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Archive for the ‘Ira Siegel’ Category

dmca gone wild

I have been sitting on this article for a few days because I was not sure what to make of it.

I don’t know if what I am noticing is based on greed on behalf of the “Girls Gone Wild” copyright holder (a.k.a., GGW Brands LLC) based on their corporate shakeup and recent bankruptcy, or whether CEG-TEK’s computer system has been going haywire sending sometimes hundreds of DMCA copyright infringement notifications for one “click” of a bittorrent file, or if there is a shift coming where CEG-TEK will be using the DMCA notices in a new way to extort larger and larger settlements from accused downloaders.

BACKGROUND [SKIP IF YOU KNOW HOW BITTORRENT WORKS]:
CEG-TEK has always tried to be a modestly clean organization.  While an internet user downloads a video using bittorrent software, CEG-TEK’s servers are “dipping in and out” of the various bittorrent swarms which share their 100+ clients’ [usually adult] videos, and while CEG-TEK is “in the room” (so to speak, meaning, while CEG-TEK’s servers are connected to the bittorrent swarm [in which the internet users’ bittorrent software downloads file fragments from multiple individuals also in that same bittorrent swarm, and in which the bittorrent software shares (“seeds”) file fragments it has acquired to other bittorrent users in the swarm who are lacking that particular file fragment in order to obtain the entire shared file(s)), CEG-TEK writes down the IP addresses of each of the file sharers, they identify which ISP that IP address belongs to, and their computer sends a DMCA notice to that ISP.  That DMCA “scare letter” notice is then forwarded to the account holder who was assigned that IP address at that particular date and time.

So with the Girls Gone Wild copyright holder, in the olden days (meaning up until two weeks ago), an internet user would click on a bittorrent file which contained something like 20-30 GGW videos, but when we logged into the CopyrightSettlements.com website to view the claims against my client, there would only be a few claims of copyright infringement.  Why?  Because GGW was having CEG-TEK ask for $300 per copyrighted DVD (which it itself contained many “files” or “scenes”).  Point being, one click, one copyrighted DVD pirated, one $300 settlement.

This is no longer the case.  Now when an internet user clicks a download link on a bittorrent website (sample screenshot of a GGW bittorrent link below — this one containing 95 video files), the same 20-30 video files are downloaded, but instead of ONE (1) DMCA notice being sent to the internet subscriber’s ISP, these past few weeks, 20-30 DMCA notices are being sent.

TPB_GGW

To make the effect of downloading Girls Gone Wild videos more egregious, instead of asking for $300 for each GGW DVD pirated, the copyrightsettlements.com website now lists 20-30 “cases,” asking for $300 for each file downloaded, rather than $300 for each DVD.  Thus, in the 20-30 file example, now an accused internet user will see a settlement request of $6,000-$9,000 for one click of a bittorrent website (or in the example shown above with 95 video files, CEG-TEK would now be asking for a $28,500 settlement, when before it would have been just a few hundred dollars).

Now, let’s take the scenario further, because I’ve seen settlement amounts as high as $78,000 in the past few days.  How?

That same internet user who clicked on this link above containing 95 titles leaves his bittorrent software running in the background.  He does not realize that after the downloads are complete, his software is set to “seed” (upload) the files to other bittorrent users who have not yet acquired all 64.02 Gigabytes of data (as if someone actually has that amount of free space on their hard drive to download all of those videos, and as if each and every video was actually downloaded — both topics outside the scope of this article).

It takes roughly 4-5 days for a Charter or a CenturyLink subscriber to receive his DMCA notice, so by the time he learns that he has done something wrong by that “one click,” his ISP has changed his IP address 5 times (IP addresses are leased to subscribers for 24 hours, although this differs from ISP to ISP), that means that CEG-TEK “thinks” he has 475 instances of infringement (MATH: 95 videos * 5 days seeded = 475 instances of infringement).  Thus, when those 29 downloaders and 5 uploaders shown in the image above (listed as “29 leechers” and “5 seeders”) get their DMCA copyright infringement notice for this particular torrent five (5) days later, each one of them will see a settlement amount of $142,500.  Obscene.

Now obviously a lawyer (myself or anyone else) can negotiate the amount of the settlement, or, based on the copyright holder’s tendency to sue or knowing the limitations of CEG-TEK’s abilities to know who you are [taking into consideration the ISP and the known information such as geolocation data as to where you live, etc.], I may just as easily suggest that you ignore the claims against you, but quite frankly, if CEG-TEK is really expecting to get a $142K settlement (or even a $10K settlement), well, this suggests to me that maybe they are getting a bit greedy.

