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'Lead' YouTube Content ID Scammer Sentenced to 46 Months in Prison
Ernesto Van der Sar, 21 Aug 12:19 PM

sad tubeYouTube's Content ID system helps rightsholders and content creators prevent copyright infringement.

Copyright holders can either remove problematic content from the video platform or monetize it instead.

Monetization is preferred in many cases and can be quite lucrative. Over the years, the Content ID platform has generated more than $9 billion in 'claimed' advertising revenue.

Criminal Content ID Scam

This option isn't just utilized by legitimate owners, scammers have been making use of it too. While it's unknown how often the system is abused, an indictment published by the Department of Justice in late 2021 showed that a U.S. company run by two men built a multi-million dollar business on this scheme.

A criminal investigation revealed that Webster Batista Fernandez and Jose Teran ran a massive YouTube Content ID scam. By falsely claiming to own the rights to more than 50,000 songs, the pair generated more than $23 million in revenue.

The scammers' company, MediaMuv LLC., wasn't a direct member of the Content ID program. Instead, it operated through a trusted third-party company, which had access to the platform.

Both defendants signed guilty pleas and faced long prison sentences. Teran, who was described as the "number two" of the operation, was sentenced to more than five years in prison a few weeks ago. The custodial sentence came as a disappointment to the defense, which had requested mild probation or home confinement instead.

Court Sentences "Lead" Scammer

The second defendant, Mr. Fernandez, also sought leniency from the court. His attorney argued that a 46-month prison sentence should be sufficient, noting that his client takes full responsibility for his wrongdoing.

"Mr. Fernandez concedes that he made a terrible decision to become involved in criminal conduct, which has not only affected his family and children, but has also caused financial harm to the victims involved in this case."

In this instance, U.S. District Court Judge Douglas L. Rayes found the recommendation persuasive. Late last week, Mr. Fernandez was sentenced to exactly 46 months in prison, as suggested.

"It is the judgment of this court that the defendant is committed to the custody of the Bureau of Prisons for a term of forty-six months," the order reads. This prison term will be followed by three years of supervised release.

fernandez sentencing

Forfeited Cash and Restitution

In addition to the jail time, Mr. Fernandez will also forfeit possessions related to his crimes. His stake in over a million dollars seized by the authorities, for example, plus several pieces of real estate and cars.

The authorities described the YouTube scam operation as one of the "largest music-royalty frauds ever perpetrated" and it invites potential victims to come forward to claim their part of a restitution fee, in an amount yet to be determined.

The list of illegitimately claimed songs exceeds 75,000 titles, which once again illustrates the scope of this multi-million dollar scam.

Finally, it is worth noting that Mr. Fernandez, who supposedly initiated the scheme, received a significantly lower sentence than his partner Mr. Teran. The reason for the disparity is not revealed in available paperwork, however, and the authorities have yet to comment on the sentencing.

The sentencing order for Mr. Fernandez can be found here (pdf)

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

Libraries Scold Rightsholders' Attempt to Tweak South Africa's Copyright Bill
Ernesto Van der Sar, 20 Aug 03:26 PM

south africaThe American copyright industry generates billions of dollars in annual revenue and is generally seen as one of the country's primary exports.

Whether it's movies, music, software or other goods, U.S. companies are among the market leaders.

To protect the interests of these businesses around the globe, copyright holder groups can count on help from the U.S. Government. The yearly list of 'notorious markets,' for example, is a well known diplomatic pressure mechanism to encourage other countries to up their enforcement actions and improve laws.

The same is true for trade deals and other policies, which often require trade partners to take action in favor of copyright holder interests.

The International Intellectual Property Alliance (IIPA), which represents the ESA, MPA, and RIAA, among others, has been the voice of major entertainment industries on this front. The Alliance regularly encourages the U.S. to further the international interests of its members, including in Africa.

The African Growth and Opportunity Act

A few weeks ago the IIPA published its views on the latest eligibility review of the African Growth and Opportunity Act (AGOA). This process, led by the U.S. Trade Representative (USTR), determines which sub-Saharan African countries can enjoy certain trade benefits.

