Tuesday 31 May 2016

MPAA Lobbyist / SOPA Sponsor to Draft Democratic Party Platform

berman-smallLast week Hillary Clinton, Bernie Sanders and Democratic National Committee Chair Rep. Debbie Wasserman Schultz chose a panel of individuals to draft the party’s platform.

As previously reported, 15 were selected, with six chosen by Clinton, five chosen by Bernie Sanders and four chosen by Wasserman Schultz. While other publications will certainly pick over the bones of the rest of the committee, one in particular stands out as interesting to TF readers.

Howard L Berman is an attorney and former U.S. Representative. He’s employed at Covington & Burling as a lobbyist and represents the MPAA on matters including “Intellectual property issues in trade agreements, bilateral investment treaties, copyright, and related legislation.”

It will come as no surprise then that the major studios have been donors throughout Berman’s political career. As shown in the image below, the top five contributors are all major movie companies.

hberman1

Born in 1941, Berman’s work with the film industry earned him the nickname “the congressman from Hollywood” and over the years he’s been at the root of some of the most heated debates over the protection of intellectual property.

In 2007 and as later confirmed by Wikileaks, Berman was one of the main proponents of ACTA, the Anti-Counterfeiting Trade Agreement.

Just five short years later Berman was at the heart of perhaps the biggest copyright controversy the world has ever seen when he became a co-sponsor of the Stop Online Piracy Act (SOPA).

“The theft of American Intellectual Property not only robs those in the creative chain of adequate compensation, but it also stunts potential for economic growth, cheats our communities out of good paying jobs, and threatens future American innovation,” Berman said in the run-up to SOPA.

While these kinds of soundbites are somewhat common, it’s interesting to note that Berman showed particular aggression towards Google during hearings focusing on SOPA. On November 16, 2011, Berman challenged the search giant over its indexing of The Pirate Bay.

google-bayInsisting that there “is no contradiction between intellectual property rights protection and enforcement ensuring freedom of expression on the Internet,” Berman said that Google’s refusal to delist the entire site was unacceptable.

“All right. Well, explain to me this one,” Berman demanded of Google policy counsel Katherine Oyama.

“The Pirate Bay is a notorious pirate site, a fact that its founders proudly proclaim in the name of the site itself. In fact, the site’s operators have been criminally convicted in Europe. And yet…..U.S.-Google continues to send U.S. consumers to the site by linking to the site in your search results. Why does Google refuse to de-index the site in your search results?” he said.

Oyama tried to answer, noting that Google invests tens of millions of dollars into the problem. “We have hundreds of people around the world that work on it,” she said. “When it comes to copyright….”

Berman didn’t allow her to finish, repeating his question about delisting the whole site, again and again. Before Berman’s time ran out, Oyama was interrupted several more times while trying to explain that the DMCA requires takedowns of specific links, not entire domains. Instead, Berman suggested that Oyama should “infuse herself” with the notion that Google wanted to stop “digital theft.”

“[T]he DMCA is not doing the job. That is so obvious,” he said. “[Y]ou cannot look at what is going on since the passage of the DMCA and say Congress got it just right. Maintain the status quo.”

These arguments continue today in the “takedown, staydown” debate surrounding the ongoing review of the DMCA, with Hollywood lining up on one side and Google being held responsible for the actions of others on the other. But simply complaining about the DMCA is a little moderate for Berman.

Almost one and a half decades ago in the wake of Napster and before the rise of BitTorrent, Berman had a dream of dealing with peer-to-peer file-sharing by force. In 2002 he proposed the Peer To Peer Piracy Prevention Act, which would have allowed copyright holders to take extraordinary technical measures against file-sharers in order to stop the unauthorized distribution of their content.

H.R.5211 sought to amend Federal copyright law to protect a copyright owner from liability in any criminal or civil action “for impairing, with appropriate technology, the unauthorized distribution, display, performance, or reproduction of his or her copyrighted work on a publicly accessible peer-to-peer file trading network.”

The bill didn’t deal in specifics, but “impairing” was widely believed to be a euphemism for DDoS and poisoning attacks on individual file-sharers in order to make sharing impossible from their computers.

At the time “shared-folder” type sharing apps were still popular so bombarding networks with fake and badly named files would also have been fair game, although distributing viruses and malware were not on the table. Eventually, however, the bill died.