In sum, here is what I know:

1) Girls Gone Wild and CEG-TEK (as their agents) are now asking for $300 settlements for each and every video file downloaded.

2) CEG-TEK’s computer systems are going haywire, and ISPs are receiving HUNDREDS of DMCA violation notifications for files contained within one bittorrent file.

3) CEG-TEK’s computer systems lock out users who have more than ten (10) claims against them with a note to call their 800 number to discuss the claims with them.  This means that your claims WILL LIKELY BE LOCKED when you try to log in and you will get their “Please contact Ira Siegel” notice.

4) If you made the mistake and called them, you would be faced with an obscenely high settlement amount to negotiate down from.

My interpretation:

Here is my interpretation of what is going on.  I see two possible causes for what we are seeing.

The founder of Girls Gone Wild appears not to be an upright citizen.  He has been reportedly convicted of tax evasion, bribery, false imprisonment, assault causing great bodily injury, dissuading a witness, record-keeping violations, and he has even reportedly pleaded no contest to child abuse and prostitution.  It does not jolt me to add copyright trolling to his list of indiscretions, and thus if this new development is coming from CEG-TEK’s “Girls Gone Wild” client rather than from CEG-TEK itself (management), I am not surprised by what I am seeing.

From 2007 – 2013, GGW advertised up the wazoo on late night infomercials, and they used to sell their DVDs, but there was a point where something happened to their business — the internet happened, and people stopped purchasing their videos.

In 2013, I remember hearing about a lot of drama and “shake-ups” on the corporate level, where Girls Gone Wild was talking about filing for bankruptcy, and where they were no longer putting their focus on the sale of DVDs.  Rather, moving forward, they would be focusing on “intellectual property monetization,” which is another way of saying that they hired a number of lawyers and copyright enforcement entities (e.g., CEG-TEK, or Copyright Enforcement Group) to elicit settlements from those internet users who they blame for the collapse of their company.

In sum, either Girls Gone Wild is tired of collecting a few bucks here and there, or CEG-TEK is no longer happy with the $300 settlement and they are trying to increase the settlement amounts to lawsuit levels without having to file a lawsuit.  Either way, be aware that things are changing, and I will let you know as I see the shift reveal itself in a more pronounced way.


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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We already know that it is the business model of CEG-TEK and other copyright monetization companies is to develop relationships with the internet service providers (“ISPs”), and to have them forward copyright infringement / DMCA notices to their subscribers.

I have mentioned this already with regard to the relationships CEG-TEK has with Charter, CenturyLink, and Suddenlink, and as we know, COX Communications, Inc. signed on with CEG-TEK in December of 2015, and has been sending CEG-TEK’s DMCA violation notices to their users.  What we did not notice until now is that Cox Communications has become CEG-TEK’s “golden goose.”

WHY COX IS CEG-TEK’s “GOLDEN GOOSE”:

Why Cox? Because Cox provides its users the same IP address each day. This “one subscriber, one static IP address” trend provides copyright holders and government officials an “ID” of sorts which allows them to identify a particular IP address, watch the activities of that IP address over time as it interacts with different websites (e.g., to see what links that internet user clicks on, to learn where they shop online, what accounts they use, what items they purchase, and what bittorrent downloads they participate in).  Then, when they have developed enough of a profile on that user to convict, they then trace that IP address back to a certain Cox Communications account for prosecution, or in our case, extortion.

For CEG-TEK, they are focusing their efforts on Cox because by doing so, they do not need to obtain from the ISP a past list of IP addresses assigned to that user, and it is very easy for CEG-TEK to go back in time and check their own logs of the past bittorrent swarms to see whether that particular subscriber / IP address participated in any other downloads of their other clients. Some have suggested to me that CEG-TEK can do a search to see what other bittorrent downloads the accused Cox subscriber has participated in. In short, Cox’s “one subscriber, one static IP address” is nothing short of a violation of their subscriber’s privacy, and it is only a matter of time before someone’s IP address gets “followed” and someone gets hurt because Cox is not obscuring the identity of their subscribers.

BRIGHT HOUSE NETWORK IS NOW WORKING WITH CEG-TEK:

Other than Cox, I have recently learned that Bright House Networks (brighthouse.com) is now working with CEG-TEK. I do not yet know in what capacity they are working with CEG-TEK, or in what kind of relationship, but it appears as if they are a new ISP “recruit” in CEG-TEK’s “war” against piracy.

