Sunday, December 3, 2023

TorrentFreak's Latest News

 

80 Pirate IPTV Sellers Face $3.5m Bill After Failing to Charge Customers VAT
Andy Maxwell, 02 Dec 02:01 PM

iptv2-sIn recent years, rightsholders in Sweden have reported significantly increased consumption of pirate IPTV services, and law enforcement's inability to tackle the problem due to a lack of funding.

Complaints like these are nothing new for rightsholders or indeed anyone else in Europe; when resources are already stretched, it's inevitable that some crimes will be considered less of a priority than others.

But while there's insufficient funding for police to tackle pirate IPTV suppliers in Sweden, resources are available to investigate those committing the greatest crime of all; generating money by criminal means but failing to surrender the government's share of the spoils.

Skatteverket Investigates

The Swedish Tax Agency (Skatteverket) is responsible for collecting personal income tax from citizens, and from companies via corporate tax, VAT, and excise tax. Collecting taxes is critical to the functioning of any country since without revenue, public services like policing may find themselves without appropriate funding, leaving it up to the tax agency to weed out tax evaders, pirate IPTV sellers included.

"During 2021 to 2023, the Swedish Tax Agency has conducted investigations against those who sell illegal IPTV to consumers," a Skatteverket report on pirate IPTV services reveals.

"To identify sellers, the Swedish Tax Agency has made test purchases and also searched for sellers on the internet. The result was about 200 identified retailers, of which 97 were selected for in-depth investigation."

Tax Evading Resellers Pursued By Government

The Swedish Tax Agency says that to learn more about the IPTV ecosystem, it collaborated with anti-piracy groups Nordic Content Protection and Rights Alliance, which represent the rights of broadcasters and film and TV companies respectively.

Since distributing content is illegal without first obtaining the rights, most popular unlicensed IPTV services are illegal by default. Skatteverket says that it's therefore unlikely that distributors and resellers of pirate services register or declare their business activities.

In this investigation, the tax agency focused on resellers, most of whom have shifted away from services such as PayPal in recent years in favor of cryptocurrencies, predominantly bitcoin.

"The Swedish Tax Agency notes that the consumer only needs to swipe money to a crypto exchange, which then ensures that the seller receives their bitcoin. For the consumer, who thus does not need to familiarize themselves with how cryptocurrency works, this makes it extremely easy," the agency reports.

Tax Agency Has Crypto Experience

bitcoin"An important success factor for the investigation is that the Swedish Tax Agency developed expertise in tracing cryptocurrencies at an early stage. Several sellers have been identified thanks to the Swedish Tax Agency's work with cryptocurrencies," Skatteverket notes in the report.

The agency says that in order for IPTV sellers to be able to use their profits in everyday life, cryptocurrencies need to be turned into regular currency, such as Swedish kronor, euros or dollars. This often requires sellers to have at least one foreign bank account but today, opening an overseas account is easy.

"When the Swedish Tax Agency discovers that payments for illegal IPTV go to foreign bank accounts, a so-called executive order is required. This means that the Swedish Tax Agency can request the information via other countries' tax authorities. Such warrants have been a common feature of the investigations. They allow the tax authorities to determine the income of the dealer."

Unrecorded revenue and unrecorded VAT

The Tax Agency reports that the vast majority of its investigations show that IPTV sellers fail to declare their income, and they don't account for output VAT on IPTV sales either, currently set at 25% in Sweden.

By October 2023, Skatteverket says it had completed 80 in-depth IPTV seller investigations. In 73 of those investigations the agency found unrecorded income and unrecorded output VAT. As a result, the individuals involved had their tax obligations adjusted accordingly.

"In total, the amount to be paid in tax is over SEK 37,000,000 [$3.53 million]. 17 investigations are still ongoing – the amount is highly likely to increase by several million kronor," Skatteverket notes.

Bigger Money Being Made Higher Up The Chain

The Swedish Tax Agency says that at the bottom level, each reseller generates between SEK 5,000 [$4,770] and SEK 1,000,000 [$95,500] but above them significantly higher revenues have been observed.

