Wednesday, August 23, 2023

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Amazon Sues Online Stores Selling Pirated DVDs
Ernesto Van der Sar, 23 Aug 11:50 AM

amazon logoAmazon is not just the largest e-commerce retailer, the company also has a significant copyright portfolio.

In recent years the company has increased its anti-piracy efforts, both individually and as a member of the Alliance for Creativity and Entertainment (ACE).

The company does all it can to protect popular titles such as The Lord of the Rings: The Rings of Power, The Boys, and The Peripheral, which are typically pirated shortly after their release. The main focus of these anti-piracy efforts is on pirate streaming and download portals, but it doesn't end there.

Amazon Sues Pirate DVD Stores

This week, Amazon Technologies filed a lawsuit against several websites that sell pirated DVDs disguised as official releases. While these pirated discs are no longer as popular as they were 20 years ago, they remain a problem, especially when illicit copies are sold as the real deal.

In a complaint filed at a California federal court, Amazon accuses seven websites of selling pirated discs. These sites, including dvdshelf.com.au, dvds.trade, and dvdwholesale.co.uk, are presumably operated by the same group, using a variety of companies.

For the public at large, it may not be immediately obvious that these discs are pirated. However, since Amazon doesn't produce or sell DVDs for these Prime Video series, there is no doubt that they are created from illicit sources.

"Defendants' scheme to exploit the worldwide recognition of the Amazon Series is straightforward and blatant through their Piracy Websites, Defendants openly sell pirated and infringing DVDs containing unauthorized copies of the Amazon Series.

"To date, Amazon has not released for sale or distribution the Amazon Series on DVD, and instead exclusively distributes such content via its streaming-video-on-demand platform, Amazon Prime Video," the complaint clarifies.

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The piracy operation consists of at least seven websites and these all remain online today. According to Amazon, the sites ship to customers in the U.S. and abroad, twenty-four hours a day, seven days a week, resulting in mass copyright infringement.

Test Purchases

Before going to court, investigators conducted more than twenty test purchases of pirated DVDs. After these orders arrived, Amazon sent the discs to the Motion Picture Association which independently confirmed that they were all pirated.

dvd-wholesale

These illegal sales don't just hurt Amazon and other entertainment companies, people who buy the DVDs are victims too. While the cheap price tags are perhaps too good to be true, some people believe that these are official DVDs. The reviews, however, show that the quality isn't always up to par.

"For instance, a customer left a one-star review of DVD Shelf's website in 2021 stating that despite the company's 'claim[] to only sell genuine products,' the customer found the DVDs were 'of EXTREMELY poor quality' and are 'absolutely pirated copies,' with, among other issues, episodes missing, sync problems, editing issues, and faulty discs." Amazon writes.

The complaint lists Yangchun Zhang as a key suspect. This person presumably resides in China and obtained the 'DVD Shelf' trademark in Australia. In addition, Zhang is also listed as the registrant of several of the domain names involved.

Damages and Injunction

The complaint accuses Zhang and the others of both copyright and trademark infringement. Through the lawsuit, Amazon hopes to recoup damages, which can run in the millions of dollars.

Another key priority is to shut the sites down and Amazon asks the court for an injunction to stop all infringing activity.

In these types of cases, the defendants are not always responsive. For this reason, Amazon requests an injunction that requires domain registrars and related companies to hand over the stores' domain names. At the same time, payment providers such as PayPal should freeze all funds, to pay off potential damages in the future.

A copy of the complaint, filed by Amazon Technologies at the U.S. District Court for the Central District of California, is available here (pdf).

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

Kim Dotcom's Bitcache a US$13.5m Failure, Liquidator Report Reveals
Andy Maxwell, 22 Aug 07:53 PM

blackholeOn July 23, 2023, the High Court in Auckland, New Zealand, put a company called Bitcache Limited into liquidation.

Founded on July 28, 2016, Bitcache Limited was the legal entity behind Kim Dotcom's Bitcache, an upcoming blockchain/crypto solution set to revolutionize the utility of Bitcoin through the introduction of cost-effective microtransactions. That was more than seven years ago; almost a lifetime in whatever unit crypto-years are measured in these days.

The Greatest Thing Since Sliced Bread

During the summer of 2016, Kim Dotcom was teasing fresh information about the imminent debut of Megaupload 2.0. Set to launch in January 2017, every file transfer on the platform would be linked to a bitcoin transaction, taking "decentralization, anonymity & encryption to the next level. A nightmare for those who want to mass surveil & censor," Dotcom said.

