Foreign Torrent Site Operator Can Be Sued in the US, Court Says
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1. Each Party shall provide that its civil judicial authorities have the authority to grant an injunction against an ISP within its territory, ordering the ISP to take action to block access to a specific online location, in cases where:
(a) that online location is located outside the territory of that Party; and
(b) the services of the ISP are used by a third party to infringe copyright or related rights in the territory of that Party.
2. For greater certainty, nothing in this Article precludes a Party from providing that its judicial authorities may grant an injunction to take action to block access to online locations used to infringe intellectual property rights in circumstances other than those specified in paragraph 1.
This hasn’t gone unnoticed by the Alliance for Intellectual Property, which represents rightsholder organizations such as the MPA, BPI, and the Premier League. The group repeatedly urged the UK Government to include site-blocking powers in the agreement. In a recent submission to the UK Government, the Alliance once again stresses the importance of site blocking, while also hinting at broadening the current anti-piracy toolbox. “It has become a hugely valuable tool in the armory of rights holders looking to protect their IP. It is vital that the UK Government ensures the preservation of the no-fault injunctive relief regime,” the Alliance writes. “We would also encourage the opening of dialogue, wherever possible, to share experience around UK practices and to encourage faster, more efficient website blocking procedures, whether through civil, criminal, administrative or voluntary means.”
The site-blocking language is already included in the latest trade deal draft but the Alliance is also looking ahead at future agreements with other countries. In this context, the blocking paragraph will send a clear message. “We would therefore urge the UK Government to include reference to the site blocking legislation in the FTA with Australia as it will send an important message to future countries that we might chose [sic] to negotiate trade agreements with.” The Alliance for Intellectual Property doesn’t mention any other countries by name. However, it specifically references a report from the U.S. Copyright Office where site blocking was mentioned as a potential future anti-piracy option. In the same report, the Copyright Office also stressed that further research would be required on the effect and impact of a U.S. site-blocking scheme, but the idea wasn’t dismissed outright.
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“This is a huge win for the ACE team based in Latin America as we work to protect the legitimate digital ecosystem throughout the region,” said Jan van Voorn, Executive Vice President and Chief of Global Content Protection for the Motion Picture Association. “The successful action against the operator of Pelisplushd.net was only made possible because of evidence that we gathered from previous operations conducted in other countries in Latin America. “This speaks volumes about ACE’s ability to crack current cases utilizing years of past gathered intelligence and highlights the global, strategic approach that determines our actions around the world.”
The operator of Pelisplushd is yet to be named but ACE reveals that after a positive identification, the anti-piracy group tracked him down to the “remote countryside of Peru.” That took place in March and soon after, ACE says the operator agreed to turn over his domains. As far as we can tell the main domain at Pelisplushd.net is not yet completely in ACE/MPA hands but a full transfer will probably take place later.
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The company confirms that it’s blocking torrent traffic on U.S. servers, but that doesn’t change anything for the privacy of users. “TorGuard has not been forced to log network usage data. Due to the nature of shared IP’s and related hardware technicalities of how TorGuard’s network was built it is impossible for us to do so,” the VPN provider writes. “We have a responsibility to provide high quality uninterrupted VPN and proxy services to our client base at large while mitigating any related network abuse that should arise. This commitment to user privacy and service reliability is the reason we have taken measures to block Bittorrent traffic on servers within the United States.”
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The plan would create “a compulsory licensing mechanism for software, databases, and technology for integrated microcircuits,” the Kommersant said. It would only apply to companies from countries that have imposed sanctions. While the article doesn’t name names, many large Western firms — some of which would be likely targets — have drastically scaled back business in Russia. So far, Microsoft has suspended sales of new products and services in Russia, Apple has stopped selling devices, and Samsung has stopped selling both devices and chips. Presumably, any move by the Kremlin to “seize” IP would exempt Chinese companies, which are reportedly considering how to press their advantage. Smartphone-makers Xiaomi and Honor stand to gain, as do Chinese automakers. Still, any gains aren’t guaranteed since doing business in Russia has become riddled with problems, spanning everything from logistics to finance.
