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Archive for the ‘Copyright Enforcement Group (CEG-TEK)’ Category

I started writing this article because there is too much conflicting information floating around the web (likely from attorneys who are trying to use fear tactics to scare you into settling with their firm), and my point was that there are credible websites, such as “Fight Copyright Trolls,” “Die Troll Die,” and a few others who have been helping individuals understand that IGNORING A COPYRIGHT INFRINGEMENT CLAIM AGAINST YOU CAN OFTEN BE A VIABLE OPTION TO RESOLVE THE PROBLEM (WITHOUT SPENDING $$$$ ON A LAWYER), so beware of the attorneys who tell you that you will lose your home, your life savings, or any other fear-of-embarrassment-and-exposure-or-financial-ruin-based argument as to “why you should settle anonymously through them for cheap, or else you might lose everything.”

I circled back to this topic in the end, but this article ended up being a “buyer beware of attorney settlement factories” article, where an attorney or his team of lawyers is trying to lure you into being part of their high-volume settlement business.  In this article, I give you the red flags to look for to spot these attorneys, and I hope this helps clarify some of the conflicting information you get from speaking to different attorneys where one attorney pushes you to settle and where another (e.g., I) suggest that you just ignore it.

“SETTLEMENT FACTORIES” are what I call these law firms. These law firms hire multiple attorneys to track down, solicit, and lure accused defendants into hiring them “for a cheap and anonymous settlement.” From a business perspective, more attorneys for the business owner means the ability to make more phone calls to solicit more accused defendants [to process more settlements], and the ability to “capture” more clients for their law firm means more profits. And, rather than actually negotiate a good settlement for their client, they run what I refer to as a “volume business” where they pre-arrange a price with the copyright holder which is above the market (copyright troll profits). Then, instead of actually negotiating a settlement, they’ll hand over the names to the plaintiff attorney and get the high-priced mediocre settlement for their client.  In return, the copyright troll allows that so-called attorney to not have to negotiate the settlement for each client, since they have a “fixed settlement amount.”  As far as I am concerned, this means that the so-called defense attorneys are part of the copyright troll problem, in a “cottage industry” sort of fashion.

What compounds the problem is that negotiating the settlement is only HALF of the solution. The SETTLEMENT AGREEMENT itself must also be negotiated, particularly because the “boilerplate” settlement agreements contain ADMISSIONS OF GUILT and UNFRIENDLY LANGUAGE which does not properly release the client from liability, nor does it properly protect the client’s rights.

For me, where writing this article will become infuriating is that suddenly these attorneys and their “beefed up” staff of hired attorneys will now start advertising 1) that they spend the time to actively negotiate the best settlement for their client, and 2) that they take the careful time to negotiate the terms of the settlement agreement so that the accused John Doe Defendant will be released from liability and the negotiated terms will properly protect the client’s rights.

If I see this, all I could say is “caveat emptor,” do your own research on:

1) How long that attorney has been in practice [REMEMBER: “Copyright Troll” mass bittorrent lawsuits targeting multiple “John Doe” defendants have only been in existence only since 2010, so any attorney who claims he has been fighting copyright trolls for 20 years is obviously lying.],

2) Check the attorney’s blog to see the HISTORY of his articles — was he one of the first attorneys who fought these cases, or is he a new “me too” copycat attorney who is standing on the shoulders of giants? (after reading this, no doubt these attorney will now add “older” articles to make their website look older), and

3) Check the blog article itself for “SEO OPTIMIZED” content, or “KEYWORDS” placed into the article.  Ask yourself, “was the purpose of this article to provide me valuable information? or was the purpose of the article to bulk it up with keywords so that search engine spiders will reward the author with first page rankings on the search engines?

4) Last, but not least, check the EARLY ARTICLES of the blog to see whether the attorney actually tried to fight these cases and hash out the legal arguments, or whether they were merely reporting on the lawsuits already in existence to attract new business.  I call these attorneys “me too” attorneys, and you can usually spot them because all they do is report the cases.

NOTE: I write this article cringing a bit because I myself just added an e-mail form at the bottom of my articles so that people can contact me if they had a question. I also dislike trashing another attorney or law firm because that simply makes me look bad. I also have a secret, and that is that I was one of the first group of attorneys contacted by EFF to figure out the “John Doe” mass bittorrent lawsuits, and so I have an advantage over the “me too attorney” both legally and information-wise as to the history of these cases, who is who, and which copyright “troll” uses which strategy in fighting a case, and under what conditions will a copyright holder accept a settlement, and how far they will bend in their settlement price. I also spend a lot of time on what I call “situational awareness,” knowing not only the law, and not only the personality of the copyright holder AND the mannerisms of the local copyright attorney hired to sue defendants in a particular set of federal courts, but I also know when a judge is going to dismiss a case (based on his past rulings), and I know when the copyright holder’s local counsel is pressured because of activities that happened in other cases, or whether they are under pressure to resolve a case because they have already have asked for two extensions from the court and I know they will likely not receive a third extension because the judge has expressed an intent for the plaintiff to begin naming and serving defendants.  This is the difference between a copycat and an original.

I also say with no shame that in 2010, I and a small handful of attorneys were contacted by the Electronic Frontier Foundation (better known as EFF) to help understand and resolve the developing copyright troll problem back when ISPs began sending letters out to their subscribers informing them that their ISP would be handing out their contact information and their identity to the plaintiff attorney / copyright holders unless they filed objections (or, “motions to quash”) with the courts. Thus, I credit the EFF for even noticing the copyright troll problem and contacting us to figure out what to do about it.

Unfortunately (or, fortunately, however you see it), that initial list of 20 attorneys has grown to over 100+ names, and some attorneys have negotiated with EFF to list them as representing clients in multiple states, hence increasing their visibility in an ever-growing list of lawyers. These are usually the “settlement factories” I referenced above, and again, caveat emptor.

Let’s pretend, for a moment, that you did not like me or my use of pretrial strategies (often making use of federal procedure) to defend a client. Or, let’s pretend for a moment that I could not take you as a client (e.g., because my case load was full, or because I did not have time to speak to you about your matter). Because there were only a handful of us attorneys on the original EFF list who knew anything about these copyright infringement lawsuits, over the years, we have become friends and have helped each other out on many of the lawsuits in which we represented both John Doe Defendants and “named and served” defendants. Some of these attorneys are still around today, and some have moved on to other areas of law, or they have stopped taking clients because fighting mass bittorrent cases has become more burdensome than the effort was worth (especially when some copyright holders do not play fairly in discovery [think, Malibu Media, LLC]).

