Friday, April 16, 2021

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Nintendo Wins US-Wide Injunction Against Seller of RCM Loader 'Piracy' Device
Andy Maxwell, 16 Apr 10:19 PM

RCM LoaderNintendo is currently engaged in a war of attrition against individuals and groups who help people to pirate and play unlicensed Switch games.

Products and individuals involved with the infamous Team-Xecutor became targets last summer and alongside, Nintendo has been chipping away at other sellers of similar circumvention devices.

Lawsuit Filed Against Amazon Vendor

Last November, Nintendo filed a lawsuit against Le Hoang Minh, an Amazon vendor doing business under the name 'Winmart'. According to the gaming giant, the trader was selling RCM Loader, a Switch device marketed as a plug-and-play solution for injecting payload files to allow booting into custom firmware (CFW), including Team-Xecutor's SX OS.

"Once this circumvention has occurred, the unauthorized CFW modifies the authorized Nintendo Switch operating system, thereby allowing users to obtain and play virtually any pirated game made for the Nintendo Switch. All of this happens without authorization or compensation to Nintendo or to any authorized game publishers," the company explained.

Le Hoang Minh, who according to Nintendo is a resident of Vietnam, was sent a DMCA notice by Nintendo via Amazon, citing the anti-circumvention provisions of the DMCA. As a result, a specific listing was taken down by Amazon but the defendant subsequently filed a counternotice stating that Nintendo had made an error. As a result, the listing was restored.

In its lawsuit, Amazon claimed that Le Hoang Minh was not only a seller of RCM Loader devices but also the manufacturer too, going on to demand the maximum statutory damages available under the DMCA and a broad injunction preventing any future sales. Nintendo also demanded relief for the defendant's alleged abuse of the DMCA's counternotification system.

Defendant Fails to Respond, Nintendo Moves For Default

In a motion for default judgment filed this week, Nintendo says that it filed its lawsuit in response to the defendant's counternotice, in order to keep the Amazon listing down. However, the defendant failed to respond to the lawsuit or enter into discussions with Nintendo.

As a result, Nintendo demanded a default judgment on each of its claims, arguing that since the defendant is in Vietnam, only a ruling from a US court would allow it to prevent sales of RCM Loader taking place in the United States.

To promote what Nintendo describes as "an efficient resolution" of the matter, the gaming giant reduced its damages claims to just $2,500 for all actions carried out by the defendant in breach of the anti-trafficking provisions of the DMCA.

"This request for a $2,500 award is intended to be very conservative and does not reflect anything close to the full amount of damages Nintendo could reasonably seek from Defendant," the company writes.

"Nintendo could…credibly seek a separate award for every device Defendant sold — almost certainly many devices, given that Defendant's RCM Loader device was available online for many months. However, rather than attempt to quantify Defendant's total sales, Nintendo seeks to facilitate an efficient resolution of this case through entry of judgment awarding damages for a single § 1201 violation."

Nintendo also informed the court that it had incurred considerable costs pursuing the case but was not seeking to have those reimbursed. However, the company still demanded a judgment in its favor in respect of the DMCA violations, the misrepresentations made by the defendant in his DMCA counternotice, and the request for a permanent injunction.

Court Sides With Nintendo

After considering Nintendo's motion for default, the court ruled that should be granted. In a final judgment issued Thursday, the court laid down the terms.

A permanent injunction was granted against Le Hoang Minh and all other individuals and entities acting in concert, restraining all from circumventing or assisting in circumventing any technological security measures that effectively control access to Nintendo's copyrighted works.

The same are also restrained from manufacturing, offering for sale, distributing, exporting or otherwise trafficking into the United States "any and all products, services, devices, components or parts thereof" that are designed or produced for circumventing security measures in Nintendo's consoles, products and protected works.

Turning to RCM Loader and any product with identical function, the court restrained the defendant from carrying out sales, distribution, imports and/or shipping to any person or entity in the United States. Le Hoang Minh is also banned from indirectly infringing, facilitating, encouraging, promoting or inducing the infringement of Nintendo's copyrights, whether in existence now or in the future.

