Saturday, July 5, 2008

‘Heroes’ Producer Recognizes Benefits of BitTorrent

Written by Ernesto on July 02, 2008

Half of the people who use BitTorrent do so to download TV-shows. Some episodes of popular shows such as ‘Heroes’ and ‘Lost’ get up to 10 million downloads. We had a chat with Jesse Alexander, the co-producer of both ‘Heroes’ and ‘Lost’, and asked him what his thoughts are on BitTorrent, piracy and the future of TV.

Jesse Alexander has co-produced and written for both ‘Heroes’ and ‘Lost’, two of the most successful TV-series today. In addition to millions of viewers on TV, both shows are are also extremely popular on BitTorrent. In fact, millions of people share a single episode and this can go on to 10 million downloads per episode.

One could argue that their availability on BitTorrent actually helped ‘Lost’ and ‘Heroes’ to build a stronger fanbase. With torrents, no-one has to miss an episode anymore which keeps the fans more engaged. So called “pirates” advertise the shows to their friends, or write about it on their blogs. Accordingly, when we asked Jesse Alexander whether he thinks that BitTorrent might have helped to reach a broader audience, he answered with a clear cut “Yes”.

Not that Jesse wants everybody to get the shows off BitTorrent, but he said that it certainly signals that there is a market for on-demand and interactive TV. “People watching shows such as Lost and Heroes on BitTorrent is the present world reality,” Jesse told TorrentFreak. TV networks have to recognize this, give their viewers more ways to interact with the shows, and find ways to generate revenue from every member of the global audience.”

“It’s the same for music artists. The reality is, people share music. Artist now make money by driving people to concerts, through community websites, and by offering exclusive events. TV networks are focusing too much on one exclusive product, instead of building a community. This is a mistake I think.”

The success of Heroes on BitTorrent didn’t pass by the cast of the show unnoticed either. “The cast and the people behind the scenes have all been talking about it,” Jesse said. As an example he mentioned last year’s promotional tour in France, where the actors were recognized by hundreds of fans, even though the show had not even premiered on TV yet.

Alexander has hit the nail on the head. This is in fact one of the main reasons why shows like ‘Heroes’ are so popular on filesharing networks. It can take up to six months after the US premiere before these shows are aired in Europe, Australia and other parts of the world. Jesse agreed that this is indeed one of the major causes of piracy. “This gap is something that is certainly going to change in the future,” he added.

Jesse went on to say that in the near future, thanks to the Internet, the viewers of TV-shows will see more interactive components and alternate realities they can participate in. The future of TV will be more international, with real interaction, and shows will be more and more integrated into the core part of an online community.

When we asked Jesse if he has ever downloaded TV-shows off BitTorrent, he told us: “I can’t confirm or deny, but I’m familiar with all kind of new technologies.” I guess we all know what he’s trying to say.

It is no surprise that Jesse is more positive towards new technologies than some others in the entertainment industry. Last week we reported on the upcoming “Pirate TV” show that he is working on, together with Matt Mason, the author of ‘The Pirate’s Dilemma’.

“Matt’s book needs to get a broader audience,” said Jesse. “We want to discuss the negative and the positive side of piracy, and place things in a broader historical context. We want to start a real conversation about the future of intellectual property.”

We’re happy to join the debate, what about you?

Court Hits BitTorrent Users Who Failed to Appear

Written by enigmax on July 02, 2008

Last week, lawyers Davenport Lyons who are currently threatening hundreds of BitTorrent users with legal action, tasted victory in Central London County Court with wins in cases against four file-sharers. Fortunately, these ‘victories’ mean little, as Davenport chose not to go after people who defend themselves, instead picking on people they knew wouldn’t even come to court.

To those in the BitTorrent community, the name Davenport Lyons will be familiar. The London-based lawyers are responsible for a barrage of threatening letters sent to hundreds of alleged file sharers. They want people who they accuse of uploading Dream Pinball 3D, Colin McRae Dirt and Call of Juarez to comply with their demands, which means accepting that the highly-suspect evidence provided by anti-piracy tracking company Logistep is actually correct, promising never to share files again and then paying several hundred pounds to Davenport Lyons to call off the legal action.

