Thursday, July 22, 2021

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Rightscorp Tracks Alleged Pirates Without a Private Investigator's License, RCN Argues
Ernesto Van der Sar, 22 Jul 09:39 PM

cassette tape pirate musicUnder US copyright law, Internet providers must terminate the accounts of repeat infringers "in appropriate circumstances."

In the past such drastic action was rare, but with the backing of legal pressure, ISPs are increasingly being held to this standard.

ISPs Sued Over Repeat Infringers

Several major music industry companies including Arista Records, Sony Music Entertainment, Universal Music, and Warner Records, have filed lawsuits against some of the largest U.S. Internet providers. The list of targets includes RCN, which was sued in 2019.

The liability lawsuits are seen as a major threat to the ISP industry, as multiple companies face hundreds of millions of dollars in potential damages. This is not just a hypothetical threat, as the $1 billion verdict against Cox showed.

Internet providers hope to avoid ending up in the same position as Cox so several others have gone on the offense. This includes RCN, which accused the RIAA and its anti-piracy partner of sending 'fraudulent' DMCA notices.

This initial attempt failed a few weeks ago. A New Jersey federal court dismissed the complaint, concluding that RCN failed to show that Rightscorp's infringement notifications imposed any additional costs. However, the court left the door open for more detailed allegations.

RCN Strikes Back, Again

The ISP filed its amended answers to the music companies' complaint at the federal court in New Jersey, denying the copyright infringement allegations. At the same time, RCN countersued the music companies, the RIAA, and piracy tracking firm Rightscorp for unfair practices.

"RCN's counterclaims are based on Rightscorp's, the RIAA's, and the Record Labels' unlawful, unfair, and fraudulent business practices in generating and sending millions of unsupported emails accusing RCN's customers of BitTorrent-based copyright infringement," the ISP writes.

"Defendants seek to create an environment in which ISPs, including RCN, have no choice but to indiscriminately terminate the internet access of every customer accused of copyright infringement, or face the wrath of the Record Labels and the RIAA."

The countersuit is pretty much identical to the initial complaint, but with a few additions to address the court's initial concerns. The court dismissed the initial claims because it didn't include any costs that could be linked directly to the problematic notices.

Substantial Costs

RCN now points out that the problematic takedown notices directly resulted in added expenses. This includes legal costs, as well as additional resources that were put into maintaining its DMCA system.

For example, Rightscorp failed to digitally sign its piracy notices with PGP keys, as is required by RCN's DMCA policy. As a result of this omission, RCN employees have to make significant adjustments.

"This includes expenditures of time and effort that would have been avoided if Rightscorp digitally signed the copyright infringement complaints it sent to RCN, as required by RCN's DMCA policy," RCN notes.

No Private Investigator's License

The countersuit changes are not just limited to the added costs. RCN also adds a new allegation. According to the filing, Rightscorp doesn't have a private investigator's license, even though it acts as one.

Tracking alleged pirates without a license violates California and New Jersey law, the Internet provider notes.

"Rightscorp's collection of evidence for use in court proceedings is an unlawful business practice because, on information and belief, Rightscorp and its representatives have been acting as private investigators without a license, in violation of California and New Jersey law.

"And on information and belief, the RIAA and Record Labels hired Rightscorp in order to benefit from its unlawful business practices despite knowing that Rightscorp and its representatives are unlicensed."

RCN Wants Costs Covered, and More

All in all, the alleged fraudulent notices, the destruction of evidence, and the lack of a private investigator's license is in violation of the California Business & Professions Code, RCN says.

To resolve these issues, the ISP requests an order that requires the RIAA and Rightscorp to comply with its DMCA policy and preserve all underlying evidence. In addition, Rightscorp should obtain the necessary licenses to act as a private investigator in all applicable jurisdictions.

Finally, RCN would also like the RIAA and Rightscorp to pay for all its costs, attorney fees, and other expenses related to the alleged wrongdoings.

A copy of RCN's second amended answer and the updated counterclaims is available here (pdf)

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

OMI IN A HELLCAT Denies Copyright Crimes, Demands Cars & Millions Back
Andy Maxwell, 22 Jul 11:03 AM

OMI IN A HELLCATIn November 2019, dozens of FBI and IRS agents shut down a pirate IPTV service operated by YouTuber OMI IN A HELLCAT, real name Bill Omar Carrasquillo.

The authorities also seized a huge fleet of supercars, jewelry, and in excess of $5.2m in cash from a personal account. Those assets are now subject to a civil forfeiture process initiated by the United States Government.

It's alleged that Carrasquillo and his business partners operated IPTV services variously branded as Gears, Reloaded, and Gears Reloaded, selling access to television, movies and sports content without authorization or license.

"Gears TV and its related entities received tens of millions of dollars in revenue, i.e., proceeds, during the period of time in which the enterprise operated the illegal video content service," the US Government complaint reads.

Ever since the raid, Carrasquillo has insisted that his services operated legally, or at least within a legal gray area. To that end, he's now asking a US court to return all of the seized assets.

Answer to US Government Complaint

As far as we're aware, the US Government has not yet indicted Carrasquillo for copyright infringement, money laundering, and tax evasion offenses. He recently predicted that could be a matter of weeks away but in advance of that, the active YouTuber is continuing to protest his innocence.

In an answer to the complaint that aims to seize his assets, Carrasquillo addresses dozens of claims raised by the US Government, mostly insisting that they are "legal conclusions" to which no responsive pleading is required. As a result, he denies most of the key allegations.

Addressing more than $5.2m seized from a single personal bank account, in excess of $1.6m seized from various Gears-related accounts, and around 57 vehicles, including several Lamborghinis and a Bentley Continental GT, Carrasquillo says that since no crimes were committed, none of these items should have been seized.

He specifically denies committing criminal copyright infringement (17 U.S.C. § 506 or 18 U.S.C. § 2319), including infringement for commercial advantage or private financial gain, the reproduction of one or more copyrighted works worth more than $1,000, and/or the distribution via a computer network of a work being prepared for commercial release.

"[I]t is denied that the Defendant Property is subject to forfeiture because it was used, in any manner or part to commit or facilitate the commission of violations of 17 U.S.C. §506 and/or 18 U.S.C. §2319, it is further denied that the Defendant Property is property constituting or derived from proceeds obtained directly or indirectly as a result of the commission of violations of the statutes named," the answer reads.

Carrasquillo's Denials Continue

Addressing a list of allegations that indicate that Carrasquillo was involved in a large pirate IPTV operation that utilized ancillary companies and payment processors to stay in business, the YouTuber either denies in full, denies that the allegations "are true and correct", or claims insufficient knowledge to form a belief whether they are true or not.

This response format continues throughout much of the answer, with the ultimate conclusion that the seized property is not subject to forfeiture because it was not connected to monetary transactions derived from unlawful activity, including breaches of the Copyright Act.

"Claimant Carrasquillo respectfully requests that this Court enter a judgment in his favor and against the United States of America with regard to the seized property as set forth herein, returning it to Claimant," the answer concludes, demanding a trial by jury.

Carrasquillo's answer to the complaint containing the full list of seized items can be found here (pdf)

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

 
 
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