Saturday, September 25, 2010

TorrentFreak Email Update

TorrentFreak Email Update


ACS:Law (Gay) Porn Letters Target Pensioners, Married Men

Posted: 25 Sep 2010 03:36 AM PDT

Last night, the private emails of anti-piracy law firm ACS:Law were spilled onto the Internet. Today, as we continue to dig through the mountain of information, we take a look at some of the human victims of this scheme. From poor people pleading for clemency, to bewildered old age pensioners accused of sharing adult movies, to married men who have been confronted with allegations of sharing gay porn, the cost is significant.

Since they appeared on the scene a year or two ago, lawyers ACS:Law have made a lot of enemies. This week the rage of the masses boiled over and the hordes of 4chan, Anonymous and those simply wishing to dig the knife in, helped to DDoS the company’s site from the Internet.

Then, in a huge screw up, ACS:Law managed to expose backups of its entire website and email database to the outside world. Last night they were all over the Internet for everyone with a huge amount of patience to decode and read.

As we read yesterday, company owner Andrew Crossley was happy to brag of how much money he’d been making so today, in the second of what is likely to be a long string of articles, we take a look briefly at the human cost of what ACS:Law have been doing.

On one letter a married man explains how he, his wife and his family have been affected by wrongful allegations that he downloaded gay porn movie ‘Bareback Britain’. Despite denials of any infringement, ACS:Law persist on behalf of client Media CAT and send back in response their template letter known as “Sensitive template”.

A single mother of two explains how her husband who left her the previous year could have been responsible for the infringement and offers to pay the ‘fine’ of £495 in instalments for £20/£30 per month. Despite ACS:Law accepting that the lady did not infringe, a company employee advises “I believe this [the offer to pay in instalments] should be accepted.”

Another case where a woman wrongfully accused finds out her son carried out the infringement was forced into paying on his behalf, despite the fact that she was neither liable nor responsible.

Another reads:

Having received your letter dated 9th April 2010 regarding the downloading of a film named “Her First Monster Beak’ I would like to inform you that neither I nor my husband have downloaded this film and are quite confused by these accusations. Neither of us would know how to download a film via the Internet as we have only been using the Internet for a short period of time since our retirement.

I am a Lady in my 70′s and my husband and I can just about use the Internet to read the news and email our children. We are both extremely confused as to your claims that our Internet connection has been used to download this film and strenuously deny this infringement.

ACS 70

While noting that many letter recipients seemed very confused by the letters, it was particularly interesting to see that many simply refused to be bullied and had clearly been using the advice issued by both BeingThreatened.com and that available in the discussion threads on Slyck.com.

Many seemed to very aware of the limitations of the evidence and also their obligations under the law – if it couldn’t be proven that they infringed or authorized others to do so, ACS:Law had nowhere to go except send out their “Bare Denial” template letter, which basically asked people to prove a negative, i.e that they didn’t do anything.

A ‘bare denial’, however, is accepted on other occasions. As this huge mass of emails makes abundantly clear, this scheme is all about money and when people don’t have any, Crossley and friends aren’t interested. A woman who denied sharing anything but provided documents proving she was bankrupt was immediately left alone.

ACS:Law use an internal form titled ‘Action Points’ which charts the progress of a claim. An example is shown below where someone appears to be pursued based on a telephone confession:

Action Points

We have hardly reached the tip of the iceberg with these emails, there are many hundreds left to go but even at this stage, things are certain. Nearly all emails revolve around money. Money being demanded, money being transferred from one company to another. Emails promising employees of more money if they do this, that. Emails to companies telling them how much money they can make by becoming a partner in all of this.

This is not about copyrights and reducing piracy. Copyrights are simply being used as a method to generate money. Thus far, we have not seen a single email or piece of correspondence which talks about reducing piracy.

The only thing we see is money. And misery. But now, due to this email leak, that pain is being more evenly distributed out.

More to come.

Article from: TorrentFreak.