Finding “that special client who will pay my fees to fight this case to trial” for many attorneys has become an unrealized pipe dream, and is something us attorneys often discuss.  If you truly want to fight your case, I have nothing wrong with either me, or anyone else I trust representing you in your lawsuit (I will happily tout another attorney’s merits and advanced skillsets when speaking to clients). AND, I will happily refer you to someone if I find that one of my peers would better assist you.  I *DO NOT* believe in referral fees, nor do I “share the workload” with other attorneys (this is code word for “I referred you this client, so pay me a piece of the legal fees you receive and call it paying me for my “proportional efforts.”), something that is often done in my field which, in my opinion, needs to stop. This is also why I have upset a handful of non-copyright attorneys who know nothing about these cases who have called me with a client they would like to refer to me (coincidentally, asking to share in the fees, but not in the work).

So in hindsight, while I thought I’d be reintroducing “copyright troll” subpoenas and basic copyright infringement concepts to clear up some conflicting information found on the web, instead I am providing a clear warning to those who are being actively solicited by law firms. A law firm simply should not be calling you or contacting you to solicit your business.

There is a lot of conflicting information on the web about copyright trolls, and what to do when you receive a subpoena from your ISP, what to do when you receive what is often known as a “DMCA notice” (usually signed at the bottom by Ira M. Siegel) that you have violated a copyright holder’s rights [by what is often the download of a “B-rated” film or more shockingly, that you have been accused or caught downloading pornography through the use of bittorrent (and you thought you were private), and now you want to settle the claims against you anonymously, or you want to make this go away as quickly as possible].

All I could say is STOP AND CONSIDER YOUR OPTIONS, BECAUSE IGNORING A CLAIM OF COPYRIGHT INFRINGEMENT CAN OFTEN BE A GOOD IDEA (and, when I speak to clients, I do ask them questions about the claims against them, and IF THEY CAN IGNORE, I do suggest that they DO NOTHING.) Even in a lawsuit — DOING NOTHING MAY OFTEN BE YOUR BEST STRATEGIC MOVE, as counterintuitive as that might sound.

But when you are bombarded with attorneys and law firms who actively market their fear-based services by using “Google AdWords” (ethically or unethically “buying” more well known attorney’s names as keywords so that THEY show up at the top of a search when you search for another attorney after doing your own research on who to trust, yes, you know who you are), and those attorneys then have their “assistant” attorneys calling you and pushing you to anonymously settle the claims against you, think twice. Is this person trying to get you to be yet one more client in their “volume” business??

In every one of my calls, I discuss what I call the “ignore” option which in many people’s scenario is a viable option. In many cases, I even push a client towards the “ignore” side of things.

[NOTE: There are many political reasons I have for this, such as “not feeding the troll,” or “not funding their extortion-based scheme,” or simply because I have been trying to change the copyright laws to limit or hinder a copyright holder’s ability to accuse or sue an internet user for the violation of that copyright holder’s copyrights, but NONE OF THOSE REASONS ARE REASON WHY I SUGGEST SOMEONE I SPEAK TO IGNORES THE CLAIMS AGAINST THEM.]

Sometimes an individual’s circumstances allow them to ignore the lawsuit filed against them (or the copyright violation claimed against them in the DMCA notice) simply because of 1) the individual’s financial situation, 2) the location of their home, 3) the location of the plaintiff attorney, 4) whether that copyright holder authorizes his attorneys [and pays their fee] to “name and serve” defendants and move forward with trial, 5) for strategy purposes, e.g., the psychological impact of having one or more John Doe Defendants ignore the claims against them (while other defendants rush to settle in fear of being named and served), or 6) simply because ignoring is the better option in that person’s situation.

But my point, MY POINT, ***MY POINT*** IS CAVEAT EMPTOR. If the attorney you are speaking to is running your case as a volume business, or he is pushing you towards a “quick anonymous settlement” without showing you the merits of either 1) IGNORING, or 2) if in a lawsuit, defending the claims against you, beware, beware, beware.

The EFF list of attorneys who handle “mass bittorrent John Doe lawsuits for copyright infringement violations” has grown to over 100+ attorneys, and I have never even heard of some of these attorneys (which means that they are not defending cases, but rather, are running a volume-based settlement factory). I also see a number of names where I know for a fact that some of the attorneys listed in various states are NOT LICENSED to practice law in that state (neither on the state level, nor on the federal level) — this is a clear sign of being a volume-based settlement factory. I also know from my own experience defending clients that some of the attorney names on this list have switched sides and are now suing defendants.

…Just do your research, ok? And when a lawyer calls you, and then calls you again (and again), please ask yourself why they are following up with you.

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I am not licensed to practice law in Canada, and my knowledge (as far as I am able to share) is limited to U.S. Copyright Law, and the states in which I am licensed.

That being said, I have received more than just a few inquiries from those of you who have received “DMCA Copyright Infringement Notices” from your ISPs in Canada and Australia, and I thought it was time to clarify which ISPs appear to be “working” with Ira Siegel (CEG-TEK), and what their capabilities appear to be.

HOW CAN CEG-TEK SEND OUT LETTERS TO CANADIAN CITIZENS, AND WHICH CANADIAN ISPs APPEAR TO BE WORKING WITH CEG-TEK?

So far, infringement notices began to be sent out to Canadians under a loophole which allowed U.S. copyright holders to send infringement notices to Canadian subscribers.  While many have received these notices, it appears to me that CEG-TEK is focusing on the following ISPs:

Bell Canada
Rogers Communications (a.k.a. Rogers Cable)

Shaw Communications Inc. (a.k.a. Shaw Cablesystems G.P., or “sjrb.ca”)
ACN Canada
Electronic Box Inc.
TELUS Communications Company
Start Communications (a.k.a. “start.ca”)
TekSavvy Solutions Inc.

Now obviously there are others out there, but these seem to be where the focus of the letters seem to be going out.  Also, remember that CEG-TEK spends a large amount of time recruiting ISPs to sign on to their “cause” to eliminate piracy.  I remember how happy they were when in the U.S., they got COX Communications to start working with them.  No doubt, they are working to recruit more and more ISPs every day, and these few ISPs seem to be the Canadian ISPs that CEG-TEK appears to be regularly using to send out the DMCA settlement demand letters.

WHAT DO THE CANADIAN ISPs [WHO WORK WITH CEG-TEK] APPEAR TO BE PROVIDING THEM?

Originally, I expected that because of the Canadian loophole, that CEG-TEK was sending these “blind,” meaning, not knowing who the downloader is.  But, because of recent trends (where CEG-TEK is now picking up “additional cases” which were downloaded by that same user sometimes weeks or months ago), I am now understanding that certain Canadian ISPs (my best guess, Bell Canada, Rogers, Shaw, and possibly the others) are working with CEG-TEK to provide them 1) geolocation data as to where the downloads are taking place, and/or 2) lists of past IP addresses which have been leased to that internet user / subscriber over the past twelve months (or, whatever that ISPs “IP Retention Policy” before they purge the IP address data for older records).

