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Rogue Lawyers Made $6 Million Shaking Down Porn Pirates, Feds Say (theverge.com)

An anonymous reader quotes a report from The Verge: The copyright violation notice is every pirate's worst nightmare, a clear legal sign that a major copyright holder knows what you've been torrenting and is ready to make you pay for your crimes. But according to an indictment filed today in Minnesota federal court, that system has also opened the door to some very creative forms of fraud. The indictment alleges that two lawyers -- Paul R. Hansmeier and John L. Steele -- used the copyright system to extort roughly $6 million out of porn pirates over the course of three years. Prosecutors say the lawyers uploaded their own pornographic videos to torrent services -- including the embattled Pirate Bay -- then aggressively targeted users who downloaded the content, discovering names through the standard copyright violation process and then threatening pirates with damages up to $150,000 unless they agreed to a settlement. The typical cost of a settlement was $4,000, far less than the cost of challenging the order in open court. Throughout the process, Feds allege that Hansmeier and Steele concealed their role in uploading the videos, although the underlying copyright claim was often legitimate. The duo typically obtained copyright to the videos through shell companies, although in some cases they actually filmed and produced their own pornography as part of the scheme.

65 of 128 comments (clear)

  1. Link to the porn please by ls671 · · Score: 5, Funny

    Could someone provide a link to the porn so I can better evaluate the case and comment appropriately?

    --
    Everything I write is lies, read between the lines.
    1. Re: Link to the porn please by amiga3D · · Score: 1

      Oh God No!

    2. Re:Link to the porn please by msauve · · Score: 1

      goatse.cx

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    3. Re:Link to the porn please by Mashiki · · Score: 1

      That's a name I haven't heard in a long time. A long time.

      What next? Beowulf clusters? It's the year of linux? Perhaps a in Soviet Russia...

      --
      Om, nomnomnom...
    4. Re: Link to the porn please by Hylandr · · Score: 1

      The thought alone is enough to cause erectile dysfunction. I wouldn't want to lose something so important.

      --
      ~ People that think they are better than anyone else for any reason are the cause of all the strife in the world.
    5. Re:Link to the porn please by mallyn · · Score: 1

      www.disney.com

      --
      Most Respectfully Yours Mark Allyn Bellingham, Washington
    6. Re:Link to the porn please by sconeu · · Score: 1

      Most of Slashdot has no memory. I posted a Beowulf cluster joke on the 4004 anniversary article a few months ago, and got flamed for it.

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    7. Re: Link to the porn please by Type44Q · · Score: 1

      What next?

      That's obvious: it can only be Tubgirl.

    8. Re:Link to the porn please by tehcyder · · Score: 1

      Could someone provide a link to the porn so I can better evaluate the case and comment appropriately?

      Ladies and gentlemen, please meet the only person on the internet who can't find porn.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  2. They deserve some serious prison time. by Whatsisname · · Score: 5, Interesting

    Hansmeier is a serious douche, who also has a penchant for suing companies for supposed lack of ADA compliance.

    http://www.citypages.com/news/...

    It's pretty sad that attorneys are able to do this shit for so long and for so much damage before the hammer gets dropped on them.

    1. Re:They deserve some serious prison time. by Xenographic · · Score: 3, Informative

      There's more good coverage of this on Popehat which has been covering this since the very start if you look through their archives.

      I'm glad to see the submitter linked to the actual indictment.

    2. Re:They deserve some serious prison time. by ls671 · · Score: 1

      Thanks for the link! That made me wonder: When is the next season of "Better call Saul" beginning?

      --
      Everything I write is lies, read between the lines.
    3. Re:They deserve some serious prison time. by Excelcia · · Score: 2

      While agree they are scummy, I'm fuzzy on what's actually illegal? They owned the copyrights, correct? If it's the uploading part, I don't think that's illegal. For example, I could purposefully bend over and place a $100 bill on the floor of a busy mall and walk away and if someone came up and took it they are still, as far as the law is concerned, guilty of theft and liable for criminal prosecution and civil damages. The lawyers were being what lawyers are, but I'm not sure how they actually broke the law.

    4. Re:They deserve some serious prison time. by DarkFencer · · Score: 5, Informative

      They put up the torrents themselves. This isn't leaving a $100 on the floor. This is putting a stack of $100s out with a sign saying "Free - take me!". They can't explicitly give the file out to people, then say you can't take it.

