This Week in IP Enforcement

France Sees First Conviction Under New Anti-Piracy Law (CNET)
France assessed its first fine under Hadopi against a man found liable for failing to secure his Internet connection that was being used to illegally download copyrighted content.

Microsoft Finds New PCs in China Preinstalled with Malware (PCWorld)
An investigation by Microsoft revealed that brand-new laptop and desktop computers sold in China contained preinstalled malware embedded in counterfeit versions of Windows OS. While consumers in Western countries may not be vulnerable to that kind of tampering, they do face risks if they download counterfeit software from the Internet.

“Six Strikes” Internet Warning System Will Come to US this Year (Ars Technica)
Jill Lesser, head of the newly formed Center for Copyright Information, says the Copyright Alert System, commonly known as the “six strikes” anti-piracy program, is set to launch by the end of this year.

The 3 Myths Behind “Internet Pirates Always Win” (paidContent)
Michael Smith, an economist from Carnegie Mellon, argues that three myths are driving the popular notion that online piracy is inevitable and can’t be stopped.

Judge Suspends Google E-Book Litigation (Reuters)
An appeals court judge suspended trial court litigation involving Google and thousands of authors pending Google’s appeal of an order granting the authors class-action status in the case over Google’s plans to create the world’s largest digital books library.

Piracy May Be Commonplace, But Music’s Outlook is Improving (paidContent)
A recent report says more than three billion songs were downloaded illegally around the world via torrent in the first half of 2012, and while that is a huge number, it is likely shrinking and moving in the direction the industry wants.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

SIIA Defends Publishers’ Copyright Before Supreme Court
SIIA last week filed an amicus brief in Kirtsaeng v. John Wiley & Sons, Inc. — a hotly contested case that could undermine U.S. publishers’ competitiveness in the global marketplace. The case involves the legality of purchasing copyrighted works that are made and sold overseas and reselling them into the U.S. without authorization from the publisher. SIIA has taken the lead in previous court filings to defend the flexibility for publishers to employ the most effective and efficient market strategies by controlling their content and price structures from country to country, and in this brief we argue that there are a variety of beneficial reasons for a publisher to prevent copies made for sale abroad from entering the United States.

Read more: SIIA Tells Supreme Court that ‘First Sale Doctrine’ Should Not Apply to Copies of Copyrighted Works Made Abroad & Resold in U.S.
SIIA Amicus Brief in Kirtsaeng v Wiley & Sons

Will 3-D Printing Lead to a New Wave of Piracy? (GigaOM)
New, cheap 3-D printers could inaugurate a technological revolution, but at the same time lead to massive new piracy problems.

Mobile Carriers and Consumers Are All Pirates in South Africa (paidContent)
A new report on digital content in South Africa highlights a significant problem regarding some of the nation’s largest online music providers’ refusal to pay licensing fees, and proposes the same kind of “three-strikes” penalty system being leveled against infringers in other countries.

Google Restricts Pirate Bay From Autocomplete, Instant Search Features (PCWorld)
Google is making it more difficult to find The Pirate Bay by reducing its appearance in the Autocomplete and Google Instant search features; users must now type out nearly the entire name of the site before seeing any Autocomplete suggestions.

Appeals Court Sides with RIAA, Jammie Thomas Owes $222,000 (CNET)
The U.S. Court of Appeals for the Eighth Circuit vacated a lower court’s decision and ruled that a Minnesota woman, found by a judge to have lied about illegally uploading music, must pay the top four record labels $222,000.

Pirate Bay Founder Accused of New Crime in Sweden (Bloomberg Businessweek)
Pirate Bay co-founder Gottfrid Svartholm Warg was arrested in a new hacking investigation as he returned home to Sweden from Cambodia to serve a prison sentence for his involvement with The Pirate Bay.

China’s Taobao E-Commerce Site Signs Deal with U.S. Film Rep to Curb Piracy (Reuters)
China’s largest e-commerce site, Taobao Marketplace, signed an agreement with the Motion Picture Association to curb the sale of counterfeit goods and goods that infringe the copyrights of the MPA’s members.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

Cambodia to Deport Pirate Bay Co-Founder Sought by Sweden (Reuters)
Cambodia will deport Pirate Bay co-founder Gottfrid Svartholm Warg, who was convicted and sentenced to prison in Sweden for breaking copyright laws. Warg was arrested in Phnom Penh where he had been living for several years.