NEW CHARTER COMMUNICATIONS POLICIES AS TO HOW THEY FORWARD DMCA NOTIFICATIONS (THE GOOD AND THE BAD):

For the thousands of you who are Charter subscribers, Charter has recently changed the way they forward the DMCA notices, and this can only be good for subscribers. Instead of forwarding the notices in an e-mail, they are now asking subscribers to “log in” to their website, where only then can then view and copy for themselves a copy of CEG-TEK’s letters.

This is both very good, and bad. On the good side, any “hoops” an ISP makes a subscriber jump through to see the claim(s) against him might annoy the subscriber, but it no doubt infuriates the copyright holders and “monetization” companies (like CEG-TEK) that rely on them seeing their DMCA notices to provide their copyright holder clients their dirty money (I could have said “ill-gotten gains,” but emotionally, calling it “dirty money” seemed to fit better).

THE PROBLEM OF “LOST” DMCA NOTICES:

However, BUYER BEWARE! I have received many calls about people who have physically LOST their DMCA notice because they did not copy it down when they viewed it. And when they called me about it panicked, because I couldn’t see the claims because they did not know who was claiming copyright infringement against them, I couldn’t tell them whether the copyright holder was a “copyright troll” or not, or whether they are suing downloaders in the federal courts. So please, as soon as you access the DMCA violation notices sent to you, either download a copy of it for yourself, or copy-and-paste it into a text file.

GOOGLE FIBER IS A DISORGANIZED ISP WHICH HAS ALSO LOST DMCA NOTICES:

Google Fiber subscribers also — Google Fiber seems to not be organized as to keeping track of the DMCA notices that they are forwarding to their subscribers. So when an internet user inadvertently deletes that notice, it is gone forever. Neither I, nor anyone else can help you fight or settle (or even advise you as to your options) if you accidentally deleted the notice. I suspect that if you are reading this article, it may already be too late.

CANADA — NEW CANADIAN ISP RECRUITS:

Okay, last piece of news and then I need to get back to work. As we know, CEG-TEK has been sending letters for months to Canadians and forcing the ISPs to send these letters to their subscribers under what is known as “notice and notice.” I have written about the problem and the solutions here in my “CEG-TEK: What are your financial risks and considerations of ignoring, settling, or being sued for copyright infringement if you live in Canada or Australia?” article. The news is that just as CEG-TEK is growing their business by signing on new ISPs in the US, this is also true in Canada.

The new Canadian ISPs now working with CEG-TEK appear to be Videotron (a.k.a., Vidéotron), Bell Aliant (www.bellaliant.ca), and Eastlink (www.eastlink.ca) — this will also affect their FibreOP users under the ISP names NorthernTel, DMTS, Telebec (Télébec), and Cablevision. If anyone receives notices from these internet providers, I would like to see them, as I hear that CEG-TEK is not following the notice rules.

As for the older ISP names — Bell Canada, Rogers Cable, Shaw Communications (sjrb.ca), ACN Canada, Electronic Box Inc., TELUS Communications, Start Communications, and TekSavvy, yes, these are still in play. The only one of these that has my respect thus far is TekSavvy which has tried to protect their users by fighting back, but even so, they are still sending CEG-TEK’s DMCA violation / copyright infringement letters, so my respect is limited.


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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Obviously I am not privy to the contracts signed between CEG-TEK and the internet service providers (“ISPs”).

There are three possible relationships between a copyright enforcement company and the ISP through which they send DMCA letters informing subscribers that unless they settle the claims against them for downloads that allegedly occurred, they might be implicated in a copyright infringement lawsuit.

1) A RELATIONSHIP OF FORCE AND THREATS AGAINST THE ISP (where CEG-TEK threatens, and the ISP complies),

2) A RELATIONSHIP OF PROFIT FOR BOTH SIDES (where CEG-TEK pays, and the ISP cooperates), and

3) A RELATIONSHIP OF PURE MOTIVE (both CEG-TEK and the ISP hold hands and cooperate, to “fight piracy”).