    5. Re: They deserve some serious prison time. by Anonymous Coward · · Score: 1

      The misunderstanding is the same one hat everyone has with pirating versus stealing. In your analogy you no longer have the $100. In the actual case, the attorneys posted materials that they COULD legally spread online and clicked through the notice that anything they posted was free to view. Since they were the copyright holder, they could legally do that but then no one can break the law by doing what they have explicitly allowed. They setup an illegal extortion racket.

    6. Re: They deserve some serious prison time. by ClickOnThis · · Score: 1

      Hillary Clinton is a lawyer.

      Your point?

      So are lots of politicians, in both of the major parties.

      --
      If it weren't for deadlines, nothing would be late.
    7. Re:They deserve some serious prison time. by Motherfucking+Shit · · Score: 2

      Plus they used a bunch of shell companies, some of them run by a guy who either didn't exist or couldn't be located for testimony, to try to fool the court. Rule #1 of going to court is you don't try to fool the court. Judges don't like that, as these cockgoblins are finding out.

      --
      "BSD: Free as in speech. Linux: Free as in beer. Windows 10: Free as in herpes." --Man On Pink Corner in #52607549.
    8. Re:They deserve some serious prison time. by Xenographic · · Score: 1

      > I'm fuzzy on what's actually illegal?

      See, this is why I'm glad the submitter actually included the indictment because it goes over everything law the government believes these guys broke.

      Some of the more damning allegations are the different ways they've been charged with lying to the courts.

    9. Re:They deserve some serious prison time. by rahvin112 · · Score: 1

      Hansmeier had is law license taken away about a year ago. He's not suing anyone anymore.

    10. Re:They deserve some serious prison time. by Ziest · · Score: 1

      I have a nephew who is a lawyer and he has assured me that within the first semester of law school students are told, repeatedly to never, ever piss off the judge. Very bad things happen when the judge is pissed off. I'm guessing these clowns were not paying attention.
       

      --
      Another day closer to redwood heaven
    11. Re: They deserve some serious prison time. by Xenographic · · Score: 1

      You're absolutely right, this sort of scam operation will be a setback to anyone who wants to use similar tactics in court.

      What you seem to miss, though, is that they have access to lobbyists. So if they have a setback in court, they're going to ask for changes to the law again and there really isn't that much opposition to them there, so they tend to get what they want.

    12. Re:They deserve some serious prison time. by Agripa · · Score: 1

      It's pretty sad that attorneys are able to do this shit for so long and for so much damage before the hammer gets dropped on them.

      Let this be a lesson; government lawyers hate competition.

    13. Re:They deserve some serious prison time. by Agripa · · Score: 1

      Plus they used a bunch of shell companies, some of them run by a guy who either didn't exist or couldn't be located for testimony, to try to fool the court. Rule #1 of going to court is you don't try to fool the court. Judges don't like that, as these cockgoblins are finding out.

      I do not think the judges care until it gets enough publicity.

    14. Re:They deserve some serious prison time. by tehcyder · · Score: 1
      "Theft by finding" is certainly a criminal offence here in the UK, so I'd be surprised if it wasn't in the US too bearing in mind the underlying similarity of our legal systems..

      Do you really think that 'finders keepers' would apply if the previous occupant of your taxi, sorry Uber ride, had left a suitcase full of cash or diamonds in the back and you just walked off with it?

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  3. bittorrent design flaw allowed legal liability by Anonymous Coward · · Score: 1, Interesting

    There wouldn't have been any copyright infringement if the downloaders were only downloading, but the bittorrent protocol is specifically designed to upload while it downloads, and uploading infringes copyright.

    Bittorrent is flawed. Stop using bittorrent.

    1. Re:bittorrent design flaw allowed legal liability by ShanghaiBill · · Score: 1

      the bittorrent protocol is specifically designed to upload while it downloads, and uploading infringes copyright.

      Unless you can point to an actual court case, I doubt if this is true. Despite perception to the contrary, courts tend to apply common sense to situations like this. Just because something is true in a pedantic technical sense, doesn't mean it is valid in court. For instance, if you look at a picture, that picture is copied onto your retina. No court would consider that copyright infringement.

    2. Re: bittorrent design flaw allowed legal liability by mmell · · Score: 1

      "... No court would consider that copyright infringement" . . . yet.

    3. Re:bittorrent design flaw allowed legal liability by ClickOnThis · · Score: 1

      Bittorrent is not to be used for theft. Stop using bittorrent for that purpose.

