Wednesday, January 3, 2024

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RCN Faces Another Multi-Million Dollar Piracy Lawsuit
Ernesto Van der Sar, 02 Jan 09:53 PM

justiceUnder U.S. copyright law, Internet providers must terminate the accounts of repeat copyright infringers "in appropriate circumstances."

The law doesn't specify what these circumstances are but in recent years federal courts have provided more context.

Cox and Grande Communications were both ordered to pay many millions of dollars in damages, for example. While these cases are under appeal, new ones are being filed at U.S. courts.

Internet provider RCN, which operates under the Astound brand, has been one of the most frequent targets.

The company first launched a proactive lawsuit against music rights group BMG in 2016, which ended in a settlement. In the years that followed, it was sued by several record labels, and later by film companies too.

Movie Company Lawsuit Expansion: Denied

The movie company lawsuit includes the makers of films such as The Hitman's Wife's Bodyguard, London Has Fallen, and Hellboy. This case is ongoing and a few weeks ago an amended complaint sought to add several new rightsholders to the case.

The amended complaint would've expanded the scope of the case by adding 14 additional plaintiffs and 343 new works. Since that would substantially increase the nature of the lawsuit, RCN asked the court to deny the request.

After reviewing the positions of both sides, New Jersey Magistrate Judge Tonianne J. Bongiovanni allowed some new parties to join, but not all. Specifically, the inclusion of independent movie distributor Screen Media Ventures was denied as that would expand the lawsuit with more than 320 new works.

"Plaintiffs' proposed addition of Screen Media and its 320+ copyrighted works is an extensive broadening of the case RCN now faces, and the burden of engaging in the likely discovery, motion practice and trial associated with same would be unfairly prejudicial to RCN.

"As a result, Plaintiffs request to join Screen Media and its 320+ copyrighted works to this litigation is denied," Judge Bongiovanni added.

Screen Media Ventures Objects

On the surface, the decision makes sense. On top of potentially adding hundreds of new films, allowing Screen Media Ventures to join would also introduce two additional piracy tracking systems to the suit. That would require substantially more work in terms of evidence vetting.

The plaintiffs disagreed. They opposed the denial pointing out that the final claims will focus on a much smaller number of works than the cited 320. Also, consolidating the claims in one case could actually save resources and offer more convenience than a separate lawsuit.

"Plaintiffs respectfully submit that the Order incorrectly assumes […] that the burdens are purely additive, whereas in fact litigating all of the issues together is vastly simpler than the alternative of having SMV file a separate complaint concerning the 320+ works," the filmmakers write.

New Lawsuit Makes a Statement

To prove this point, Screen Media Ventures (SMV) went ahead and filed a new case that is pretty much identical to the one it previously tried to join, listing all 324 works.

new cpmplaint

In its complaint, SMV mentions that it has invested significant financial resources, time, and effort in marketing its movies. Ideally, those investments should be recouped through sales but online piracy gets in the way.

"Massive piracy of these motion pictures on the Internet via peer-to-peer networks by subscribers of Internet Service Providers ('ISPs') such as Defendants and the willful failure of the ISPs to deal with this issue despite clear notice of it have hindered this opportunity," the new complaint reads.

Millions in Damages and Site Blocking

In theory, the 324 works could result in as much as $48,600,000 in statutory copyright infringement damages. However, SMV will likely focus on the works that were most frequently pirated, as previously indicated.

Nonetheless, with additional damages for DMCA violations on the line, the prospective damages could easily run in the millions of dollars.

The movie distributor also requests a broad injunction. Specifically, the company wants RCN to terminate the accounts of subscribers who receive more than three copyright infringement notices in 72 hours.

On top of that, an injunction should further require the provider to block access to "known" pirate sites, as identified by the US Trade Representative. Those include The Pirate Bay, 1337x, and TorrentGalaxy.

block

Whether this 'parallel' case will continue to trial has yet to be seen. However, it sends a clear signal to RCN and the court that denying SMV's request to join the other lawsuit won't necessarily save resources.

A copy of the complaint Screen Media Ventures against RCN Telecom Services, filed at the US District Court for the District of New Jersey, is available here (pdf)

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

DHS/HSI Assist Korea to Arrest Operator of "World's Largest Manga & Webtoon" Site
Andy Maxwell, 02 Jan 02:57 PM

shelter-sOn December 1, 2023, an interesting piece of news began to gain traction in South Korea and beyond.

First published by national broadcaster KBS, the report claimed that after five years of tracking, major webtoon publisher Kakao Entertainment had "identified the operator of 'M', the world's largest illegal comics and webtoon distribution site."

Big (Conflicting) Claims

This claim piqued our interest. Half a decade of tracking is significant and tends to suggest an important target. But after all that time, why give a heads-up in the media to the operator of the largest site of its type in the world?

Since it's relatively easy to identify the world's largest sites operating in that sector, why go on to mysteriously refer to the platform only as 'M'? The answer to that question may lie in the fact that several of the largest sites have names beginning with that letter. However, taking such claims at face value isn't always advised.