Berman, on the other hand, appears to be very much alive and will be soon helping to draft the Democratic Party platform. On past experience his input might not be too difficult to spot.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Google Promotes Pirate Movie Ratings In Search Snippet

google-bayIn recent years Hollywood has taken a rather aggressive approach against Google. The movie studios believe that the search engine isn’t doing enough to limit piracy, and have demanded more stringent measures.

One of the suggestions often made is to boost the visibility of legal movie services in search results. For example, show a list of streaming and download portals when users search for a movie.

In recent months Google has experimented with exactly this. People who search for classic “pirate” terms may see ads for legal options. In addition, the search engine now shows a snippet with all sorts of movie details when people search for a title.

This movie information also includes reviews and ratings from around the web, with links to IMDb, Rotten Tomatoes, Metacritic and other prominent sites. A useful feature for sure, but Hollywood will not like all of the sites that are featured.

Among various established sources, Google is also showing ratings from the “pirate” streaming site FMovies. As can be seen below, FMovies user ratings are tucked between IMDb and Rotten Tomatoes, using the rather inviting title “Watch Free Movies Online.”

Watch Free Movies Online (context, different search)

love-pirate-google

While FMovies ratings only appear incidentally, we have seen it across different browsers and on both desktop and mobile searches.

The link in question points directly to the FMovies page where a high quality stream of the film is readily available. In addition, users can opt to download it directly to their computer or mobile device.

Love (2015)

fmovies

The FMovies ratings appear in the movie snippet because FMovies is using Google’s review markup. This allows any site to be featured there, when it complies with all the quality guidelines.

When Google announced the ratings feature last year it said it offers “publishers with an opportunity to increase the discoverability and consumption of their reviews using markup,” but we doubt that pirate sites are meant to be included.

Ironically, one of the tools that is supposed to divert people from pirate searches is now used to link people to one directly. Mistake or not, the movie studios will use these and other examples to argue that Google still has a long way to go.

Meanwhile, FMovies is enjoying the free traffic, for as long as it lasts.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

XE Market Analysis: Asia - May 31, 2016

Aside from USD-JPY, the dollar was mostly firmer in N.Y. trade on Tuesday. The session started with in-line earnings, and better than expected consumption data, which helped sentiment initially. Softer consumer confidence and Chicago PMI numbers however, turned the tide on Wall Street sending stocks mostly lower. EUR-USD topped at 1.1173 following the weaker data, though made its way to 1.1125 into the London close. USD-JPY didn't like the downturn in risk taking, and slipped to 110.61 lows from highs of 111.25.



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XE Market Analysis: North America - May 31, 2016

The dollar has traded mostly softer today, correcting after gaining on Monday. AUD-USD led the way from the Sydney session following Australian data showing that exports made a 1.1 percentage point contribution to Q1 GDP, up from a zero contribution in the previous quarter and above the consensus view for a 0.7 percentage point outcome. This sent economists scurrying to upgrade GDP forecasts ahead of tomorrow's release of growth data for the March quarter. AUD-USD was showing a 0.9% gain as of the early London PM session, at 0.7246 bid, having earlier logged an eight-day peak at 0.7251.



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XE Market Analysis: Europe - May 31, 2016

The Aussie outperformed today after data showed exports made a 1.1 percentage point contribution to Q1 GDP, up from a zero contribution in the previous quarter and above the consensus view for a 0.7 percentage point outcome. This sent economists scurrying to upgrade GDP forecasts ahead of tomorrow's release of growth data for the March quarter. AUD-USD was showing a 0.9% gain at the London forex market open, at 0.7245, having logged an eight-day peak at 0.7250. Elsewhere, USD-JPY has settled in the low 111s, below yesterday's one-month peak at 111.40.



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10 Years Ago Hollywood Awoke The Pirate Bay ‘Beast’

pirate bayMost of the site’s current users are probably unaware that without a few essential keystrokes in the site’s early years, The Pirate Bay may have not been here today.

May 31, 2006, less than three years after The Pirate Bay was founded, 65 Swedish police officers entered a datacenter in Stockholm.

The policemen had instructions to shut down the Pirate Bay’s servers, which were already seen as a major threat to the entertainment industry.

