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Copyright Trolls Rightscorp Are Teetering On The Verge Of Bankruptcy (arstechnica.com)

JustAnotherOldGuy writes: Rightscorp, the copyright trolls whose business model was convincing ISPs to freeze their customers' Internet access in response to unsubstantiated copyright accusations, and then ransom those connections back for $20 each, will be out of money by the end of this quarter. Despite a massive courtroom win against Cox Cable in 2015 (and a counterbalancing gigantic fine for its robocalls), the company couldn't win a technology cat-and-mouse game against its prey -- the wily file-sharers who switched to VPNs and other anonymizing technologies. For the moment, the company is teetering on the brink of financial collapse. It raised $500,000 on February 22, the company reported, but it needs another $1 million to stay afloat. It has only enough cash on hand to continue "into the second quarter of 2016," according to the company's latest financial report.

41 of 94 comments (clear)

  1. Wait, let me check. by pushing-robot · · Score: 5, Funny

    No, I don't think I have a violin small enough for this.

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    How can I believe you when you tell me what I don't want to hear?
    1. Re: Wait, let me check. by Anonymous Coward · · Score: 1

      Someone has made that joke before, and now you must be sued. Where is Rightscorp when we need them?

    2. Re:Wait, let me check. by MightyMartian · · Score: 4, Funny

      In reality they shouldn't be teetering on the edge of bankruptcy, the principles should be teetering on the edge of a cliff, held aloft only by dental floss tied around their scrotums.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    3. Re:Wait, let me check. by hcs_$reboot · · Score: 1

      This is no cause for schadenfreude. But sometimes it's good to feel there is still fairness somewhere in this world.

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      Slashdot, fix the reply notifications... You won't get away with it...
    4. Re:Wait, let me check. by michelcolman · · Score: 1

      I wonder if we can launch an indiegogo campaign to support them. They're a non-profit now, right? I bet lots of people will want to help.

    5. Re:Wait, let me check. by Opportunist · · Score: 4, Funny

      You just want to see if indiegogo campaigns can end negative, admit it.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    6. Re:Wait, let me check. by Ulric · · Score: 2

      This is no cause for schadenfreude.

      Yes it is!

    7. Re:Wait, let me check. by computererds · · Score: 1

      I respectfully disagree. I'm enjoying this thoroughly.

  2. And nothing ... by stwrtpj · · Score: 1

    And nothing of value was lost.

    --
    Karma: Frotzed (mostly due to the Frobozz Magic Karma Company)
  3. Re:After I received a DMCA notice from them... by sims+2 · · Score: 2

    I'm sure part of that is trackers adding random ip's to the peer list.

    Afaik they aren't verifying data is actually available.

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    Minimum threshold fixed. Thanks!
  4. Re: After I received a DMCA notice from them... by Anonymous Coward · · Score: 1

    I live in downtown Seattle and don't have DSL available so I use ISDN. I wasn't even connected at the time when CenturyLink sent a DMCA from CEG TEK. They know it since they bill per minute. Telco billing is well known for being very accurate.

  5. Setec Astronomy by ChadSmith4920 · · Score: 1

    Too many secrets

  6. Party by JustAnotherOldGuy · · Score: 1

    Party at my place when they finally go under. :)

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    Just cruising through this digital world at 33 1/3 rpm...
  7. The only response to this... by Cruciform · · Score: 5, Funny

    *downloads the Simpsons from KAT*

    *Plays loops of Nelson saying "HA HA" to them via robocall.*

  8. Re: After I received a DMCA notice from them... by MightyMartian · · Score: 1

    Is this the case that Seattle, of all places, has Internet connections straight out of the 1990s? Christ, the ISP I was working at in the dark ages switched from ISDN to a T1 back around 1999, and I'm a few hundred miles north in BC.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  9. Re: After I received a DMCA notice from them... by SeriousTube · · Score: 1

    Isdn is still around? How about frame relay, do people still use that?

  10. Re: After I received a DMCA notice from them... by Khyber · · Score: 1

    "And, try programming without access to stackoverflow."

    You mean, you didn't learn how to program on a single non-connected machine?

    No wonder today's programmers are fucking useless. Plus, ISDN? Get a cable modem and VOIP.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  11. Re: After I received a DMCA notice from them... by AvitarX · · Score: 1

    Are their cellphone Towers?

    I'd think for reference, a tablet, or tethered phone with unlimited data would be fine.

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    Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  12. Re: After I received a DMCA notice from them... by bigfinger76 · · Score: 1

    Seattle.

  13. Re:I wish by Mister+Transistor · · Score: 1

    True. It keeps getting doled out at extortionate prices every time there's a drought. Holding your breath gets you higher than smoking that ditch filler does.

    --
    -- You are in a maze of little, twisty passages, all different... --
  14. Re: After I received a DMCA notice from them... by ShanghaiBill · · Score: 1

    You mean, you didn't learn how to program on a single non-connected machine?

