SECURITY

The Price Of Piracy (Part 1)

3/27/2013 6:28:17 PM

There is no denying that piracy is illegal. There is also no denying the fact that digital piracy is commonplace in this day and age. As current laws and provisions fail to stop intellectual property theft and copyright infringement, how will the authorities further respond?

At the crack of dawn, four heavily armed agents drop onto the rooftop of a mansion in a picturesque New Zealand landscape. At the same time, armed agents and dog handlers breach the premises and storm the compound, eventually reaching a panic room where their target is hiding. The entire effort is co-ordinated by the American Federal Bureau of Investigations, a government agency belonging to the United States Department of Justice.

At the crack of dawn, four heavily armed agents drop onto the rooftop of a mansion in a picturesque New Zealand landscape.

At the crack of dawn, four heavily armed agents drop onto the rooftop of a mansion in a picturesque New Zealand landscape.

Who were they after? An international terrorist? A deranged cult leader? A drug cartel linchpin? The object of the operation was a man named Kim Dotcom. Born Kim Schmitz in Germany and known by different monikers including Kimble and Kim Tim Jim Vestor, Kim Dotcom is an internet entrepreneur and tycoon, also famed founder of the website Megaupload.com.

Dotcom is no saint. He has a long rap-sheet, which kicked off with stealing and tracking calling card numbers as a kid. He moved on to embezzlement and insider trading later on, all crimes already paid for in one way or another. His antics have led him to seek refuge in Thailand and Hong Kong on previous occasions before finally taking up residency in New Zealand.

Megaupload.com was once the 13th most visited URL on the Internet, with a user base of 180 million. Dotcom says that it is a legal online file-locker and content viewing website. The United States Department of Justice claims that the site is an intended and deliberate vehicle for copyright infringement. As such, the FBI is charging Dotcom with criminal copyright infringement and costing the entertainment industry US$500 million, charges that he denies.

Megaupload.com was once the 13th most visited URL on the Internet, with a user base of 180 million.

Megaupload.com was once the 13th most visited URL on the Internet, with a user base of 180 million.

Dotcom describes the company as follows: “Megaupload is a provider of cloud storage services. The company’s primary website, Megaupload.com, offered a popular Internet-based storage platform for customers, who ranged from large businesses to individuals. This storage platform allowed its users to store files in the Internet cloud’ and to use, if needed, online storage space and bandwidth.”

In other words, Megaupload allowed users to upload data, information and files which could be downloaded later. However, online file locker services can also be used for the distribution and dissemination of copyrighted material. For example, a song could be uploaded to the cloud, and then downloaded by others without payment to the song’s intellectual property owners; essentially piracy.

Megaupload was taken down and Kim Dotcom arrested in early 2012. His assets, about US$17 million, were frozen. Declared a flight risk, he was remanded in Mount Eden prison without bail. About a month passed before he was able to overturn previous rulings and was released on bail. The decision on whether to extradite him to the United States of America will be delivered in March 2013.

As the case proceeded, New Zealand courts discovered that the New Zealand Government Communications Security Bureau had illegally spied on Dotcom, helping the police to ascertain his location and monitor his communications prior to the raid. During the raid itself, hard-drives belonging to Kim Dotcom were seized, cloned and the data was sent back to the US, which breaches extradition legislation. The initial search warrants used to conduct the raid have also been declared invalid and “too broad” by the New Zealand High Court.

Whether Megaupload is a legal vehicle or a pirate website is a matter for the courts to eventually decide. However, the question arises: Are such harsh measures, following shock-and-awe procedures more in line with actions taken against individuals posing a threat to national security, merited for someone who is an alleged pirate? Did the civil and human liberties of Kim Dotcom have to be violated in order to get him into custody? But more importantly, what precedent does it set for the manner in which future copyright infringers will be treated in the near future?

But more importantly, what precedent does it set for the manner in which future copyright infringers will be treated in the near future?

But more importantly, what precedent does it set for the manner in which future copyright infringers will be treated in the near future?

Accidental Pirate

The actions taken against Kim Dotcom and Megaupload are just one example of governments cracking down on internet piracy. While hard line action sends a public message that piracy will not be tolerated, governments around the world also spent a large portion of the last year devising tough legislation which they believe will tackle the problem as well.

Content producers allege that piracy and copyright infringement costs the industry billions of dollars and countless jobs. The veracity of any figure is highly debatable, with numbers from almost every side being plagued with methodological incongruences. But the impact is significant enough for a number of companies to lobby for legislation protecting their interests. One of the fruits of their labor was the Stop Online Piracy Act (SOPA). Introduced by U.S. Representative Lamar S. Smith, SOPA was a bill aiming to expand the ability of U.S. law enforcement to fight online piracy and distribution of counterfeit goods.

The decision to lump copyright infringement and trafficking in counterfeit goods is one that has been hotly contested. While creating counterfeit goods can almost always be considered a deliberate process, you can infringe copyright unknowingly.

For example, if you upload a video of yourself in your room with a popular song playing in the background, you may be held liable for copyright infringement since you do not own the rights to broadcast the song in a public forum. SOPA proposed an expansion of existing criminal laws in the U.S. to include such unauthorized streaming of copyrighted content, which would carry a maximum penalty of five years in prison.

Furthermore, according to SOPA section 102, the U.S. government would also have dispensation to request internet service providers to alter their DNS servers, so that websites in foreign countries accused of piracy would be inaccessible. The government would also have the power to order search engines like Google to modify search results to exclude foreign websites which host illegally copied material. Payment providers such as PayPal could also be ordered to shut down payment accounts for accused foreign websites. Such provisions essentially amount to censoring the internet and an infringement upon freedom of speech – an inalienable human right set out in the UN Universal Declaration of Human Rights.

SOPA also bypasses the “safe harbor” protection from liability offered to websites by the Digital Millennium Copyright Act of 1998. According to section 512 of the DMCA, online service providers – provided they meet the criteria for eligibility are protected against claims of copyright infringement which are a result of the conduct of their customers.

While the DMCA system of notice-and-takedown for infringing content is not optimal, it has contributed to the immense success of sites such as YouTube, which relies heavily on user generated content. To put it in real terms, under SOPA, citizens of the United States could be denied access to foreign sites such as The Pirate Bay, because the government would have the authority to order ISPs to make the URL inaccessible.

SOPA also bypasses the “safe harbor” protection from liability offered to websites by the Digital Millennium Copyright Act of 1998.

SOPA also bypasses the “safe harbor” protection from liability offered to websites by the Digital Millennium Copyright Act of 1998.

The worst aspect of SOPA is its retaliatory nature. The bill addresses none of the root causes of piracy and focuses solely on taking down instances of copyright infringement after they have occurred. While intended to take affect only in the United States of America, it is not hard to imagine other countries adopting similar policies if the bill had successfully passed. The result would be stricter punishment for piracy, liability for on-line service providers, as well as censorship of the web and violation of freedom of speech all across the globe. A website for a website makes the whole internet blind.

After the proposition of SOPA, many noted online service providers; including heavy weights Google, Facebook, Tumblr and Twitter protested against the bill. Wikipedia held a 24-hour blackout to protest against SOPA. In the face of vehement protests from internet giants and the common masses, supporters of SOPA postponed all further actions on the bill.

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