Several individuals accused by Davenport in the Dream Pinball 3D case have access to some formidable resources and are actually relishing the opportunity of having their day in court. However, as we recently reported, Davenport Lyons like to carefully pick their prey - they simply cannot afford to lose a case due to faulty evidence. TorrentFreak is in contact with many people who are accused by Davenport of uploading, and it’s becoming apparent that people who dig in their heels - who refuse to be intimidated and refuse to be bullied - are mysteriously left alone and not taken to court.

But before we get carried away, here’s some sobering news. Last Friday, seemingly against all the odds and proving our previous articles completely wrong, Davenport Lyons achieved court victories against four file-sharers it accused of unauthorized distribution of Topware’s Dream Pinball 3D.

David Gore, a partner at Davenport Lyons said: “Copyright owners spend millions of pounds developing copyright works for sale to the public for their enjoyment and yet many think it is acceptable to obtain the work illegally and for free by procuring a copy on a peer-to-peer network.”

The four were hit with fines of £750 each - to be paid within a week - along with £2000 costs. Ouch. Surely these historic victories would now open the flood gates to enable the lawyers and anti-pirates to absolutely hammer the hundreds of people who also stand accused?

Well, not quite, no. Not even close.

The victories claimed by Davenport Lyons at Central London County Court on behalf of publisher Topware were all achieved by way of so-called ‘default judgment’. In basic terms, this means that as the individuals accused didn’t bother to turn up at court or even answer court documents, the court had no alternative than to hand victory to Davenport Lyons and Topware.

The remaining several hundred people accused of file-sharing by Davenport Lyons will be heartened to know that the company only has the confidence to go after people it knows will not turn up at court, assuring them of victory.

Loading up its metaphorical gun and getting ready to fire more legal bullets into a small barrel of defenseless fish, Davenport says it has more of these cases lined up to ‘win’ later on this week, while everyone else stands around yawning wondering when they’ll pick on someone who will actually fight back.

If you are one of the four who lost their case last Friday or have been served with court documents to appear in the future, please get in touch via the contact page, we want to speak with you.

Australian Drug Mafia to Sell Pirated DVDs?

Written by Ben Jones on July 01, 2008

If you ask any Australian what the most annoying thing is about TV shows or movies, a common response is that it can take a long time for things popular in the US and UK to make it ‘down under’. Apparently, the Mafia has picked up on this, as they have started selling pirated movies and TV-shows on the streets, or have they?

When you get in any sort of reporting, you start to see the same sort of stories crop up. We’ve been writing for almost 3½ years, and even in that short time, and in as narrow a field as I keep an eye on, we see the same things crop up. In that way, it’s like fashion, except instead of cycles of 20-30 years, its often only 3-4. One such example comes courtesy of yesterday’s The Australian. Under a headline of “Organized Crime gets into Video Piracy” is a number of claims.

DVD and other piracy can now be more profitable than drug trafficking,” AFACT’s director of operations Neil Gane told The Australian. “That’s why crime organizations are going into it.

It might not sound familiar to some of you, but a similar claim was made some four years and 9500 miles away, in the UK. Back then, during a campaign called “piracy is a crime” they made similar allegations (see the top of this page, court. wayback machine), allegations that didn’t stand up to scrutiny back then, when we first encountered them.

Do these? Well, the article in question makes use of the infamous LEK study, and even the MPAA knows it’s inaccurate (pdf). So, it’s not exactly off to the best of starts. Unfortunately, that’s also the only start. Despite a trawl of the websites and press releases put out by the two organizations (the other being Foxtel), there is only one recent link (doc) between drugs and ‘piracy’ and that is the prosecution of ONE MAN just over a month ago, for cultivating cannabis, and what is described as ‘multiple copyright offenses’.

So, we’ve gone from one guy, with 3,300 movies+TV shows and growing some cannabis (total punishment, 7 month suspended sentence, and a 2 year good behavior order) to Organized Crime. Despite the utter failure of the similar campaign in the UK years earlier (where the only thing remaining of the campaign is the ‘You wouldn’t steal a…” advert) Australia seems determined to try and make it work.

