took down the allegedly-infringing page which as far as SEGA goes (and at least in theory) should solve the disconnection threat problem. However, the entire situation has proven counterproductive for SEGA too.

Not only have they wasted time with baseless legal threats but the Yakuza: Like a Dragon page on SteamDB now looks like this.

Yakuza Gone

This is unfortunate for the gaming company. SteamDB attracts millions of gamers every month, a proportion of which will be looking to spend their hard-earned cash on games they find in SteamDB's indexes. Indeed, every game page on SteamDB offers official links to buy games from Steam but in the case of Yakuza: Like a Dragon, they have now been removed.

SteamDB Wants To Solve The Issue But Humans Aren't Responding

"We're not looking to drag Sega through the mud, just trying to clear up the situation with an actual human," Djundik informs TF.

"As for further steps, aside from trying to get in contact with someone at Sega, we're not in a position to do anything. We're a hobby project run by two people in their spare time and don't have any resources/energy/time to fight or even argue about this."

Efforts to contact SEGA have proven fruitless but hopefully the company will eventually notice its mistake and withdraw its demands for SteamDB to be taken offline. At that point, SteamDB will likely reinstate the Yakuza: Like a Dragon page, which will be of great benefit to all involved, gamers and SEGA especially.

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

 
 
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