Thus, Canadian CEG-TEK cases are starting to look and act more like U.S. CEG-TEK cases as far as them having the ability to identify who the subscriber is, and being able to “look back in time” to see what other bittorrent downloads belonging to their many clients [that their bots tracked on the bittorrent networks realtime weeks or even months ago] these subscribers participated in.

 

EVEN IF THEY KNOW WHERE YOU LIVE, WHAT ARE THE CHANCES THAT THEY WILL SUE YOU IN CANADA?!?

A few months ago, I was concerned that copyright holders might start suing Canadian account holders who ignored the DMCA settlement demand letters that were sent to the ISP.  They even shared details about the Canadian lawyer that they were going to hire to sue defendants in Canadian courts.  But that never happened, and I know why.

Copyright infringement in the U.S. carries statutory damages of $150,000 USD per instance of infringement.  In Canada, there is a legal cap of $5,000 CAD for many instances of infringement.  And then if they obtain a judgement against an internet user in Canada (whether that lawsuit was filed in the U.S., or whether it was filed in Canada), what are the chances that a U.S. based copyright holder would spend the time to enforce a judgement in a Canadian court in order to seize the bank account or garnish the wages of a defendant who was found guilty of copyright infringement?!?  My best guess is zero, simply because the laws in Canada are different than the laws in the U.S., and it is simply not worth it financially to pay a Canadian attorney “go after” the bank accounts for what would be a maximum amount of $5,000 CAD (or, $3,500 USD).  The attorney would cost that much alone just to succeed in collecting the funds.  For this reason, there is absolutely no reason why it makes sense to 1) sue a Canadian for copyright infringement in Canada, and even if they did sue and win, 2) there is almost no likelihood that they would pay a lawyer to enforce the judgement against the Canadian and/or seize their bank accounts and/or assets in local Canadian courts… not for $3,500 USD.

Thus, if a Canadian citizen is concerned that they will be sued in Canada, and that they will have their assets seized, they are probably better off ignoring the DMCA letter rather than settling it.  I really don’t think any U.S. based copyright holder will spend all that effort to sue and collect against a Canadian citizen.  It is simply too costly.

Similarly, I am not even worried about a Canadian being sued in the U.S. for copyright infringement, because even if the copyright holder sues AND wins a judgement of $150,000 USD in a U.S. federal court, what are the chances that 1) the copyright holder will go through the effort to enforce that U.S. judgement to seize the assets of a Canadian citizen in a Canadian court, and 2) since there is such a large difference in penalties between the laws governing copyright infringement in the U.S. and in Canada, what are the chances that a CANADIAN JUDGE (with knowledge of the disparity between the laws) will enforce a $150,000 USD judgement against a Canadian citizen?!?

HERE IS THE ONLY REASON A CANADIAN MIGHT CONSIDER SETTLING THE CLAIMS AGAINST HIM/HER:

If the Canadian accused of downloading copyrighted materials via bittorrent is concerned that maybe they will be named and served as a defendant in a U.S. federal court, and they have a reputation that they must preserve (meaning, they have little-to-no risk tolerance of having their name become associated with being part of a pornography or piracy lawsuit), AND THE COPYRIGHT HOLDER IS A “COPYRIGHT TROLL,” (meaning, they have sued John Doe Defendants in the U.S. courts, or they have made known that they intend to sue defendants who ignore the DMCA copyright infringement letters that are sent to accused internet users), ONLY THEN does it make sense to settle a CEG-TEK claim against you.

Why?  Because as soon as an individual is named and served as a defendant in a U.S. lawsuit, there are many “spiders” and “robots” which comb the U.S. District Court (federal) court cases, and report and index the names of the court cases on the various search engines.  That way, if someone (e.g., an employer, a creditor, or someone who wants to dig up information on a particular person) does an internet search for that person’s name, then that person’s name and his involvement in the lawsuit will show up as one of the top entries on the search engine’s results, along with the case information.

And to make matters worse (which is why I would like to see some discretion on the part of the websites NOT to index the names of defendants in search engine results), even if that accused defendant did not do the download, or EVEN IF THAT DEFENDANT FIGHTS THE CHARGES AND WINS — FOREVER, THAT NAMED DEFENDANT WILL HAVE THE FACT THAT THEY WERE IMPLICATED IN A COPYRIGHT INFRINGEMENT LAWSUIT FOR PORNOGRAPHY OR PIRACY attached to their search engine results.

This is the most powerful leverage a copyright holder has over an accused defendant, namely, that even if he fights the case and wins, his reputation will forever be tarnished, and for this reason alone people settle the claims against them, even before there is a lawsuit.  I have spoken to hundreds (if not thousands of accused defendants) over the years, and this is the primary reason people (even U.S. citizens) settle.

[Personally, this is why I would like to see the laws changed to make it a crime (or more likely, very heavy civil fines, penalties, or sanctions) to name and serve a defendant without having a higher threshold of evidence (e.g., “clear and convincing” rather than “more likely than not”) that it was them who did the crime they are accused of.  Too many families have had their reputations ruined because some overzealous attorney accused them of a crime they did not commit.]

Because of the leverage a copyright holder yields over an accused defendant that they may sue, this is why I read the press releases and follow the financial lives of many of the copyright holders — so that I can properly predict what they will or will not do in the future.  This is also why I make such a large distinction on this blog and when discussing cases with potential clients of distinguishing those copyright holders who are “copyright trolls” (those who have sued in the past, or are likely to sue in the future) versus those who have not yet sued in the U.S. federal courts, and those who (in my opinion) will never sue.  That way, at least I can properly advise clients as to which copyright holders pose the greatest risks, and which copyright holders they can ignore based on who the copyright holders are, what they have done in the past, and what they have publicly stated (in court cases, motions, press releases, and on website articles) that they will do in the future.

IN SUMMARY:

So for those of you who live in Canada, or Australia, or whatever countries the U.S. copyright holders will go next to enforce their rights, please be level-headed when receiving these infringement notices from CEG-TEK and the like.  In some cases (especially for those in Canada), there is almost NO CHANCE that you will be sued in Canada, or that your assets or Canadian bank accounts will be seized.  If you are sued in the U.S. (the more likely result), there is little-to-no chance that the copyright holders would pay Canadian attorneys to enforce a U.S. judgement against a Canadian citizen because of the currency differences and conflict of laws between the U.S. and Canada.

The only reason to settle — if you are going to settle at all — is if you have a copyright holder who is a “copyright troll,” and you are concerned that you will be named and served as a defendant in a U.S. lawsuit, and that your involvement in that lawsuit (whether or not you are found guilty) will tarnish your reputation abroad when someone searches your name.  Otherwise, learn who your copyright holder is and if there is a low risk of them suing you, save your money.