At the time The Pirate Bay wasn’t the giant it is today though. And ironically, the raid only made the site bigger, stronger and more resilient.

While the police were about to enter the datacenter, Pirate Bay founders Gottfrid and Fredrik got wind that something was up.

In the months before the raid they were already being watched by private investigators day and night, but this time something was about to happen to their trackers.

At around 10am in the morning Gottfrid told Fredrik that there were police officers at their office, and asked him to get down to the co-location facility and get rid of the ‘incriminating evidence,’ although none of it, whatever it was, was related to The Pirate Bay.

As Fredrik was leaving, he suddenly realized that the problems might be linked to their tracker. He therefore decided to make a full backup of the site, just in case.

When he later arrived at the co-location facility the concerns turned out to be justified. There were dozens of policemen floating around taking away dozens of servers, most of which belonged to clients unrelated to The Pirate Bay.

Footage from The Pirate Bay raid

In the days that followed it became clear that Fredrik’s decision to start a backup of the site was probably the most pivotal moment in the site’s history. Because of this backup Fredrik and the rest of the Pirate Bay team managed to resurrect the site within three days.

Of course, the entire situation was handled with the mockery TPB had become known for.

Unimpressed, the site’s operators renamed the site “The Police Bay” complete with a new logo shooting cannon balls at Hollywood. A few days later this logo was replaced by a Phoenix, a reference to the site rising from its digital ashes.


Logos after the raid

tpb classic

Instead of shutting it down the raid brought the site into the mainstream press, not least due to its swift resurrection. All the publicity also triggered a huge traffic spike for TPB, exactly the opposite effect Hollywood had hoped for.

Despite a criminal investigation leading to convictions for the site’s founders, The Pirate Bay kept growing and growing in the years that followed.

The site’s assets, meanwhile, were reportedly transferred to the Seychelles-based company Reservella.

Under new ownership several major technical changes occurred. In the fall of 2009 the infamous BitTorrent tracker was taken offline, turning The Pirate Bay into a torrent indexing site.

Early 2012 The Pirate Bay went even further when it decided to cease offering torrent files for well-seeded content. The site’s operators moved to magnet links instead, allowing them to save resources while making it easier for third-party sites to run proxies.

These proxies turned out to be much-needed, as The Pirate Bay is now the most broadly censored website on the Internet. In recent years ISPs all around the world have been ordered by courts to block subscriber access to the torrent site.

While TPB swiftly recovered from the “original” raid, it did suffer nearly two months of downtime late 2014 when another raid took place.

Initially it was believed that some of the site’s crucial servers were taken by the police, but the TPB team later said that it was barely hit and that they took the site offline as a precaution.

While the first raid make The Pirate Bay stronger, the two-month stint of downtime was a big hit. While the site still has millions of visitors per day, it is no longer the most dominant player, and is still suffering from regular outages.

That said, The Pirate Bay is expected to live on and on. To celebrate its turbulent past the site’s operators declared May 31 to be Pirate Independence Day a few years ago.

“Let today be the pirates’ Independence Day! Today we celebrate the victories we’ve had and the victories that will come. Today we celebrate that we’re united in our efforts. Keep on seeding!” the TPB team said at the time.

But remember, if there hadn’t been a recent backup back in 2006, things may have turned out quite differently.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Monday 30 May 2016

YouTube Threatens Legal Action Against Video Downloader

sadyoutubeWith over a billion users YouTube is the largest video portal on the Internet.

Every day users watch hundreds of millions of hours of video on the site, and for many it’s a prime source to enjoy music as well.

While YouTube is a blessing to thousands of content creators, there are also concerns among rightsholders. Music labels in particular are not happy with the fact that music videos can be easily downloaded from the site with help from external services.

To address the problem YouTube is contacting these third party sites, urging them to shut down this functionality. Most recently, YouTube’s legal team contacted the popular download service TubeNinja.

“It appears from your website and other marketing materials that TubeNinja is designed to allow users to download content from YouTube,” the email from YouTube’s legal team reads.

According to YouTube the video downloader violates the terms of service (ToS) of both the site and the API. Among other things, YouTube’s ToS prohibits the downloading of any video that doesn’t have a download link listed on the site.

Later, Google’s video service adds that if the site owner continues to operate the service this “may result in legal consequences.”

