Copyright holders thought they had scored a major victory last month when one of the biggest file-sharing networks in the world was shuttered. Megaupload had been responsible for an estimated 30% to 40% of all file-sharing traffic worldwide, but a recent study suggests that the network’s closure did absolutely nothing to slow piracy related to file-sharing. To compound matters, another network that has flown under the radar for some time has now been dragged into the spotlight, and it may pose one of the biggest threats yet to copyright owners and their content. Read on for more.

“Tribler” is a peer-to-peer file-sharing client that is completely decentralized. “The only way to take it down is to take the Internet down,” the software’s creator says.

The Tribler BitTorrent client has been in development for more than five years and according to the researchers at Delft University of Technology in the Netherlands who built it, it has experienced 100% uptime since it first launched.

Unlike standard BitTorrent clients that rely on torrent sites to find and download content, Tribler is based on true peer-to-peer technology that requires no intermediate servers. Instead, the client installed on users’ computers communicates directly with other PCs on which Tribler is running.

“Our key scientific quest is facilitating unbounded information sharing,” Tribler creator Dr. Pouwelse told TorrentFreak in a recent interview. “We simply don’t like unreliable servers. With Tribler we have achieved zero-seconds downtime over the past six years, all because we don’t rely on shaky foundations such as DNS, web servers or search portals.”

Though it took an extensive investigation and coordinated efforts across multiple continents to take down Megaupload and its founder Kim Dotcom, the task was simple compared to stopping the threat posed by decentralized clients like Tribler. Joe Morganelli, founder of copyright consulting firm Morganelli Group, thinks true peer-to-peer clients like Tribler will change the way BitTorrent is used, making it infinitely more difficult for authorities and copyright owners to combat piracy.

“With no central location it will make going after individuals so much more important,” Morganelli told BGR in an interview, though he acknowledges that this approach has not been terribly effective in the past. ”The crusade against a normal individual has had very little effect since there are millions of people,” Morganelli continued. “With the central location, it makes for an easy lawsuit.”

Tribler is free to download and use, and its code is completely open source.

AT&T, Cablevision, Comcast, Time Warner Cable, and Verizon have reached an agreement with music and movie publishers that will help enforce copyright infringement while giving the ISPs a chance to level with their customers. According to Ars Technica, copyright owners will continue to scour the dark corners of the net looking for anyone downloading and illegally sharing their content. If an IP is found to be downloading or sharing illegal content — likely via P2P networks — the music and movie companies will alert the ISP directly. ISP’s will then send a note to the offending customer, without passing off private information unless there is a court order to do so. Users may get up to four alerts from the ISP, but after that the ISP can choose to start implementing “temporary reductions of Internet speeds, redirection to a landing page until the subscriber contacts the ISP to discuss the matter or reviews and responds to some educational information about copyright, or other measures that the ISP may deem necessary to help resolve the matter.” If a user believes he or she has been targeted without merit, an appeals process can be started for a $35 fee but, as Ars Technica notes, it’s unclear who will be the judge in that process. Read on for the full details on the six strikes.

First Alert: In response to a notice from a copyright owner, an ISP will send an online alert to a subscriber, such as an email, notifying the subscriber that his/her account may have been misused for content theft, that content theft is illegal and a violation of published policies, and that consequences could result from any such conduct. This first alert will also direct the subscriber to educational resources which will (i) help him/her to check the security of his/her computer and any Wifi network, (ii) provide explanatory steps which will help to avoid content theft in the future and (iii) provide information about the abundant sources of lawful music, film and TV content.

Second Alert: If the alleged activity persists despite the receipt of the first alert, the subscriber may get a second similar alert that will underscore the educational messages, or the ISP may in its discretion proceed to the next alert.

Third Alert: If the subscribers account again appears to have been used for content theft, he/she will receive another alert, much like the initial alerts. However, this alert will provide a conspicuous mechanism (a click-through pop-up notice, landing page, or similar mechanism) asking the subscriber to acknowledge receipt of this alert. This is designed to ensure that the subscriber is aware of the third copyright alert and reminds the subscriber that content theft conducted through their account could lead to consequences under the law and published policies.

Fourth Alert: If the subscribers account again appears to have been used for content theft, the subscriber will receive yet another alert that again requires the subscriber to acknowledge receipt.

Fifth Alert: If the subscribers account again appears to have been used for content theft, the ISP will send yet another alert. At this time, the ISP may take one of several steps, specified in its published policies, reasonably calculated to stop future content theft. These steps, referred to as Mitigation Measures, may include, for example: temporary reductions of Internet speeds, redirection to a landing page until the subscriber contacts the ISP to discuss the matter or reviews and responds to some educational information about copyright, or other measures that the ISP may deem necessary to help resolve the matter. ISPs are not obligated to impose any Mitigation Measure which would disable or be reasonably likely to disable the subscribers voice telephone service (including the ability to call 911), e-mail account, or any security or health service (such as home security or medical monitoring). The use of the mitigation measure is waivable by the ISP at this point.