LEGAL DISCLAIMER: I personally find it silly to see attorneys place disclaimers on website articles, but here it is actually appropriate.  In this article, I am not suggesting that any person ignore a settlement demand letter that is sent to them, nor am I suggesting that they settle the claims against them.  I am also merely stating my thoughts about the likelihood of being sued so that they can evaluate their options and the risks and rewards of each course of action.  These are not legal opinions, nor are they to be considered advice to act upon or not act upon. 

Every person’s situation is different, and every person has a slightly different set of circumstances that can affect whether the best course of action is to ignore, fight, or settle, and every copyright holder similarly makes the same financial risk-reward analysis of whether it makes financial sense to take a particular action.  Often, lawyers take actions which do not make financial sense for an alternative reason, e.g., to get a judgement in a particular location against a poor person, NOT to ever collect that judgement, but as a trophy or a weapon to show the next set of would-be defendants that he is ready, able, and willing to pursue a particular line of attack against them as just as they did to so-and-so.  The opinions stated here are my own calculations based on my own understanding of the circumstances.


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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There was a point where someone raised the question, “should I be afraid that a copyright troll might try to sue or collect money for copyrights they don’t own?” That is an interesting question and certainly this could happen, but apparently CEG-TEK took it seriously since they represent so many copyright holders, and they have altered some of the DMCA letters that they send to accused internet users through their ISPs.

As a response to this question (which I suppose was asked enough times to inspire them to take action upon it), in the most recent versions of the CEG-TEK DMCA letters, there is now often a link to a “certification page” which affirms that CEG-TEK is authorized to collect settlements on behalf of a particular copyright holder.

I clicked on a few of the links, and while a few of them were innocuous (containing only the certification from the copyright holder’s website), some of them were pretty explicit as far as the graphics they show on their websites. I thought it would be a good idea to take a few screenshots and post them here, but after seeing a few of the sites, posting the screenshots here would put our website into the “Not Safe For Work (‘NSFW’)” category (as if it is not already in that category from its content).  I have pasted one below just to show an example of what they look like:

Reality Kings

For some of their other clients, below are some of the links I have collected over the past few weeks (and by NO MEANS is this a complete list of CEG-TEK’s client list. I tried to create such a “List of CEG-TEK clients” in June, 2014, and it backfired because immediately afterwards, so many of the copyright holders scattered and changed their name completely confusing the issue of who is a copyright troll and who is not a copyright troll.) I am merely providing this list as a quick sample to prove the existence of an AGENCY AGREEMENT between CEG-TEK and various copyright holders:

Digital Sin Inc. (a known copyright troll which carries the following brands: Digital Sin Inc, Greedy, Hot Boxxx, Lesbian Provocateur, New Sensations Inc*, The Romance Series, Vengeance XXX, X-Play)
http://www.digitalsindvd.com/distro/agent-cert.php

MG Premium Ltd DBA Mofos (formerly, “Froytal Services Ltd.” which carries the following brands: Canshetakeit, Iknowthatgirl, Ingangwebang, Latinasextapes, Letstryanal, Milfslikeitblack, Mofos, Mofosnetwork, Mofosoldschool, Mofosworldwide, Pervsonpatrol, Publicpickups Realslutparty, Shesafreak, Teensatwork)
http://www.mofos.com/cegtek-cert/

Porn Pros [also seen as AMA Multimedia, LLC] (which carries the following brands: Drive Shaft, Gay Castings, Gay Room, Man Royale, Men POV, Porn Pros, Pure Passion, Thick and Big, Tiny4K)
http://pornpros.com/cegtek-cert

MG Premium Ltd DBA Brazzers (formerly, “Froytal Services Ltd.” which carries the following brands: Asses In Public, Baby Got Boobs, Big Butts Like It Big, Big Tits At School, Big Tits At Work, Big Tits In Sports, Big Tits In Uniform, Big Wet Butts, Brazzers, Brazzers Vault, Brazzers Network, Busty And Real, Bustyz, Butts And Black, Day With A Pornstar, Dirty Masseur, Doctor Adventures, Hot And Mean, Hot Chicks Big Asses, HQ Honeys, Jizz On My Juggs, Jugfuckers, Milfs Like It Big, Mommy Got Boobs, Pornstars Like It Big, Racks And Blacks, Real Wife Stories, Sex Pro Adventures, Shes Gonna Squirt, Teens Li)
http://www.brazzers.com/cegtek-cert/

MG Content RK Limited DBA Reality Kings (formerly, “Manwin Content RK Ltd.” which carries the following brands: 40inchplus, 8thStreetLatinas, Bignaturals, BigTitsBoss, Bikini Crashers, CaptainStabbin, CFNM Secret, Cum Girls, CumFiesta, Cumfu, Dangerous Dongs, EuroSexParties, Extreme Asses, Extreme Naturals, FirstTimeAuditions, FlowerTucci, Footville, Girls of Naked, Happy Tugs, Hot Bush, InTheVip, Itsreal, Kingdong, Kristinslife, Manueluncut, MegaCockCravers, MikeInBrazil, MikesApartment, MilfHunter, MilfNextDoor, Mollyslife, Moms Bang Teens, MoneyTalks, MonsterCurves, Muffia, Mysexylife, Nakedmovie, etc.)
http://www.realitykings.com/cegtek-cert.htm

MG Content DP Limited DBA Digital Playground (formerly, “Manwin DP Corp.”)
http://www.digitalplayground.com/cegtek.html

E.A. Productions / Evil Angel
http://www.evilangelvideo.com/copyright/

Addicted 2 Girls
http://www.addicted2girls.com/cegtek.php

New Sensations Inc. (a known copyright troll which carries the following brands: Digital Sin Inc*, Greedy, Hot Boxxx, Lesbian Provocateur, New Sensations Inc, The Romance Series, Vengeance XXX, X-Play)
http://www.newsensations.com/tour_ns/cert.html

MG Cyprus Ltd DBA Men
http://www.men.com/cegtek-cert/

*[UNRELATED, BUT FUN TO NOTICE: Note the overlap between these companies as far as which brands are owned by which companies. Many of the popular names have the same parent company, e.g., MG Content, MG Premium, or more plainly, Manwin.  Also notice that some “brands” which market themselves to be separate and apart from one another are actually owned by the same entity, e.g., New Sensations, Inc. and Digital Sin, Inc.; as much as they tried to pretend that they were different entities when suing in the federal courts, we now know that they are the same entity. It is also interesting to see what a “small world” the adult industry is, and who the power players are behind the scenes of the “large” brand names. Unrelated to this article, when defending clients in federal court and in settlement negotiations, I have often found it funny to find that “old man grandpa” or “innocuous family woman grandma” is the CEO or power behind a large multi-million dollar adult company.]

