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Tuesday, June 18th, 2019

    Time Event
    9:17a
    VidAngel Must Pay $62.4 Million for Ripping and ‘Pirating’ Movies

    Founded in 2013, Utah-based startup VidAngel entered the video streaming market with a rather innovative business model. 

    The company allowed its users to rent popular movies and TV-shows, with the option to filter out violence, sex, profanity, and other objectionable content.

    While there was plenty of demand for the service, it operated without permission from the major movie studios. Instead, the company acquired DVDs, which it would then rip using AnyDVD, so they could be streamed online. 

    Users interested in a movie were able to rent it for $20, and then sell it back after a day for $19. This made rentals as cheap as $1 per streamed movie, effectively beating all legal competitors.

    VidAngel made sure that it would have physical DVDs in its archive for all movies and TV-shows that were rented out at any given time. This resulted in a rather extensive library of duplicate discs, as the massive collection of “The Revenant” DVDs below shows. 

    “Thousands” of The Revenant DVDs (credit: VidAngel)

    After operating its service for a few months, VidAngel drew the attention of several major movie studios including Disney and Warner Bros. In 2016, they teamed up to file a lawsuit against VidAngel, accusing it of copyright infringement and violating the DMCA’s anti-circumvention provision.

    “VidAngel does not have permission to copy Plaintiffs’ movies and television shows or to stream them to VidAngel’s users,” the studios’ complaint read.

    “Instead, VidAngel appears to circumvent the technological protection measures on DVDs and Blu-ray discs to create unauthorized copies and then uses those copies to stream Plaintiffs’ works to the public without authorization.”

    VidAngel was convinced, however, that its business was legal. It argued that it was protected by the Family Movie Act, which allows consumers to skip objectionable movie content without committing copyright infringement.

    The movie studios disagreed and earlier this year were backed by the U.S. District Court for the Central District of California. The Court granted summary judgment, ruling that VidAngel is liable for violating the DMCA’s anti-circumvention provision and committing copyright infringement.

    The only question that remained was the scale of the damages. This was determined yesterday, following a multi-day trial where the jury concluded that a $62.4 million damages award was appropriate.

    The bulk of the damages, $61.4 million, is for copyright infringement. With 819 titles mentioned in the suit, this amounts to $75,000 per infringed work, half of the maximum statutory damages. 

    The additional million in damages is for circumventing the DMCA’s anti-circumvention provisions by ripping the DVDs. This cost VidAngel $1,250 per title.

    The movie studios are happy with the outcome. In a joint statement, they state that it sends a clear message to others who might consider operating a similar service.

    “The jury today found that VidAngel acted willfully, and imposed a damages award that sends a clear message to others who would attempt to profit from unlawful infringing conduct at the expense of the creative community,” the studios note.

    VidAngel, however, vows to fight on and is likely to appeal the case. 

    “We find today’s ruling unfortunate, but it has not lessened our resolve to save filtering for families. VidAngel plans to appeal the District Court ruling, and explore options in the bankruptcy court.

    “Our court system has checks and balances, and we are pursuing options on that front as well,” VidAngel CEO Neal Harmon adds.

    As KSL’s excellent timeline shows, VidAngel filed for bankruptcy in 2017 to protect itself from the lawsuit. However, the company isn’t going anywhere just yet.

    VidAngel’s original video streaming operation was shut down following a permanent injunction, but it later introduced a new service that allows users to “filter” Netflix, HBO and Amazon content for a fixed monthly subscription.

    Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

    3:01p
    Pirate IPTV Network Shut Down After Police Raid Cable Operators

    With pirate IPTV services continuing to gain traction around the world, moves to undermine their businesses are on the increase.

    Many publicized enforcement actions feature IPTV providers and their resellers but news coming out of Bulgaria indicates that a player higher up the chain has been targeted by authorities.

    Cybercrime officers from an anti-organized crime unit of the Ministry of the Interior have targeted five cable operators accused of intercepting and rebroadcasting foreign and local channels without permission from the rightsholders.

    Supported by Europol’s Intellectual Property Crime Coordinated Coalition (IPC3) and the Audiovisual Anti-Piracy Alliance (AAPA), the operation is said to have taken down a pirate IPTV service with an estimated 700,000 worldwide subscribers.

    Authorities say that following the raids across eight cities in Bulgaria, all of the hardware used in the operation was seized, including the servers that were used to provide content to the IPTV provider’s mobile applications.

    Images from the raids (Credit: Ministry of the Interior)

    According to the Ministry of the Interior, permission for the raids was obtained from several district courts. Eight teams were formed which carried out simultaneous actions on offices and other premises targeting technical equipment used by the cable operators.

    Several TV companies are reported to have suffered damage from the alleged intellectual property offenses, including private national broadcasting channel bTV, local TV network Nova, and US cable and satellite network HBO.

    The Ministry of the Interior reports that intellectual property crimes have caused damage to the country’s reputation overseas. Indeed, the USTR called out Bulgaria in its latest Special 301 Report, noting that “online and broadcast piracy remains a challenging copyright enforcement issue” in the country.

    A full investigation is underway in respect of intellectual property violations but the government says that alongside it will be looking for evidence of tax evasion.

    Moving forward, regular checks will be carried out at all cable operators, with those suspected of illegal activity treated as a priority.

    Source: TF, for the latest info on copyright, file-sharing, torrent sites and more. We also have VPN reviews, discounts, offers and coupons.

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