SCENARIO 1) “A RELATIONSHIP OF FORCE AND THREATS AGAINST THE ISP” (where CEG-TEK threatens, and the ISP complies)

In the first scenario, a company or set of attorneys representing the copyright holders contacts the ISP and informs them that they might be in violation and subject to various lawsuits, fines, and penalties for not complying with the U.S. Digital Millennium Copyright Act (“DMCA”), and other statutes (in Canada, the ISPs are literally required to pass on claims to their customers, and this is referred to as “notice and notice”). If the ISPs do not comply, they could be sued for millions of dollars for encouraging piracy on their networks (I am speaking loosely in the vernacular).

ISPs across the US would be included in this first scenario, which explains how many of the bigger ones such as Comcast [who I understood were originally NOT working with CEG-TEK, because doing so would violate how they are supposed to act by being part of the “Six Strikes” system] started sending out abridged CEG-TEK infringement notices a few months ago, even to first time offenders.  Another such example of ISPs who “take steps” to stop infringement is Charter, which has been known to temporarily suspend their users who are accused of copyright infringement, but only with a pop-up notice that they need to click on to acknowledge the claim of copyright infringement against them before their internet service is resumed, unhindered.

NOTE: Comcast also has a strong profit motive as demonstrated in Scenario 2 (below), as does Charter, who has been known to be working with CEG-TEK since the beginning of their operation.  We believe the relationship between Charter and CEG-TEK is one of “for mutual profit” (Scenario 2) because CEG-TEK has obtained information about accused downloaders that they could only obtain with the help of the ISP.  Also, I understand that over the years, there have been periods of “tension,” (as I called them) where Charter has held back the sending of the CEG-TEK DMCA infringement notices for sometimes weeks at a time, only to send them all at once (my joke at the time was, “I guess they were waiting for their payment.”)  All jokes aside, the point here is to note both the Comcast example and the Charter example to show the actions an ISP will take to make it look as if they are “taking steps” to fight piracy.

In each of these scenarios, the ISP does the absolute minimum to comply with the claims against their customers, but what you don’t see is the “wink and a nod” from the ISP that they are likely not going to shut your account down or lose you as a customer over this (in other words, your activity violates the ISP’s terms of service “TOS” or “PUA”, but I have not been hearing of anyone’s account being shut down).

UNRELATED, BUT STILL VERY IMPORTANT: I have even heard that ISP customer service representatives actively tell their subscribers [in ignorance of the law] to just delete the infringing content and to ignore the notices.

FYI, look up “spoliation” of evidence, where the victories of the copyright holders in the US against downloaders happen where the copyright holder can prove that the accused defendant wiped his hard drive or deleted the infringing content after being notified by the copyright holder that there was a claim of copyright infringement against the subscriber. Thus, take what the ISP customer service representative says with a grain of salt because even though they might not care that the download happened on their network, there is still the law and the claims against you, and your ISP’s customer service rep is in no position to be giving you legal advice. Better to deal with or resolve the CEG-TEK claim against you first (if you were going to settle) before wiping the hard drive in fear of having other claims of copyright infringement or lawsuits filed against you (e.g., by other copyright holders such as Malibu Media, LLC, etc.) in the near future.

NOTE: Your relationship with your ISP has ABSOLUTELY NOTHING TO DO with your relationship with the copyright holder (or CEG-TEK) or the claims against you, since the copyright holder(s) still have one or more claims of copyright infringement against you.

SCENARIO 2) “A RELATIONSHIP OF PROFIT FOR BOTH SIDES” (where CEG-TEK pays, and the ISP cooperates)

In this scenario, the understanding is that CEG-TEK is actively paying the ISP for providing their DMCA infringement notices to their subscribers. While I did not initially believe this was happening in Canada (although I did have my suspicions), as of this morning, I now believe that Shaw Communications Inc. (a.k.a. Shaw Cablesystems G.P., or “sjrb.ca”) is working with CEG-TEK in a “for profit” relationship. I obviously cannot prove this, but from what I understand is about to happen with their subscribers [who will shortly be receiving multiple letters of infringement sent to them at the same time], this type of “delay, then dump a bunch of infringement claims” experience usually happens in a “for profit” relationship when the ISP is being compensated for the time they spend complying with the copyright infringement requests, and the payment is not immediately made.

