Wednesday, February 7, 2024

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Prison for 'Mr. X': Headteacher By Day, Pirate IPTV Maverick By Night
Andy Maxwell, 07 Feb 11:24 AM

flawless-logo1One of the key goals of the Premier League's prosecution of Flawless TV was to send a clear deterrent message to those considering the same line of work.

When five people were sentenced to an unprecedented 30+ years in prison last May, that was the most powerful anti-piracy message ever sent in the UK, via a private prosecution billed to the taxpayer.

Premier League 6, Rest of the UK 0 (latest score)

Following last year's convictions, there were a few loose ends still to be tied up in matters connected to the Flawless case. A defendant who failed to appear for sentencing was reportedly recaptured in Thailand last August, but six months later his fate still isn't clear.

While Flawless sold subscriptions direct to the public for roughly £10 per month, those prepared to sell to their own customers could buy them for roughly £6 and then sell on for £10, or indeed whatever they liked. A person previously described as one of the leading resellers of Flawless TV subscriptions was previously mentioned using the mysterious pseudonym 'Mr X'.

At his sentencing last week, a less sinister picture emerged.

Dedicated Headteacher, Father of One, Maverick

At Birmingham Crown Court last Friday, 42-year-old Paul Merrell was handed a 12-month prison sentence for reselling IPTV subscriptions to an estimated 2,000 customers.

Between 2017 and 2021, Merrell received a total of £450,000 in customer payments, an amount from which the cost of buying the subscriptions (around £200,000) would have to be deducted before counting up any profits.

The revelation that Merrell built most of this business while working as a deputy headteacher at a school in Coventry, came as a surprise. That the business continued after being appointed headteacher of a school in Stourbridge, was more surprising still. A headteacher, addressed 'Sir' during the day, was known as 'Media Maverick' online.

According to people who spoke favorably of him in court, Merrell's positive contribution to society included taking a £13,000 reduction in salary when he became headteacher, because he felt he could turn a failing school around. To cover two decades of six-figure annual losses, Elmfield Rudolf Steiner School sold off its land, but after Merrell's arrival, things began to improve.

Merrell's Actions "Require Deterrence"

In a letter to the court requesting leniency, the chair of Merrell's school council spoke of its plight implying that, should he be spared prison, Merrell might even keep his job. Concerns for his wife, son, and the family home, were also heard, and there's no doubt the court considered the UK's prison capacity crisis.

Yet, according to the judge, this was a case where deterrence was required and with that, he sent the headteacher to prison and issued a confiscation order for £91,250.

The situation at the school is unclear but according to Merrell's barrister, the family will likely lose their home. Upon his release, returning to work as a teacher could prove almost impossible.

So overall then; a sentence that may deter IPTV resellers but will benefit almost no one else, while the taxpayer picks up the bill once again?

A Little Nuance Rarely Hurts

When an otherwise decent person gets deprived of their freedom, while career criminals who contribute nothing receive yet another chance to turn things around, that can undermine public confidence in the justice system. In this case, however, things aren't as straightforward as they may first appear, particularly when it comes to deterrence.

Mark Gould, the main player at Flawless, was raided at his home in Greenwich on May 22, 2018. News of that magnitude travels very quickly in IPTV communities. Two additional arrests on June 19, followed by two more in July and August, meant that anyone with even a basic interest in IPTV should've had at least some idea things were going wrong, Merrell included.

An alternative narrative, where Merrell wasn't told anything was amiss and had no means of finding out, may suggest he was simply in the wrong line of business. Certainly, the ease with which his online persona could be matched to IPTV sales, his real name, and his home address, may even back that up.

Reselling Continues

Regardless, between January 2017 and up to a week after Gould's arrest, Merrell paid Flawless just over £100,100 for reseller credits he later sold on. However, despite Gould's arrest and the likelihood things would get worse, payments to Flawless continued, albeit to PayPal accounts not operated by Gould.

The people behind those accounts have not been named in public, at least to our knowledge, but they were part of a new plan to keep Flawless going despite Gould's arrest. The identities of these people are well known to the Premier League's investigators, but their legal position is unknown to us.

