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Posts Tagged ‘Marvin Cable’

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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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)

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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.

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As we near the end of 2013, I expect to see “2013 Year in Review” articles. I decline to write my own here, but it has been a very busy, work-intensive year. I would compare it to using nothing but strength and muscle to push metal against a spinning wheel with the result of seeing sparks flying.

Prenda is dead. Or, is it. Lawyers spent most of the year enjoying the exposure of Prenda Law, Inc.’s failings (or more accurately, “fallings”) where their scams and schemes became unraveled over and over again for all to see. Judges called them on their bluff, brought the principals into court, and ordered them to pay large sums of money. Yet, what was actually paid (and what will actually be paid) is still hidden from our eyes. My guess is that they’ll pay something, but compared to the millions they raked in since 2010, it will only be a tiny fraction of their windfall profits.

It is my opinion that what undid them was greed. Had they continued to sue defendants en masse, and had they continued to “name and serve” defendants and move forward with the lawsuits in good faith (if there ever was good faith), they may still be in business. Thankfully, where there is “rolling in dough,” there is also born greed and corruption. AF Holdings was born, the “Alan Cooper” alter-ego was invented, papers were forged, settlement money was sent offshore to various entities, honeypots were discovered (where it was discovered that Prenda Law Inc. was seeding the pornography they later sued on), and so-called paralegals became the named “owners” of the entities who were suing to enforce their copyrights. If all this (and getting caught) was not enough, they threw their own local counsel attorneys “under the bus,” they sued the internet and bloggers for defamation, and they started a war with the internet service providers (ISPs) and Cable Companies, a fight they could not have won. Why they went after the ISPs, nobody will know, but in my opinion, this was their mistake.

But this article is not only about Prenda, or the Steele|Hansmeier gang, or the Mark Lutz characters of the world (or their many life-altering experiences over the year), but it is also about what has been happening outside the federal courts (“out-of-court”).

A year ago, I wrote a few articles about Copyright Enforcement Group (CEG-TEK), a brainchild of Ira Siegel. After his experiences in the Northern District of California, followed by the experiences of his local counsel Mike Meier, Marvin Cable, and for a time, Terik Hashmi, their cases went silent in the federal courts. No new cases were filed, and for a time, all we saw were dismissals of our law firm’s clients.  Then, tens of thousands of so-called “DMCA Letters” began pouring out from various ISPs directing accused internet users to their copyrightsettlements.com website (no link, this is on purpose) to entangle themselves in their settlement system.

There was a moment where I thought the “Six Strikes System” would kill CEG-TEK’s business model because the ISPs would no longer forward their “pay us now or else we will sue you” scare letters, and by depriving the copyright enforcement companies of their ability to contact accused internet downloaders in their homes and out-of-court (without the supervision of a federal judge), this would cause CEG-TEK and their ilk to go out of business, but this was a disappointment.

The “Six Strikes System” ended up being a dud. It only applied to a few of the “elite” ISPs, and those ISPs used the Six Strikes System to demand large sums of money from the copyright owners and sent the notices to their subscribers anyway, but only a truncated version of CEG-TEK’S “scare” letter. Comcast, case in point. I watched as a fight broke out between Comcast and CEG-TEK, where Comcast only forwarded a snippet of CEG-TEK’s letter, but still directed users to their CopyrightSettlements.com website so that the settlements can continue. Then in other letters, they botched the CEG-TEK settlement link alltogether, and then, did not include the link [in their letters] at all. (And, just for “me too” news as of today, “Johnny-come-late” to the game, RightsCorpis reported by Torrentfreak to have experienced the same thing).

In sum, the Six Strikes System did not kill CEG-TEK as I thought it would, nor did it hurt the “copyright trolls” or stop them from filing lawsuits. CEG-TEK merely found other ISPs and universities to cooperate with them by forwarding their settlement demand letters to the ISP’s subscribers, and CEG-TEK’s collection attempts have continued unhindered.

Lastly, there has been little slowdown to the copyright infringement lawsuits. As I predicted a few years back (link), the lawsuits merely got smaller and more focused (link). The days of suing 5000 “John Doe” defendants bunched together in one federal lawsuit are over. Similarly, the smaller lawsuits having just a handful of defendants [where the lawsuits are filed in the states in which the defendants live] are also over. Now, the lawsuits are so small and focused that it is common to have only one defendant in a lawsuit, and this has made it impossible for our firm to watch, read, and report on every case that is filed in every jurisdiction.  Then again, it has made it more expensive for the copyright trolls, and (ugh) more scary for the carefully targeted defendant.

