Bit Torrent Sites & Major Entertainment Companies Crack Down

Hello All,

I’m new to the site, so I wanted to start by saying hello to everyone. I would like to share some important information with you concerning bit torrent and entertainment companies. When I’m researching a certain topic, nothing bugs me more than opposing information, that many times sounds equally as convincing as the other. This always leaves me feeling more frustrated than when I first began the research.

Upon researching information on available bit torrent clients, I notice a topic on this site that was related to these same bit torrent and entertainment companies. Several individuals shared information concerning these large entertainment companies, e.g., Warner Brothers, Sony, Paramount and others, teaming up with bit torrent companies/websites, e.g., Utorrents/Bit Torrent Inc. and others, whereby these websites would report back to these companies and/or the MPAA and RIAA, with uploader/downloader IP, material and volume information.

I noticed the greater majority of those who posted and replied, voiced opposition to the information, regarding it as completely false. As a former employee of two of these companies for many years, I feel it safe to say, it is more than quite possible and is quite possibly, factual. The amount of financial losses these entertainment companies have incurred, in the way of individual unit sales lost and as a direct result of illegal downloading, is quite hard to even fathom, it’s that substantial. Therefore, in an attempt at recouping these loses, many of these companies have not only teamed up with certain popular torrent websites, they have created a few of their own as decoys, in order to obtain this important and binding information.

Some in opposition stated, in so many words, ‘why would these giant entertainment companies, record and/or movie companies waste their time with these relatively small, bit torrent companies?’ The answer is quite simple; bit torrent websites are designed with the idea of eventually producing a profit for their owners. Large entertainment companies can offer these small web based companies an immediate income, at much higher earning levels than the projected incomes outlined in the torrent websites business plan. I know by now you are probably thinking, why would the entertainment companies invest even more capital after losing so much already? Again, it’s quite simple, please allow me to explain.

The average retail selling price of a newly released DVD or CD typically ranges between ten to thirty dollars, each. However, the entertainment company does not get the retail amount when the product is sold, they receive a wholesale amount, per unit. We can safely say that amount is more times then not, less than half of the retail selling price, so the profits have already decreased from the beginning. Not to mention, the projected sell of the product is formulated by market analysis and conditions, but is in reality, greatly based on speculation. Because of these factors, it’s virtually impossible to render an exact amount in the way of profits and loses, until the project has had the time to peak and has begun its decline in sells.

Here’s where the idea should begin to make sense. With the information being provided to these entertainment companies, by and through these torrent website, whether their own or ones they pay for the information, they can now pinpoint their profit margins with greater accuracy. It also insures guaranteed sales. However, now instead of their profit being fifteen dollars per unit at best, their profit per unit has grown to as much as, are you ready for this? … 250,000.00 per unit. From a sheer business perspective, it’s a literal gold mine.

With this in mind, it makes total and complete sense to pursue and invest into the idea, as there’s nothing better than taking a potential loss and turning it into unforeseen and substantial profit. I seriously doubt one could produce a better method to gain this information by any other means. Keep in mind, these companies lobby before Congress and other government organizations on a daily bases, concerning copyright laws, royalties, publishing issues, etc. Plus, they are not the type of individuals who sit kindly to being duped, for lack of a better term.

I’m in no way stating that I know for certain these companies, are in fact, conducting such business with each other. I’m simply saying, don’t believe for a second it’s something they wouldn’t consider. Especially when considering the amount of returns they could produce by such action.

Now for the real deal. It can take several years for these companies to lobby for changes in copyright and infringement laws, so it doesn’t happen overnight. This is where those who download material from the internet and the true torrent sites can find legal loopholes in the law, enabling the continuance of such practices, until it is actually made law.

For example, in the early days, online companies such as Napster and Kazaa were able to continue offering their services, even though they were well known pirating websites. They were able to do so because, before these online companies existed, there were no laws in place concerning their illegal practices, therefore they had not actually broken any laws. However, once the entertainment companies lobbied and had the new laws put into place, these companies were forced to cease and assist or suffer the consequences.

Each time the entertainment companies have new laws put on the books, these cleaver individuals have already created an all new way of doing the same old thing. Unfortunately for the entertainment companies, they have to start over completely with all new lobbying and laws, which requires another few years to come into effect. As it stands right now, these companies are having a very difficult time addressing the bit torrent design. Mainly because the system is not allowing for the download of entire songs or movies, but instead, bits of information, which is not illegal to transfer.

The entertainment companies are also facing several other issues which make it extremely difficult for them to address. One is the federal trade laws, which states, if an individual is paying for a service, such as internet, to enter the domain of their home, once within the walls of the home, the owner can alter the service in any way he or she desires. The way bit torrent files work is, instead of downloading an entire piece of copy written material at one time and from one, or the same location, bit torrents are the collection of bits of information received from multiple sources and/or locations. None of which represent any real identifying properties. Once these bits of information are downloaded to the computer of the one requesting the information, it is then arranged back into one piece and/or work, movie, song, etc. This is actually, completely legal under federal trade laws, for the time being anyway.

