by Ellen Seidler | Copyright, Piracy, Politics, Tech
As Google’s lobbying clout grows, so do its ties to right-wing political groups
A while back, in a post titled “The Web Ain’t Sherwood Forest–Except Maybe for the Mercatus Center, Koch Industries, A.L.E.C. and Google.” I criticized a newly released study by piracydata.org, a libertarian-sponsored website that used “splashy, but false, new data” designed to suggest that piracy is Hollywood’s fault. Turns out the site and the study was garbage, but in my piece I noted that Google’s fingerprints (and agenda) were all over the clunky propaganda effort.
It’s too bad that piracydata.org isn’t more transparent about its sugar daddy. Like many of the astro-turf anti-copyright entities this one’s tentacles can be traced back to Google, the supposedly aggrieved party whose persecution by anti-piracy advocates that inspired the site’s creation in the first place.
I also included the fact Google acknowledges its cozy relationship with the libertarian mission on its public policy page:
Our U.S. Public Policy and Government Affairs team provides support to a number of independent third-party organizations whose federally-focused work intersects in some way with technology and Internet policy. While this list is continually evolving, some examples of these organizations are: … Mercatus Center…
Yesterday Truth-Out.org published a great expose by Nick Surgey that sheds even more light on Google’s ties to right-wing political interests–interests that extend far beyond controlling the debate around copyright and content theft. The article, “The Googlization of the Far Right: Why Is Google Funding Grover Norquist, Heritage Action and ALEC? sheds more light on the fact that the Silicon Valley tech giant is underwriting a political agenda that in many ways parallels that of the notorious Koch brothers.
Organizations that received “substantial” funding from Google for the first time over the past year include Grover Norquist’s Americans for Tax Reform, the Federalist Society, the American Conservative Union (best known for its CPAC conference), and the political arm of the Heritage Foundation that led the charge to shut down the government over the Affordable Care Act: Heritage Action.
In 2013, Google also funded the corporate lobby group, the American Legislative Exchange Council, although that group is not listed as receiving “substantial” funding in the list published by Google.
Again, this information is not new, but it is important and deserving of ongoing scrutiny. Google’s lobbying budget in 2012 was 18.2 million dollars and the company now ranks number 8 in lobbyist spending among Washington’s influence peddlers. While Google (and Silicon Valley) have generally been associated with more “progressive” causes over the years, as Surgey points out , Google’s funding of ALEC is troubling:
There are many good reasons for brand conscious corporations to stay away from ALEC. For example, its legacy of Stand Your Ground gun laws and bills to make harder for Americans to vote, its work to repeal renewable energy laws and the ability of the EPA to regulate greenhouse gases, and its efforts to privatize almost everything, are just a few of its extreme measures.
As each day passes and Google’s political influence grows, their corporate mantra “don’t be evil” seems increasingly mendacious and absurd. Perhaps the powers that be at Google should pick up some new bedtime reading. Grimm’s Fairy Tales might be a good choice. Why not begin by reading “Snow White” and note what happens to an evil queen who looks into the mirror and refuses to believe the truth?
by Ellen Seidler | Copyright, Law, Politics
These past few years as the tech industry as boomed so has a movement to condemn copyright as being obsolete and/or unnecessary. Some. in fact, view copyright protections a hinderance to their beloved (and biased) concept of “innovation.” Such anti-copyright activists are myopic when it comes defining “innovation” and repeatedly fail to recognize that those who depend on copyright to protect their livelihoods are, in fact, are in fact true “innovators.”
Today we have a new study published by the International Intellectual Property Alliance, that documents just how significant “copyright” is to our national economy. The report, “Copyright Industries in the U.S. Economy,” The report examines the impact the copyright “industry” has had on the U.S. economy from 2009 to 2012, a period in which the U.S. economy was still recovering from 2008 free-fall. Unlike many other sectors of the economy, jobs in the copyright sector as a percentage of U.S. employment grew:
The core copyright industries employed 5,178,100 workers in 2009, representing 3.96% of the total U.S. workforce. By 2012, the number of core copyright employees in the United States had increased by 221,00 workers to 5,399, 100. These workers represented 4.04% of the total U.S. workforce in 2012.
The report was released as Congress begins a series of hearings on copyright law and what, if any, revisions should be considered. Clearly, as lawmakers debate the issue, these statistics would seem to support the concept that copyright is, and should remain, a fundamental “incentive” for those who create, and disseminate creative content that consumers enjoy: films, music, books, software, games, etc. As Sandra Aistars, Executive Director of the Copyright Alliance notes in a statement issued today in response to the report:
…copyright owners of all backgrounds work actively and creatively to ensure their work is easily accessible and can be enjoyed as widely as possible. Copyright is not an impediment to innovation and distribution — it is rather the erosion of these rights that would harm consumers the most, by diminishing the abilities of creators to create and creative industries to invest in funding and disseminating their work.