What to take away from this article is simply that CEG-TEK’s role is as an “Intellectual Property Monetization” company, where the copyright holders hire them to track instances of copyright infringement using the bittorrent networks (hence the “CEG” portion of their name stands for “Copyright Enforcement Group,”), to collect and record the IP addresses of the accused infringers, identify the internet service providers (ISPs) associated with those IP addresses (and yes, they now contact ISPs not only in the U.S., but also in Canada and Australia), and request, pay, pressure, or threaten the ISPs to forward their copyright infringement notices to the subscribers which invites the accused internet user to visit their CopyrightSettlements.com website in order to view the claims against them and to pay a settlement fee to avoid potential legal action that may be taken against the internet users.

What is also important to note is that the legal role CEG-TEK plays is the authorized AGENT of the copyright holder. This means that whatever CEG-TEK agrees to (e.g., when an attorney negotiates a settlement on behalf of a client, or when CEG-TEK agrees to make one or more cases “go away” as part of a settlement negotiation), all of their activities are binding on their client, the copyright holder. Thus, if you pay CEG-TEK*, it is as if you paid the copyright holder. I am obviously simplifying the law of Agency here (where there are nuances), but what to take away is that anything CEG-TEK does, they do on behalf of their client and with the implicit [and in many cases, explicit] authorization of their client. That means that no, a copyright holder cannot turn around and sue you if you paid CEG-TEK to satisfy that copyright holder’s claim of copyright infringement against you where that client has hired CEG-TEK to enforce the copyright holder’s copyrights on their behalf (now you know the term, as their “agent.”).

*NOTE: I don’t need to toot my own horn and solicit my own services, but before you decide to pay CEG-TEK or visit their website, please do your research and contact an attorney who is familiar with their operation.  There are things to be aware of specifically with regard to capabilities CEG-TEK and ISPs have as far as geolocation technologies to identify the location where a download is claimed to have taken place, and how a company can dig into your past browsing history (with the help of an ISP providing your past IP addresses) in order to discover past acts you may or may not have taken part in.  Each of these impact your anonymity when settling a claim against you, and ultimately what a copyright holder can or can not later claim against you.  Your lawyer should understand this to help you understand the limits of CEG-TEK’s knowledge so that whether you choose to ignore or settle a claim, you will be aware of who is allowed to do what before, during, and after a settlement, and what are the time limits they face before information they may have on you is purged from your ISP’s records, sometimes making it unnecessary to worry about a settlement or a lawsuit.


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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Copyright Enforcement Group (CEG-TEK) has sent possibly hundreds of thousands of letters to internet users accused of downloading copyrighted content via bittorrent. In their letters, they invoke the Digital Millenium Copyright Act (DMCA) as the justification for their “intellectual property (IP) enforcement” activities. They claim to be the good guys, but are they?  Are they “naughty or nice”?

CEG-TEK claims to be the good guys — they stop piracy, and as a result of their efforts, fewer people download on the ISPs’s networks (a social “good” and a “win” for the copyright holders). They have stopped the copyright troll lawsuits, for the moment. And, although they are charging $300 per title for each downloaded movie (sometimes higher) for what is often an accidental “click of the mouse,” they claim that they are not “bad” or “vindictive” like their Rightscorp competitor, which charges only $20 per title, but then sues the accused downloaders in federal courts, and then even go so far as contacting the ISPs in order to attempt to shut down the internet accounts of those accused of downloading their clients’ copyrighted titles via bittorrent.

But then again, CEG-TEK is a business. While I have had success negotiating away cases against veterans, the elderly, and in many cases, college kids, CEG-TEK has taken a number of steps which at best would be questionable.

Most relevant is the “admission of guilt” clause in their settlement agreements, which at the time of writing this article has flipped back to the version which does not include this clause. Months ago, when CEG-TEK expanded into Canada and then Australia, the settlement agreements which released those who have settled from liability included the following clause:

111715 Admission of Guilt in CEG-TEK Settlement Agreement

[For those of you who cannot see the image, it says, “…in the event of a (i) failure to clear, (ii) chargeback, (iii) cancellation, (iv) failure to complete…this Release shall be considered admissible and conclusive evidence of RELEASEE’s infringement of the copyright in the Work and that RELEASEE will be liable to CONTENT COPYRIGHT OWNER for all damages, statutory and/or otherwise, for such infringement plus attorney fees plus costs as of the Settlement Date…” (emphasis added)]

[Now as a side note, for those who are particular about formatting and details, note that CEG-TEK placed that inflammatory clause at the bottom of Page 2, and they split it up where half of it is at the bottom of the page, and the other half is at the top of the next page, where even a careful individual might not read the clause in its entirety because the inflammatory clause is separated by being on different pages.]

The problem with such a clause admitting guilt is that it is binding on an unsuspecting individual who tries to settle the claims against him by paying with a credit card. How?  These contracts are available to the individual paying the settlement fee on the CopyrightSettlements.com website to review, and upon processing the credit card payment, they agree to the terms contained within the contract.

Then, when their credit card transaction fails (either because their card is not accepted by CEG-TEK’s website, or because the transaction is declined, or, if through no fault of their own, because of the website itself the bank flags the transaction as suspicious (fraud alert for a large online charge) and fails to approve the transaction), at that point, the individual has admitted guilt to copyright infringement, which carries a $150,000 statutory fine for each title downloaded. Assume for the moment that the individual has five (5) cases.  Multiply this $150,000 amount by five separate copyright holders, and the individual could be looking at 5 x $150,000 lawsuits (= $750,000 in statutory damages separated into multiple lawsuits filed by different copyright holders all of whom hired CEG-TEK as their agent to enforce their copyrights) where the internet user has already admitted guilt.

Then, when the confused internet user who tried to settle calls CEG-TEK on the phone already having admitted guilt, what sort of leverage does the individual have if they are asked for more than $300 per title? Legally, they likely have no defense because according to the terms of the agreement, they already admitted guilt — even if the credit card transaction failing was not their fault.

So… Copyright Enforcement Group may be the “good guys” because they let attorneys negotiate away cases for vets, old ladies, and elderly gentlemen who don’t realize that they should be using a VPN when they download adult content, and CEG-TEK may serve the public good by demonstrating that piracy has gone down because of their efforts. While this is all true, remember: watch their contract, because caveat emptor still applies.

I don’t want to make this into a “you should have hired an attorney for your $300 matter” blog entry, but really, this is but one example of how even the “good guys” need to be approached with caution, and better yet, through a proxy by using an attorney. [I won’t even go into the conspiracy theories about CEG-TEK trying to get more than the $300 per title that is listed on the website.] Let’s stick to the facts and look at their contract to judge them on whether they are truly “naughty or nice.”