      FTFY. I have happily used bittorrent on many occasions to copy and share material that is legally unencumbered. (Linux ISOs, for example.)

      --
      If it weren't for deadlines, nothing would be late.
    4. Re:bittorrent design flaw allowed legal liability by ShanghaiBill · · Score: 1

      They do when you copy it into memory to execute a program though!

      Hogwash. No one has been successfully sued or prosecuted for copyright infringement based on copying from disk to RAM.

    5. Re:bittorrent design flaw allowed legal liability by Ungrounded+Lightning · · Score: 1

      There wouldn't have been any copyright infringement if the downloaders were only downloading, but the bittorrent protocol is specifically designed to upload while it downloads, and uploading infringes copyright.

      But it also is designed to upload only little pieces of content.

      My gripe is with the legal claims that EACH torrent participant is responsible for MANY or ALL of the downloads. On the average, each is the source of a tiny fraction less than the data in ONE other person's download. (Earlier participants and those on faster lines, more, later ones less, many none at all.)

      The claim of responsibility for all the downloads might be valid against the person who SEEDED the torrent. But it seems to me that, unless the plaintiffs have explicit evidence that a particular participant sourced more than one copy's worth of data (or the courts go with "joint and several" responsibility), their claim should be limited to the (still steep, but not astronomical) liability limit for ONE other person's copy.

      Which, coincidentally, is the same amount as they'd owe for the ONE copy they explicitly downloaded for themselves.

      Alternatively, how would the courts deal with a situation where, instead of a fanout, there was a series string of many users, each of which downloaded a copy for themselves then allowed one other person to download a copy from them?

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    6. Re:bittorrent design flaw allowed legal liability by DaHat · · Score: 1

      There was a time in the US that moving pictures did not have special copyright protection... as a result some owners would make it a point to register a copyright for each and every frame in the film, the idea being that existing law could still enforce their rights with existing law, though eventually copyright law caught up.

      How is this any different? Even if the illicit downloader only uploads a fraction of the total film, they are still distributing parts of it which are still copyrighted, and without a fair use exemption to boot.

      Don't get me wrong, I find the games of these lawyers despicable, it does not however mean that there aren't legitimate cases for going after infringers.

    7. Re:bittorrent design flaw allowed legal liability by Bite+The+Pillow · · Score: 1

      I used to have a link to an actual decision that proved this idiot wrong. Since I can't remember the details, it could have been overturned by now. But I'm assuming it is still there, since we haven't seen a supreme court decide otherwise.

      As always, ask a real lawyer before you quote horseshit that sounds like it might be true. And don't trust AC without references.

    8. Re: bittorrent design flaw allowed legal liability by Anonymous Coward · · Score: 1

      Your ISP is probably blocking or throttling torrents then. Either that or you're setup is fucktarded. I have 100Mbps cable and get full download speed when there's enough seeders.

    9. Re:bittorrent design flaw allowed legal liability by Phronesis · · Score: 1

      Unless you can point to an actual court case, I doubt if this is true.

      Various Dallas Buyer's Club, LLC v. Does lawsuits. Here is one example: https://dockets.justia.com/docket/washington/wawdce/2:2014cv01819/207565/

      Mr. Nydam, along with several other defendants, is alleged to have participated in a peer-to-peer network using the BitTorrent protocol to download and share Dallas Buyers Club ... Plaintiff has alleged and presented evidence that the IP address assigned to Mr. Nydam copied and distributed pieces of the film.

      The court ruling makes clear that the defendant is guilty not just of downloading the movie, but also of distributing it because he used BitTorrent.

    10. Re:bittorrent design flaw allowed legal liability by sjames · · Score: 1

      Nobody's disputing that a copyright infringement takes place, it's a question of magnitude.

      Since most people leave the default ratio of 2.0 in place, they should surely not be liable for more than double the cost of the item at retail unless evidence exists that they set the ratio higher. Even going with the common practice of tripling that as a punitive damage, that's going to be under $500 (a lot less if it's made it's way to the bargain bin) for a movie and under ten bucks for a song.

      Note that that's being generous. It assumes that both downloaders would have actually bought a copy otherwise and a 0 overhead for the sales that would have theoretically happened.

    11. Re:bittorrent design flaw allowed legal liability by tepples · · Score: 1

      Each frame? I'm surprised. I thought a storyboard consisting of one representative frame from each shot would be enough to establish authorship of a motion picture. Plus you can sell copies of that as a "graphic novelization".