While these figures are positive news in terms of U.S. “copyright industries” ongoing contribution to our overall economy, we must remain vigilant to make sure that the independent creators among us–those whose work may be difficult to measure statistically–are included in future discussions around copyright reform. These independents, who often reflect creative voices on the margins are in many respects the most vulnerable, and theirs is work that should be treasured and protected.
by Ellen Seidler | Ad Sponsored Piracy, Copyright, Film, Piracy
Many American companies still have their fingers in the Piracy Profit Pie
While Bitcoin, the shady crypto-currency, may be emerging as a potential new not-so-legal tender in the black market of online piracy, the fact remains that mainstream companies like Google, Visa and Mastercard still play a major role in facilitating the flow of money that’s exchanged (and earned) in this illicit underground economy.
There’s no question that cloud-based pirate cyberlocker havens took a hit after the demise of big daddy Megaupload with many of the biggest once scattering like cock roaches when the feds took action. Despite that much-needed house-cleaning, offshore cyberlockers continue to be a major source of pirated content thanks to the profits they generate with little risk and much reward. Unfortunately, despite lip-service to the contrary, ad networks like Google’s AdSense and payment processors like Visa and MasterCard remain an integral part of the system, acting as unseemly middlemen–earning income for themselves and the content thieves. Here’s how it works.
- Pirate uploads stolen content (movies, music, books, etc) to cyberlocker (usually to multiple sites)
- Pirate advertises the file’s download links on forums far and wide to attract “customers” to earn cash incentives from cyberlocker
- Cyberlocker offer incentives to pirates to upload and “share” popular (pirated) content to attract traffic
- More traffic means more income for Cyberlocker via advertising (from services like Google AdSense) and premium subscriptions (paid for with Visa, MasterCard, etc)
- Cyberlocker pays cash rewards to pirate uploader based downloads, referrals, and premium subscription sales
- Everyone makes money in this system EXCEPT the content creators
Below are a series a graphics illustrate the pirate business model at work. Pirate forum x264-bb is a web “forum” in the business of promoting pirated download links to a variety of pirated movies and TV shows. The site boasts strict guidelines for users to follow when posting links to their pirated content–ironic to say the least, particularly the admonition not to make more downloads (mirrors) “unless authorized by the original encoder.” I guess there’s honor among thieves after all…
Below is an example of a typical post on the forum, advertising download links for the movie “Despicable Me” by a user aditkhan (who boasts over 6,899 posts).
Pirate uploaders generally post “mirrored” links (identical files on multiple sites) so that downloaders aren’t disappointed if the first set of links disappears. In this case he has posted identical links on cyberlockers FileParadox.com and RyuShare.com. Note that the movie file offered in multiple parts to increase page views and profits.
Below is one of the downloads link on FileParadox. Note the inducements to purchase “premium” subscription as well as a Google-served AdSense advertisement at the bottom of the page that ironically promotes AdSense.
If downloaders do want to sign up for premium service (and access to high-speed downloads of stolen files) they can pay using Visa, MasterCard, Discover, American Express and more.
Even if the downloader doesn’t choose to become a premium member, FileParadox still earns income thanks to Google’s AdSense advertising.
I created an account on FileParadox in order to show you what their reporting page looks like. There are various ways uploaders can earn money by uploaded stolen content: # of downloads, # of premium accounts sold, and referrals.
Aditkhan reminds forum members to “support” him by creating an account (referral) and upgrading (premium sales). It doesn’t seem like a stretch to guess that aditkhan wouldn’t be so busy stealing, uploading and sharing links if he didn’t make money doing so. Clearly Google, Visa, MasterCard, Discover and American Express apparently don’t mind adding to their coffers and taking a cut of the action either. Their voluntary “best practices” agreements seem–at this point–to be full of holes.,,
by Ellen Seidler | Copyright, Law, Piracy
Online Pirates are the latest criminals to turn to Bitcoin to fill their coffers
Last week the Creativity Tech blog reported on the RIAA’s warning about the growing popularity of the peer-to-peer “crypto-currency” Bitcoin among online pirates.
The bitcoin, you may recall, is the purely digital currency which is traded and derived ultimately from the value of complex data work completed by computers online. They are not backed by a government or bank. The RIAA asserts that the use of bitcoin as payment for pirated content has made it difficult if not impossible for government to track and to seize such assets from infringing sites as they are able to do with traditional national currencies.
The virtual currency, has drawn increasing scrutiny from government officials for its potential use by criminals. Mary Shannon Little wrote about this worry in a recent Huffington Post piece:
Even before FinCEN’s regulations, the FBI last year issued an internal report warning that the anonymous bitcoin payment network was a growing haven for money laundering and other cyber-criminal activity including terrorism financing, human trafficking, kiddie porn, illegal internet gambling, and theft of the bitcoins themselves from their anonymous owners’ virtual wallets. In the report, the FBI notes that because bitcoin combines cryptography and a peer-to-peer architecture to avoid a central authority, law enforcement agencies will have more difficulty identifying suspicious users and obtaining transaction records.