"In the largest investigation to date, illegal IPTV was sold for over SEK 30 million [$2.86 million]," the agency notes, adding that other crypto wallets linked to illegal IPTV sales show several hundred million kronor.

For perspective, one hundred million kronor is currently worth around $9.55m.

The full report is available here

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

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Saturday, December 2, 2023

TorrentFreak's Latest News

 

Pirate Bay URL Disappears from Google Knowledge Panel in 'Blocked' Regions
Ernesto Van der Sar, 01 Dec 11:02 PM

google pirate bayTwo years ago, Google started delisting the URLs of several popular pirate sites from its search results.

This decision didn't impact all users. Instead, Google voluntarily decided to remove URLs in countries where the sites are blocked by local Internet providers, typically following a court order.

In the Netherlands, for example, The Pirate Bay and many of its mirrors and proxies were delisted by Google in response to a notice sent by local anti-piracy group BREIN. Google took similar action in the UK, France, and other countries, once it was notified by rightsholders.

Knowledge Panels

These interventions don't stop at simply removing the domains from the search index. Initially, we noticed that the so-called "knowledge panels" for the blocked pirate sites were gone too. Apparently, these were also considered problematic.

The image below shows the panel currently shown in countries where The Pirate Bay isn't blocked. Aside from some basic details, this includes a direct and uncensored link to The Pirate Bay's homepage.

US Google Search Results

pirate bay panel

Showing this knowledge panel in blocked regions wouldn't make much sense after Google carefully stripped all thepiratebay.org URLs from its search results. In this context, removing the panel entirely seems a logical decision.

URL Disappears

However, when doing some recent searches, we noticed The Pirate Bay's knowledge panel reappearing in blocked regions such as the UK and the Netherlands. As can be seen below, the official site doesn't appear anywhere in search results, which has been the case for some time.

Here, the link to thepiratebay.org has now been stripped from the knowledge panel, something we hadn't seen before.

Dutch Google Search Results

netherlands goog

Whether these interventions will do much to stop people from finding The Pirate Bay is doubtful. Wikipedia remains one of the top search results and the online encyclopedia continues to list the site's official URL, at least for now.

Bard Refuses to Provide The Pirate Bay's URL

To check how consistent Google is across its services, we also tried Bard, the company's AI chatbot. That didn't get us very far, however, with the AI pointing out that The Pirate Bay facilitates 'illegal' activity.

"Please note that The Pirate Bay is a website that facilitates the sharing of copyrighted material, which is illegal in many jurisdictions. As such, I cannot provide you with direct links to the website or instructions on how to find it.

"I would encourage you to seek out legal and ethical ways to acquire the content you are looking for," Bard notes.

When we phrased the question differently, asking Bard how one can access The Pirate Bay, it offered more concrete suggestions on how to find blocked websites (even though we didn't mention 'blocking'). One piece of advice was to use a search engine; this works indeed, unless it's Google.

"One way to find blocked websites is to use a search engine. There are many different search engines available, so you will need to do some research to find one that is right for you. It is important to choose a search engine that is reputable and has a good track record of privacy and security.

"Another way to find blocked websites is to use a social media site. Many social media sites, such as Facebook and Twitter, have groups and forums that are dedicated to sharing blocked websites," Bard added.

Bard has Options

hey- bard

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

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Friday, December 1, 2023

TorrentFreak's Latest News

 

Bungie Wins Powerful Disclosure Order to Identify Anonymous Cheat Makers
Andy Maxwell, 01 Dec 11:37 AM

Destiny 2Bungie's interest in individuals linked to Destiny 2 cheat maker and distributor, Ring-1, became public in 2021.

A lawsuit filed at a California court named four defendants as suspected operators with an additional 50 'Doe' defendants to be unmasked as the case progressed.

Six causes of action including copyright infringement, trafficking in circumvention devices contrary to the DMCA, trademark violations, and unfair competition, encouraged three defendants to settle with Bungie. However, with Ring-1 still in business, more work lay ahead.