In sum, it has been a year of grinding and a year of watching the effects of previous years of work change, alter, and shape the bittorrent lawsuits to the form in which they are today. Congress and lawmakers have been useless in making this copyright trolling phenomenon disappear, as have been the attorney generals and the various state bar ethics boards, who [with some very notable exceptions] have been sitting on their hands. I do not think the copyright troll problem has been solved in any way. Rather, the plaintiff attorneys have gotten smarter, smaller, and more focused.  As a result, they have flown below the radar of those who have the power to stop them. And, while the lawsuits continue, former copyright troll attorneys (Ira Siegel / CEG-TEK) have continued their efforts, just outside of the court’s ability to monitor, sanction, and control their out-of-court settlement activities. And, I need not say this, but many new copyright trolls have popped up based on the lack of legal supervision, and I am concerned to say that I do not see this going away any time soon.

John Steele and his Prenda Law Inc. gang are down. CEG-TEK is thriving. Old copyright trolls such as Lipscomb & Eisenberg, along with their many local counsel across the US [and their lawsuits] are thriving. Other no-name “baby” copyright trolls are growing up and have learned to navigate the broken federal court system. And most important of all, more and more people are getting entangled into their legal spiderweb of extortion, settlement demands, and lawsuits, both in and out of court. This is grim, I know.

But there are still voices out there — SJD’s Fight Copyright Trolls website, DieTrollDie‘s website, along with organizations such as the Electronic Frontier Foundation (EFF) who, [while they have been rightly so enveloped with dealing with privacy issues, government corruption, secret FISA courts, and fighting NSA police-state-like snooping techniques] are still very helpful in the copyright troll lawsuits with their countless efforts to make the problem go away once and for all.

So please allow me to be the first to wish everyone Happy Holidays, a safe winter, and a Happy New Year.

Warm regards,
Rob Cashman

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Back in November 2012, I wrote an article about CEG-TEK’s CopyrightSettlements.com web site “crashes” where following a failed settlement transaction (purposeful or not), accused infringers received letters essentially saying, “[B]ecause you have decided not to settle, we will be moving forward against you in a copyright infringement lawsuit. Please pay us $3,500 or else we will sue you.” These letters were apparently sent from Copyright Enforcement Group (CEG-TEK), a software brainchild of Ira Siegel.

Now it appears that CEG-TEK is “stepping up” their game again, and more letters are being sent out, but this time from CEG-TEK’s local counsel, Marvin Cable. What is particularly concerning is that this letter appears to be sent out to:

1) ANYONE WHO CALLED IN TO CEG-TEK, BUT DID NOT SETTLE (they are scouring the CALLER-ID RECORDS and matching them with publicly available contact information), and

2) ANYONE WHO ENTERED THEIR CONTACT INFORMATION ON THEIR WEBSITE (e.g., to process their credit card payment), but the website “crashed,”

3) ANYONE WHO LEFT “BREADCRUMBS” WHEN INTERACTING WITH THEM, BUT DID NOT SETTLE.

NOTE: I have personally heard reports of 1) and 2), but 3) is a catchall for items I have not yet heard about, but expect that they are doing.

In sum, as I suspected when the Six Strikes System was put into place, with the big ISPs no longer forwarding their “$200 per title” settlement letters, their settlement stream of cash has started to run dry. As such, their production studio clients are forcing them to do whatever they can to “monetize” their clients IP (here, scrubbing the voicemail records, the caller ID records, and website tracking records, and putting names to those traces left by accused internet users), or else sue. In order to keep these clients, we see examples of letters such as this one:

Just to be clear, for a long time, when people ask “Should I settle or ignore CEG-TEK’s DMCA letters? What are my chances of being sued if I ignore?” I have been telling people that they could do either, and I laid out the factors to consider.  I am still of this opinion, namely that 1) Neither Ira Siegel, Terik Hashmi, Marvin Cable, or Mike Meier have sued anyone in MANY MONTHS (since July, 2012 to be exact), and 2) the purpose of their CopyrightSettlements.com website was to convince production companies that it is easier for them to sign on with CEG-TEK and run a settlement “IP monetization” campaign, rather than to sue everyone in a copyright infringement lawsuit.  I assume they are still trying to salvage this system, especially with the renewed efforts to find those who have not settled.