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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Copyright Enforcement Group (a.k.a. CEG-TEK) and RightsCorp at first glance look alike, but they are different animals. While they both use the DMCA laws (or with CEG-TEK, their foreign-country’s equivalent) to send letters to internet users accusing them of copyright infringement, and while they both attempt to force account holders to pay a “settlement fee” to settle all claims claimed against them, the mechanisms of how they operate are quite different.

True, both CEG-TEK and RightsCorp send DMCA notices to ISP subscribers (internet users). CEG-TEK (currently) asks for a settlement of $300 per title (C$225 for account holders in Canada), and RightsCorp asks for $20 per title.

The big difference between CEG-TEK and RightsCorp is that CEG-TEK releases the accused downloader from liability when the settlement is paid; in CEG-TEK’s contract, there is NO ADMISSION OF GUILT (UPDATE: CEG-TEK recently updated their settlement agreements and now they have an inflammatory “admission of guilt” provision, speak to your attorney about this), whereas RightsCorp contracts explicitly have the settling party admit guilt in an “I did it, I’m sorry, I’ll never do it again” fashion. This ‘admission of guilt’ issue was the initial reason I wouldn’t work with RightsCorp.

There are obviously other issues with CEG-TEK settlements that we’ve discussed before, just as there are obvious issues with RightsCorp settlements (namely, with RightsCorp, many have reported that after paying one $20 settlement, they received 10-40 additional infringement notices, whether or not the downloads actually happened).

Lastly, there are customer service differences between CEG-TEK and RightsCorp. CEG-TEK retains multiple individuals who respond to inquiries and convince those who call in [with inquiries, objections, and website troubles in processing payment] to pay the requested settlement amount or face a lawsuit. They have been known to claim that they record the conversations (watch out for this, as an admission of guilt here can be used against you, as can a lie later be used against you later in a perjury claim).

The important thing to note about CEG-TEK is that CEG-TEK DOES NOT SUE PEOPLE. Rather, they are a SERVICE PROVIDER providing COPYRIGHT INFRINGEMENT SERVICES TO THEIR CLIENTS (namely, the copyright holders). CEG-TEK has also been known to scrape the list of callers to ascertain their identities (although this used to happen before we learned that they are now able to obtain [from select ISPs] the geolocation data identifying where the download took place). Thus, if a settlement is not reached, they forward the file over to the copyright holders to allow them to follow-up with the accused downloader using their own attorneys.  At this point, CEG-TEK is out of the picture.

Well, to be accurate, first CEG-TEK has their own attorney Marvin Cable send out settlement demand letters asking for $1,750 per title, and only after he is unable to obtain a settlement from the accused downloader, only then do they forward the file over to the copyright holder(s) for their own attorneys to do what they will with it. This is where in my opinion the “ignore” route can result in an accused downloader being contacted by an attorney requesting a settlement, this time asking for a significantly higher amount. Again, depending on the COPYRIGHT HOLDER [namely, whether they have sued in the past (you can look this up on http://www.rfcexpress.com), and whether they intend to sue again in the future], this is how to best determine whether to ignore or settle the claims listed on the CEG-TEK website.

In my opinion, this CEG-TEK policy of “we forward your file over to the copyright holders” is where the misuse of that information *can* originate. Not all copyright holders are upstanding citizens (note to self to write about how a particular action might be illegal or unethical, but we see lawyers doing it anyway, unpunished — “LEGAL, BUT NOT LAWFUL”), especially considering that most of Ira Siegel’s clients are adult entertainment companies (pornography), and their lawyers do not think twice before reminding the accused downloaders that they could be involved in a lawsuit for the download of pornography.

RightsCorp has its own set of problems. First of all, aside from the settlements having accused downloaders admit guilt to one or more downloads, there is a difference in the validity of the claims between RightsCorp and CEG-TEK.  RightsCorp’s initial claim may be valid, but the many follow-up claims have been said to be fabricated.  Contrast this to CEG-TEK — CEG-TEK sends an infringement notice within days of a download taking place, but when the internet user logs in to CEG-TEK’s site, CEG-TEK’s computers have already searched and found any older downloads somehow linked to that internet user (based on the geolocation provided to CEG-TEK, presumably by the ISPs themselves, and also based on the list of IP addresses leased to the subscriber over how long the ISP keeps these lists of past IP addresses based on their “IP retention policy”).

NOTE: There is more to say here, but the jist is that CEG-TEK uses fuzzy science (same geolocation, same bittorrent software, same port number) to link cases together.  This causes problems when CEG-TEK’s system links together multiple tenants’ downloads in an apartment complex or dorm, or when an unlucky VPN subscriber receives an infringement notice containing all of the downloads from the hundreds of other users connecting through that same VPN IP address.

And, while CEG-TEK provides what they call “Customer Service” (a.k.a., “tell me about what a bad boy you were so that I can thank you for admitting guilt and force you to settle or face a lawsuit”), last I checked (and admittedly, it has been some time) there is ABSOLUTELY NO CUSTOMER SERVICE from RightsCorp. Yet, RightsCorp won’t hesitate calling you with their Robocalls all day and night.

Lastly, the biggest difference between CEG-TEK and RightsCorp is that whereas RightsCorp is financially a “sinking ship,” and last I checked, their stock price dropped to $0.06 per share on the stock exchanges, CEG-TEK has only been *expanding* their operations, growing in size, expanding into other counties (most recently, sending copyright infringement notices in Canada), openly speaking about hiring foreign attorneys to enforce their clients copyrights, and they even have been going into other areas of intellectual property (e.g., going after those who sell counterfeited goods over the internet).

In sum, Copyright Enforcement Group in my opinion is the “big bad wolf” of copyright infringement, yet they do everything they can to keep their “paws” clean. What has always bothered me about them (other than that former plaintiff attorney Ira Siegel‘s name appears on each of their settlement demand letters), is that with their growth comes the ability to push around attorneys and internet users with boilerplate settlement agreements, (recently) new terms on their settlement agreements which are less friendly than the former friendly terms, and the ability to continually raise the settlement amount (which was initially $200, then $250, then $300), and nobody can do anything about it.

“Settle or ignore,” it does not matter to CEG-TEK.

As for RightsCorp, I still hold by what I said almost 24 months ago. I see no reason to get involved with them, as they have always been a sinking ship. It is only a matter of time before they are bought out by someone else.