Another issue they face is the fact they cannot prove who actually ordered the download, you know, the reasonable doubt clause, therefore they try to trick individuals into an admission of guilt. The entertainment companies will contact the ISP provider of the suspected person in violation of copyright laws and request the provider send the client a threatening letter. They do this in hopes the person involved in the illegal downloads will answer the letter and/or email, which they then interpret as an admission, hence opening the door to probable cause. This is actually shaky ground for the entertainment companies and the internet providers as well, mainly because under federal law, the internet provider cannot divulge any information concerning their clients to anyone, period.

In closing, I would like to leave you with these important tips that should give you peace of mind now and could save you later. Never reply to any letter or email from anyone or any company concerning bit torrent downloading, period. Always research the bit torrent client you intend to use extensively, and read the comment sections of each piece of material you plan to download, prior to committing or starting the download process. Look for warning signs from others who have previously downloaded the files and from the torrent sites themselves, as they are not all bad.

Once your files have finished downloading, rename all the files differently than the title it was previously listed under while on the torrent site. Always remove the files from your computer immediately after transferring them to backup disc and never title the disc with anything relatable to the original file or poster of the file. This can be easily done in explore, by highlighting the entire file folder, then while holding down the Shift key, press the Delete key. This method will bypass the recycle bin and will permanently delete the file from your computer forever, so make sure you have it backed up before deleting.

Also, when starting the download process, un-check all boxes inside the file folder that contain web addresses, tracker addresses or websites. You should only check the actual file your want to download itself, as it’s easy for hackers to plant tracking programs in help me files, samples, web tracker address, etc. Always have name brand virus and malware protection installed and active on your computer and updated, before starting any downloads.

Good luck and safe downloading

Cheers!

Here’s a nice guild on defending against those lawsuits, it’s really easy to beat lawsuits :slight_smile:
http://www.beingthreatened.com/resources/The-Speculative-Invoicing-Handbook.pdf

a cool article

side note:
How can a entertainment companys claim there gonna go broke and it will cost jobs when they been making record breaking profits every year since 2002 ??

Artist hardly make any money from physical cd sales, their bread and butter are concerts and stuff.
The more people that listen to their music (whether paid for or not) The more money they in concerts and stuff.

Enjoy the great info
Learn it, live it love it

More good if like this can be found at http://www.zeropaid.com
:slight_smile:

Thanks for those two links! Cool articles, indeed.

By the way, the band Kiss (and the label of course) for example makes most of it’s money due to merchandise, not the actual music, let alone physical sales.

As a former recording engineer (currently not working due to health disability) who has done work I guarantee you’ve heard if you watch TV or go to the movies in the USA, I can definitively state that illegal downloading has indeed had a very real impact on the music industry. I’m not talking hearsay or reading things off the internet, I’m talking actual first hand experiences here.

Yes, it’s true that most recording artists do not see most of the profit from CD sales. It’s true as well that CD’s literally cost pennies to produce. So why do consumers pay so much for them? They assume it’s so the record labels can get richer. Well, of course part of that is true. As with any business, the goal is to make a profit. However, they don’t get to keep as much of the profit as you would think.

There are huge infrastructure costs that the general public isn’t aware of. There is marketing, distribution, production, and of course, artist compensation that all have to be paid for by the record company before they actually see any profit. Marketing is probably the costliest, but production can’t be far behind.

Most people actually have no concept of what actually takes place when recording an album. For a major label release, this is a very time consuming process that requires very expensive and specialized equipment. The average professional recording studio has literally tens of millions of dollars worth of equipment. The recording console alone is probably close to two million. Not to mention the equipment loadout. Microphones, effects gear, instruments like grand pianos, etc… Not cheap…

And then of course, the expertise of someone like myself to run this equipment. As with most specialties, you pay for talent/training/experience.

In order for the studios to exist, they of course need to pay for this equipment. This means that renting studio time for a commercial studio can be several hundred dollars an hour, and the engineer may be another fee on top of that. And quite regularly, the artist will require a piece of specialized equipment that the studio may not own which must be rented, on top of the other fees. And then there is paying the session musicians, (if there are any, and unless the act doing the recording is a full band, there will be session musicians) who depending on union scale and the abilities of the musician, can be a couple hundred dollars an hour. Some musicians can request double or triple scale for their services.

And when we’re talking an entire album, these can take months to record! It’s not uncommon for a single song to take weeks to perfect! Studio time is generally scheduled in blocks of weeks or months instead of hourly. This means that the studio is completely locked out to other clients in order to save time setting the studio up repeatedly.

So really, by illegally downloading music, you do hurt the artists by shortchanging production. The direct result of this is crappier sounding albums. Do you really want that? (That’s a bit of rhetorical question, because the average person can’t hear the difference between CD and 128kbps .mp3’s…) 88)

Yes, even I feel that CD’s are a bit over-priced because I know how little they cost to press. But unlike most people, I also know how much the production side of things costs, so I understand why they are priced the way they are.