And as always, if you haven’t read my previous articles on the topic, I am still getting reports of website transactions not working (website “crashes,” failed transactions), and so once again, be smart and protect your contact information. Know that when you visit a website, unless you are using Tor or you subscribe to a private VPN, you share with that website your IP address, and when you call Copyright Enforcement Group’s phone number to inquire about your matter, you leak your phone number which can easily be cross-referenced back to you.

In other words, be careful with your information, and the “breadcrumbs” you leave when you conduct your daily life.  These breadcrumbs can be traced back to you, and next thing you know, you’ll be on the phone with me asking how to defend a copyright infringement lawsuit filed against you and 200 other Doe Defendants.

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As you can see, I am taking some time educating individuals involved in the Copyright Enforcement Group (CEG-TEK) / Ira Siegel DMCA letters being sent to thousands of individuals across the U.S. by their http://www.CopyrightSettlements.com system.

As a recap, anyone involved in receiving such a letter should read the following three articles I have written on their tactics:
1. Why CEG-TEK’s DMCA settlement system will FAIL (2/22/2013)

2. When CEG-TEK’s DMCA notices contain duplicate titles. Purposeful luring of defendants or not? (11/26/2012)

3. The trouble with Copyright Enforcement Group (CEG-TEK)’s DMCA scare letters. (11/2/2012)

Now, as far as the topic of this blog entry, the question people often ask is “what are the risks that CEG-TEK or Ira Siegel will sue me if I don’t settle?”

While the easy answer is that so far it appears as if they are NOT suing (remember, they are soliciting their clients under the premise that they’ll make more money by making use of their DMCA settlement system rather than by suing), that answer needs to be elaborated.  I hope you will forgive me saving time in answering this way, but I have laid out my answer below in the form of an e-mail I sent to one of the individuals who called me for assistance.

LETTER SENT TO CLIENT:

It is good to hear from you. Just to reiterate, the “case” numbers are not actual lawsuits (at least not yet). If you did not settle by their due dates, their threat is that they would file a lawsuit against you [likely for only one of the titles; knowing them, in order to maximize their return, they would reserve the other titles for separate lawsuits]. Also, my opinion is that the lawsuit would be filed in the Northern District of California (where Ira Siegel is), or the Southern District of New York (where Mike Meier is). Even though you live here in [LOCATION REDACTED] and [COURT REDACTED] would be the proper location for a lawsuit, by filing in the wrong location, they know by doing so they would push you to settle rather than hire an attorney (someone like me) to fight the jurisdiction issue on your behalf.

So far as we discussed, their lawsuits are few and far in between. In fact, up until a week or so ago, I was ambivalent whether a client ignores the letter or settles it (see below article link for what has changed). If you want to see what they are doing lawsuit-wise, you’ll find them by looking for the words “Digital Sin” or any of their other clients on the http://www.rfcexpress.com website. Alternatively, you can search for “Mike Meier” since he seems to be their top guy as far as skill in suing defendants aside from Ira Siegel himself.

It is my opinion that they are not in the habit of suing at this point, which means they are trying to “milk” the settlements for all they are worth. However, they do have three (3) years from the alleged date of infringement to sue, so if you didn’t settle, you’ll be looking over your shoulder waiting for them to have a bad day when they decide to press the button and sue everyone.

I wrote an article yesterday on my http://torrentlawyer.wordpress.com website which should answer your questions as to the factors influencing the odds of whether they’ll be suing defendants in the near future, or whether they would wait the full three-years to sue everyone at once.

Once again, it drives me nuts when attorneys try to scare defendants into settling their cases.  With these DMCA “scare” letters, I am merely stating the obvious paths CEG-TEK and their attorneys can take.

For me, I think Ira Siegel and the Copyright Enforcement Group (CEG-TEK) would like to avoid suing defendants.  It didn’t seem that profitable for them the first time around, and it took incredible resources to maintain their copyright infringement lawsuits prior to the creation of their out-of-court turn-key settlement system. Then again, they are IP enforcement companies who are serving the needs of their production company clients (the copyright holders), and if the clients pay them to use their CopyrightSettlements.com system and send DMCA letters to the ISPs, they send the letters.  If the clients instruct them to sue, they sue. It is my understanding that they dislike the other copyright trolls, and that they compete for business (e.g., the production companies). Thus, if their settlement system dries up as I believe it inevitably will, they will do anything not to lose their clients to the likes of Lipscomb, Steele, or the other less credible trolls out there.

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