Oracle Appeals SAP Case, Seeks $1.3 Billion Jury Award (Information Week)
Oracle is appealing the outcome of the five-year-old court case involving copyright infringement by SAP’s TomorrowNow services business, seeking the $1.3 billion jury award over the $306 million settlement already in place.

New York Times Tangles With Patent Trolls (paidContent)
Two “patent trolls” are targeting media companies like The New York Times for licensing fees, but the Times is fighting back and asking the U.S. Patent Office to re-examine some of the patents at issue.

U.S. Government Dismisses Piracy Case Against Rojadirecta Site (The Hill)
The U.S. government dismissed its piracy case against Spanish website Rojadirecta, after authorities seized the sites last year as part of its “Operation in our Sites” effort.

Chinese Firms Put Intellectual Property Lawsuits to Work (The Washington Post)
U.S. companies have long accused the Chinese of stealing their intellectual property, but now the Chinese are turning it around and filing patent and trademark infringement lawsuits in Chinese courts against U.S. firms like Apple.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

Update on Recent Computer Fraud and Abuse Act Cases

The summer of 2012 featured several cases that interpreted the scope and application of the Computer Fraud and Abuse Act (CFAA). The CFAA was passed in 1984 in response to hacking and emerging computer crime. Recent cases include:

August 21:
The U.S. District Court for the Western District of Oklahoma held that an employee who downloaded shareware from the Internet in violation of company policy may be liable under the CFAA for using the downloaded software to obtain confidential company documents. In Musket Corp. v. Star Fuel of Oklahoma LLC, the court held that anyone who is authorized to use a computer for certain purposes but goes past those limitations is considered to have “exceeded authorized access” under the CFAA.

August 2:
The U.S. District Court for the Northern District of California held that a defendant was in violation of the CFAA for knowingly and intentionally circumventing Craigslist’s security features after agreeing to Craigslist’s Terms of Use. The defendant in Craigslist v. Kerbel continued the conduct despite receiving cease and desist letters.

July 26:
The U.S. District Court for the District of South Carolina adopted a narrow interpretation of the CFAA terms “without authorization” and “exceeds authorized access” in WEC Carolina Energy Solutions LLC v. Miller. The court held that the terms only apply in a criminal context when someone obtains or alters information they weren’t authorized to obtain or alter.

June 29:
The U.S. District Court District of New Hampshire held that its defendants could not be sued under the CFAA even though they violated use restrictions. Because the defendants in Wentworth-Douglass Hosp. v. Young & Novis Prof’l Ass’n were provided access passwords by the system owner, they could not have “illegally accessed” the system.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

SIIA Teams Up with UK Anti-Piracy Organization to Strengthen Global Campaign Against Software Piracy

SIIA today announced that it has forged a new alliance with the Federation Against Software Theft (FAST). The partnership agreement will strengthen anti-piracy operations throughout Europe and the U.S. as SIIA and FAST work together to shut down software pirates and address global intellectual property concerns.

Software piracy is a worldwide epidemic that requires a coordinated and aggressive global solution. SIIA and FAST will work together not only to shut down copyright infringers, but to promote better intellectual property regulation and enforcement.

SIIA conducts the software industry’s most aggressive campaign against software piracy. In the U.S., our work has led to large settlements, convictions and even jail time. With this partnership, SIIA and FAST will gain new resources for fighting software piracy that extends beyond the borders of each group’s home country. Just as software pirates do not operate within traditional geographic borders, neither should the organizations working to put them out of business.

SIIA and FAST have signed a Memorandum of Understanding to formalize their partnership. According to the terms of the agreement, the two organizations will:

• Work together to promote better intellectual property regulation, sharing best practices between the two countries to influence government and policy.
• Support more effective enforcement against those that infringe copyright and IP ownership, with FAST assisting SIIA with corporate and Internet anti-piracy matters taking place within the U.K. or Europe, and SIIA assisting FAST with corporate and Internet anti-piracy matters taking place within the United States.
• Work together with government officials and other policymakers on intellectual property policy matters.
• Collaborate on research and studies that will help identify and shut down software piracy operations worldwide.