However, there is a plus side, in that AFACT have established a market price it believes consumers feel to be the worth of a DVD. In all their estimations of yearly capacity, they give a ’street value’ of roughly $5AUS, which is about $4.77 US (3 Euros, or £2.40). In this they differ from the campaign in the UK, where the value given was some 20 times greater. In this, while telling lies, they are also more truthful.

In the end, no ‘criminal gang’ will forego their drugs, weapons or other lucrative money-making operations for DVD piracy. The reasoning is as plain as it is simple. With drugs, or guns they have small, highly valuable goods that can’t be easily obtained elsewhere. As the world becomes increasingly connected, and peer-to-peer becomes simpler to use, more reliable, less time consuming AND more powerful, the potential returns on selling bootleg DVDs reduces, ask Tony. Ten years ago, people had dial-up, and hard drives were maybe big enough for 2-3 DVDs. Now you can buy terabyte hard drives, and even the TorrentFreak researcher, living in the middle of rural Georgia, 10 miles from the nearest shops, has an 8Mbit connection.

The reasons for comparisons become clear when you hear the comments of Foxtel’s head of Fraud, Mark Mulready (a ‘former police prosecutor and detective’), who told The Australian “Police should have all the same investigative tools to fight piracy they currently have for organised drug trafficking or money laundering,” so, as usual, it’s about not having to spend time and money on civil cases, but having the taxpayer foot the bill, and the ability to use law enforcement to patch their business model.

Rehashing failed campaigns is a sign that the industry has no new ideas, and is desperately trying to avoid dealing with the root of the problem – themselves and their greed. When even the police are so into ‘piracy’, that there are too many to prosecute, it’s time to stop sticking your head in the sand, and deal with the causes.

Tuesday, July 1, 2008

How The FBI Dismantled a BitTorrent CommunityHow The FBI Dismantled a BitTorrent Community

Written by enigmax on June 30, 2008

On June 25th 2005, the homepage of the EliteTorrents.org tracker displayed an ominous message. Thousands of members trying to log in to get a sneak peak at a leaked copy of Star Wars: Episode 3 were surprised and confused in equal numbers. Had the FBI really raided one of the largest BitTorrent communities and put up a badly made Word document, or were hackers to blame?

There’s no denying it was a very confusing day. For a while the site just didn’t respond for me. The rumors were starting to circulate. Had the EliteTorrents site really been raided by the FBI? Many furious refreshes later and there it was, a crude webpage with a blood-red background, with a DOJ graphic on one side and an FBI one on the other. In the middle sat part of the EliteTorrents banner (enlarge).

elite torrents fbi

The page was so crude that it gave the tens of thousands of worried users a little relief - if the FBI was really behind the shutdown they would’ve made a better job of the page design than this, surely? The conclusion I reached along with many others was that this was the work of hackers. Site staff reported that the DNS had been hacked, which at the time was actually relatively good news, as reports started to come in that the site now traced to the Department of Homeland Security.

For many sci-fi fans the site downtime was really badly timed, as they (and just about everyone else) were desperate to get on the site to get the leaked ‘ViSA‘ workprint copy of Star Wars: Episode III. But as time passed you could feel the mood change. Most people knew deep down something was wrong but just didn’t want to admit it. Operation D-Elite had been and now EliteTorrents was gone.

When the confirmation came, it did so via a notice in the site’s IRC channel: “A few of the admins have been raided by the FBI, sorry, but ET [EliteTorrents] is now closed”, closely followed by an announcement by Acting Assistant Attorney General John C. Richter of the Criminal Division, Homeland Security Assistant Secretary for Immigration and Customs Enforcement Michael J. Garcia, and Assistant Director Louis M. Reigel of the FBI’s Cyber Division:

This morning, agents of the FBI and U.S. Immigration and Customs Enforcement (ICE) executed 10 search warrants across the United States against leading members of a technologically sophisticated P2P network known as Elite Torrents. Employing technology known as BitTorrent, the Elite Torrents network attracted more than 133,000 members and, in the last four months, allegedly facilitated the illegal distribution of more than 17,800 titles - including movies and software - which were downloaded 2.1 million times.