Here is a bit of a thought game for you all. Look at your occupation. How do you think it would affect your bottom line if people could fairly easily acquire the fruits of your labors for free. (And not a product such as CIS, where the company involved makes its money elsewhere) Could you continue to do business? A bit unsettling isn’t it? :wink:

In order for the studios to exist, they of course need to pay for this equipment. This means that renting studio time for a commercial studio can be several hundred dollars an hour, and the engineer may be another fee on top of that. And quite regularly, the artist will require a piece of specialized equipment that the studio may not own which must be rented, on top of the other fees. And then there is paying the session musicians, (if there are any, and unless the act doing the recording is a full band, there will be session musicians) who depending on union scale and the abilities of the musician, can be a couple hundred dollars an hour. Some musicians can request double or triple scale for their services.

And when we’re talking an entire album, these can take months to record! It’s not uncommon for a single song to take weeks to perfect! Studio time is generally scheduled in blocks of weeks or months instead of hourly. This means that the studio is completely locked out to other clients in order to save time setting the studio up repeatedly.

So really, by illegally downloading music, you do hurt the artists by shortchanging production. The direct result of this is crappier sounding albums. Do you really want that? (That’s a bit of rhetorical question, because the average person can’t hear the difference between CD and 128kbps .mp3’s…)


Alot of artist could care less for a various of reasons

As the artist “Kid Rock” says

“I was telling kids – download it illegally, I don’t care,” he said. “I want you to hear my music so I can play live.”
Kid Rock announced that he’s boycotting iTunes because he says between Apple and the labels, they’re keeping all the money.

This article talks about the music industry stealing from the artist

UK ISPs: Unfair Consumers Must Pay to Protect Entertainment Industry Profits
* Written by Jared Moya
* 14 Comments

TalkTalk says it’s “absolutely outrageous” that the UK’s Department for Business, Innovation and Skills has decided to require ISPs to pay 25% of the costs of the costs of enforcing the Digital Economy Act‘s measures to tackle online copyright infringement. Points out the unfairness of forcing ISPs, and in effect their customers, to pay the costs of the music and film industries efforts to enforce their own copyright.

Earlier I mentioned how the UK’s Department for Business, Innovation and Skills (BIS) has decided on a cost breakdown for enforcing the Digital Economy Act‘s measures to tackle online copyright infringement, which according to it, will be split between rights holders and ISPs at a ratio of 75:25 respectively.

The govt’s Minister for Communications, Ed Vaizey, says the decision on costs is “proportionate to everyone involved,” but many disagree with that sentiment because it belies the fact that others will be forced to pay the costs of protecting the outdated business models of the entertainment industry.

In fact, Andrew Heaney, Director of Strategy and Regulation for UK ISP TalkTalk, calls the decision “absolutely outrageous.”

“In effect, ISPs and their customers will be forced to pay for the costs of the music and film industries to enforce their own copyright,” he says. “To us this is manifestly unfair. It is the rightsholders’ material; if they think it is being accessed illegally, it is only right that they should be the ones to pay for protecting it.”

And he’s right. The 25% will be passed along to consumers who will in effect be subsidizing the entertainment industry’s efforts to extract as much money from consumers as possible.

Other ISPs are also saddened by the decision.

“Whilst I understand the logic in trying to ensure that the costs are minimised[,] I wonder if there is somewhere in European Law relating to government subsidies of industry – because that is effectively what is being done here,” says Trefor Davies, Chief Technology Officer of Timico UK. “The Government is indirectly subsidizing the Creative industry by taxing the internet industry and giving the taxes to Rights Holders.”

A number of consumer groups are also angry with the decision and the substantive unfairness of it all.

“Consumers should not be picking up the tab for the enforcement of copyright laws that will benefit the music industry to the tune of millions,” says Robert Hammond, Head of Post and Digital Communications at Consumer Focus, a UK consumer advocacy group. “The previous government admitted any extra cost on ISPs may push up the cost of broadband, making it unaffordable for thousands of vulnerable consumers who need internet access to get vital services and cheaper deals.”

This is brings up a good point. If the cost of Internet service is already barely affordable for some, this added tax for enforcing the DEA will surely push it out of reach. According to the Open Rights Group, a UK-based digital rights advocacy group, by the Government’s own estimates the tax will mean up to 96,000 individuals won’t able to afford an internet connection anymore.

The Open Rights Group also makes the more poignant argument that it will mean up to £500m ($775m USD) will be extracted from economy and poured into a silly system of notifications and appeals without any likelihood of public benefit.

“This is ludicrous given that we are in a recession,” it says. “Rightsholders would be better off investing that money into setting up new online content services.”


Since the internet isn’t gonna go away, the music industry needs to adjust the way they do business to adapt to the internet just like any other business does.

P.S. Phishing for customers that don’t know how to defend themselves and extorting them on a massive scale (with no legal evidence to back up the claim) is a terrible business practice. <—It reminds me of ROGUE Anti-Virus software (IMO) :-TD

P.S.S. While I don’t like 99% of the music they play on the radio, but of what I do like, I do buy (paid for). :slight_smile: