Friday, October 8, 2021

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VPN Hosting Company Settles Copyright Lawsuit by Blocking Pirate Sites
Ernesto Van der Sar, 08 Oct 11:41 AM

Page BlockedHosting providers are generally seen as neutral intermediaries but some copyright holders believe that these companies should bear more responsibility.

This liability for online services is a hot topic on the political agenda and it's at the center of several lawsuits in U.S. courts as well.

Lawsuits Target VPN Piracy

Over the past months, a group of independent movie companies filed a series of lawsuits against VPN providers and their hosting companies. The makers of films such as "Hunter Killer" and "Dallas Buyers Club" accuse these services of turning a blind eye to piracy.

One of the targeted companies is cloud hosting provider Sharktech, which counts several VPN providers among its customers. According to the rightsholders, the hosting provider indirectly contributed to the infringing activities of the VPNs' subscribers.

The movie companies alerted Sharktech about this piracy activity through various copyright infringement notices, which allegedly had little impact.

"Sharktech failed to terminate the subscribers or the accounts associated with these IP addresses or take any meaningful action in response to these Notices," the movie companies' complaint read.

Sharktech's Motion to Dismiss

The hosting company fired back at this complaint. In July, it filed a motion to dismiss the case for failure to state a claim. The filing described the filmmakers as "opportunistic litigants" that rely on "unsupported" liability theories.

Sharktech countered that it's at least three steps removed from the actual pirates. The company merely offers a service to VPN providers which, in turn, have customers who may or may not be infringing.

"Plaintiffs' theory is akin to demanding that a commercial airline that supplies FedEx with supplementary cargo space should be required to terminate FedEx as a customer because a few of FedEx's individual customers may use FedEx's services for illegal purposes," Sharktech argued.

Settlement Reached

While it's clear that both sides have an entirely different view on the matter, settlement negotiations began behind the scenes. Last month, they indicated to the court that an agreement was being finalized.

This week the movie companies and Sharktech filed a stipulation to dismiss the case. Both parties agreed on a confidential settlement agreement. This means that the exact details remain unknown, except for one crucial element.

In the original complaint, the filmmakers demanded that Sharktech should block access to several popular pirate sites available through its network. According to the legal paperwork, the hosting company agreed to do so.

Blocking Pirate Sites

Specifically, Sharktech will use commercially reasonable tools to block the IP-addresses of several pirate sites including Pirate Bay, YTS, RARBG, and 1337x.

"Pursuant to 17 U.S.C. 512(j)(B)(ii) and a confidential settlement agreement, Plaintiffs have requested and Defendant Sharktech has agreed to use commercially reasonable efforts to block the following alleged piracy websites located outside of the United States, by blocking their associated, currently-known IP addresses:"

(1) "YTS" (yts.mx; yts.movie)
(2) "PirateBay" (https://pirate-bay-proxy.org/eng/; piratebay.org)
(3) "RarBg" (https://rarbg.to/)
(4) "1337x" (https://www.1337x.tw/; https://www.1377x.is/).

sharktech dismiss

Needless to say, this is a far-reaching measure when taking into consideration that pirate site blocking is not common in the U.S. The movie companies are trying to change this through several lawsuits and this is their first 'victory' thus far.

There are some things that stand out, however. The legal paperwork mentions pirate-bay-proxy.org and piratebay.org, while the official thepiratebay.org domain is not included. The same applies to 1337x, which doesn't have its main domain listed.

Colateral Damage

The above doesn't mean that the blocking efforts will have a limited effect. On the contrary, many of the domains are accessible through shared IP-addresses offered by Cloudflare. This opens the door to collateral damage.

For example, YTS.mx resolves to the IP-address 104.31.16.120, which it shares with hundreds of other 'pirate' domains such as IPTorrents.ru, Flixtor.to, Putlockers.fm, and Kickass1.to. With a simple IP-address blockade, these domains will be blocked as well.

Also, it's not just 'piracy' related domain names that are at risk. The targeted YTS.movie domain uses a shared Cloudflare IP-address that's linked to over 2,000 other domains. The majority of these domains have nothing to do with piracy.

For example, YTS.movie resolves to the same IP-address as Stechfordmobility.co.uk, which is a company that sells stairlifts & mobility equipment in the UK.

This wouldn't be the first time that shared IP addresses have resulted in overblocking. The same has happened a few times in the past and Cloudflare previously stepped in to limit such collateral damage.

TorrentFreak reached out to Sharktech for further information on how the company plans to enforce the blocking agreement. At the time of publication, we have yet to hear back.

With the settlement agreement, all claims against the hosting provider are dropped. The same doesn't apply to VPN provider PIA and several Doe defendants that are targeted by the same complaint.

A copy of the stipulation to dismiss the claims against defendant Sharktech is available here (pdf)

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

Triller: H3 Podcast Can't "Steal" Jake Paul Fight Video & Claim Fair Use
Andy Maxwell, 07 Oct 09:56 PM

TrillerIn May, Triller filed a lawsuit against the H3 Podcast, claiming that by showing a portion of the Jake Paul vs. Ben Askren fight event on YouTube, the defendants breached the company's rights.