The technology making all of this possible was Dotcom's groundbreaking Bitcache; unseen in public but allegedly capable of eliminating all blockchain limitations.

"Nobody will upload to any other cloud after Megaupload's Bitcache goes live," Dotcom declared.

Just Wait For It

In October 2016, with the launch of Megaupload 2.0 and Bitcache just a few months away, 'MU2' secured its first investment round. Through the online investment platform BnkToTheFuture, 354 investors committed over a million dollars to the project, one that would not be ready for launch on January 20, 2017, as previously announced.

Dotcom said that a timely launch was "unlikely" so there would be an MU2/Bitcache announcement on that day instead.

With the launch suddenly and inexplicably back on, January 20, 2017, spectacularly failed to deliver. With just 90 minutes left before the official power-up of both Megaupload 2.0 and Bitcache, Dotcom said that the launch had "hit a roadblock" and he couldn't comment further.

New Zealand companies MU2 Ltd, Bitcache Technologies Ltd, and Bitcache Ltd, did not comment either, and the same held true for their trust company owners registered in the Cook Islands and Cayman Islands.

Details of the last-minute 'hiccup' emerged on January 24, 2017. In an effort to raise capital, Megaupload 2.0 and Bitcache had reportedly struck a stock and cash merger deal worth $100m with a publicly listed company on the Canadian stock exchange. Dotcom said the Canadian Securities Exchange raised objections, and that ruined everything.

"Bitcache feels it is important as a technology startup to stay nimble and reduce corporate complexity in favor of technology development," Dotcom said at the time.

With the benefit of foresight, Bitcache Limited's liquidator might've nodded in agreement.

"There Are Fees Owed and Not Paid"

The day before Megaupload 2.0/Bitcache hit the roadblock in 2017, Kim Dotcom's directorship in Bitcache Limited came to an end. Auckland lawyer Phil Creagh, who according to his bio was involved in all Kim Dotcom-related litigation matters since 2014, was a Bitcache director until September 2020. On May 24, 2023, Creagh filed an application to have the company liquidated.

"It's pretty straightforward, there are fees owed and not paid. The company has not taken any steps so far to avoid being placed in liquidation," Ceagh told Newsroom. "We'll put it in liquidation and see what, if anything, can be recovered."

bitcache liquidate

Local company Insolvency Management Limited was appointed as liquidator on July 13, 2023. On the same day, Dotcom said Bitcache was in the hands of the liquidator because it had received an invoice for work carried out by a law firm.

NZ Herald reported that Creagh's law firm, Anderson Creagh Lai, said the application was filed over "unpaid director's fees in the sum of $231,653."

Liquidator's First Report

On August 18, 2023, Insolvency Management Limited filed its first report regarding Bitcache's demise, which includes a list of shareholders, the most prominent shown below.

bitcache-shares

"The company traded as a software developer of a crypto currency scheme and was set up in 2016 by Kim Dotcom who acted as a director for some 7 months," the report reads.

"Subsequently 2 professional directors were appointed although the Liquidator is advised Mr. Dotcom still held an active interest in the running of the business. Currently the Liquidator is not aware when the company ceased to trade."

The liquidator "is not aware" of any physical assets owned by the company but notes that a trademark exists, value to be determined.

Bitcache owes NZ$1.2m (US$713K) to three creditors including Creagh and his law firm. With a share capital of NZ$21.5m, the total deficit is an estimated NZ$22.7m (US$13.5m).

"Potentially Serious Questions Raised"

An article published by NZ Herald says that the liquidator's report raises "potentially serious questions" about Bitcache.

"The Companies Office listed 10 shareholders in Bitcache before its liquidation – all based in the Cook Islands, Cayman Islands or Hong Kong," NZ Herald reports.

Insolvency Management principal Ian Nellies told the Herald that the shareholding companies were trusts.

"I'm still investigating who has ultimate ownership," Nellies said.

The liquidator's report also identified "some early developed software that may or may not have some value" but Dotcom was keen to distance Bitcache replacement 'Fileshop' from that discovery.

"The good news is that the project is now called FileShop, has been developed from scratch with a completely new code base and without any of the Bitcache IP," Dotcom recently wrote on X.

"Very happy to announce that friendly previous investors and partners have not been forgotten and that this app is coming."

business-gamer-failure

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

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