Sixth Alert: Whether or not the ISP has previously waived the Mitigation Measure, if the subscribers account again appears to have been used for content theft, the ISP will send another alert and will implement a Mitigation Measure as described above. As described above, it’s likely that very few subscribers who after having received multiple alerts, will persist (or allow others to persist) in the content theft.

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According to a report filed by The Wall Street Journal, peer-to-peer networking site LimeWire and several major record labels may be working on an out-of-court settlement in a copyright infringement case from 2006. “Lawyers for several major record labels have held at least three settlement conferences with representatives of a file-sharing service that they sued for copyright infringement, according to a federal court docket entry, indicating that the two sides may reach an agreement on a financial penalty instead of waiting for a jury award,” reads the report. LimeWire was found guilty of allowing users to upload and share unlicensed, copyrighted materials over its network. Arista Records, Warner Music Group, Universal Music Group, and EMI Group are all named plaintiffs — LimeWire and its founder, Mark Gorton, are named as defendants. Representatives from the two camps did not respond to the WSJ’s request for comment.

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Google announced and launched its Music Beta service on Tuesday, and record execs aren’t too pleased with its decision to move ahead before reaching a deal. “People are pissed,” one record label exec told Hollywood Reporter, which explained in one article why it took so long for Google and the music industry to reach an agreement. Reportedly, Google offered some labels larger advances than others, which resulted in some firms holding out for more money. Similarly, the music industry is concerned that Music Beta users will upload music stolen from P2P sites — that the industry already wants removed from Google’s search results — to Google’s music storage locker. Lastly, the recording industry was concerned that Google’s music service could weaken the revenue stream from other sources, such as Apple’s iTunes. Ultimately, driven by competition from Amazon’s Cloud Drive, Google decided to pull the trigger and launch anyway.

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It truly is the end of an era. AllThingsD is reporting that P2P file sharing service Limewire will shutdown “searching, downloading, uploading, file trading and/or file distribution functionality” as the result of a court ruling last year that favored the recording industry. A Limewire spokesperson had this to say:

While this is not our ideal path, we hope to work with the music industry in moving forward.  We look forward to embracing necessary changes and collaborating with the entire music industry in the future.

If you have a drink in your hand, pour a little out for your homeboy Limewire… and go find yourself a good BitTorrent client.

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If you didn’t already think the people behind the RIAA and MPAA were insane, we’re positive that your opinion on them will change as soon as your read what the two associations have proposed in a recent letter to the Office of Intellectual Property Enforcement. Here are but some of the changes the two have asked for:

• The installation of spyware on computers which would seek out and automatically delete illegally obtained media
• Censorship of the internet which would block the transfer of illegal files
• Giving border guards the authority to search one’s tech gear for illegal files
• The lobbying of foreign governments to follow suit
• Having the Department of Justice and Department of Homeland Security actively and swiftly enforcing copyright laws

Scary as hell, right?

[Via Boing Boing]

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The net neutrality movement received a huge blow today when the US Court of Appeals sided with Comcast in its claim that the Federal Communications Commission lacks legal authority to demand ISPs shape internet traffic. Over the past few years, the FCC has grown increasingly concerned that ISPs would throttle connection speeds for things such as peer-to-peer file sharing and streaming media in order to dedicate more bandwidth to services it can better capitalize on. Comcast first challenged the FCC on net neutrality in 2008 when the FCC reprimanded Comcast for throttling the connections of clients who used a large amount of bandwidth through P2P networking.

As a rule of thumb, we at BGR are not in favor of government agencies (whether independent or not) imposing rules upon industries, although in this instance we’re actually finding ourselves disappointed if only for the fact we believe net neutrality must become a reality.

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Just because we might associate the company with loveable characters like Bugs Bunny and Daffy Duck doesn’t mean the characters who are running the show at Warner Bros. Entertain UK have similar personalities. After all, they’re the ones that came up with the brilliant idea of hiring a student intern, paying him or her £17,500 ($26,212 USD) over the course of a year and having them engage in a bit of digital espionage. The intern, who is to be “IT literate” and currently enrolled as a student pursuing a degree in computer science, will be charged with infiltrating torrent sites and creating bots which sniff out media which Warner Bros. and NBC Universal hold the copyrights to. Here’s a snippet from the job description:

During the 12 month internship, duties will include: monitoring local Internet forums and IRC for pirated WB and NBCU content and in order to gather information on pirate sites, pirate groups and other pirate activities; finding new and maintaining existing accounts on private sites; scanning for links to hosted pirated WB and NBCU content and using tools to issue takedown requests; maintaining and developing bots for Internet link scanning system (training provided); preparing sending of infringement notices and logging feedback; performing trap purchases of pirated product and logging results; inputting pirate hard goods data and other intelligence into the forensics database; selecting local keywords and submitting local filenames for monitoring and countermeasure campaigns and periodically producing research documents on piracy related technological developments. Various training will be provided.