ACS:Law Anti-Piracy Law Firm Torn Apart By Leaked Emails

Posted: 24 Sep 2010 04:54 PM PDT

Earlier this week, anti-piracy lawyers ACS:Law had their website taken down by a 4chan DDoS attack. Adding insult to injury, owner Andrew Crossley was harassed at home in the middle of the night by prank phone calls. Now, through a fault with his website, hundreds of megabytes of private emails have been exposed to the public and uploaded to The Pirate Bay. To those hoping that this is a MediaDefender-type fiasco all over again, trust us - it is.

After coordinating DDoS attacks against the MPAA, RIAA and anti-piracy company AiPlex Software this week, 4chan turned to a new target.

Anti-piracy lawyers ACS:Law, who send out tens of thousands of letters demanding cash-settlements from often innocent Internet subscribers, became the new target. The company, which is headed up by lone principal Andrew Crossley, is widely hated among file-sharers and innocents alike and with 4chan’s Operation Payback now in full swing, payback is the operative word.

After prank telephone calling Crossley in the middle of the night during the week, it now seems that 4chan are aiming to tear his professional life apart, as they have obtained and are distributing a 350mb file of the company’s website which includes countless company emails.

So how were they obtained?

“Their site came back online [after the DDoS attack] – and on their frontpage was accidentally a backup file of the whole website (default directory listing, their site was empty), including emails and passwords,” a leader of the attacking group told TorrentFreak. “The email contains billing passwords and some information that ACS:Law is having financial problems.”

Financial problems? Interesting. Many tens of thousands of people who received letters from ACS:Law are also experiencing the same problem, having already paid up several hundred pounds each to make non-existent lawsuits go away.

“We're still sorting through it. There's a lot of stuff here to go through. But, basically, we were told we were less important than a 10 minute late train, or a queue for coffee by Andrew,” the attackers’ spokesman told us, adding:

“Payback is a bitch, isn't it Andrew?”

The file is currently seeding on The Pirate Bay but most leechers are stuck with less than 60%. It is, however, available publicly on the web already. We have managed to secure one of those copies and are examining it now.

A little taster from emails read so far:

– ACS:Law and USCG (of Hurt Locker fame) appear to be cooperating
– Crossley boasts that his retained lawyer “literally wrote the SRA rules!”
– Crossley accuses Which? of ‘defamation’ and articles designed to “demean” and “denigrate”
– Crossley gives veiled warnings to Which? that he could sue them for libel
– Internal documents reveal intentions to take down Slyck.com
– Email from ACS:Law client which states the following:

Andrew,

Thank you for your email.

Our client remains concerned over the accuracy of the data that you provide and the methods used to obtain such data. It has been closely monitoring the recent press that your Firm has attracted regarding complaints to Which, in relation to demand letters that have incorrectly been sent to innocent internet subscribers, accused of copyright infringement. Your letter of 30 October 2009 was not satisfactory, in that it did not fully deal with the concerns raised in our letter of 21 July 2009, save as to state that you and your client disagree. Clearly there are flaws in your data gathering process. These are important and valid concerns that need to be satisfactorily addressed, so as to protect the rights of our client and innocent customers.

- Crossley brags about his financial status:

Spent much of the weekend looking for a new car. Finances are much better so can put £20-30k down. May go for a Lambo or Ferrari. I am so predictable!

(later emails reveal he bought a Jeep Compass 2.4CVT)

– Email evidence that ACS:Law deliberately does not target two UK ISPs, TalkTalk and Virgin Media
– Crossley writes to monitoring company NG3Sys and says the following:

You are going to receive on average about £1,000.00 per 150 letters sent. This can be seen from the first tiny batch. Because we have good quality product being monitored and captures are high on the data we have, when the letters get sent out the figures therefore equate as follows:-

Phase 1: 2,500 letters, estimated revenue to you: £16,666.00
Phase 2: est. 4,000 letters, estimated revenue to: £26,666.00
Phase 3: est. 18,000 letters, estimated revenue to you: £120,000.00
That is data collated to date! I have more titles to give you, more data will be captured.

Please stay with this.