  4. Lawyers routinely fuck their clients... by chmod+a+x+mojo · · Score: 3, Funny

    although in some cases they actually filmed and produced their own pornography as part of the scheme.

    Next step up from fucking your clients over... record it and use it to fuck over others too!

    --
    To err is human; effective mayhem requires the root password!
    1. Re:Lawyers routinely fuck their clients... by ArtemaOne · · Score: 1

      They can upload it, because they're making the copy, but then say "no further copying is allowed" at that point. Then each additional copy is in violation of their rights. I guess.

    2. Re:Lawyers routinely fuck their clients... by sjames · · Score: 1

      Not if they upload it through the torrent protocol. Torrents are by design mass distribution mechanisms. By posting as a torrent, they are authorizing mass distribution.

    3. Re:Lawyers routinely fuck their clients... by ArtemaOne · · Score: 1

      Citation needed. Penal code, civil law, court case?

    4. Re:Lawyers routinely fuck their clients... by sjames · · Score: 1

      Start here

      Then read this. Pay particular attention to the 3rd paragraph under the implied license section.

  5. So they uploaded content they have the license to? by Tyr07 · · Score: 2

    That means they made a choice to distrubute it. No one illegal obtained it, they flat out shared it. They were the source of the content.

    That means each person they did this too they owe the money back to the person who torrented the file, and if the lawyers violated the copyright holders copyright, they have to pay for each time the file was uploaded to another user through their torrent.

    Same penalties.

  6. Re:So they uploaded content they have the license by arbiter1 · · Score: 1

    Its called entrapment.

  7. Re:So they uploaded content they have the license by Tyr07 · · Score: 1

    It's not illegal if the owner of the content distributes it, quite different.

  8. Linking to Popehat by Mistlefoot · · Score: 1

    Linking to Popehat. Read about this on Popehat long before it was even clear what they were doing.

    https://popehat.com/2016/12/16/the-prenda-saga-goes-criminal-steele-and-hansmeier-indicted-on-federal-charges/

  9. Re:So they uploaded content they have the license by Chris453 · · Score: 2

    Read the indictment, it spells it out pretty clearly. They fraudulently obtained search orders by lying to the courts and concealing their involvement in the scheme. Popehat has been following their adventures for years.

  10. Re:Star Wars porn? by ClickOnThis · · Score: 1

    You could do some kinky stuff with The Force, amirite?

    Yup.

    --
    If it weren't for deadlines, nothing would be late.
  11. The money in the mall wouldn't be theft, for three by raymorris · · Score: 1

    > For example, I could purposefully bend over and place a $100 bill on the floor of a busy mall and walk away and if someone came up and took it they are still, as far as the law is concerned, guilty of theft

    If some of the facts were a bit different, it would be theft. Your exact example wouldn't be, for a couple of reasons.

    California Penal Code 485 is the same as common law in this regard:

    --

    One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.
    --

    The finder possibly has no "knowledge of or means of inquiry as to the true owner", so it's not theft. (Reporting it to the mall security guard is arguable, they would present evidence that with *cash*, the security guard is as likely to pocket it as protect it.) Also, the property doesn't met the definition of "lost property" since you intentionally discarded it. Lastly, there would need to be evidence that the person who picked it up planned to keep it for themselves, rather than attempt to find the owner in some way.

  12. Isn't running a program NOT a violation? by Ungrounded+Lightning · · Score: 1

    They do when you copy it into memory to execute a program though!

    As I recall, the legal status of the copying of a program into memory to execute it is explicitly NOT a copyright violation (though improperly obtaining a copy to copy FROM is a violation).

    (IANAL. Where's New York Country Lawyer?)

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  13. I've been waiting to see crap like this by rsilvergun · · Score: 4, Insightful

    since I read that our schools have been graduating lawyers in record numbers. Law degrees are highly desirable to schools. They're cheap as hell for the school (a book and a bunch of teachers to read it and grade papers) and expensive as hell for the student. Pure profit really. I haven't looked but I bet if I did I'd find law departments expanding while more useful departments (medicine, education, Comp sci) contracting.

    All these lawyers mean we've got a glut of the damn things. Thousands of highly educated people with no scruples (they're taught out of them so they can focus on their clients interests) and with no job prospects? Yeah, that's some bad ju-ju right there...

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:I've been waiting to see crap like this by SeaFox · · Score: 1

      since I read that our schools have been graduating lawyers in record numbers. Law degrees are highly desirable to schools. They're cheap as hell for the school (a book and a bunch of teachers to read it and grade papers) and expensive as hell for the student.