While the long-term viability of Bitcoin may be uncertain, for now it does appear that online pirates view the “currency” as a new way to exchange money beyond the reach of regulation. As the RIAA’s letter pointed out, the Pirate Bay began accepting Bitcoin donations in April and from the looks of it, the notorious pirate website is not alone.
Just this week I received some emails (below) from an online pirate movie forum x264-bb that I’ve written about in the past. The first email announced that the website’s PayPal account was terminated and the second informed users about the x264-bb’s new “donation” procedure using Bitcoins.
Apparently the pirate forum’s users are not responding positively since site administrators sent this email update today:
Dear XXXXX,
We do understand its additional hassle to purchase Bitcoin for donations, however it is the safest method and best one currently for safe keeping of donated funds.
For PayPal or Credit Card users, if you have any problem with the guide on the Official Bitcoin Donation page, don’t fret! :DThis is an extremely straight forward guide available for PayPal & Credit Card users here: http://bitcoinwithcard.com/buy-bitcoinspaypal-credit-card/
Please check it out, any amount of donation works now for donation!!! We need your help right urgently right now!!! Without funding, we will not be able to push through this crisis! Come on now, please help us if you can! [emphasis added]
Discussion @ Official Bitcoin Donation Page: http://www.x264-bb.com/x264-bb-news-center/227827-read-bitcoin-donation-available-now.html
Thank you from the bottom of our heart!
Warm Regards,
x264-United aka djXpire
Forum Administrator
www.x264-BB.com
Awww, poor guys. It seems they’re struggling a bit now that PayPal has pulled the cash rug out from under them, but even users of the pirate forum seem cautious when it comes to paying for Bitcoins.
Ironic, but you can apparently pay for the Bitcoins using PayPal or a credit card?
Meanwhile one of the administrators tries to convince users that supporting the pirate movie forum via Bitcoin donations is really a great way to go:
Bitcoins is something that Paypal nor any financial institute can control. 100% perfectly safe for the website to keep funds and keep the website going for a long time to go!!!
Here’s another exchange between a forum administrator “x264-United” and a moderator “”Reisin” who suggests Google Checkout as better alternative.
Reisen: Fileparadox went with google checkout, maybe we should consider it as an alternative.
My biggest worry with bitcoins is the fact they are pretty unstable (silk road for example, although it bounced back).
Paypal’s biggest appeal was its simplicity for end user, with bitcoins is a bit more complicated and this might scare away some people who dont wanna spend their time getting into subject.
In the other hand its independence as DJ mentioned and being under google’s radar, since google already dipping their fingers in everything. I wouldn’t be surprised if one day they would go sheriff of the internet full time, its something they already trying anyway.
x264-United: Reisen, warez indexing sites are losing Google Checkout as well…. 
Instead of discouraging donors, please be more positive and encourage members to pick up a new “knowledge” for donation.
This is by far the safest method now!!!
Bitcoin’s lack of traceability aside, the fact is that pirate forums are in the business of making money and when they can’t get paid via payment processors like PayPal they’re forced find alternatives. Bitcoins are already popular with online criminal enterprises like the recently busted Silk Road so it’s not surprising to see the crypto-currency gain favor among web pirate operations as well.
Perhaps online pirates’ cozy embrace of the same cyber money favored by drug dealers, pornographers and other web criminals will erode the idea that online pirate entrepreneurs are not criminals. In this case it’s safe to say that a pirate should be known by the company he keeps…
by Ellen Seidler | Ad Sponsored Piracy, Copyright, Film, Piracy, Politics
For filmmakers, musicians, authors, and artists, etc. whose work is pirated (and monetized) by online thieves, the only way to (possibly) get one’s stolen content removed is to send a DMCA notice. It’s a procedure outlined in the Digital Millennium Copyright Act, a law passed by Congress in October of 1998.
The legislation was intended to provide a means to protect copyright in the digital age, but also provides “safe harbor” for websites (like YouTube) that unknowingly host infringing files. The law specifies the “notice and takedown” procedure for copyright owners to use in order to request removal of their content, commonly referred to as a DMCA takedown notice. If a website owner complies with a legitimate takedown demand, “the provider is exempt from monetary liability.” Anyway, that’s how it’s supposed to work. In reality, the process is not quite so simple, nor successful.
Not only does sending out DMCA notices required a great deal of time–time that most indie content creators do not have–but often times it’s ignored entirely by pirate sites that feign compliance.
Here’s a case in point. Using Google, a rights holder was able to find numerous illegal download links to their film “The Guest House.” Next step, get them removed–but that’s easier said than done. Take a look at how many steps it took–and how many advertising obstacles (i.e. revenue for the pirate) stood in the way of sending a single DMCA notice for a single link…and–despite all that effort–days later the link (and the pirated movie) remains online and available. 
Despite the fact the distributor followed all these steps and clicked past all these ads and submitted a DMCA takedown request days ago the pirated film is still streaming online. Meanwhile, this web pirate keeps making money–earning revenue thanks to brand name advertisers (like the U.S. Army?) and sex sites. The filmmaker makes ZERO. So much for the goal of protecting copyright holders in the digital age eh?