Two examples demonstrating the “for profit” motive of various ISPs in the U.S. with facts (in these two cases, the “for profit” motive was forced upon CEG-TEK to their frustration) can be seen in the past behaviors of both Comcast and AT&T. A few years back, to handle the increasing number of subpoena requests (at the time, as a result of John Steele / Prenda Law Inc. lawsuits and the increasing number of bittorrent lawsuits being filed across the U.S.), Comcast opened up a “subpoena compliance” department in Morristown, NJ and staffed [at the time] twelve new hires just to handle the new subpoena demands from the lawsuits. In the lawsuit filings, when the copyright holders and their attorneys learned that Comcast was trying to profit off of the bittorrent lawsuits, they complained to the judges that Comcast was stalling on the subpoenas (Comcast was, at the time, under a duty to comply with the many subpoenas that were being requested of them).  It came out that Comcast was asking for something like $25-$50 per IP address lookup, when they were supposed to be complying with the subpoena for free.  Comcast prevailed in getting their IP address lookup fees, which I understand they continue to charge, even though other ISPs still do this for free.

Similarly, for those who know anything about Ira Siegel — the name that shows up on the bottom of every single CEG-TEK DMCA notice — there was a point where Ira absolutely refused to work with AT&T because AT&T’s subpoena department would charge $200 per subpoena request or IP address lookup, something at the time I heard that he found infuriating. Thus, you’ll notice that even today, you’ll never find a recipient of a CEG-TEK violation notice being a subscriber to AT&T, but as you can see, there *is* a profit motive of the ISPs to benefit financially from the growing influx of copyright infringement claims against their subscribers.

NOTE: I understand that the relationship between Charter, Centurylink, Suddenlink, Cox, sometimes Comcast, [and now most recently in Canada, Shaw Communications] fall under this scenario. The reason I am of this understanding is because of the advanced information CEG-TEK is able to identify about that subscriber, sometimes including the subscriber’s name (I have my own understanding as to how they get this from the geolocation), the geolocation itself of where the downloads occurred, along with other “past downloads” that allegedly happened weeks or months in the past at that same location, or by that same subscriber (based on a list of old “IP addresses” provided to CEG-TEK so they they can correlate that list against their own bittorrent records).

SCENARIO 3) “A RELATIONSHIP OF PURE MOTIVE” (both CEG-TEK and the ISP hold hands and cooperate, to “fight piracy”)

This is the “kum baya” view of piracy, where CEG-TEK approaches the ISP and tells them that they want to fight piracy. They show statistics of how when other ISPs “joined forces” with them and started sending out the DMCA violation settlement letters, piracy dropped significantly on that ISP’s network.

The ISP then sees this information and also agrees to “sign on” with CEG-TEK to help them forward their settlement demand letters to their subscribers with the hopes of diminishing the amount of “piracy” of copyrighted content that occurs on their networks.

NOTE: In this last scenario, you won’t find a profit motive by the ISP, and this is where I believe they get colleges and universities to sign on with them to fight piracy on their networks.

MY PERSONAL OPINION AND BIAS: Whatever the relationship or the scenario between CEG-TEK and the ISP, in the end, the subscriber is the one who suffers because it is THEY who receive the “settle or else my client will sue you as a John Doe Defendant in a U.S. federal court lawsuit for copyright infringement” letter.  Call it “speculative invoicing,” call it “Intellectual Property Monetization,” call it “fighting piracy,” when it is the individual downloader the copyright holder goes after, it is still WRONG.

To CEG-TEK’s merit, I have personally been in conversations with CEG-TEK where they were excited that piracy was actually going down on a particular ISP’s network — so apparently they do believe in what they do — but then again, whatever I feel about piracy and how the copyright laws should be changed to match today’s internet generation, in the end, it is the college students, their parents and landlords, the young graduates who are trying to find jobs, and those who are lured in by the adult content which is so addicting, widely available, and prevalent on the internet who fall prey to the tactics of the copyright holders.  For this reason, I still believe that the copyright holders should focus their efforts on pursuing those SELLING FOR PROFIT, DISPLAYING PUBLICLY WITHOUT A LICENSE, POSTING OR INITIALLY SHARING copyrighted content, but leaving alone those internet users who have no profit motive, who click on a link to view the copyrighted content.  

Back to my policy letter, I believe that it is the job of the copyright holders to police their own copyrighted materials, and not to attack, sue, extort, threaten, or pressure those who view or download content already aired on TV or in a public forum and posted on the internet.  The internet today has become like the TV and the Betamax of yesteryear.  Media becomes available, and people watch that media, whether the source is legitimate or not (think, Youtube).  TV shows are recorded, and are posted on many websites, some of them are licensed to share that content (e.g., Netflix, Hulu, ABC.com, etc.), some unlawfully do so without a license.  However, it is not the job of the internet user to inquire as to whether a source for a video is legitimate, especially when watching a show that was publicly aired just a few days beforehand.