    I did. But I am still at least 3 times as productive with access to Stackoverflow and online API docs. When the internet is down, I go for a run, or go out for lunch. Anything but trying to code.

  15. Re: After I received a DMCA notice from them... by ShanghaiBill · · Score: 1

    Christ, the ISP I was working at in the dark ages switched from ISDN to a T1 back around 1999, and I'm a few hundred miles north in BC.

    My company got a T1 in 1993. I didn't even know that ISDN still existed.

  16. Re: After I received a DMCA notice from them... by cyber-vandal · · Score: 3, Insightful

    In the good old days when I was a lad working with IBM mainframes (ok they weren't good but they were old) there was this crazy idea that error messages were documented with reasons why they occur. In this brave new world this is too much trouble and you either have to spend hours to days figuring out what some cryptic phrase means or you can Google it and see if someone else has had the problem. I'm guessing you either get as much time as you need on your projects or else have been working on the same technology for a long time.

  17. I'd be surprised if they ain't a shell by Opportunist · · Score: 4, Insightful

    Because that's the only thing that makes sense with their underhanded practices. Anyone with half a clue would never put his money or personal affects behind something like that, because these scammers are basically setting themselves up for a huge lawsuit. What they do is fling poop and see what sticks and how far they can take it before they get slapped left and right. And surprisingly enough, so far there has been rather little slapping.

    I fully expect this to be some kind of test balloon, with the rights holder themselves surprised it stayed afloat this long. The idea was to create a shell that goes about and violates any and all limitations of copyright law to see what can be done before someone cries bloody murder. Once the company gets countersued and there is a judge with enough sanity left to actually dock them the fine they deserve, the shell goes 'poof' and the next one emerges.

    That's likely also why nobody ever bothered to drag them to court over their practices, knowing that it is futile, even if you win you'll be left with the expenses and nothing to compensate it. That shell has no money whatsoever. Never had, never will. Any money they actually make (aside of the 20 bucks pebbles) will instantly leave that husk.

    Such constructs are very useful when you want to ignore laws, to say the least...

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:I'd be surprised if they ain't a shell by Anonymous Coward · · Score: 1

      I know I'm late for the discussion, but I thought I'd add something that might show another side to what is mostly a bunch of generalizations.

      One copyright owner hired a firm I worked for to handle filesharing litigation for a couple of movies in a particular judicial district. We took the work on the condition that we could keep everything beyond reproach ethically, and the copyright owner agreed. They put it this way: we know our copyright is being infringed and this is the only way to do anything about it- the courts are our only recourse, so unless you believe copyright can't be enforced, we have to do this, and your ethical requirements will be fine.

      One relevant fact is that these were low-profile relatively bad, but otherwise unobjectionable, movies. No porn, nothing anyone would be ashamed of unless you were a movie critic. Because these were low-profile movies, I believe we were unlikely to be filing against any casual downloader- only the most dedicated filesharer would have been obtaining copies of these movies. We filed the suit against the IP addresses identified and asked for a subpoena for the telcos to identify the account holders. One telco objected, sending in a brief cut-and-pasted from litigation with one of the well-known actual scumbag copyright owners. We replied saying hey, this is the only way to enforce our client's copyright, we're well aware that many possible defenses are out there and will allow the court to supervise any and all correspondence with the identified account holders, and this particular copyright owner (and us) have not done anything abusive here or in any other judicial district.

      Court says 'no subpoenas for you' and details all the ways scumbag copyright owners were acting like scumbags in other jurisdictions.

      Two problems, then: 1) in this judicial district, copyright against filesharers is essentially unenforceable. Maybe you personally think that's fine (and to some extent I'm not all that bothered by it), but that's completely counter to what we actually have as statute. There's no part of copyright law that says 'these rights are yours unless and until somebody with similar rights acts like a shithead.' 2) It completely prevented us from modelling how to actually do this stuff correctly.

      We had in mind that we could send reasonable settlement letters- say, $75 per- and we'd pay our costs and (my) crappy hourly rate with a little left over for our client, but that we would have been successfully policing and asserting our client's copyright. We were even considering how to leave the most room in such settlement letters to accomplish some positive goal without abusing anyone. Like with a section that said, in effect, let us know if you have a reasonable belief that _if_ any downloading occurred, it wasn't authorized by you as the account holder, and you're taking steps x, y, and z to secure your network or advise your minors of permitted use, etc, and we'll drop you from the lawsuit _with_ prejudice. Ok, client, you didn't get any cash (and neither did we), but we've educated someone on the issue and likely decreased the potential they download your next movie.

      Anyway, sometimes it's the rights holder, but assuming some of these rights holders were willing to let their attorneys set the tone, sometimes it's the attorneys, too. I just think it was bad for the law (in the sense that people in other judicial districts are still being sued for this, but in the district I was in, it's the wild west) and it's unfortunate so many bad actors poisoned the well before decent people could make it work reasonably.