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The Federal Court issued a permanent injunction to restrain Lackman (and anyone acting with him, under his authority, or in association) from communicating the plaintiffs’ content to the public in any way, including via the development or distribution of infringing add-ons such as the ‘FreeTelly’ and ‘Indigo’ tools. The terms of the injunction are lengthy and comprehensive, leaving no doubt that TVAddons and all related tools and services are now dead, with Lackman unable to do anything remotely similar in the future.
“THIS COURT ORDERS the Defendant Mr. Lackman to pay the Plaintiffs the amount of twenty-five million dollars ($25,000,000) in the form of a lump sum for damages, profits, punitive and exemplary damages, and costs,” Justice Rochester writes. The judgment is in Canadian dollars but for reference, that’s currently around US$19.5 million. The judgment also authorizes the bailiffs and independent supervising solicitor (with the assistance of computer forensics experts) to transfer the evidence obtained during the search of June 2017 to the media companies. Exactly what data was seized is currently unclear but it is likely to be sensitive, particularly if the trove includes user data and/or information about Kodi add-on developers. Finally, it appears the media companies will also be taking control of “login credentials, accounts, domains, subdomains and servers” in order to bring this years-long battle to a conclusion. Adam Lackman announced his relief on Twitter, noting that “It wasn’t the outcome I had hoped for, but an outcome nonetheless.”
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“The days that followed produced copious amounts of Twitch’s most common byproduct, online drama, but also focused attention on the murky and legally complicated question of what constitutes fair use of copyright materials such as TV shows and movies….”
In 2007 Viacom sued YouTube for copyright infringement. Though the court ultimately ruled in favor of YouTube, the suit paved the way for the “Content ID” system, which automatically identifies copyright content and aggressively polices the platform. While software that can scan Twitch already exists, Twitch has yet to create its own automated system, and it does not appear to be in the process of doing so, according to industry figures with knowledge of Twitch’s operations who weren’t authorized to speak publicly.
Such an outcome becomes more likely, however, if advertisers start withdrawing from the platform for fear of being associated with risky content, something that’s already beginning to happen on Twitch according to Devin Nash, chief marketing officer of content creator-focused talent agency Novo…
The “react content” trend often hinges on broadcasting copyright material, like popular movies or TV shows, a practice which skirts the outer edges of platform rules. Earlier this month, Viacom and the History Channel/A&E (which is owned by Hearst and Disney) issued copyright claims — also known as Digital Millennium Copyright Act (DMCA) takedown requests — to specific streamers…. The DMCA-centric discourse left streamers and viewers on Twitch with ample drama but no clear answer as to whether one of the platform’s go-to trends merely faces a few bumps in the road or an asteroid-sized extinction event. “Nothing could happen, or everything could happen,” Cassell added. “And it rests on the decisions of a handful of media rights holders….”
Some streamers, such as Piker and Felix “xQc” Lengyel, both of whom started reacting to clips from sites like YouTube long before the current react meta began, argue reaction content should be permitted since Twitch is essentially built on copyright infringement. Streaming a video game is technically a DMCA-able offense. The video game industry, however, has decided to allow the practice because the free publicity and resulting sales tend to outweigh any potential downsides. But television is a different beast, with its economics rooted in broadcast rights rather than individual unit sales….
This awkward and unceasing dance around the topic has been fueled in part by the fact that Twitch is incentivized to maintain its ignorance of copyright infractions taking place on their platform…. But the silence has added stress to streamers whose livelihoods could be impacted by decisions around the current DMCA practices….
The Post also spoke to game/esports/entertainment lawyer David Philip Graham, who believes copyright law itself is due for an overhaul. “Much of our current copyright regime isn’t really about authors’ rights or promoting the progress of science and useful arts, but about big businesses looking for easier routes to profitability,” Graham said.
He proposes shortening copyright term lengths — and also expanding permissions for derivative works.
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Many of the articles are careful to point out “we have not verified the contents of the torrent,” because of course they couldn’t. A 20TB torrent would take several days to download, necessitating a pretty beefy internet connection and more disk space to store than most people have at their disposal. We at ClubNFT fired up a massive AWS instance with 40TB of EBS disk space to attempt to download this, with a cost estimate of $10k-20k over the next month, as we saw this torrent as potentially an easy way to pre-seed our NFT storage efforts — not many people have these resources to devote to a single news story.