Triller initially alleged two types of copyright infringement, violations of the Federal Communications Act (FCA), conversion, and violations of the Computer Fraud and Abuse Act. The company demanded $50m in damages after the "unauthorized broadcast" was allegedly viewed one million times. A first amended complaint named Ethan and Hila Klein as defendants and a second removed the fraud allegations.

Early September the defendants fired back with a motion to dismiss the "fatally defective" complaint, arguing that they only used a very small portion of the four-hour broadcast for the purposes of commentary and criticism, a key component of a fair use defense. Triller's allegation, that Ethan Klein admitted that the copy of the fight he watched was pirated, does not amount to anything since viewing such content is not an offense, the defendants argued.

Considering these points and others formed along similar lines, Triller's lawsuit should be dismissed, the defendants said. In an opposition to that motion, filed late Wednesday, Triller argues otherwise, shifting emphasis away from the podcast itself and onto the video clip used by H3, which was placed on YouTube as an 'unlisted' video.

'Unlisted' Video Was a "Bootlegged" Copy

In its opposition, Triller moves directly to the core of its new focus. The company says that Ethan Klein admitted online that he pirated the Jake Paul fight and uploaded "substantial portions" of that broadcast to YouTube in the form of an unlisted video. Third parties were allegedly able to view that video without paying Triller PPV fees.

"These are textbook violations of the Copyright Act, and Defendants should not be permitted to thumb their noses at the law or this Court," Triller writes.

Triller's initial stance was that the H3 Podcast episode that contained the fight clip was viewed a million times but they now state that the episode, which contained commentary and criticism, is not what this lawsuit is about.

"This lawsuit does not concern or seek to stifle Defendants' commentary relating to the Broadcast. To the contrary, this lawsuit concerns Defendants' creation and dissemination of the Unlisted Video," its motion reads.

URL of Unlisted Video Was Displayed In Podcast

According to Triller, the "stolen" clip used in the H3 episode contained a piece of information that undermines the defendants' case. By displaying the fight clip and its URL (location on YouTube), a breaches of copyright law took place.

"To the extent Defendants wanted to provide commentary concerning the Broadcast, Defendants could —and should— have done so without violating the Copyright Act by hiding, obstructing, or obscuring the URL for the Unlisted Video," Triller's opposition to the motion to dismiss reads.

"But, whether out of negligence, willfulness, or maliciousness, or some combination thereof, Defendants chose to not hide, obstruct, or obscure the URL for the Unlisted Video, and thereby unlawfully permitted at least 65 individuals to view the essential portions of the Broadcast without paying Plaintiff the required pay-per-view fee."

Triller says that because each of these 65 individuals failed to pay Triller and the unlisted video was monetized, the defendants' profited from their direct infringements. On the other hand, Triller notes that the defendants may not have earned anything at all (as the defendants have previously claimed) but want the opportunity to ascertain the facts during a discovery process.

Process of Viewing Pirated Broadcast "Was Illegal"

In respect of the defendants' claim that simply viewing the event from a pirated copy wasn't illegal, Triller suggests the whole process that facilitated that needs to be examined. The company says that the defendants not only viewed the broadcast without paying but also downloaded the broadcast and uploaded it to YouTube, where it was viewed by third parties.

"By unlawfully viewing and downloading the Broadcast, Defendants engaged in direct copyright infringement. By uploading the Broadcast to YouTube where other individuals could —and did— unlawfully view the Broadcast, Defendants engaged in vicarious copyright infringement," Triller adds.

The company also addresses the defendants' claim that the unlisted video was a "digital stream" and therefore inherently "transitory", stating that the file was "fixed" on YouTube's servers.

Defendants' "Bad Faith" Rules Out Fair Use Protections

In their motion to dismiss, the Kleins stated that under the doctrine of "intermediate use" the preliminary step of copying a video for use in the creation of a fair use work also qualifies as fair use. However, Triller believes the way that video was obtained weighs in its favor.

"Defendants did not obtain the Broadcast lawfully; indeed, Defendants expressly proclaimed to the world that they stole the Broadcast," Triller notes.

In respect of H3's commentary and criticism podcast, Triller says the same effect could've been achieved without showing the broadcast at all, or by lawfully purchasing the broadcast like any other consumer.

"But Defendants did not do this. Instead, Defendants admittedly 'pirated' or 'bootlegged' the Broadcast, uploaded a copy to YouTube so others could —and did— similarly unlawfully pirate or bootleg the Broadcast, and profited therefrom."

Further weighing in on the "intermediate use" defense, Triller says that case law only allows infringements that are "not ultimately used in any end product" and in this case, the H3 Podcast episode indisputably contains copyrighted material.

"Accordingly, the intermediate use doctrine does not apply to the Unlisted Video as a matter of law," Triller adds.

Other Fair Use Factors Cannot Be Relied Upon

Again focusing on the 'Unlisted Video' rather than the H3 Podcast episode, Triller says that there was no comment or criticism in it. It was a "substantial portion" of the broadcast, in its original form, and was in no way transformative.

That source video was viewed at least 65 times without comment or critique and since those viewers were able to watch the Jake Paul fight in full, the video was a market substitute for the broadcast. This meant there was a substantial effect on and the market and value of the copyrighted work.

Finally, in the event that the court decides to dismiss any of Triller's causes of action, the company requests permission to amend its complaint once again.

Triller's opposition to the motion to dismiss the second amended complaint can be found here (pdf)

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

 
 
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