Email from YouTube’s legal team

youlett2

Despite the threatening language, TubeNinja owner Nathan doesn’t plan to take the functionality offline. He informed YouTube that his service doesn’t use YouTube’s API and says that it’s the responsibility of his users to ensure that they don’t violate the ToS of YouTube and TubeNinja.

“Our own ToS clearly states that the user is responsible for the legitimacy of the content they use our service for,” Nathan tells us.

TubeNinja doesn’t believe that YouTube has a very strong case and Nathan has asked the company for clarification. He also mentions that Google’s very own Chrome service lists many plugins that offer the exact same functionality.

“They don’t even seem to enforce removal of Chrome plugins that enable users to do the exact same thing,” Nathan says.

“Also the fact that services like Savefrom, Keepvid, clipconverter etc have been around since 2008, we find it hard to believe that there is any legal case at all. Kind of like suing a maker of VHS-recorders for users taping the television broadcast,” he adds.

This isn’t the first time that YouTube has taken action against download services. The site has gone after similar sites in the past

In 2012 Google went after Youtube-mp3.org with a message similar to the one TubeNinja received, but despite these efforts the site remains one of the most used conversion tools with millions of visitors per day.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

XE Market Analysis: North America - May 30, 2016

EUR-USD rebounded to the mid-1.12s after clocking an 11-week low of 1.1098 during Asian trade. Forecast beating Eurozone ESI confidence and French GDP data helped give the euro a lift in thin markets (both UK and U.S. closed today). USD-JPY rallied to a one-month peak of 111.40, partly reflecting broader dollar gains and partly broader yen weakness. The gains in the U.S. currency reflect the rekindling of Fed tightening expectations, while generally firmer stock markets in Europe and Asia have encouraged yen selling.



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Police Target 50 Streaming Sites, Detain Five Suspects

gdf-logoWhile torrents remain popular with millions of file-sharers, cheaper bandwidth and faster Internet connections have contributed to an explosion of content being streamed online.

Today there are thousands of sites offering huge libraries of unauthorized content, all of it available via a YouTube-like interface accessible via any Internet browser. With a non-existent learning curve, it’s piracy anyone can get involved in.

As a result these kinds of sites can quickly gain a massive following and efforts to hinder their operations continue every day. With millions of links being removed from search engines and site-blocking a regular occurrence, other more aggressive options are also regularly explored.

Currently that is the stance of prosecutors in Rome, Italy, who say they have carried out a large operation to shut down a network of sites offering live sports events, movies, TV shows and concerts without permission from copyright holders.

Titled Operation Match Off 2.0, the action was carried out by the Comando Unità Speciali (Special Command Unit) of the Guardia di Finanza (GdF), a department under Italy’s Minister of Economy and Finance tasked with dealing with financial crime.

According to GdF the operation targeted 50 sites running on 41 servers located on three continents. Three servers were seized locally in Italy. After raids were carried out in a number of regions across the country, five suspects were detained. Further details on the sites and the suspects are yet to be released.

The sites are said to have offered live streaming of sports, on-demand content such as movies and TV shows, plus scheduling features in return for a ten euro payment per month. Italian authorities say the equivalent official offering would cost nearer 100 euros.

GdF report that the five suspects had built of a “vast network” of users and were generating huge profits from them.

“To understand the scope of the operation we detected the presence of more than 340,000 registered users within a community,” GdF said in a statement.

“Assuming that everyone had an illegal ‘subscription’, you can, with a simple calculation, estimate that the turnover is nearly €3,500,000 monthly ($3.89m), or more than €40,000,000 ($44.46) per year.”

Should they be found guilty, the five suspects would face fines and up to four years in prison.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

XE Market Analysis: Europe - May 30, 2016

USD-JPY rallied to a one-month peak of 111.32, partly reflecting broader dollar gains and partly broader yen weakness. The gains in the U.S. currency reflect the rekindling of expectations in Fed tightening expectations, while, despite this, generally firmer stock markets in Asia have encouraged yen selling. The consensus view is that the BoJ will also expand monetary policy by July. The Apr-25 peak at 111.89 provides the next upside waypoint for USD-JPY. Japanese retail sales data today fell 0.8% y/y in April after -1.0% in March.



