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$616.57 Three Strikes Verdict Cost RIANZ $250,000

Dangerous_Minds writes "On Wednesday, we discussed news that RIANZ convicted its first file-sharer under the New Zealand three strikes law. While the fine totaled $616.57, a New Zealand Herald report points out that in order to get that fine, RIANZ had to spend $250,000. Freezenet makes an interesting point that HADOPI (France's version of the three strikes law) faced similar problems when the Socialist party commented that 12 million euros was a lot of money to pay 60 agents to send out 1 million e-mails. The question raised is whether or not this money pit trend will continue when the Copyright Alert System starts processing strike notices in the United States."

30 of 131 comments (clear)

  1. Heads on pikes by Anonymous Coward · · Score: 5, Insightful

    The problem is, it's worth $250K to MAFIAA. Every head publicly displayed on a pike serves a purpose: "pour encourager les autres". It's an advertising expense. Pay up, or this could happen to you, too.

    1. Re:Heads on pikes by Anonymous Coward · · Score: 5, Insightful

      But is it? What if someone set up a fund? Every $1 you contribute costs them roughly $400. Would you contribute a buck to legally cost the RIAA/MPAA a real $400, not a fake imaginary potential $400?

      Then honeypot them with lots of tiny 1-2 file shares that will result in similar very tiny payouts. At that rate they will be bankrupt or give up within a year.

    2. Re:Heads on pikes by TFAFalcon · · Score: 2

      Except that $600 is not exactly head on a pike. Sure some of the US verdicts were insane, and could be used to intimidate people, even if they weren't worth it from a purely financial standpoint. But so much work for a measly 600 bucks?

    3. Re:Heads on pikes by poetmatt · · Score: 2

      not true even remotely.

      While MAFIAA may be incredibly stupid, don't think their finance people are as stupid. It's not hard for them to figure out if it's not worth the money.

    4. Re:Heads on pikes by LordLimecat · · Score: 2

      If the guy is actually guilty, and the fine is not excessive, why is it immediately necessary to attack the copyright group? Is there anything in this article that indicates a wrong was done to the "convicted file-sharer"?

      From one of the articles,
      So, with guilt under current law established, the Tribunal set about the task of a financial punishment. According to regulations, in a downloading case the cost of the infringed products must be considered. Man Down is available of iTunes for $2.39 (US$2.00) and Tonight Tonight at $1.79 (US$1.50). ...

      "Head on a pike", indeed.

    5. Re:Heads on pikes by nabsltd · · Score: 4, Insightful

      If the guy is actually guilty,

      There is some question as to whether the girl (I know, RTFA is a crime on /.) is guilty of any infringement. She admitted to downloading one song, and that song was listed twice in the lawsuit for some reason. She says she never downloaded the other song. There was no indication that any uploading took place, but the RIANZ never had to even try to prove it, as it was assumed she had uploaded because she had been sent a notice.

      and the fine is not excessive,

      More than 150x actual damages (since she only downloaded two songs, not three) isn't excessive?

      why is it immediately necessary to attack the copyright group?

      Maybe because they are stupid for spending $250K to recover $600?

      Is there anything in this article that indicates a wrong was done to the "convicted file-sharer"?

      Because there was no "conviction". There was merely an accusation, which under the "three strikes" law is a presumption of guilt. If other laws worked that way, all I'd have to do to put you in jail for life is to say you murdered some person, without even having to prove the person was dead (or even existed in the first place). Don't like that analogy because it's criminal? OK, then you have infringed on my patent, please pay me $600, because I say so, and my accusation is proof enough that you are guilty.

    6. Re:Heads on pikes by Jane+Q.+Public · · Score: 2

      "While MAFIAA may be incredibly stupid, don't think their finance people are as stupid. It's not hard for them to figure out if it's not worth the money."

      Exactly. When numbers were grossly in their favor, the copyright trolls were actually looking at this as a cash cow. There have been several statements by organizations and private firms that they were after the money, not principle. They wanted to be "compensated for their losses", if not make an outright profit.

      But when they *lose* money, what then?

      The problem is the U.S. has been statutory damages. The law originally only targeted actual "pirates", who sold copyrighted works for money. Then it was changed to anybody who "expected to receive something tangible in exchange".

      It should be noted, however, that your typical downloader still does not meet this definition.

    7. Re:Heads on pikes by CCarrot · · Score: 2

      Good luck with that.