      Is that really just the school driving that? Maybe American students are wising up. "Why study anything in science and technology? All those jobs are just being outsourced anyway. People don't respect the trades. Guess I should study law if I want to make good money without fear of someone in Asia taking my job."

  14. Re: Dunno, maybe something with... by dagoalieman · · Score: 1

    Hot grits.

    --
    We don't need no Net Explorer We don't need no Thought control
  15. Re:IANAL by currently_awake · · Score: 1

    When the copyright owner puts it up for torrenting, it's granting (implied) consent for others to download. It would be legally equivalent to putting your collection of star wars action figures in a blue box by the curb, and then charging anyone who took them with theft.

  16. Re:IANAL by caseih · · Score: 1

    The fed apparently think it really is fraud. Their indictment is apparently very thorough and comes at them from several angles. The popehat link referred to in previous comments is very insightful and gives a good overview of the indictment.

  17. Re:IANAL by radarskiy · · Score: 1

    The fraud was in how they represented themselves to the court when they sought the orders to force the ISPs to turn over identifying information. They did not disclose that they themselves had uploaded the material, so the court would never have even wondered about whether that uploading carries implied permission to download or not.

  18. Re:IANAL by rahvin112 · · Score: 1

    It's fraud because they created shell companies, claimed to be independent lawyers when in fact they were the owners and they induced people to download it and then lied about the whole thing in court (lied on the stand or in writing around a dozen times to several federal judges). Doing that gets you two charges, Fraud and Perjury and because there were two of them, you get a conspiracy charge for each. This happens for every single case they file so the number of counts can get rather astronomical after a while. Pretty soon you are looking at 100 years in federal prison.

    Lying to a federal judge is bad, m'kay. Don't do it unless you want to spend lots of time in prison.

  19. Shake it down ... by PPH · · Score: 1

    ... more than three times and you are playing with it.

    --
    Have gnu, will travel.
  20. Re:So they uploaded content they have the license by Tyr07 · · Score: 1

    Troll or just a dummy? E.G If I released an e-book and advertised you can download it from X-site for free, I can't turn around and sue you for copyright infringement.

    If it's content they have the legal rights to, then it's not illegal to download the content they released. "Torrenting" on it's own isn't illegal and is used by many programs legit, like game updaters etc.

    If the lawyers did not have the rights to it, then they were encouraging other people to commit illegal actions, in which case themselves did so, and like they charge a pirate in general saying 'The song you downloaded, you uploaded to 1300 people, you have to pay $ x 13000 now" then I say since they uploaded it, they can pay for each person that it was uploaded to themselves. Should be a nice fine for them.

  21. Re:So they uploaded content they have the license by Whatsisname · · Score: 1

    It's not entrapment. It's fraud.

  22. Re:IANAL by dknj · · Score: 1
  23. Suits just threats to create public records? by leftover · · Score: 2

    On first glance my presumption was that the threats to sue for copyright infringement were barely disguised shakedowns to avoid public embarrassment. Actually going to court for a questionable infringement claim would be expensive and time-consuming for the bandits.

    They would be exposed as well but they don't seem to have any shame.

    --
    Bent, folded, spindled, and mutilated.
  24. Yeah, but if you steal one of my lawn gnomes by rsilvergun · · Score: 1

    that's theft, right? I'm just saying that once this hits the courtroom it's not so cut and dry anymore.

    Ultimately it'll come down to who the jury likes best. I'm guessing the law firm will lose, but if they picked their targets carefully enough (say a stereotypical basement dwelling neck beard) it could play out differently. Remember that woman who lost to the RIAA because they claimed (with nothing but an IP address) that she downloaded MP3s? She's still paying on the multi million dollar settlement (single mom and all) and will till her dying day. When interviewed the Jurors didn't talk about law, they talked about how she gave them a bad feeling and how they didn't like or sympathize with her.

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  25. Rogue One Lawyers? by planckscale · · Score: 1

    Star Wars and bait porn should never be in the same sentence

    --
    Namaste
    1. Re:Rogue One Lawyers? by SeaFox · · Score: 1

      Star Wars and bait porn should never be in the same sentence

      "It's a Trap!"

  26. Re:IANAL by sjames · · Score: 1

    Actually, posting the material up to a file for sharing implicitly indicates that you are granting permission for it to be shared AND that you are claiming that it is within your legal power to do so.