Fortunately, we can save you the trouble of downloading the entire torrent — all you need is about 10GB. Download the first 10GB of the torrent, plus the last block, and you can fill in all the rest with zeroes. In other words, it’s empty; and no, Geoff did not actually download all the NFTs. Ironically, Geoff has archived all of the media articles about this and linked them on TheNFTBay’s site, presumably to preserve an immutable record of the spread and success of his campaign — kinda like an NFT…
We were hoping this was real… [I]t is actually rather complicated to correctly download and secure the media for even a single NFT, nevermind trying to do it for every NFT ever made. This is why we were initially skeptical of Geoff’s statements. But even if he had actually downloaded all the NFT media and made it available as a torrent, this would not have solved the problem… a torrent containing all the NFTs does nothing to actually make those NFTs available via IPFS, which is the network they must be present on in order for the NFTs to be visible on marketplaces and galleries….
[A]nd this is a bit in the weeds: in order to reupload an NFT’s media to IPFS, you need more than just the media itself. In order to restore a file to IPFS so it can continue to be located by the original link embedded in the NFT, you must know exactly the settings used when that file was originally uploaded, and potentially even the exact version of the IPFS software used for the upload.
For these reasons and more, ClubNFT is working hard on an actual solution to ensure that everybody’s NFTs can be safely secured by the collectors themselves. We look forward to providing more educational resources on these and other topics, and welcome the attention that others, like Geoff, bring to these important issues.
Their article was shared by Slashdot reader long-time Slashdot reader GradiusCVK (who is one of ClubNFT’s three founders). I’d wondered suspiciously if ClubNFT was a hoax, but if this PR Newswire press release is legit, they’ve raised $3 million in seed funding. (And that does include an investment from Drapen Dragon, co-founded by Tim Draper which shows up on CrunchBase). The International Business Times has also covered ClubNFT, identifying it as a startup whose mission statement is “to build the next generation of NFT solutions to help collectors discover, protect, and share digital assets.”
Co-founder and CEO Jason Bailey said these next-generation tools are in their “discovery” phase, and one of the first set of tools that is designed to provide a backup solution for NFTs will roll out early next year. Speaking to International Business Times, Bailey said, “We are looking at early 2022 to roll out the backup solution. But between now and then we should be feeding (1,500 beta testers) valuable information about their wallets.” Bailey says while doing the beta testing, he realized that there are loopholes in the NFT storage systems and only 40% of the NFTs were actually pointing to the IPFS, while 40% of them were at risk — pointing to private servers.
Here is the problem explained: NFTs are basically a collection of metadata, that define the underlying property that is owned. Just like in the world of internet documents, links point to the art and any details about it that are being stored. But links can break, or die. Many NFTs use a system called InterPlanetary File System, or IPFS, which let you find a piece of content as long as it is hosted somewhere on the IPFS network. Unlike in the world of internet domains, you don’t need to own the domain to really make sure the data is safe. Explaining the problem which the backup tool will address, Bailey said, “When you upload an image to IPFS, it creates a cryptographic hash. And if someone ever stops paying to store that image on IPFS, as long as you have the original image, you can always restore it. That’s why we’re giving people the right to download the image…. [W]e’re going to start with this protection tool solution that will allow people to click a button and download all the assets associated with their NFT collection and their wallet in the exact format that they would need it in to restore it back up to IPFS, should it ever disappear. And we’re not going to charge any money for that.”
The idea, he said, is that collectors should not have to trust any company; rather they can use ClubNFT’s tool, whenever it becomes available, to download the files locally… “One of the things that we’re doing early around that discovery process, we’re building out a tool that looks in your wallet and can see who you collect, and then go a level deeper and see who they collect,” Bailey said. Bailey said that the rest of the tools will process after gathering lessons based on user feedback on the first set of solutions. He, however, seemed positive that the talks of the next set of tools will begin in the Spring of next year as the company has laid a “general roadmap.”
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