      The problem with that theory is it requires enough willing participants to carry out. And the thing is, believe it or not, if enough people get dinged for this, however much it costs the organizations to do it, then that fine is genuinely going to act as a discouraging factor, reducing the number of potentially willing participants in your proposed scheme.

      Tell you what though... if somebody does manage to pull off what you describe, I'll certainly admit to being wrong. That doesn't change what I currently expect the outcome to be, however.

      Huh? What do you think the $1 collection is for?

      I interpreted it as contributing to a fund that is used to pay the fines of those poor souls caught in this predicament, as long as they contested the charges and dragged it out enough to make it unprofitable for the claimants. He mentions setting up honeypots, but those wouldn't necessarily have to be tied to different people as long as each honeypot is a separate instance...it just increases the chances to get the RIAA/MPAA to 'bite' on a situation that will maximize their losses. That part is run by volunteers, the rest goes to regular people who step up and fight back, if their fight is unsuccessful.

      I'd contribute to something like that.

      --
      "I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
    8. Re:Heads on pikes by click2005 · · Score: 2

      $600 for 3 songs is still a big fine.

      --
      I am a free slashdotter. I will not be modded, blogged, DRM'd, patented, podcasted or RFID'd. My life is my own.
    9. Re:Heads on pikes by mark-t · · Score: 3, Insightful

      Like I said.... good luck with that.

      What basis do you have for believing that such a fund could realistically hope to cover the costs for enough cases that it might bankrupt those companies?

      And even by offering to cover such costs in advance, it might be argued (they do have good lawyers, after all) that the person infringing on copyright with advance knowledge that the fine they could expect to pay has been given economic incentive to do so (even if not a monetarily profitable one), elevating it to the level of commercial infringement, where the damages will be orders of magnitude higher. Oh, and the organizers of the fund could end up being liable for deliberate contributory infringement as well, since they would have already admitted that they intended to pay such fines.

      So.... tell me. How many volunteers do you think you are liable to get, that are willing to take the financial risks involved with financially supporting copyright infringers?

    10. Re:Heads on pikes by thoughtfulbloke · · Score: 3, Interesting

      You asked "When they *lose* money, what then?".
      They bill the artists the costs of "protecting the artist's copyrights"

    11. Re:Heads on pikes by LordLimecat · · Score: 2

      Good news: As a democratic government, both NZ and the US have mechanisms whereby that can happen, if you can get the majority of the populace to agree with you.

      Bad news: The majority of the populace does not agree with you.

  2. Like policians care by crazyjj · · Score: 5, Informative

    Citizens see the cost situation like this:

    Cost to pursue and prosecute these cases -(is greater than)- The return in fines + the benefit to society.

    Politicians see it like this:

    Donations to my campaign from the media industries + Future support from my party -(is greater than)- Any backlash from voters about the cost

    --
    What political party do you join when you don't like Bible-thumpers *or* hippies?
    1. Re:Like policians care by bzipitidoo · · Score: 4, Insightful

      That's what Hollywood Accounting is for. They simply deduct that $250,000 expense from the artists' revenue, without asking if the artists thought that was money well spent. To add to the insult, they likely also reduce their own taxable income by that same amount.

      Still, the money they owe artists isn't enough to cover too many such court cases.

      --
      Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
  3. Defense costs by Hatta · · Score: 3, Insightful

    This works both ways. If it cost $250,000 to prosecute in NZ, it will probably cost $250,000 to defend against in the US. Any interaction with the justice system in the US is likely to ruin one, financially if not emotionally.

    --
    Give me Classic Slashdot or give me death!
    1. Re:Defense costs by SuricouRaven · · Score: 3, Insightful

      In the end, only the lawyers win.

    2. Re:Defense costs by Technician · · Score: 4, Insightful

      I wonder if this is more record labels bookeeping. We wond the case but we can't pay the copyright owner because our expenses exceeded our income.

      Anyone have an itemised list of the expenses.. What was this money spent on anyway? Sounds steep to me.. Now if only the city had to pay that rate to issue a redlight camera or photo radar ticket..

      --
      The truth shall set you free!
  4. IANAL by srussia · · Score: 5, Funny

    But is it? What if someone set up a fund? Every $1 you contribute costs them roughly $400

    I am not a lawyer, but I now feel a strange urge to become one.

    --
    Set your phasers on "funky"!
  5. Better by the+eric+conspiracy · · Score: 2

    It seems to me that RIANZ is doing better than the HADOPI as they charge the media companies $25 per warning while the cost of the French notices is only 10 euros.

