As you can see, I am taking some time educating individuals involved in the Copyright Enforcement Group (CEG-TEK) / Ira Siegel DMCA letters being sent to thousands of individuals across the U.S. by their http://www.CopyrightSettlements.com system.
As a recap, anyone involved in receiving such a letter should read the following three articles I have written on their tactics:
1. Why CEG-TEK’s DMCA settlement system will FAIL (2/22/2013)
Now, as far as the topic of this blog entry, the question people often ask is “what are the risks that CEG-TEK or Ira Siegel will sue me if I don’t settle?”
While the easy answer is that so far it appears as if they are NOT suing (remember, they are soliciting their clients under the premise that they’ll make more money by making use of their DMCA settlement system rather than by suing), that answer needs to be elaborated. I hope you will forgive me saving time in answering this way, but I have laid out my answer below in the form of an e-mail I sent to one of the individuals who called me for assistance.
LETTER SENT TO CLIENT:
It is good to hear from you. Just to reiterate, the “case” numbers are not actual lawsuits (at least not yet). If you did not settle by their due dates, their threat is that they would file a lawsuit against you [likely for only one of the titles; knowing them, in order to maximize their return, they would reserve the other titles for separate lawsuits]. Also, my opinion is that the lawsuit would be filed in the Northern District of California (where Ira Siegel is), or the Southern District of New York (where Mike Meier is). Even though you live here in [LOCATION REDACTED] and [COURT REDACTED] would be the proper location for a lawsuit, by filing in the wrong location, they know by doing so they would push you to settle rather than hire an attorney (someone like me) to fight the jurisdiction issue on your behalf.
So far as we discussed, their lawsuits are few and far in between. In fact, up until a week or so ago, I was ambivalent whether a client ignores the letter or settles it (see below article link for what has changed). If you want to see what they are doing lawsuit-wise, you’ll find them by looking for the words “Digital Sin” or any of their other clients on the http://www.rfcexpress.com website. Alternatively, you can search for “Mike Meier” since he seems to be their top guy as far as skill in suing defendants aside from Ira Siegel himself.
It is my opinion that they are not in the habit of suing at this point, which means they are trying to “milk” the settlements for all they are worth. However, they do have three (3) years from the alleged date of infringement to sue, so if you didn’t settle, you’ll be looking over your shoulder waiting for them to have a bad day when they decide to press the button and sue everyone.
I wrote an article yesterday on my https://torrentlawyer.wordpress.com website which should answer your questions as to the factors influencing the odds of whether they’ll be suing defendants in the near future, or whether they would wait the full three-years to sue everyone at once.
Once again, it drives me nuts when attorneys try to scare defendants into settling their cases. With these DMCA “scare” letters, I am merely stating the obvious paths CEG-TEK and their attorneys can take.
For me, I think Ira Siegel and the Copyright Enforcement Group (CEG-TEK) would like to avoid suing defendants. It didn’t seem that profitable for them the first time around, and it took incredible resources to maintain their copyright infringement lawsuits prior to the creation of their out-of-court turn-key settlement system. Then again, they are IP enforcement companies who are serving the needs of their production company clients (the copyright holders), and if the clients pay them to use their CopyrightSettlements.com system and send DMCA letters to the ISPs, they send the letters. If the clients instruct them to sue, they sue. It is my understanding that they dislike the other copyright trolls, and that they compete for business (e.g., the production companies). Thus, if their settlement system dries up as I believe it inevitably will, they will do anything not to lose their clients to the likes of Lipscomb, Steele, or the other less credible trolls out there.