After falling out with NG3Sys, ACS:Law sent this out to other potential monitoring company:

Dear Sirs,

I own and operate the most prominent law firm in the UK that carries out file sharing litigation. We are one of only two law firms in the UK currently carrying out this work.

We have a number of copyright clients and we have one client in particular,with a large number of copyright titles that have been collecting good numbrs of IP addresses. We have two phases run through and the latest phase has been collecting circa 20,000 IP addresses a month for UK alone. Germany also is gathering good figures.

Our current UK-based data monitoring company has let us down and we need to find another monitoring company to supply our IP data from now. There are currently 300 titles (all adult film titles – all legal and UK certificated) that were being actively monitored.

If you are interested in monitoring for us and to do so quickly, please let us know and we can talk further. We will be able to supply much more data if this works and would like to push the data into Germany also.

We are proposing to pay 10% of net revenues (after ISP costs and postage costs of letter=) to the data monitoring company. On current figures that equates to circa £8,800.00 (€9,750.00) to the monitoring company per 1,000 letters sent. Our next phase we anticipate 10,000 letters to be sent in the UK alone. These are estimates only, but based on current collections are accurate.

I look forward to hearing from you.

- Series of highly abusive emails from Crossley to his ex-wife, where in part he tells her to “Fuck off and keep out of my life” and accuses her of being with a “drug addled hermit”.

- Crossley tells his assistant Terence Tsang to “be more discreet with this stuff” when referring to our article where we revealed ACS:Law looked to buy anti-piracy tracking software on the cheap.

Of course, as with our coverage of the MediaDefender leaked emails back in 2007, TorrentFreak’s coverage of this debacle will be extensive.

Article from: TorrentFreak.

US ISP Disconnects Alleged Pirates for 6 Months

Posted: 24 Sep 2010 02:00 PM PDT

The United States Internet Service provider Suddenlink has effectively implemented a three-strikes policy for repeated copyright infringers. After three DMCA notices, alleged copyright infringers are disconnected from the Internet for six months, without a refund. According to a company representative, the DMCA requires them to take such drastic measures.

suddenlinkJust a few days ago France started warning thousands of file-sharers as part of the controversial Hadopi anti-piracy law that was introduced there earlier this year. Upon receiving their third warning, alleged copyright infringers will lose their internet connection for several weeks.

Across the pond in the United States, there is an Internet provider that has single-handedly implemented a similar scheme. Suddenlink, one of the top 10 cable companies in the country, disconnects subscribers for six months after they have received three DMCA notices. According to a company representative, Suddenlink is required to take this action under the DMCA.

TorrentFreak has been in contact with one of the customers who had his Internet connection disconnected for three alleged copyright violations. The affected subscriber provided detailed chatlogs with Suddenlink where the following explanation for the drastic measure is given.

Customer: I want to reconnect my internet service. They said I got 3 DMCA letters and they said that by law I had to be disconnected. Is that true?

Suddenlink rep: Yes, your internet was disconnected due to DMCA. When the internet is disconnected due to DMCA, it can not be reconnected for a minimum of 6 months.

Customer: The DMCA makes that requirement?

Suddenlink rep: Yes.

Customer: So you’re stating, for the record, that by law, the DMCA law, that you have to disconnect users for receiving 3 DMCA letters?

Suddenlink rep: You have no choice in the matter.

Suddenlink rep: It is the DMCA policy that it can not be reconnected for 6 months.

Suddenlink rep: It may be the DMCA policy or it may be the way we go about following the DMCA guidelines.

Customer: The law states that?

Suddenlink rep: Once the 3rd offense occurs, it can not be reconnected for 6 months.

Suddenlink Rep: The information I have on the DMCA states: This law was enacted in 1998 to protect against illegal downloading of copyrighted material like movies, music, etc. As an Internet Service Provider (ISP), Suddenlink , and other ISPs, must implement a policy of terminating internet service of customers who repeatedly share copyrighted files.

The explanation given above is pure nonsense of course. The DMCA does not and never has required ISPs to disconnect users. For some reason Suddenlink customer support was told to communicate this lie to its users. What is true, however, is that Suddenlink will disconnect subscribers after three alleged warnings.