Roughly a year later, around July 2019, a FACT investigation was uncovering the transactions detailed above, plus others related to the same operation. That seemed to show that Gould's arrest and the need to migrate the service into a new form to avoid law enforcement, had no effect on Merrell's reselling business.

Late January 2021, two-and-a-half years after Gould's arrest, Birmingham Trading Standards raided Merrell's home in Sutton Coldfield, triggering a series of events that led to his sentencing last week.

How different things would've been if Media Maverick had stopped doing business in May 2018 is unknown. In money terms, given the amounts cited at trial, the overall value could've been 50% lower, the period of offending, significantly lower than that.

If nothing else, the judge would've had fewer reasons to impose a deterrent custodial sentence, and as a result, the consequences would've been much less severe.

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

AirVPN Stops Serving Italians due to "Piracy Shield" Blocking Requirements
Ernesto Van der Sar, 06 Feb 04:44 PM

airvpnLast December, Italy's much-debated 'Piracy Shield' anti-piracy system went live in a limited capacity.

With a legal challenge thwarted, the blocking efforts are now gearing up, with Internet services as rightsholders' weapon of choice.

Italy's telecoms regulator AGCOM is the arbiter and previously declared the technological and procedural rules. In essence, these require ISPs, DNS resolvers, and other intermediaries to block pirate IP-addresses within thirty minutes of being alerted. The leading authority made it clear that VPN services are no exception.

"[A]ll parties in any capacity involved in the accessibility of illegally disseminated content – and therefore also, by way of example and not limitation – VPN and open DNS service providers, will have to execute the blocks requested by the Authority [AGCOM]," the notice read.

AirVPN 'Blocks' Italians

Following the announcement, there hasn't been much response from VPNs, until this week, when AirVPN decided to close its doors to Italian subscribers. The company, which is based in Italy, argues that it has no other option given Piracy Shield's burdensome requirements.

Instead of having a team available around the clock to implement the latest DNS and IP-address blockades, AirVPN believes that denying all Italians access is the best choice at this time. This policy, requiring all customers to declare that they're not from Italy, will officially go into effect on February 19.

Part of the problem is that the blockades will have to be implemented within 30 minutes, even if there are clear errors, AirVPN says. Another concern is the absence of a formal judicial review. There is an option to appeal, but only after the blockades are live.

Widespread Blocking

The Piracy Shield system is just getting underway but AirVPN fears that it might ultimately lead to widespread blocking. While AirVPN could technically comply, the company can't justify the costs.

"[The] requirements are too burdensome for AirVPN, both economically and technically. They are also incompatible with AirVPN's mission and would negatively impact service performance. They pave the way for widespread blockages in all areas of human activity and possible interference with fundamental rights," AirVPN staff notes.

"[I]n the past each individual blockade was carefully evaluated either by the judiciary or by the authorities, now any review is completely lost."

airvpn

No Other Option

AirVPN believes that 'Piracy Shield' gives private entities, often representatives of rightsholders, enormous power. They can order intermediaries to block content without third-party verification, and without having to fear damages or fines for potential mistakes.

Speaking with TorrentFreak, AirVPN's Paolo Brini says that the company regrets having to take this decision. In addition to practical issues, blocking goes against the company's core commitments.

"According to our mission and commitments, the end-to-end principle and Net Neutrality should not be violated deliberately in the absence of a proper court order. Furthermore, any block should be brought on with all the safeguards provided by due process," Brini says.

The VPN company itself remains incorporated in Italy but the company says that it's is exploring other options too. AirVPN staff sympathize with fellow Italians, suggesting they can still use the Tor network instead. However, AirVPN sees no other option than to 'leave' Italy, at least virtually.

"By withdrawing service availability from Italy, AirVPN will be able to stay outside the scope of the framework and maintain integrity and efficient operations," the company concludes.

At the time of writing, VPNs are not yet directed by AGCOM to take action, but that's expected to change in the future, following discussions with stakeholders.

As covered earlier today, Italian authorities now say that the Piracy Shield blocking system is now fully operational. The first three official targets are traditional pirate sites; Calcio.re, Stream.lc, and re-fast.myworldiptv.xyz.

H/T: Tarnkappe.

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

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