Wednesday, February 2, 2022

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Manga Publishers' Lawsuit: Cloudflare Fails to Terminate Pirates or Verify Identities
Andy Maxwell, 02 Feb 08:26 AM

cloudflare logoEarly this week news broke that major manga publishers Shueisha, Kodansha, Shogakukan and Kadokawa were about to sue Cloudflare in Japan. The basics are relatively straightforward.

The publishers believe that since Cloudflare is structurally involved in the presentation and delivery of pirate sites that use its services, the company should do more to help copyright holders when Cloudflare's services are used to infringe copyright. Up until now, Cloudflare's responses haven't been considered sufficient.

The lawsuit filed Tuesday at the Tokyo District Court is yet to be made public but in a joint statement, the publishers now lay out their grievances against the US company.

Publishers Demand an Injunction and Damages

According to the four publishers, their lawsuit represents only a "partial claim" against Cloudflare. In total they are demanding 460 million yen (around US$4 million) in damages for copyright infringement in four copyrighted works, one representing each company, and an injunction to restrain the company moving forward.

The publishers say that Cloudflare has violated their copyrights in "nine cases", a reference to nine pirate manga sites that use the company's services. They explain that after identifying the sites to Cloudflare and asking the company "to explain" the infringing content stored on those sites, they demanded action from Cloudflare to bring the infringements to a halt.

Demands Issued to Cloudflare

"With regard to the infringing content illegally stored on the sites, we asked Cloudflare to stop the temporary reproduction (cache) on the company's servers in Japan [and] terminate their contracts with pirate sites that are clearly illegal," the companies say.

The publishers' version of events has Cloudflare responding that they had "taken the necessary measures" against the sites in question but refusing to provide any details on what measures had been taken against which sites. Following a technical analysis, the publishers' experts concluded that the pirate sites were still using Cloudflare's services and caches.

"Based on the above background and recognition of the current situation, the four publishing companies have filed a lawsuit against Cloudflare, seeking an injunction against the public transmission and reproduction of pirated content and compensation for damages," they report.

Publishers: Cloudflare is Strategically Important to Pirates

Shueisha, Kodansha, Shogakukan and Kadokawa acknowledge that CDN providers including Cloudflare are a vital part of today's internet ecosystem. However, they complain that while other major CDN providers properly identify site operators when they sign a service contract (to ensure the site is not illegal), Cloudflare's free service can be accessed and used without "sufficient verification of identity".

This has reportedly led to abuse. The publishers claim that as of December 2021, Cloudflare was supplying services to "9 of the top 10 malicious piracy sites with the highest number of accesses" while keeping pirate site server origins and IP addresses confidential.

"Because of these characteristics, many pirate site operators who do not want their identities to be identified are turning to CloudFlare's CDN service," the publishers add.

In addition to some level of anonymity, the publishers claim that Cloudflare enables pirate sites to stay online when their own infrastructures are incapable of handling high levels of traffic. The suggestion is that if it wasn't for Cloudflare, they might not be financially viable.

"The origin servers and other communication infrastructure used by pirate sites must be able to handle more than 100 million transactions per month [but the] communication infrastructures used by pirate sites do not have the capacity to handle more than 100 million accesses per month from an operational cost perspective," they note.

"Therefore, if Cloudflare stops providing CDN services, it will be impossible or extremely difficult to operate many malicious pirate sites. In other words, Cloudflare's CDN service has become indispensable for the operation of many malicious pirate sites."

Lawsuit Aims to Question What Behavior is "Appropriate"

In closing, Shueisha, Kodansha, Shogakukan and Kadokawa say the overarching purpose of the lawsuit is to determine whether the position taken by Cloudflare over the past few years in response to anti-piracy requests is appropriate for a company in such a powerful position.

"Through this lawsuit, the four companies and their legal advisors would like to question whether the uncooperative stance Cloudflare has shown over the past few years in response to requests for cooperation in the fight against piracy is appropriate for a company that provides a public service such as telecommunications infrastructure," they conclude.

Statement from Cloudflare:

By making security and performance services readily available to tens of millions of websites around the world, Cloudflare is helping make the Internet more secure, efficient, and reliable. Cloudflare's CDN and pass-through security services do not contribute to infringement, which a United States federal court recently recognized.

Cloudflare nonetheless takes these issues very seriously and has gone above and beyond its obligations to assist rightsholders in Japan. In addition to adopting an abuse process that connects rightsholders with the hosting providers and website operators actually able to remove infringing content from the Internet, Cloudflare also agreed to a framework with certain publishers that allows them to seek expedited resolution of their complaints in court. We therefore take a number of steps to facilitate actions against the parties that are actually responsible for this issue.