The SIIA Anti-Piracy Division conducts a comprehensive, industry-wide campaign to fight software and content piracy. The proactive campaign is premised on the notion that one must balance enforcement with education in order to be effective. The SIIA Internet and Auction Litigation Program aims to educate online buyers and sellers regarding the risks and harm of buying and selling illegal software, while the Corporate Anti-Piracy Program investigates and stops software and content piracy occurring within an organization.

During the last four years, SIIA has filed more than 100 lawsuits in the U.S. against illegal online sellers dealing in counterfeit, OEM, academic, region-specific and other illegal software and publications, as well as organizations illegally using software and content. Defendants have paid millions of dollars in damages, and, in some cases, criminal charges were pursued and defendants sentenced to jail time.

Sources in the U.S. and in Europe can contact SIIA about a company, Web site or online auction seller’s suspicious business practices in three ways:

• E-mail: piracy@siia.net
• Telephone: +1-800-388-7478
• Online: www.siia.net/piracy/report


Ken WaschKen Wasch is President of SIIA.

This Week in IP Enforcement

Court Affirms $675,000 Penalty in Music-Downloading Case (CNET)
A Massachusetts federal court upheld a $675,000 damages award against Joel Tenenbaum, who was accused of illegally downloading and distributing 31 songs over a two-year period

Genius or Troll? Patent Owner Sues Dozens Over Anti-Piracy Method (GigaOM)
A Miami man who says he invented a form of cryptography to fight online piracy is suing Google, Shazam and dozens of others that use common digital water-marking techniques to prevent copyright infringement.

New Yorker Pleads Guilty in Virginia Criminal Copyright Case (Bloomberg Businessweek)
Dennis Newsome entered a guilty plea in federal court in Virginia to four counts relating to criminal copyright infringement. Newsome allegedly sold illegal copies of computer software and training materials from John Wiley & Sons and CBT Nuggets.

RapidShare: We’ll help Hollywood, but ‘not at all costs’ (Q&A) (CNET)
Daniel Raimer, general counsel of media-hosting site Rapidshare, talked to CNET about the techniques the company uses to detect and curb piracy.

Jury Awards $1 Billion to Apple in Samsung Patent Case (The New York Times)
A jury found that Samsung infringed on a series of Apple’s patents on mobile devices, and awarded Apple more than $1 billion in damages in a decision that could force smartphone makers to redesign their products to be less Apple-like.

Samsung Case Puts Apple Closer to Google Fight (The New York Times)
Though Apple has not directly pursued Google, and instead sued the cellphone makers that use Android in their products, the jury verdict against Samsung puts apple closer to a Google fight.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.

This Week in IP Enforcement

Pirated mobile Android and Apple apps getting hacked, cracked and smacked (Network World)
Arxan study claims 90% of top 100 paid Android and iOS apps ending up criminalized in hackers’ hands

Federal Courts Order Seizure of Three Website Domains Involved in Distributing Pirated Android Cell Phone Apps (DOJ Criminal Division)
First Time Website Domains Involving Cell Phone App Marketplaces Are Seized

Plagiarism, defamation and the power of hyperlinks (GIGAOM)
If Fareed Zakaria and Jonah Lehrer had spent more time linking to the original sources of content they used in their writing, they wouldn’t have faced accusations of plagiarism. Their cases and a recent defamation lawsuit against Gawker Media help reinforce the value of the hyperlink.

Germany: Google book deal violates copyright law (Reuters)
Google Inc’s plan to digitize millions of books would violate German copyright law and the country’s privacy protections for Internet users, the German government said in a U.S. court filing.

Google: We are so over patents, especially in their current form (The Washington Post)
After fighting the patent battle of the decade in court with Oracle, Googlers are getting publicly fed up with software patents as a whole. Conceptually, they just don’t jive with innovation, two prominent Googlers have said recently.

Apple, Samsung patent case headed to jury (The Washington Post)
The much-watched patent case between Apple and Samsung is headed to jury, after executives failed to agree on a resolution in a final phone conference.


Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.