  18. Re: After I received a DMCA notice from them... by Sique · · Score: 1

    The ISDN equivalent of a T1 is called an E1 or a PRI (Prime Rate Interface) connection. It spurs 30 B channels and one D channel at 64 kbit/s each.

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    .sig: Sique *sigh*
  19. And good riddance. by sabbede · · Score: 1

    I accept the possibility that they are performing an important service, protecting IP rights, but the manner in which they have done so is appalling; stomping on rights and IPs.

  20. Hmmm.. by MitchDev · · Score: 1

    Let's get together and finish pushing them over that cliff...

  21. Re: After I received a DMCA notice from them... by Gr8Apes · · Score: 1

    That's why upgrade projects exist, to upgrade. It's also why the telecoms were given billions to upgrade their networks by the government, instead we got the telecom fueled tech bubble. Take a look around, very few telecoms left, their profits have plummeted (the giveaways ended) But wow were times good in the 90s, and we got very little for the billions invested.

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    The cesspool just got a check and balance.
  22. Like nuclear waste or The Ring, not safe till gone by goombah99 · · Score: 2

    The thing is the patents and copyrights these companies hold don't go away when the company dies. Like Bilbo's ring these things just go to the next person that finds them irresistible and the cycle starts over. Even if some large company, say microsoft, scoops them up in the name of protecting themselves, eventually it becomes a cudgel again.

    --
    Some drink at the fountain of knowledge. Others just gargle.
  23. Re: After I received a DMCA notice from them... by Khyber · · Score: 1

    Which is why I'm getting paid $50/hr for global consultation work right now, also own several mines, and more!

    Keep being jealous.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  24. Re: After I received a DMCA notice from them... by Khyber · · Score: 1

    " You need to know how to research anytime you are dealing with something new."

    Funny you say that when, lo and behold, I've been a research director.

    You seem to know nothing about me. Try again when you actually do. I consult on everything from programming (when I'm not making my own game) to mining (when I'm not working the four mines I own) to horticultural consultation (when I'm not growing the best medicinal cannabis in SoCal) to remote development (again, when I'm not programming my own game.)

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  25. Re: After I received a DMCA notice from them... by Kagato · · Score: 2

    In the US most ISDN service was terminated to an PRI T1. That hooked into a modem bank that would answer both ISDN and 56K calls. By that point the ISDN modems where smart enough to be able to use both 64K channels as a pair bond. It would utilize two modems at the NOC.

    It was also pretty common for us to order channelized T1s for 56K applications. You could get one extra modem per T1, but we would lose the ability to get real time ANI data and ISDN.

    Eventually we started having the NOC/POPs configured with a T3 and them demux it into a variety of T1s and fractional T3. For instance for a mid size POP we could have a single T3 handle both the incoming phones and the upstream data. I.e. We wanted to drop a crap ton of modems into the back room of a rural shopping mall because that was the most cost effective location based on LATA lines and what was considered the "local calling area".

    A lot of the times people would claim MSN or AOL or whatever was the best service. In reality in most parts of the US all the main national services would terminate to the same place and run on the same equipment. We'd just route it differently based on the number you called.

  26. Re: Like nuclear waste or The Ring, not safe till by Pseudonymous+Powers · · Score: 2

    ...some lawyers say gifts of copyrights to the public domain aren't valid in the US...

    Yes, lawyers certainly do have like to have fun with the words "yours" and "ours". Isn't it great how words mean whatever we want, whenever we want?

  27. Re: After I received a DMCA notice from them... by Cederic · · Score: 1

    vegetarian, gluten-free dick

    Cucumber? Or is it a banana? Does it depend whether you're posting instagram pictures in China?

  28. Re: After I received a DMCA notice from them... by AvitarX · · Score: 1

    I haven't, I was (erroneously) assuming that since Seattle is a city, it'd have similar amenities to the more remote areas where I live.

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    Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  29. Re: After I received a DMCA notice from them... by Coren22 · · Score: 1

    Which incidentally, no one is being forced to live in Seattle, there are other places on this planet where people can program for a living.

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    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  30. Re: After I received a DMCA notice from them... by Coren22 · · Score: 1

    He was responding to APK, it can be forgiven that Khyber calls him such names, as he is a very difficult person stuck in his incorrect beliefs.

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    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  31. Re: After I received a DMCA notice from them... by Coren22 · · Score: 1

    Early adopter? I think you have failed in your understanding of that term.

    --
    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  32. Re: After I received a DMCA notice from them... by Ulric · · Score: 1

    And, try programming without access to stackoverflow.

    That would be like... programming.

  33. Re:Rabbi Coren22 can't be forgiven (lol)... apk by Coren22 · · Score: 1

    Tore me apart? You have YET to actually prove me wrong on anything. What is your malfunction? What makes you think you ever are right when everyone around you comments about how wrong you always are?

    You will notice, in that link you kindly provide that not a single one of your points actually hit home. I have refuted every one of them, and you have yet to actually come up with a single issue with something I have said. Keep tilting at those windmills Quixote.

    --
    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?