New Lawsuit, New Determination

Filed at a Washington court early August 2023, a new complaint alleging copyright infringement, breaches of the DMCA, and civil RICO violations, among others, targeted up to 50 developers, marketers, customer support staff, and sellers of Destiny 2 cheating software offered by Ring-1.

According to the complaint, Bungie's investigative work had already identified several defendants by name, while others were known only by their online handles. During September and October, identified defendants were served in West Virginia, Delaware, and Ontario, Canada, but in order to identify and serve more, on October 27, Bungie requested assistance from the court.

"Like the cheat itself, the Enterprise is sophisticated and its members go to great lengths to conceal their identities," Bungie's motion for expedited discovery explained.

"Many Defendants do not provide any contact information such as a physical address, email address, or phone number, and conduct their transactions entirely pseudonymously. Defendants also use privacy protection services to hide their names and contact information from the public domain name WHOIS database."

Third Parties Likely to Hold Identifying Information

While those personal details had proven evasive up to that point, Bungie informed the court that it had been able to identify several third parties with past, current, or ongoing relationships with those it hoped to identify. Those parties, Bungie said, were likely to have records "uniquely attributable" to the unidentified defendants, and these would either directly or indirectly allow Bungie to identify and then serve its targets.

In respect of the Ring-1 website, Bungie named Nice IT Services Company (host), Digital Ocean (payment-related subdomains), and Telegram (support) as service providers that allow it to operate.

In connection with six alleged operators of Ring-1 ("Hastings," "Khaleesi," "Cypher," "god," "C52YOU," and "Lelabowers74"), Bungie identified a further seven third party service providers upon which the Ring-1 operators reportedly rely; Twitch and YouTube (advertising), Streamlabs (enhance revenue, broaden reach) and Steam, where the defendants allegedly play Destiny 2.

Other providers include Yahoo and Live (where Hastings has email accounts), Google (where Khaleesi has a Gmail address), and Discord; according to Bungie, the alleged Ring-1 operators used to chat there before deleting their server in July 2021.

Bungie's investigations reportedly identified accounts at ISPs connected to Hastings and Khaleesi; the former at Verizon and Comcast in the United States and the latter at Virgin Media and Sky Broadband in the UK. Five Ring-1 resellers identified by Bungie operated various services including Discord servers, websites, plus Twitter and YouTube accounts.

As a result, these third parties plus domain registrars Squarespace and GoDaddy, and e-commerce platform Sellix, are likely to hold identifying information, Bungie informed the court (sample of proposed order below).

Bungie-Poposed order Ring-1 Oct23

Order Granted in Part, Denied in Part

Having considered Bungie's rather broad motion, United States Magistrate Judge Michelle L. Peterson handed down her order this Wednesday.

While most of Bungie's requests were found to be "narrowly tailored" to seek identifying information, requests to serve third-party subpoenas to Cloudflare, Storely, Selly, and "any other third-party Plaintiff identifies to be providing services of any kind to any one or more of the Defendants" were described as unsupported or overbroad.

Even with these denials and especially considering the number of services involved, Bungie's narrowly tailored request could prove pivotal for the entire case. As such, unless extreme caution was exercised at all times, it will only be a matter of time before Bungie begins serving additional defendants.

ring-1-subpoena-order- Nov23

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

Malware Threats Can Be An Effective Anti-Piracy Strategy, Research Suggests
Ernesto Van der Sar, 30 Nov 08:41 PM

DangerOver the years, we've witnessed dozens of anti-piracy campaigns. Initially, these pointed out that piracy is illegal and immoral, hoping to change people's views.

"Don't Copy That Floppy" and "You Wouldn't Steal a Car" are prime examples of these early attempts. While these campaigns captured the interest of a broad public, mostly for amusement purposes, they did little to stop piracy.

In recent years the tone of anti-piracy campaigns has changed. Instead of focusing on legal aspects and financial losses, they now place emphasis on pirates themselves being at risk, by associating piracy with ransomware, credit card theft, and other evils.