BitTorrent sites had been shut down before in the United States, such as the LokiTorrent case, but none had been closed down by the FBI - something had changed. The recently introduced Family Entertainment and Copyright Act meant that when EliteTorrents admin Sk0t uploaded Star Wars: Episode III, he didn’t just commit a civil infringement, it was now a serious crime. The huge popularity of the movie meant it was downloaded at least 10,000 times during the first 24 hours with some claiming in the region of 20,000 downloads worldwide, and this was reportedly enough for the MPAA to finally lose its patience and make good on its successful infiltration of the site.

The federal agents involved in the case executed 10 warrants and took control of the server. In a recent interview, Scott McCausland, aka sk0t, an administrator of the site told Slyck: “Star Wars was uploaded… and then it was game over. I awoke one morning to see the FBI warning on the ET site, and thought to myself “Damn, I think we are screwed.” It didn’t dawn on me at the time that I could be a target. I didn’t upload a lot, just a couple movies. But I did Star Wars, so… Then, at 6AM I am woken up to the sounds of 6 FBI, 6 ICE, and 2 Local Police at my front door. They come in, confiscate everything, and that begins my 2+ years saga.”

In the BitTorrent community many people were absolutely furious at the loss of their favorite site, with a passion not seen since the demise of Suprnova. Thousands of others were panicking. Forums and IRC were awash with theories of who had been arrested so far and who would be targeted next by the FBI, and why. Would it be limited to admins? What about the uploaders? Would regular users be chased down? In the end, around 130,000 users had nothing to worry about but some admins and uploaders weren’t so lucky.

In 2006, Scott McCausland pleaded guilty to one count of conspiracy to commit criminal copyright infringement and one count of criminal copyright infringement for his uploading of Star Wars: Episode III. He received jail time and home confinement and on his release told TorrentFreak: “After 5 months in prison, and another 5 months on home confinement, I have just one obstacle left: my 1.5 years years left of probation.”

Fellow site admin Grant Stanley, then aged 23, pleaded guilty to the same offenses as Scott and received the same sentence with the addition of a $3,000 fine. Other admins and uploaders who pleaded guilty included Sam Kuonen, then aged 24, 22 year old Scott D. Harvanek and An Duc Do, aged 25.

Not everyone arrested in connection with the case pleaded guilty. Daniel Dove, an administrator of the site, opted for a ‘not guilty’ plea. For Dove, the gamble hasn’t paid off. The jury was told that Dove was responsible for managing and recruiting the crucial ‘uploaders’ on the site (original seeders) and that he also operated a server which was used to distribute pirate material. The jury believed it and found him guilty on one count each of conspiracy and felony copyright infringement.

Dove will be sentenced on September 9th 2008 where he, like some of the other admins, faces a maximum sentence of 10 years in jail, but is likely to receive substantially less.

Historically, the EliteTorrents case is an important one. Many BitTorrent trackers used to be hosted in the United States, but had been essentially scared or pressured to leave, largely due to direct or indirect MPAA pressure. Right up until the creation of the Family Entertainment Act, any action against sites would have taken place in the civil domain. The act coming into force gave the FBI the green light to get involved, much to the delight of the MPAA who possessed significant investigative powers but lacked the killer ability to quickly shut down a non-compliant site.

The MPAA loves to issue a stream of data about how much piracy went on at EliteTorrents (and a lot did go on), but it was the seeding of a movie, a single pre-release movie that eventually killed the entire site and caused the imprisonment of the admin team. Clearly the leak did nothing to hurt the movie as it went on to gross nearly $110m in its first weekend and has nearly reached a worldwide total of $1bn. But we knew that anyway.

Despite the massive resources at the disposal of the FBI and supposed importance of the case, the person that originally leaked the Episode 3 workprint copy direct from Lucas is nowhere to be seen.