We have not seen the referenced lawsuit, however, Cloudflare is not the solution to this ongoing problem. We will continue to actively engage in discussions with rightsholders and the Japanese government: we have incorporated their input into our processes and have provided support assessing how other governments are managing these issues.

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

U.S. Seeks Significant Prison Sentence for SPARKS Member to Deter Other Pirates
Ernesto Van der Sar, 01 Feb 08:23 PM

pirate-flagFor several decades, The Scene has been the main source of all pirated content made available on the Internet.

Technically, release groups operate in a closed ecosystem, but the reality is different. The vast majority of the files published on private Scene servers eventually find their way to public pirate sites.

Feds Bust SPARKS Group

The secretive nature of The Scene has been a major challenge for law enforcement but in the summer of 2020, the US Department of Justice made a major breakthrough. Following a thorough investigation, three members of the illustrious SPARKS group were indicted.

One of the defendants, British national George Bridi, was apprehended in Cyprus and eventually extradited to the United States. The Brit pleaded guilty to being part of a criminal copyright conspiracy. Among other things, he obtained pre-release Blu-ray discs from distributors in New York, several weeks before their retail release dates.

While Bridi pleaded guilty, he stressed that there was no financial motive. The real goal of SPARKS was to get the newest releases out first, thus beating other Scene groups. It was all about internal competition and the prestige that came with winning these races.

"It became like a race, we had to win because there were other groups buying from the same distributor," Bridi said previously, explaining his involvement.

Defense Asks for Reduced Sentence

Later this month Bridi will be sentenced and based on the guidelines that were agreed upon in the plea deal, a 27 to 33 months prison sentence is the starting point. This is substantial but lower than the potential maximum of five years imprisonment.

In a letter to the court, Bridi's attorney Louis Freeman argues that a lower sentence is warranted. Due to various personal and health issues, as well as the low likelihood that his client will make the same mistake again, a "time served" sentence should be sufficient.

Thus far, 52-year-old Bridi has spent 17 months in prison and prolonging this term is not beneficial, according to his attorney.

"[A time served] sentence provides Mr. Bridi with specific deterrence to not commit any future crimes and also provides the public with a message of general deterrence to not commit crimes of this nature," Freeman argued in his letter.

U.S. Attorney Weighs In

This week, the U.S. Government shared its thoughts on the matter. In a detailed sentencing letter, U.S. Attorney Damian Williams starts off by stressing that Mr. Bridi was part of a serious and sophisticated criminal conspiracy that actively defrauded movie distributors.

"The defendant had multiple functions in the Sparks Group. He defrauded a disc distributor based in Brooklyn and New Jersey to obtain DVDs and Blu-Ray discs prior to the retail release date. He arranged for the discs to be delivered to other members and associates of the Sparks Group, who then 'cracked' the discs using special software that compromised the copyright protections on the discs.

"He then arranged for the copyrighted works to be uploaded to servers controlled by the Sparks Group, where the movies and television shows were disseminated across the Internet. Over the course of the conspiracy, the Sparks Group successfully reproduced and disseminated hundreds of movies and television shows prior to their retail release date," Williams adds.

The U.S. Attorney notes that the government previously agreed to a reduced sentence for Mr. Correa, another defendant in the SPARKS conspiracy. However, Mr. Bridi's role was larger and the sentence should reflect that.

Among other things, Mr. Bridi served as a manager and supervisor in the SPARKS Group. He purchased the discs from the distributors, coordinated shipments to lower lever members of the group, and urged at least one other individual to upload discs as soon as possible.

bridi sentencing

The SPARKS group itself wasn't a minor player. The group was the driving force behind hundreds of movie and TV show releases, which also came out under related tags such as "DRONES," "ROVERS," "GECKOS," and "SPRINTER."

'Significant Prison Sentence is Justified'

Taking the seriousness and economic harm of the defendant's conduct into consideration, the U.S. Attorney argues that a sentence within the guideline range of 27 to 33 months' imprisonment is sufficient, but not greater than necessary.

"[T]he Government respectfully submits that a significant sentence here is necessary in the interests of general deterrence. Copyright infringement causes millions of dollars in losses to movie production studios on an annual basis, which ultimately harms the individual employees who depend on this industry for their livelihood."

A significant sentence will also act as a deterrent to other pirate groups, who often operate from outside of the United States. This includes the third indicted member of the SPARKS group, Norway resident Umar Ahmad, who is still considered a fugitive.

"Indeed, one of the co-defendants in this case remains at-large in Norway. As a result, a significant sentence is needed here to promote respect for the copyright laws and to protect the producers of creative content in the United States," the U.S. Attorney writes.

Judge Richard Berman of the Southern District of New York will now have to weigh the sentencing arguments from both sides. The Court is expected to announce the final sentence later this month.

A copy of the U.S. Government's full brief with the sentencing proposal is available here (pdf)

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

 
 
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