TorrentFreak contacted the company and we were told that this measure is hidden in their Terms of Service. Although there is no word about a three-strikes policy, we did find the following sentence that could be used to justify the disconnections.

“If you continue to transfer Copyrighted Material illegally, you are violating Suddenlink’s policies and Suddenlink may take further action, including limiting your Internet download capacity, suspending or terminating your account, or a range of other measures.”

In reality, this means that subscribers will be disconnected from the Internet for 6 months without a refund. The subscriber we talked to was informed about the penalty over the phone and never received any documents to back it up.

Although Suddenlink’s three-strikes policy is the most extreme, the company is not the only US Internet provider that has implemented it. Cox is using a similar scheme, but with the major difference that the disconnection is limited to a few hours, not six months.

Disconnecting users based on claims of copyright holders and without any form of trial seems to be an extreme measure for a company that provides such an essential service as Internet access. Suddenlink told TorrentFreak that they are within their rights, just like Comcast said two years ago when they started blocking BitTorrent traffic.

Article from: TorrentFreak.

Producer Sues BitTorrent Users, But Doesn’t ‘Own’ Copyright

Posted: 24 Sep 2010 06:19 AM PDT

The avalanche of lawsuits against BitTorrent users in the United States continues. Several adult producers joined in on the profitable pay-up-or-else scheme recently, but one of them made a costly mistake. Adult producer Mick Haig filed suits against 670 BitTorrent users this week. However, he forgot to register the copyright for his film.

This year alone, tens of thousands of BitTorrent users have been sued in the United States by filmmakers. Several law firms are helping out in these cases, most notably the United Stated Copyright Group (USCG) who sued thousands of alleged downloaders of the Oscar-winning film The Hurt Locker.

Soon after the practices of USCG were laid out in the mainstream press, several adult film producers hired lawyer Evan Stone to do the same for them. The procedure in all these cases is identical. Sue hundreds of BitTorrent users, and ask them to settle the case for a substantial sum instead of going to court for a full trial.

In previous articles we’ve dubbed this creative use of the legal system as a pay-up-or-else scheme. The number one priority for the people involved is to make money off alleged file-sharers, it’s a new business model that has proven to be very effective.

Last week hundreds of new suits were filed at the U.S. District Court for the Northern District of Texas. The case was filed by lawyer Evan Stone on behalf of Mick Haig Productions, and targets 670 BitTorrent users who allegedly downloaded Der Gute Onkel. No, not the 1912 short film that is in the public domain, but an unknown adult film.

The complaint that was filed alleges that Mick Haig Productions owns the copyright to the movie “Der Gute Onkel”. Technically, this may be correct as makers automatically hold the copyright to the content they produce. However, the title was never registered with the Copyright Office which could spell trouble for the ongoing cases.

In U.S. law there is plenty of jurisprudence that shows that one can’t pursue a case where the copyrights are not registered. In Positive Black Talk, Inc. v. Cash Money Records, Inc. the Fifth Circuit Court of Appeals held that a plaintiff must show that the Copyright Office has actually received the copyright application before starting a lawsuit.

In June 2010, Judge O'Connor of the U.S. District Court for the Northern District of Texas – the same Court where the “Der Gute Onkel” case was filed – cited this ruling and found that registrations not properly pled "are not in the case." Again, this ruling affirmed that copyright has to be registered before bringing a lawsuit.

Since the lawyer, Evan Stone, failed to properly inform the Court that the movie in question is not registered with Copyright Office, he has not plead the case properly. For the alleged 670 downloaders this misstep is good news. If any of the defendants challenges the complaint through a motion to dismiss or motion to quash, it should be dismissed.

Alternatively, downloaders can argue that they never intended to download a hardcore adult movie, but that they were looking for the public domain movie with the same title. Perhaps they should then sue Mick Haig Productions for the disturbing footage they got to see instead.

Evan Stone was contacted for a comment but did not reply before the time of publication.

Article from: TorrentFreak.

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