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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.

11 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?

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    Everything I write is lies, read between the lines.
  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 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.

    3. 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.

    4. 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.

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  3. 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!
  4. 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.

  5. 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.

  6. 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...

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  7. 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.

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