This isn't the first review of its kind; we have reported on similar efforts in the past and the most recent review features much of the same critique.

IIPA is particularly concerned that South Africa isn't doing enough to deter copyright infringement. There are also grave concerns that the proposed "fair use" exception, which is modeled after legislation in the U.S., could lead to problems in the African country.

The critique from rightsholders hasn't gone unnoticed by South Africa. President Cyril Ramaphosa previously sent two copyright-related bills back to Parliament but IIPA and other rightsholder groups haven't yet seen the desired changes.

Libraries Respond

Amid these high-level political lobbying efforts, one submission clearly stands out. Last week, the Library Copyright Alliance (LCA), which consists of the American Library Association and the Association of Research Libraries, sent a rather outspoken take to the USTR.

The Alliance represents more than 100,000 libraries which are used by 200 million Americans each year. While there is no direct tie to South Africa that we're aware of, the group pays close attention to copyright-related developments around the globe.

When the Alliance read IIPA's critique of South Africa's copyright policies and plans, it felt the need to jump in and add a different take on the situation.

Fair Critique?

The libraries counter IIPA's submission point by point. One of the key points of contention is the fair use proposal, which South Africa modeled after the U.S. version. According to rightsholders, this is a concern since it includes many copyright exceptions that might be abused.

The libraries clearly have a different take. They argue that protesting a fair use policy inspired by U.S. law is hypocritical.

"[A]s a matter of policy, the United States should always support other countries' adoption of provisions based on U.S. copyright law. This is true regardless of whether the provision expands the scope of copyright or limits it. To oppose such adoption appears hypocritical and condescending," the libraries write.

One of IIPA's arguments suggests that the South African fair use proposal could violate the Berne Convention and the TRIPS Agreement. The libraries don't contest that, but warn that, if true, the same would apply to the U.S. version.

"IIPA appears to imply that a fair use provision might be inconsistent with the three-step test in the Berne Convention and the TRIPS Agreement. This is a dangerous argument for IIPA to make, because if section 12A of the CAB violates the three-step test, so does 17 U.S.C. § 107."

Above and Beyond

Some of the IIPA's suggestions go beyond U.S. copyright law, the libraries note. For example, IIPA calls for stricter anti-piracy enforcement, including a policy that requires online platforms to prevent unauthorized use of copyrighted works on their platforms.

According to the libraries, this goes above and beyond what online services are required to do under U.S. law.

"These [requirements] do not exist in U.S. law. It appears that IIPA is requesting USTR to impose the EU Copyright in the Digital Single Market's filtering obligations on South Africa," the libraries write.

In other instances, IIPA requests South Africa to adopt U.S. standards that exceed international ones. For example, it requests a 70-year copyright term, as opposed to the 50-years standard.

"IIPA complains that the PPAB does not extend the term of protection in sound recordings from 50 years to 70 years. However, the term of protection for sound recordings set forth in the TRIPS Agreement and the WPPT is 50 years.

"South Africa should not be penalized for complying with, but not exceeding, these international standards," the libraries add.

Orwellian

Finally, the libraries point out what they believe is an "Orwellian" take from the IIPA. The rightsholders argue that academic freedom would be threatened if scientists have the right to freely share the results of Government-funded research.

This would ensure that publicly funded research can be published in an open-access format, instead of being locked behind a paywall. As such, the libraries fail to see how this puts academic freedom at stake.

"This is a truly Orwellian argument. How does preserving a scientist's right to make her research publicly available undermine her academic freedom?" they write.

The examples highlighted above are just a fraction of the points brought up by the Library Copyright Alliance's submission. Overall the libraries conclude that many of the policy choices made in the bills are completely consistent with U.S. law. Other than that, it stresses that legislation is never perfect for all parties and that compromises have to be made.

A copy of the Library Copyright Alliance (LCA) submission to the USTR is available here (pdf)

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

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