The last thing that I want to do is to think twice when clicking on a YouTube video.  Taken to extremes, this is where the copyright holder’s activities go.


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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I am observing “shifting sands” when it comes to the number of internet users who are getting caught in the web of CEG-TEK DMCA-based settlement demand letters.

For almost two years, I have been telling people that there are three internet service providers who are working with Ira Siegel — Charter Communications, SuddenLink, and CenturyLink. This has been true, and continues to be true.

I have also told people that if your ISP is participating in the “Six Strikes” anti-piracy system — specifically, Comcast (Xfinity), Verizon, AT&T, Time Warner Cable, and Cablevision — then there is nothing to worry about (because these ISPs are no longer forwarding Ira Siegel’s DMCA settlement demand letters, meaning that there is nothing at the moment to settle).  This is NO LONGER TRUE.

In recent weeks, I have observed Comcast (Xfinity) infringement notices sent to subscribers in spite of the “Six Strikes” system being in place.  [The Comcast notices contain relevant infringement information, yet only reference the “CEG-TEK Case Number;” Comcast has, however, neglected to provide the password so that the accused downloader could visit CEG-TEK’s website to determine what claims they have against him.  The unintended consequence is that in order to see what claim(s) CEG-TEK has against the accused subscriber, the subscriber would be forced to contact CEG-TEK directly to obtain the password corresponding to the Case Number (thus exposing his identity, and potentially incriminating himself when answering questions). Direct communication with copyright trolls is a big no-no, as you know it is my opinion that communicating directly with them is a bad idea because their goal is to extract a large settlement from you on behalf of their clients.]

As for the 100+ small and mid-sized ISPs who did not join the “Six Strikes” system, with hindsight, we now know that CEG-TEK has spent the last two years on an aggressive campaign to enroll as many ISPs to work with them as they could… “to stop piracy,” of course.  While it was surprising to us is that CEG-TEK went after Giganews and a growing number of VPN providers (finding the downloaders where the downloaders allegedly reside), the breaking news is that CEG-TEK has signed on COX Communications to send Ira Siegel’s DMCA letters to their subscribers.

Again, just in case you missed it — COX COMMUNICATIONS is now working with CEG-TEK.

Cox Communications has literally millions of subscribers.  They were almost expected to be part of the “Six Strikes” system, but then they declined to join keeping them free of the “Six Strikes” rules.

On a personal note, Cox used to annoy me when various copyright trolls would sue their subscribers. Instead of housing a subpoena department internally, they used to outsource all of their business relating to their subscribers to a company named NEUSTAR, a company that was complicit and merciless in turning over the records of hundreds of accused defendants in the copyright trolling lawsuits over the years.

In sum, with this article I take back a number of things that I thought almost two years ago, namely that the Six Strikes system would kill CEG-TEK’s business.  As you can see from the list below, CEG-TEK has responded to the “Six Strikes” system by focusing their efforts on growing the number of ISPs who are working with them.  Now that they have Cox Communications on board, this will be a problem for many thousands of users in the months and years to come.

Below is a list of ISPs who have been known to forward Ira Siegel’s DMCA settlement demand letters.  This list is obviously incomplete (and I have no intention of updating this list), but what is important is that two years ago, these ISPs were not working with CEG-TEK.  Now they are, and accused internet users are receiving notices of infringement instructing that they visit CEG-TEK’s website and settle the claims against them.

LIST OF INTERNET SERVICE PROVIDERS KNOWN TO WORK WITH CEG-TEK:
AeroSurf
AirtranNet
Arvig
Ashland Home Net
Bloom Broadband
Blue Ridge Communications
CenturyLink
Charter Communications
CondoInternet
DigitalOcean
EPB Fiber Optics
First Communications
GigaNews
Google Fiber
Hotspot Broadband
Internet Services of Cincinnati (ISOC.net)
MetroCast
Midcontinent Communications
Mid-Rivers Communications
Morris Broadband
NeoNova Network Services
OlyPen Cable
PenTel Data (another name for Blue Ridge Communications)
ResTech
SuddenLink Communications
ViaSat / Exede Internet
StrongVPN
Whidbey Telecom
WildBlue (service through ViaSat)

UNIVERSITIES KNOWN TO FORWARD CEG-TEK SETTLEMENT DEMAND LETTERS:
Rice University
Columbia University
Cornell University
Stanford University
University of Michigan
Wisconsin University
University of Alaska


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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