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Top 10 Most Pirated Movies of The Week – 05/30/16

xmenapoThis week we have three newcomers in our chart.

X-Men: Apocalypse is the most downloaded movie.

The data for our weekly download chart is estimated by TorrentFreak, and is for informational and educational reference only. All the movies in the list are BD/DVDrips unless stated otherwise.

RSS feed for the weekly movie download chart.

Ranking (last week) Movie IMDb Rating / Trailer
torrentfreak.com
1 (6) X-Men: Apocalypse (HDCam) 7.7 / trailer
2 (…) 13 Hours: The Secret Soldiers of Benghazi 7.4 / trailer
3 (1) Zootopia 8.3 / trailer
4 (2) Captain America: Civil War (TC) 8.4 / trailer
5 (…) Hardcore Henry (HDrip – subbed) 7.0 / trailer
6 (…) The Do Over (Webrip) 6.0 / trailer
7 (3) Gods of Egypt 5.6 / trailer
8 (10) Batman v Superman: Dawn of Justice (TS) 7.5 / trailer
9 (8) Deadpool 8.6 / trailer
10 (7) How To Be Single (Web-DL) 6.2 / trailer

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Sunday 29 May 2016

Paramount Cracks Down on “The Godfather” Pirates, After 44 Years

paramountLike many other Hollywood studios, Paramount Pictures sees online piracy as a major threat to its revenues.

Torrent sites such as The Pirate Bay and KickassTorrents represent a thorn in the side and the company is doing everything in its power to limit the damage.

For Paramount this includes tracking down and warning individual users of these sites. Generally speaking, rightsholders monitor people who share recent blockbusters or TV-shows, but there are exceptions.

TorrentFreak has learned that the Hollywood studio started sending takedown notices targeting Internet subscribers whose accounts were used to download and share an episode of the 1972 classic The Godfather.

With help from its anti-piracy partner IP-Echelon the studio is contacting ISPs, asking the companies to “disable” the copyright infringements and make sure that their subscribers stop sharing the film.

“We are requesting your immediate assistance in removing and disabling access to the infringing material from your network. We also ask that you ensure the user and/or IP address owner refrains from future use and sharing of Paramount materials and property,” the letter reads, listing the technical details.

godfatherwarn

In addition, Paramount urges the ISP not to destroy any data such as IP-address logs, even if the retention period has expired. The movie studio mentions that this data may be required if a lawsuit is filed at a later stage.

“In complying with this notice, [ISP] should not destroy any evidence, which may be relevant in a lawsuit, relating to the infringement alleged, including all associated electronic documents and data relating to the presence of infringing items on your network, which shall be preserved while disabling public access, irrespective of any document retention or corporate policy to the contrary.”

The lawsuit mention may cause some file-sharers to panic, but is likely little more than a mafia-inspired threat. Paramount is generally not known to file cases against individual file-sharers, even though it has sent out many similar takedown notices in the past.

In fact, many Hollywood studios and other rightsholders send out similar letters, such as HBO with recent episodes of Game of Thrones. That said, the Godfather notice is by far the “oldest” we have seen, which makes it record-worthy.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

International Economic Week in Review: A Detailed Look at the EU

     This week, I looked at that the ETFs for the six largest European countries.  While all have rallied from earlier in the year lows, none indicate a strong underlying economy.  I found this odd.  Although the EU is certainly not in the economic fast lane, the underlying data doesn’t support these low valuation levels.

 



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US Equity and Economic Review: Once Again, We're Approaching Record Highs, Edition

     This week’s economic news was mildly positive.  On Tuesday, the Census released new home sales, which showed a stunning 16.6% M/M increase.  This was the strongest pace since 1992 and the highest level since 2008.  It’s difficult to overestimate the importance of this release.  Census released the durable goods report on Thursday.  While the headline number showed a 3.4% rise, the ex-transports number was a more subdued .4%.  Friday the BEA released the second estimate of 1Q GDP, which rose .8%.  The internals remained soft.  Personal con



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US Bond Market Week in Review: Everyone's A Hawk, Edition

     Several Fed Presidents gave presentations this week.  All argued the U.S. economy was not only at or near full employment but also that prices were rising and would eventually attain the Fed’s 2% price target.  This implied that a rate hike within the next few meetings was a foregone conclusion. 