NOTABLE RIGHTSCORP ARTICLES (from Slyck.com):
Rightscorp’s Red Bottom Line Gets Larger and so Does its List of Copyrights to Protect (8/19/2014)
Rightscorp Scores More Copyrights to Protect from The Royalty Network (7/11/2014)
Rightscorp, ‘We Aim to Protect Millions of Copyrights as we Continue to Lose Money’ (5/14/2014)
Rightscorp Sets its Sights on the Pay-Up or Else Program for UK Pirates (5/7/2014)
Rightscorp Scores Again, Gets 600 Copyrights from Rotten Records to Protect (4/16/2014)
Rightscorp Adds 13,000 More Copyrights From Blue Pie Records to Protect (3/31/2014)
Rightscorp Publishes its Full-Year & Fourth-Quarter 2013 Financial Report (3/26/2014)
Downloaders Beware; Rightscorp Now Monitoring Billboard Hot 100 Songs (2/28/2014)

COPYRIGHT ENFORCEMENT GROUP (CEG-TEK) ARTICLES (from this blog):
Canada begins receiving CEG-TEK DMCA settlement letters. (3/12/2015)
How time limits / purged records stop a copyright holder from learning a downloader’s identity. (12/18/2014)
CEG-TEK’s growing list of participating ISPs, and their NEW alliance with COX Communications. (11/12/2014)
The Giganews VPN Problem (11/12/2014)
CEG-TEK is now your friendly “photo” copyright troll. (6/13/2013)
CEG-TEK’s new “you didn’t settle” letters sent from Marvin Cable. (3/22/2013)
CEG-TEK’s DMCA Settlement Letters – What are my chances of being sued if I ignore? (2/22/2013)
Why CEG-TEK’s DMCA settlement system will FAIL. (2/22/2013)


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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3/16 UPDATE: I have heard that CEG-TEK has retained an attorney who is filing the Dallas Buyers Club / Voltage Pictures bittorrent lawsuits in Canada to sue on behalf of their clients (it appears it may be James Zibarras).  Apparently they are doing it as a proof-of-concept to teach that Canada’s limited statutory damages ($5,000 CAN maximum) is per studio. CEG-TEK also claims that there were six months of warning letters (no settlement requested) before they started sending the settlement request letters.  Can anyone in Canada confirm or deny this?

“There is an untapped market of internet users in Canada who could be accused of copyright infringement and forced to pay thousands of dollars in settlement fees… or is there not?” -Copyright Trolls.

Canada until recently was a country which took steps to curb copyright trolling. They limited damages for copyright infringement to a maximum of $5,000 CAN (as opposed to $150,000 here in the U.S.). They set provisions where [with exceptions,] the plaintiff attorney in a lawsuit would need to pay their own attorney fees (as opposed to U.S. Copyright Law which allows a “prevailing party” to collect attorney fees from the non-prevailing party), and things were pretty good for the downloaders and pretty bad for the copyright holders. Who would ever sue in Canada?

Then it was explained to me that certain ISPs were sending what sounded like our “DMCA copyright infringement settlement letters” that we have seen from companies such as CEG-TEK. This evening, Techdirt wrote an article on the topic entitled, “More Copyright Trolls Rushing In To Take Advantage Of Canadian Copyright Notice System Loopholes.”

So apparently what was done to protect the Canadian internet users from copyright trolls has for the moment been undone. “Carte blanche, carpe diem, go get em tiger!” one might think. But I suspect this is only a temporary loophole. In an honest world, those who protected the internet users will continue to protect them, and attorneys will continue to defend against those who are accused of copyright infringement in Canada.

When I heard about what was going on this afternoon, I sighed, “O Canada!” Originally spelling it “Oh Canada,” I quickly found on Wikipedia under the “O Canada!” entry that there is actually an interesting distinction between the English version of the national anthem and the French version. The English version seemed passive (as I understand many mistake Canadians to be).  In my opinion based on my own family in Canada, the real character of Canada could be better found in the French version of Ô Canada! Where the English says, “O Canada, we stand on guard for thee,” the French version says “[We] will protect our homes and our rights. The French version also says, “As is thy arm ready to wield the sword, so also is it ready to carry the cross.”

In short, Canadians won’t stand for the copyright trolls, and I suspect this will be only a temporary problem which will be remedied by the legislature as quickly as a copyright troll might pop his head out from under the Pont de Québec and say “boo!”

A Translation of this article into French from a valued Contributor (just for fun): 

Le Canada jusqu’à récemment, était un pays qui a pris des mesures pour freiner les “copyright trolls” ou “pêcheurs à la traîne de droits d’auteurs”. Le Canada a limité les dommages pour violation de copyright à un maximum de 5000 $ CAN (par opposition à $ 150 000, ici aux USA). Au Canada, un demandeur victorieux doit le plus souvent payer ses propres frais d’avocat dans un procès (par opposition aux États-Unis ou la législaion permet à une “partie gagnante” de collecter ses frais d’avocat auprès de la partie perdante), et les choses étaient assez favorables aux téléchargeurs et assez mauvaises pour les détenteurs de droits d’auteur. Qui aurait jamais pensé poursuivre au Canada?

Ensuite, on m’a expliqué que certains FAI envoyaient ce qui ressemblait à nos “DMCA Copyright Violation Letter” comme celles que nous avons vues de la part de sociétés telles que CEG-TEK. Ce soir, Techdirt a écrit un article sur le sujet intitulé More Copyright Trolls Rushing In To Take Advantage Of Canadian Copyright Notice System Loopholes.”

Donc apparemment ce qui avait été fait pour protéger les internautes canadiens de copyright trolls est devenu chose du passé. “Carte blanche, carpe diem, go get ‘em tiger!”  On pourrait le penser. Mais je soupçonne que tout ceci est seulement temporaire. Dans un monde honnête, ceux qui protégeait les utilisateurs d’Internet vont continuer à les protéger, et les avocats continueront de défendre ceux qui sont accusés de violations de droits d’auteurs au Canada.

Cet après-midi, quand j’ai entendu parler de ce qui se passait, j’ai soupiré, «Ô Canada!» Originellement épelé “Oh Canada” j’ai rapidement trouvé sur Wikipedia l’article correspondant sous le titre “O Canada!” Article Wikipedia qui montre qu’il y a effectivement une distinction intéressante entre la version anglaise et la version française de l’hymne. La version anglaise semblait passive (les Canadiens sont parfois perçus comme passifs, à tort). À mon avis et basé sur ma propre famille au Canada, le vrai caractère du Canada pourrait être mieux trouvé dans la version française du Ô Canada! Là où les Anglophones disent: «O Canada, nous nous tenons sur nos gardes pour toi,” la version française indique ” Et ta valeur, de foi trempée, Protègera nos foyers et nos droits”. La version française dit aussi: “Car ton bras sait porter l’épée, Il sait porter la croix”.