Yikes.

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Back in 2007 and 2008, internet service provider Comcast was accused of throttling packet data traveling over its network; more specifically, packet data that was deemed to be P2P traffic, a la BitTorrent.  The story goes: Comcast denies the whole thing, the Associated Press, smelling blood, launches an investigation, and customers’ suspicions are confirmed. After the AP published its report — stating Comcast was indeed throttling, or in some instances outright blocking, data flowing over ports commonly used by P2P sites and programs –  Comcast suddenly remembered that it was, perhaps, doing a little “network management.” Class action lawsuits suits ensued (pun intended). Today it looks like Comcast has settled one of the suits, filed out of the US District Court for the Eastern District of Pennsylvania, for a cool $16 million. The ISP maintains the settlement is to “avoid a potentially lengthy and distracting legal dispute that would serve no useful purpose”…right. Now, those who enter into the class action settlement aren’t going to be on easy street as they are guaranteed no more than $16 for their troubles, but can you really put a price on damning the man?

[Via Ars Technica]

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In an uncharacteristically rational move, on the surface at least, the Recording Industry Association of America (RIAA) has decided that it will stop suing individuals caught downloading pirated music and will instead focus solely on asking the pirates ISP to either serve warning or kill their internet connections. This tactic is by no means new and is in fact standard practice in many countries across the world where, you guessed it, it makes little to no difference in levels of music piracy. But hey, at least the RIAA has finally realized that its spending $100,000 to sue a struggling single-mom diner waitress for $25,000 after catching her downloading a few pirated CDs is plain stupid, especially when there isn’t a hope in the world that it’ll ever collect a penny from her.

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When Kevin Bermeister of Kazaa fame and Michael Speck, former head of Music Industry’s anti-piracy arm join together to form a new company called Brilliant Digital Entertainment, you know the outcome will not be good. The brainchild of this duo is an application called Copyrouter that will use deep packet inspection to detect illicit files shared on the Internet.The application has been promoted as “the tool” that will eradicate child pornography but its true intent is much more nefarious. If it can sniff out child porn which is great, but it can also sniff out pirated media like movies, music, and games. The application is brilliant in its execution. Any customer attempting to access a file deemed “illegal” by the application will be redirected to a legal version which they can purchase. The legal version of the file is provided by the ISP who will bill the customer and receive a cut of the proceeds. Nothing like dangling the carrot of easy revenue in front of the ISPs to give them incentive to run the application on their network. As expected, “there is keen interest from ISPs, law-enforcement agencies and film and music publishers in the United States and Europe.” One problem, though… Copyrouter is unable to handle BitTorrent traffic! Seriously. The same swarming technology that makes BitTorrent so efficient also makes it impossible for the Copyrouter application to examine and identify BitTorrent files as “illegal”. Let’s hope our revenue motivated and politically pressured ISPs, don’t foist this upon us anytime soon.

[Via DSL Reports]

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Arizona resident Jeffrey Howell learned some a hard lessons this past week. If you are being sued for copyright infringement, get a lawyer and if you are served with a lawsuit that tells you not to tamper with your hard drive, don’t go ahead and format it anyway. In an unfortunate turn of events last week, the second high profile RIAA copyright infringement case came to a screeching halt as it was revealed that the defendant Howell had tampered with the evidence. Howell uninstalled Kazaa, deleted its logs, and formatted his hard drive after receiving the lawsuit; thereby making any evidence irretrievable. The RIAA argued and the judge agreed that “The deliberate destruction… by itself, compels the conclusion that such evidence supported Plaintiffs’ case.” The case was found in favor of the RIAA and a final judgment was announced today. Howell must now cough up a mere $350 in court costs and whopping $40,500 in statutory damages. This case was notable as the RIAA was handed a big setback last April when a judge ruled that simply making a file available on a P2P network did not constitute copyright infringement. A crushing blow to the legal basis of the RIAA’s infringement cases. Too bad it had to end so badly.

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While the popularity of torrents has shown no signs of dwindling any time soon, the MPAA-fueled case against EliteTorrents just saw its first conviction. Back in 2005, Homeland Security agents served search warrants in various locations around the country as part of “Operation D-Elite” that resulted in 10 arrests. What a fantastic use of the country’s counterterrorism resources. Now more than three years later Clintwood Virginia resident Dale Dove has been convicted of felony copyright infringement and conspiracy, and has become the first man to be convicted as a result of the case. According to prosecutors of the case, Dove was the ringleader in the group of pirated content suppliers that was EliteTorrents. Dove apparently maintained a server of his own and played a part in recruiting others to supply content and servers. While Dove represents the first conviction in this case, he will not be the first to serve time as a result. In 2006, EliteTorrents server administrator Scott McCausland pleaded guilty to two copyright-related charges tied to the distribution of Star Wars: Episode III and served five months in jail plus an addition five months of house arrest (during which has wasn’t allowed to use Linux). Dove’s sentencing will take place in September; good luck buddy.

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