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Ten Websites Hit With 70m DMCA Complaints in a Year

copyright-bloodAs 2016 nears its midway point the rhetoric over DMCA takedowns is more fiery than ever. Aware that a favorable change in the law might be possible sometime in the future, copyright holders are pushing the Copyright Office in the United States to consider a ‘takedown, staydown’ system.

This proposal, should it ever become enshrined in law, would enable copyright holders to issue a DMCA notice to a site for a particular piece of content with the expectation that it will never appear again on that same platform. Opposition to such a regime is notable but it’s not difficult to see why copyright holders are so keen to have it implemented.

In the meantime they are stuck with the existing system and their efforts are clearly illustrated in Google’s Transparency Report. During the past month alone 7,015 copyright holders and 3,176 reporting organizations sent requests for 87 million URLs to be removed from Google’s indexes. It’s a huge amount by any standard.

What is interesting is how a relatively small number of domains account for a disproportionate number of takedowns. For instance last month two sites – file-hosting site 4shared and MP3 site GoEar – accounted for close to 11 million takedowns. That means that it took complaints against another 77,855 domains to make up the remaining 76 million URLs.

When looking at the figures for the last year a similar picture emerges, with a small number of domains attracting disproportionate levels of complaints. Interestingly, those thinking that The Pirate Bay or KickassTorrents would get the top slots will be disappointed. Those sites pale into insignificance when compared to the front runners.

top10-complaints

Also of interest is the kind of site being targeted.

In first position is 4shared, a file-hosting site traffic ranked 434th in the world by Alexa. While that represents huge amounts of traffic, it’s the site’s popularity in Brazil that is causing it to receive a disproportionate number of notices. 4shared is ranked the 53rd most popular domain there, something that hasn’t gone unnoticed by local anti-piracy outfit APDIF who since 2013 have filed 17 million complaints in response.

MP3 indexing site FlowXD takes second place with an ‘impressive’ 8.2 million takedowns. Again APDIF has been sending the lion’s share of the notices, presumably due to the site’s popularity in Brazil and elsewhere in South America.

In a close third with almost 7.7 million takedowns in the past twelve months is Chomikuj, a Cyrus-incorporated file-hosting site that is the 34th most-visited site in Poland. Overall, the UK’s BPI has shown the most interest in the site, having sent more than 4.5 million notices since 2011. More recently, however, a much wider spread of copyright holders have targeted the site.

Perhaps unsurprisingly a website unblocking service is also up there with the front runners. Unblocksit.es has had almost 7 million complaints filed with Google, mostly by anti-piracy outfit Rivendell who boast being the “world Leader on Google’s transparency report for removal illegal links.”

In fifth and sixth place respectively sit file-hosting giants Rapidgator and Uploaded with around 6.5 million complaints each. A wide range of copyright holders focus on both sites with an emphasis on the music sector. Rapidgator and Uploaded have experienced a decline in traffic since the start of the year but neither are showing signs of going away any time soon.

From there, all remaining sites in the top 10 are dedicated to offering free music. None seem particularly popular with English-speaking users. GoEar gets quite a lot of Spanish eyes and for some reason Gooveo is rocking it in Guatemala. Viciomp3 and Esamusica both appear to be defunct although copyright holders are continuing to send complaints to Google.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Saturday 28 May 2016

BSA Pays Disgruntled Employees to Rat on ‘Pirating’ Bosses

nopiracyOver the past two decades the Business Software Alliance (BSA) has represented major software companies, including Adobe, Apple, Microsoft, Oracle and Symantec, in their fight against under-licensed businesses.

This has resulted in audits at thousands of companies worldwide, whose computers are carefully inspected to see if the business owner has failed to pay his or her dues.

While companies are often contractually obliged to comply with such audits, BSA’s selection procedures are raising eyebrows.

Since a few years the industry group has been actively soliciting tips from the public about potentially infringing companies. Promising hard cash rewards, it asks “whistleblowers” to expose any wrongdoing.

BSA generally follows up these tips with a threatening letter to the business owner in which it requests an audit, something they are contractually obliged to agree to.

If unlicensed software is found during an audit, the group generally follows up with a demand for damages, which can run into hundreds of thousands of dollars for some companies.