In the fourth paragraph of the article, a comment from Kakao Entertainment further muddied the waters. In a pretty sizeable shift away from the original claim, that the operator of 'M' had been identified, Kakao stated (emphasis ours):

"If we identify the operator, we will be able to take civil and criminal action against each individual for violating copyright law, which will likely lead to a more fundamental solution to the problem of illegal distribution."

Confidence vs. Confusion

In his book The Art of War, Sun Tzu wrote that the whole secret lies in confusing the enemy, so real intent cannot be fathomed. If that was the plan, it certainly worked here. Meanwhile, other publications seemed much more confident.

"World's Biggest Manga and Webtoon Piracy Site Likely to Be Shut Down," wrote CBR, "The Top Manga and Webtoon Piracy Site May Be Closed Soon," ComicBook added.

On December 19, 2023, South Korea's Ministry of Culture, Sports and Tourism announced the culmination of a major online piracy investigation and a significant arrest.

With Assistance from U.S. Homeland Security, "Site Shut Down"

The press release issued by the Ministry of Culture immediately scaled down the nature of the target. The world's largest illegal comics and webtoon site was now being described as the largest site of its type in Korea. That doesn't diminish the importance of the site locally but does set it apart from other sites with up to 60 million visits per month more.

After naming the site for the first time, the statement reveals that the operator of 'Shelter' was arrested following cooperation between the Ministry of Culture's Copyright Crime and Scientific Investigation Unit, Homeland Security Investigations (HSI) in the United States, and the Korea Copyright Protection Agency.

"The operator of the 'shelter' site, which was visited by about 21.7 million people (according to SimilarWeb) in '23, was provisionally found to have earned about 340 million won [$35 million] in advertising revenue," the statement notes, adding that the platform illegally shared almost 27,000 titles causing "significant damage" to the publishing industry.

"The site was located overseas, which made it difficult to investigate the operator, but through active international cooperation and collaboration with the U.S. Homeland Security Investigation Agency, we were able to identify access from a specific space in Korea, and based on this, we were able to identify and arrest the operator of the 'Shelter' site."

Images of the Raid Spread Online

Information released by the authorities provides no personal detail on the alleged operator of Shelter, so age and arrest location can't be reported at this time. However, images of the raid distributed by the Ministry of Culture appear to show where Shelter was operated from.

shelter-raid-dec23

The contrast between $35 million in advertising revenue and the hardware on display has been a topic of discussion since the raid, and probably best summed up by the comment, "The shelter operator lives more frugally than I thought."

While the name 'Shelter' is now being mentioned openly, its full name and online location aren't part of the information released to the public. That may be due to the platform remaining online, subject to limitations presumably put in place by the site's operator.

1412.live / 1412.rest

While there's a likelihood that other domains exist, Shelter operates from 1412.live. The authorities claim that the site marketed itself as a comic review platform but was really a pirate-linking site in disguise.

As far as we can determine, users of the site posted links to comics hosted on third-party file-hosting platforms for other users to download via the site.

shelter 1412-live

Visitors to the platform are currently greeted with a popup notice in Korean, translated as follows;

Hello. I am very sorry to leave you with bad news.

Regarding the link posted on the book information bulletin board on December 5th. A crackdown was carried out by the Ministry of Culture, Sports and Tourism.

As previously announced, the book information bulletin board is closed and can no longer be used. In addition, we would like to inform you that all posts and comments related to sharing or requesting novels or posting download links are strictly prohibited and subject to sanctions.

We would like to apologize to the rights holders who suffered damage.

A browse around the platform reveals several items of interest. Not only does Shelter have many rules that can result in suspension, it also has a section containing a list of rightsholders who have complained about content being shared without permission. Linked from the frontpage under the title "Protection List', the list is actually hosted at Notion.

The text is in Korean but when translated, reads as follows:

Sharing pirated files by uploading them directly to an external server or cloud is prohibited by international copyright conventions.

The operation team is unable to verify direct infringement of URLs that link to third-party external websites, but if direct infringement is confirmed, posts may be deactivated and penalty measures may be taken without notice.

For registration restriction request procedures, please refer to the Posting Takedown and Rights Protection document.

Traffic data obtained from various sources broadly supports the 21.7 million visits per year claimed by the authorities. For the site's main domain, 1412.live, SimilarWeb currently reports 1.4 million visits per month and SEMRush reports 4.3 million over three months. However, traffic appears to have diminished in the last few months of the year, so more recent figures may not be especially informative.

With some of the largest manga sites currently enjoying between 50 and upwards of 80 million visits per month, Shelter was nowhere near the largest.

On a local basis, there's no question it was significant, just not as significant globally as people were initially led to believe, or named in the manner that was implied either. Whether the site's operator made $35 million from advertising remains a question, at least in light of the frugal hardware on display.

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

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