by Ellen Seidler | Copyright, Film, Piracy
Santa doesn’t have much in his stocking this year for pirate website
Not to sound to be a grinch, but I must say it warms my heart during this holiday season to see pirate websites on the verge of closure, begging for donations. I wrote about x264.bb site losing access to PayPal and turning to Bitcoin as a source of donations. Well, apparently that isn’t going too well because, according to an email received today, the site is on the verge of closing due to lack of funds.
Due to insufficient funding from donation, we deeply regret to inform that x264-BB might not be able to survive should the donations are not coming in by the end of December 2013. We hate to see this great community die off, therefore we are seeking for everyone’s help now, kindly donate generously to help keep this website alive.
Alternatively, should there be any individual with ample monetary support who wishes to buy over x264-BB and able to support x264-BB for long term, send an email to: [email protected] with your offer price, please bear in mind that we will only sell off x264-BB as the last resort. All offers must be at logical prices and we will make the final decision for the sell-off at our sole discretion.
Now, before you get all teary-eyed over their possible demise, you should know that this site is in the business of piracy. Basically it offers its members a place to “share” download links and earn money via cyberlocker affiliate accounts. The more downloads forum users attract to their links, the more they earn. The site, which at one point boasted having 100k member, displayed advertising in the past, but now seems to depend primarily on donations for their survival. They explain their need for donations as follows:
Dear all, The Staff here at x264-BB truly value and appreciate the support that you all provide as members. With your help we have seen this community grow to where we are now fast approaching 100k members! Hard to believe for those who were here with us from the very start to partake in our humble beginning, but with your constant support we have been able to reach milestones. It would honor us if you would continue to support x264-BB through a small contribution.
This forum, and others like it, thrived during Megaupload (and other cyberlocker’s heyday). When Megaupload was taken offline by the feds, cyberlocker sites that mirrored its business model fell like dominoes as their operators chose not to suffer the same fate as Kim Dotcom. Now that the black market business model of paying affiliates to upload stolen content is fading, so too it seems is this pirate eco-system. Another factor in x264’s difficulties is due to the cornucopia of legit streaming sites now available. Just goes to show you that with a little nudge from law enforcement, legit sites can compete and win back the market.
Hopefully all the folks at x264 will get in their Xmas stocking is a lump of coal.
by Ellen Seidler | Copyright, Law, Piracy, Tech
Yahoo China search results for our film in 2010
Piracy is OK, until it’s not
When our film And Then Came Lola was released in 2010, illegal copies were easy to find on Chinese video websites like the Youku. Search results (shown left and below) listed dozens of links to websites where you could find the full movie streaming (with subtitles). DMCA notices we sent were routinely ignored.
Search results showing dozens of pirated copies of our film on Chinese websites
Now, nearly four years later, it appears that these Chinese websites that once overlooked illegal uploads are changing their tune–at least according to this Reuters story:
Advertisers willing to put money on legal content, and the popularity of online video, have also provided incentives: China’s online video market is expected to grow by more than a third this year and see annual revenues of 12.3 billion yuan ($2 billion), according to data from Beijing-based Internet research firm iResearch.
Youku’s shift demonstrates a oft-overlooked truism about copyright–attitudes about its importance are often in the eye of the beholder. For those who denigrate copyright enforcement as antiquated and unworkable, it’s worth looking at the issue from the creator’s (or licensee’s) perspective. When that happens attitudes can shift quickly–and not just for companies.
When Instagram attempted to change its terms of service to “sell users’ photos without payment or notification,” its users were outraged and and posted comments like:
“You DO NOT have permission to use my stuff just because it’s hosted on your servers,”
“My photos will not sell without my knowledge and compensation. I spend time on my pictures.”
The company’s co-found Kevin Systrom, quickly issued a “Thankyou, we’re listening” mea culpa:
The language we proposed also raised question about whether your photos can be part of an advertisement. We do not have plans for anything like this and because of that we’re going to remove the language that raised the question. Our main goal is to avoid things like advertising banners you see in other apps that would hurt the Instagram user experience. Instead, we want to create meaningful ways to help you discover new and interesting accounts and content while building a self-sustaining business at the same time.
Ownership Rights Instagram users own their content and Instagram does not claim any ownership rights over your photos. Nothing about this has changed. We respect that there are creative artists and hobbyists alike that pour their heart into creating beautiful photos, and we respect that your photos are your photos. Period.
I always want you to feel comfortable sharing your photos on Instagram and we will always work hard to foster and respect our community and go out of our way to support its rights.
Bottom line, and hyperbole aside, whether it be a huge Chinese corporation or an individual Instagram user, when something’s at stake, copyright matters.
by Ellen Seidler | Ad Sponsored Piracy, Copyright, Law, Piracy, Politics
The business of online piracy has always been dependent on advertising revenue. Without ad income, many pirate sites would cease to exist. Now it appears that law enforcement in the UK is taking action against this type of criminal activity through an effort called “Operation Creative,” an alliance that include law enforcement, advertisers, publishing and music interests. According to a story published today by the BBC:
In an operation run by the Police Intellectual Property Crime Unit (PIPCU), 61 websites were identified as displaying unauthorised material.They were asked to “correct their behaviour” and “operate legitimately”. Details of those that did not were passed to brands with a request to stop advertising on the sites in an attempt to reduce their revenue. Forty websites have now been suspended.
This graduated approach provides a blueprint for others. The offending websites (and advertisers) were notified that their sites contained copyrighted material and were asked to remove the content. Only when they ignored warnings was action taken to close them down.
This past July, U.S. Intellectual Property Enforcement Coordinator Victoria Espinel issued a statement, “Coming Together to Combat Online Piracy and Counterfeiting,” that outlined a voluntary “best practices” agreement to reduce ad-sponsored piracy in the United States:
Today, 24/7 Media, Adtegrity, AOL, Condé Nast, Google, Microsoft, SpotXchange, and Yahoo!, with the support of the Interactive Advertising Bureau, committed to a set of best practices to address online infringement by reducing the flow of ad revenue to operators of sites engaged in significant piracy and counterfeiting. The Administration strongly supports voluntary efforts by the private sector to reduce infringement and we welcome the initiative brought forward by the companies to establish industry-wide standards to combat online piracy and counterfeiting by reducing financial incentives associated with infringement. We believe that this is a positive step and that such efforts can have a significant impact on reducing online piracy and counterfeiting.
Voluntary agreements are all well and good, but at some point there’s a role for enforcement when such agreements are ignored. UK authorities seem to understand that. Perhaps it’s time that U.S. authorities take a similar, graduated approach. It may also help to garner more public support than seizing domains outright.
Internet-based commerce has matured to the point that it’s reasonable to expect online transactions to adhere to the law. Actions like this will help rein in the bad actors and hopefully make what has been the “wild” west a tad less so.
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 | 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…