Bref, les Canadiens ne toléreront pas les copyright trolls, et je soupçonne que ceci est seulement un problème temporaire qui sera corrigée par le législateur aussi rapidement qu’un copyright troll pourrait montrer sa tête sous le Pont de Québec et de faire ” boo! “


UPDATED COPYRIGHT ENFORCEMENT GROUP (CEG-TEK) ARTICLES (from this blog):
Canada begins receiving CEG-TEK DMCA settlement letters. (3/12/2015)
How time limits / purged records stop a copyright holder from learning a downloader’s identity. (12/18/2014)
CEG-TEK’s growing list of participating ISPs, and their NEW alliance with COX Communications. (11/12/2014)
The Giganews VPN Problem (11/12/2014)
CEG-TEK is now your friendly “photo” copyright troll. (6/13/2013)
CEG-TEK’s new “you didn’t settle” letters sent from Marvin Cable. (3/22/2013)
CEG-TEK’s DMCA Settlement Letters – What are my chances of being sued if I ignore? (2/22/2013)
Why CEG-TEK’s DMCA settlement system will FAIL. (2/22/2013)

CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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It occurred to me that there is some confusion as to the effect the amount of time ISPs keep IP address logs (linking a particular IP address to a particular subscriber) have on whether those records will be available to the copyright holder if a lawsuit is filed after that time period has elapsed.

The question that sparked this post is as follows:

If CEG-TEK hasn’t subpoenaed someones identity, but the ISP only retains IP information for one year, then after a year it would essentially be impossible for CEG-TEK to obtain the identity correct?

My answer:

In order to understand what is going on, it is important to know who-is-who, and who does what.

I: CEG-TEK (a.k.a. Copyright Enforcement Group):  CEG-TEK hasn’t sued anyone in two years, and thus there are never subpoenas sent to the ISPs.  CEG-TEK is hired by the copyright holders 1) to track the IP addresses of accused downloaders, 2) to maximize the settlement payment by establishing connections between current accused downloads and other “older” downloads that happened at that same location (using IP address geolocation data), 3) to elicit payment in the form of “settlements” from the accused users via their settlement website, and 4) to provide attorney enforcement for those who choose not to settle via the website.

How they do this: CEG-TEK establishes relationships with the ISPs (internet service providers, e.g., Charter, CenturyLink, Giganews, etc.) and they arrange for the ISPs to forward the DMCA settlement demand letters to their subscribers.  CEG-TEK has a website they use to elicit payments from accused downloaders.  Lastly, they have attorneys (e.g., Marvin Cable) who follow-up with accused downloaders (sometimes asking for increasingly larger amounts of money).  Contrary to what is said by the attorneys, neither CEG-TEK nor their lawyers [at the moment] sue people.

II: COPYRIGHT HOLDERS (generally, the production companies): After failing to receive a settlement via the CEG-TEK settlement process, the copyright holders themselves hire out attorneys who enforce their copyrights against those subscribers who “ignored” CEG-TEK’s offers to settle.  Sometimes the attorneys are no-name attorneys, and other times, they are prolific copyright trolls such as from the law firm of Lipscomb and Eisenberg (best known as the attorneys for the Malibu Media lawsuits).

III: ISPs (internet service providers, including Universities and select VPN service providers): ISPs generally hold IP address data (and to which subscriber it was assigned to, and on what date) for one year — check your ISP’s “IP retention policy.” Congress and the RIAA/MPAA are pushing to increase this amount of time to 18 months.  For comparison purposes, in 2010, IP address data was kept for only 6 months. 

NOTE: After the ISP’s “IP retention policy” time limit elapses, if there are no copyright infringement claims, legal claims or requests on a particular IP address assignment record, they will purge that record from their database, meaning that lawsuits, subpoenas, or requests filed AFTER DESTRUCTION will not reveal the subscriber’s identity because that data is no longer available.

HOWEVER, most ISPs have a SECOND DATABASE — this second database holds IP address assignment records which have had claims of copyright infringement asserted against the subscriber, and these records are often kept indefinitely. Thus, if a lawsuit happens YEARS later (even after the IP retention policy date has expired), the data indicating which subscriber was assigned what IP address on what date and time IS RETAINED and will be available to the copyright holders and their attorneys when suing subscribers.

Lastly, (and I did not include this in my initial response,) it is my experience that ISPs generally forward DMCA settlement demand requests LITERALLY WITHIN DAYS of the accused download actually happening.  For example, Charter literally pumps out letters to their subscribers FOUR DAYS after the downloads happen.  Now obviously there are hiccups where a subscriber will receive a pile of infringements at one time, or an infringement notice is withheld until after the CEG-TEK due date has passed, but in my understanding, when this happens, it is either a business-related issue between CEG-TEK and the ISP, or a staffing issue in the subpoena / abuse department at the ISP.

Thus, where CEG-TEK is concerned, I have never heard of a situation where CEG-TEK demands that the ISP forward a letter to a subscriber and the ISP denies that request based on the ISP’s IP retention policy making the subscriber’s information unavailable.

As far as copyright lawsuits in general, yes, the IP retention policy does factor in to when a lawsuit is filed.  I have personally seen a handful of copyright infringement lawsuits filed against John Doe Defendants fail because the ISPs were unable to identify the identities of the accused subscribers because the plaintiff took too long to file the lawsuit (or a judge took too long to approve the subpoena to the ISP demanding the identities of the accused subscribers), and by the time the request or subpoena was received by the ISP, the IP address assignment records were already purged.

Thus, even though a plaintiff copyright holder does have three years from the alleged date of infringement to file a lawsuit against an accused subscriber, they are still bound by the ISP’s IP retention policy if they wish to ever identify the accused subscriber.  That being said, it is the “SECOND DATABASE” which trips up most individuals, as many individuals accused of copyright infringement are not aware that ISPs keep certain IP address assignment records indefinitely (or for a prolonged period of time), and these IP address assignment records are those which have been flagged by a copyright holder, attorney, or other law enforcement agency prior to the expiration of the ISP’s IP retention policy.


UPDATED COPYRIGHT ENFORCEMENT GROUP (CEG-TEK) ARTICLES (from this blog):
Canada begins receiving CEG-TEK DMCA settlement letters. (3/12/2015)
How time limits / purged records stop a copyright holder from learning a downloader’s identity. (12/18/2014)
CEG-TEK’s growing list of participating ISPs, and their NEW alliance with COX Communications. (11/12/2014)
The Giganews VPN Problem (11/12/2014)
CEG-TEK is now your friendly “photo” copyright troll. (6/13/2013)
CEG-TEK’s new “you didn’t settle” letters sent from Marvin Cable. (3/22/2013)
CEG-TEK’s DMCA Settlement Letters – What are my chances of being sued if I ignore? (2/22/2013)
Why CEG-TEK’s DMCA settlement system will FAIL. (2/22/2013)


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

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