Just in the past month, two public service announcement campaigns were launched, both with a strong focus on security threats. In addition to rightsholders, these campaigns include State Attorneys General and the U.S. Government's IPR Center, each adding extra weight to the messaging.

Is Cyber Hygiene a Remedy to IPTV Infringement?

Anti-piracy groups must have a good reason to focus on security issues instead of copyright law. Perhaps the former is more effective?

A new paper titled "Is cyber hygiene a remedy to IPTV infringement?" suggests that this could indeed be the case.

With this study, researchers from the University of Oxford, Bournemouth University and Hamad bin Khalifa University researched how psychological factors, including risk-taking and security behaviors, impact people's tendency to use shady IPTV services. Put differently, what determines whether people are more likely to use 'risky' piracy services?

After completing several questionnaires, the UK-based respondents were presented with a mockup of an IPTV service. There were several mockup versions, ranging from a clean interface to ones with popups, even spy- or ransomware. For each version, respondents had to rate the perceived risk level, and their risk-taking inclination.

The resulting scores allow the researchers to see how much risk people are willing to take, with the built-in assumption that unlicensed 'pirate' streaming services generally have more risky signs.

Internet Addicted Pirates with Psychopath Personalities

The researchers hypothesized that people who score higher on Internet addiction traits tend to be less reluctant to use risky piracy services. The same should apply to people with dark personalities, which is a combination of the personality traits narcissism, psychopathy, and Machiavellianism.

The results of the study confirmed these predictions, showing that people who score higher on Internet addiction and dark personality traits are more likely to see risky streaming platforms as less problematic.

Vasilis Katos, Computer Science Professor at Bournemouth University, informs TorrentFreak that this is both good and bad news for anti-piracy advocates. Dark personality traits are relatively fixed and hard to change, but digital addiction can be addressed.

"Our findings show that people's propensity to risk taking – in our case viewing AV content with a risk of getting infected by malware – is dependent on two main aspects: one's dark personality traits and the degree of digital addiction."

"The former is considered pretty constant and stable over time, as the dark personality traits have genetical and biological components, therefore less prone to change. For digital addiction, however, we accept that there are interventions where people can adopt in order to heal," Katos says.

Cybersecurity Behavior

There is an important caveat, as the researchers stress that addressing Internet addiction might not only affect online piracy, but also legal consumption. After all, binge-watching on official streaming platforms is also a form of addiction.

A more straightforward option to deter pirates lies in the online security realm. The study reveals that people's cybersecurity practices and behaviors, mediate the link between digital addiction and risky IPTV viewing.

iptv risk study

This mediating effect suggests that when people are warned or educated about the risk of malware, fraud, and other evils on pirate sites, they are less likely to use these services.

"[I]n order to reduce the likelihood of someone consuming illegal IPTV content, we can address their digital addiction and/or improve their cybersecurity behaviour and hygiene," Katos notes.

Piracy Genes?

Put differently, the anti-piracy campaigns that focus on security awareness aspects, which we have seen pop up repeatedly in recent years, can be an effective strategy; perhaps even more effective than legal threats.

That said, the researchers stress that piracy is a complex issue that no single measure can solve. People who are born with dark personalities, particularly the psychopathy trait, are genetically predisposed to take more risks online.

No matter how many malware threats there are, some people are simply willing to take the risk; just like there will always be people who step in to launch new piracy services. It's in their genes, apparently.

"[A]lthough these [security-focused] campaigns could contribute to the decrease of risky IPTV viewing practices, they will not eliminate the problem, as there is always the portion of the population that are risk takers and perhaps seek thrills, as part of their psyche," Katos concludes.

A copy of the preprint article covering the research in detail is available below. The results have not yet been peer-reviewed and should be interpreted as such.

Shah R, Cemiloglu D, Yucel C, Ali R, Katos V. Is cyber hygiene a remedy to IPTV infringement? A study of online streaming behaviours and cybersecurity practices. Research Square; 2023.

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

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