    Both of these are ridiculously low. Legal notices should cost at least $100.

     

  6. Bastard child of the lobbying industry by benjfowler · · Score: 3, Insightful

    These cushy arrangements are the result of blatant political corruption. "Fund my campaign, and we'll see to it that you get these bullshit unfair laws to prop up for decaying business model and undermine the free market"

    Lobbying == legalized political corruption.

    The American disease is spreading, first to the Anglo countries, and developing countries with weak governments, then Europe, then everyone else.

    Too bad the anti-corruption movement, e.g. Lawrence Lessig's Rootstrikers can't getting any critical mass.

  7. Re:Easy solution. by Anonymous Coward · · Score: 2, Insightful

    Red light traffic cameras

  8. Re:Easy solution. by EmperorArthur · · Score: 2

    Ahh, but that's already happened.

    If you look at what the man was accused of, you'll see that he's asked to prove a negative.

    He was accused of downloading one file twice, and another file. What's interesting is that he admits to downloading the first file once, but he used bittorrent with default settings. So apparently, restarting your client now counts as a second download. What's also interesting is that he flat out denies downloading the Second file.

    So, a man comes to this thing and flat out apologizes for downloading a file. This apparently means he's lying about everything else, and bam give us money or we'll violate your rights.

    --
    So lets pretend that we've just completed writing this code, as opposed to having just completed sabotaging it -Altera
  9. Price of deterrence by cabraverde · · Score: 2

    RIANZ will be weighing $250,000 against the deterrent effect this will have on filesharers. NOT the return they get in fines.

    Perhaps that's money well spent from their point of view. It doesn't seem like it, but I'm in no position to judge.

  10. Yeah, but all things considered... by davidbrit2 · · Score: 4, Funny

    You can't spell "Pyrrhic victory" without "victory"! Yay!

  11. This the way it's supposed to work... by judoguy · · Score: 2
    Government exists to consume resources. Any benefits to the citizens/subjects are incidental.

    I really believe that.

    I also believe that some government is a lot better than no government. The current U.S. problem is WAY too much government.

    Government is at it's best when it provides for the lightest possible framework for us to live and work together.

    Sensible people can debate where to draw that line, but now in the U.S. at least, the only argument going is how much parasitic government we can have without immediately killing the host.

    --
    Peace is easy to achieve, just surrender. Liberty is much harder get/keep.
  12. Re:Easy solution. by ljw1004 · · Score: 2

    Did you read the New Zealand case? They already did away with "innocent until proven guilty". In particular

    [14] There is insufficient evidence before the Tribunal for it to make detailed findings on these factual issues,. That is the nature of the decision being made on the papers. On the basis of the information available to it, however, together with the statutory presumption that each incidence of file sharing identified in an infringement notice constitutes an infringement of the right owner's copyright in the work,, the Tribunal is satisfied that file sharing took place via the Respondent's internet account as alleged.
    http://media.nzherald.co.nz/webcontent/document/pdf/20135/RAINZ%20v%20Teleom.pdf

  13. -1, Wrong by Anonymous Coward · · Score: 4, Informative
    eh? even the fucking summary says says "RIANZ had to spend" not "the taxpayer had to spend" .. and if you rfta the first damn line:

    The local body representing big record labels claims to have spent around $250,000 chasing alleged music pirates

    then later:

    Rianz says it has sent out around 6000 notices to alleged pirates, for which the music industry body must pay a $25 fee each for internet companies to send on to their customers.

    that's $150k right there, plus $100k to employ people to hunt/send stuff and lawyers is hardly unreasonable .. how the hell is this "insightful" when it's contradicted by the summary

  14. Re:File Sharing is no Crime by Travelsonic · · Score: 2

    Actually, file sharing is not in of itself a crime - file sharing is simply a transfer of date, what is being trnasferred could constitute a crime.

    --
    If you believe in privacy, and believe you have "nothing to hide" at the same time, you're a goddammed idiot
  15. Re:HADOPI by roc97007 · · Score: 2

    > as in "Gee, that's my third ka-ching this year, and it's only February!"

    I'm wondering how many ka-chings before "I was just watching these myself, but now I have to sell pirated DVDs to recoup costs."

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  16. Re:Consume Only Content You Can Legally Share by Kalriath · · Score: 2

    Then hold your government accountable for it, rather than just ignoring the laws you don't like. Your argument is an excuse, not a justification. And it's not even a good one.

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".