To find out more about the process TorrentFreak spoke with Robert J. Scott, managing partner at Scott & Scott, LLP., who has represented hundreds of defendants in BSA related cases over the past couple of years.

According to Scott a typical audit request comes after “a tip by a disgruntled employee or former employee, often seeking to recover advertised reward money.”

Many of Scott’s clients liken BSA’s tactics to a form of extortion, but he prefers not to use this term. In principle he believes that software companies have the right to protect their work. However, he certainly doesn’t agree with BSA practices.

The reward money in particular is problematic as it tends to attract disgruntled people who have a history with the company. For example, a fired employee who hopes to cash in while getting back at a former boss.

“I challenge the payment of reward money to disgruntled employees,” Scott says. “I also have been opposed to the method of calculating damages in BSA cases as being contrary to law.”

The damages awards demanded in these cases are typically three times the regular licensing fee, and can easily run to hundreds of thousands of dollars depending on the number of computers that are in use.

In a recent article for TechCrunch Scott shares the story of Fuzzy’s Radiator, a Texas automotive repair company. In a threatening letter the BSA accused the company of running unlicensed Microsoft products, stating that it could owe millions of dollars for the alleged infringement.

The timing of the letter was interesting, as it came in shortly after Fuzzy’s Radiator’s in-house IT person left the company. “I think the disgruntled former employee was trying to bring down the company,” Fuzzy Radiator’s Trinda Lopez said.

Facing a potential bankruptcy, the company decided to freeze employee salaries and postpone the purchase of new equipment. Eventually, the dispute was settled for a fraction of the initial demand.

While some business owners may run unlicensed software on purpose, this is certainly not always the case. Sometimes the software is installed by relative outsiders, or IT personnel who decide to skip the licensing part on their own accord.

Intentional or not, if the BSA comes knocking it’s bound to get costly. Scott hopes that small business owners will become more aware of the potential risk and ensure that their licenses are in order.

“After handling over 250 cases by BSA, what I have learned is that small business owners can’t trust IT to manage software license compliance,” Scott tells us.

Finally, it’s worth keeping in mind that BSA uses the prospect of excessive penalties to intimidate companies and elicit fear. With a proper defense the actual settlements turn out to be much lower.

Too bad for the disgruntled employee, who gets a stake of the settlement.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Weekly Indicators: is the consumer stumbling? edition

In the rear view mirror, Q1 GDP was revised up slightly.  May data included consumer sentiment from the U. of Michigan, down slightly from its preliminary reading but up from April.  April new home sales set a new record for this expansion.  Durable goods increased. 
 


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Police Conducting “World’s Largest” Pirate Box Crackdown

pirate-wifiWhile Internet piracy has thrived on desktop machines for decades, it is now quite common to find the activity taking place in the living room. Expensive equipment is no longer needed and bulky machines have been replaced by much smaller HDMI-capable devices.

There are several types around but the most common have Android under the hood. Typically in small set-top or dongle format, these products can be loaded with media software from Google’s Play Store or invariably “side-loaded” with more unofficial products such as customized versions of Kodi, Showbox and Popcorn Time.

These cheap IPTV systems can provide users with access to a bewildering array of free content, from movies and TV shows to live sports and other PPV events. As a result, copyright holders around the world are mounting aggressive crackdowns on those who sell such devices for infringing uses.

Some of the most prominent actions have involved the Federation Against Copyright Theft (FACT), who together with police have conducted a number of raids in the UK in recent months. Most have taken place in England but news is now emerging of a large scale anti-IPTV operation underway in Scotland.

According to local police, two premises were raided in Glasgow this week as part of what they describe as the “world’s largest” investigation into pirate IPTV boxes which has been underway for the last 16 months.

While movie companies have shown an interest in these devices it appears the focus in Scotland is on the streaming of live sports broadcasts. These are officially offered by FACT partners the English Premier League (soccer) alongside distributors Sky and BT but individuals and pubs are obtaining them illegally.

Speaking with STV, police say that initial estimates of the scale of infringement are now being dwarfed.

“As of today we estimated about 500 pubs might be involved, but today’s investigation has suggested it could be thousands,” a spokesman said.

“This is undoubtedly the biggest operation of its kind in the world in terms of recovery. It’s a process that’s been done elsewhere but not on this scale, this is the biggest.”

In a comment FACT director general Kieron Sharp said that his organization is committed to working with law enforcement to crack down IPTV-related piracy, wherever it may be.

“Pub landlords, as well as the general public, need to be aware that IPTV and set-top boxes with apps and add-ons allowing the streaming of pirated TV, sports and films are very much illegal,” Sharp said.

“FACT will continue to work with police forces across the UK to crack down on the illegal sale of these boxes.”

In other action, police in Scotland say that in conjunction with FACT they have taken down three “major” torrent sites operated from the Edinburgh, Kilmarnock and Falkirk areas.

“We’ve been successful in removing these sites and work is ongoing to remove several more that we have identified, in what is undoubtedly a growing problem,” said Police Constable Andy Law.

“Hosts often believe they leave no footprint, but in reality we can trace sites back to an address and from there it leaves little scope for the culprit to hide their actions.”

Police have not revealed the names of the sites and there has been no indication in torrent circles of any large indexes or trackers going down. It therefore seems more likely that these are lower level sites rather than the “major” ones suggested by the police.

“Websites offering illegal access to films, music, games and books are threatening our creative industries and the 1.8 million people in the UK working in them,” said FACT’s Kieron Sharp.

“FACT is committed to tackling online piracy and together with our partners at the police and within industry, we will continue the fight to clampdown on anyone operating these sites within our own territories.”

These latest announcements come alongside news that FACT has lost the support of its movie studios partners alongside an estimated 50% of its budget. The MPA says it will carry out its own investigations from regional hubs in future.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.

Friday 27 May 2016

XE Market Analysis: Asia - May 27, 2016

The dollar firmed up through the morning session in light trade, as markets remained close to the sidelines ahead of Yellen's "chat" and the upcoming long weekend in the U.S. and the U.K.. The greenback moved to session highs against the euro and yen following comments from Fed chair, who said it would be appropriate to raise interest rates in the coming months. Apparently those left on trading desks in the U.S. took that to mean June, as EUR-USD fell to fresh two-plus month lows of 1.1112 lows from 1.1145, and USD-JPY climbed to 110.38 from 109.90.



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4K Content Protection “Stripper” Must Pay $5 Million in Damages

4kTo make it harder for pirates to get their hands on the latest blockbusters, all popular Blu-rays and HD streams have content protection.

HDCP is the standard in the field. The technology, which is owned by Intel daughter company DCP, makes it hard to rip HD content, but not impossible.

Earlier this year DCP and Warner Bros. filed two lawsuits against companies that sell hardware which can effectively bypass HDCP 2.2 content protection.

The first lawsuit against a Chinese company was settled last month, with the rightsholders on the ‘losing’ end. However, this week DCP and Warner Bros. have something to celebrate.

The two companies signed a settlement with the California-based hardware seller Ace Deal, which admits to violating their rights under the DMCA. Ace Deal sold so-called HDCP strippers, devices that allow users to render protected video content in the clear, circumventing the copy protection.

The parties have submitted a joint proposal for a final judgment and a permanent injunction at a California federal court. According to the documents (pdf) Ace Deal sold 2,078 circumvention devices in recent years.

Not only does the hardware seller admit guilt, it has also agreed to a hefty damages amount of $5,250,000, which is quite something for such a small company.

In addition to the money, the settlement includes a permanent injunction that prohibits Ace Deal and its employees from offering similar products in the future.

They are ordered to refrain from “importing, manufacturing, offering to the public, providing, selling, using, or otherwise trafficking in any technology, product, service, device, component or part thereof that is primarily designed or produced to circumvent HDCP…”

The court still has to sign off on the proposed orders but that’s expected to be a formality. Meanwhile, Ace Deal has already removed the offending products from its website.

While this case shows a lot of similarities with the one filed against the Chinese company LegendSky, the outcome is entirely different. LegendSky was also accused of “stripping” HDCP copy protection, but these claims didn’t stick.

LegendSky successfully argued their 4K splitter device does not “strip” any HDCP copy protection. Instead, it merely downgrades the higher HDCP protection to a lower version, which is permitted as an exception under the DMCA.

For Ace Deal this argument does not apply so they are left with millions in debt. At least on paper, which may not always be true.

Source: TF, for the latest info on copyright, file-sharing, torrent sites and ANONYMOUS VPN services.