In an effort to prevent sales on platforms such as Amazon, the defendant was restrained from offering RCM Loader or any similar product for sale or distribution. Any seller or online marketplace who receives notice of the order must also "immediately cease and permanently refrain" from offering any such products in the United States.

The court also authorized Nintendo to seize and destroy all circumvention devices and software that violate its copyrights or exclusive licenses. It further granted the $2,500 in statutory damages requested by Nintendo and reminded the defendant that any violation of the order may be punishable as contempt of court.

Nintendo's Motion for Default Judgment can be found here (pdf)

The Final Judgment and Permanent Injunction can be found here (pdf)

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

UK Pirates Remain Driven by Convenience, Availability and Cost
Ernesto Van der Sar, 16 Apr 10:15 AM

ukEvery year the UK Government publishes a new edition of its Online Copyright Infringement Tracker.

This report is the result of an annual survey that polls the piracy habits of people twelve years old and above.

Earlier this week the UK Intellectual Property Office published the tenth wave of the report. As always, there are some positive changes compared to earlier years, as well as some negative ones.

Fewer Pirates

Starting with the good news, the study finds that the overall level of copyright infringement across all content categories has dropped. In previous years this number was stuck at 25% but has now reduced to 23%. This means that nearly a quarter of the people who consumed online content have used illegal sources.

While this is a big number, the survey also shows that many of these pirates consume content legally as well. For example, 20% of all film fans occasionally pirate content, but only 3% use piracy services exclusively.

The same effect can be found in other content categories, including music consumers of which 18% used unauthorized sources last year, but only 2% did so exclusively. For games, these numbers are 10% and 2% respectively.

For the above categories, a relatively small percentage of the pirating public used illegal sources exclusively. However, that picture is the other way around for software and digital magazines, where the majority of all pirates never purchased anything legally.

Sports Piracy is Booming

Similar to last year, the highest percentage of pirates can be found among the live sports streamers. Of all the people who consumed sports streaming content last year, 37% used illegal channels. That is up from 34% last year. Roughly a third of the sports streaming pirates never used legal services.

This brings us to the motivation people have to pirate content. Here we see a familiar picture emerge as well. People pirate because something is not available or because they can't or don't want to pay additional costs.

Movie fans, for example, may not want to pay for yet another monthly streaming subscription to see a film. Or, the content they desire may not be legally available at all, as we have seen with some of this year's Oscar contenders.

COVID Had a Limited Impact

Despite some small shifts in piracy levels not much has changed. There is a small decline in music, movie and TV piracy, while the proportion of sports, gaming and software pirates increased a bit.

Interestingly, the COVID pandemic doesn't appear to have a strong or lasting effect. Some people reported that their piracy activity increased, but there aren't necessarily more people who pirate.

"In terms of levels of infringement, the findings from the qualitative phase showed that while many reported no change in their use of illegal sources, some noted that owing to their general consumption in entertainment increasing, so too did their use of illegal sources," the report notes.

How to Stop Pirates?

While the yearly reports help to track how piracy trends develop over time, it does little to address the problem. However, the latest report does give some advice on how to motivate pirates to 'go legal.'

The study tested a variety of messages focused on the negative consequences of piracy, to see what would make pirates change their behavior. This leads to some interesting insights.

For example, mentioning the financial losses of big corporations or the broader economy has virtually no impact. People don't seem to care that the revenue of major movie studios or sports organizations is impacted.

A more effective approach, according to the study, would be to focus on the financial impact piracy has on individual artists and employees who work in the creative industries. Those messages even impacted hardcore pirates, who also showed concern about their own risks, including malware and viruses.

Finally, hasher punishment could work as well, according to one of the report's conclusions.

"There is potential to explore messages around risk of greater legal action and consequences for those who infringe – this is not currently seen as a viable threat but was mentioned by a few as a potential deterrent if enforced more widely."

A summary of the tenth copyright infringement tracker survey is available on the UK Intellectual Property Office website.

While not mentioned, it may also make sense for the entertainment industries to change something themselves. After all, harsher publishment is not going to improve the convenience, availability, and cost of legal alternatives.

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

 
 
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