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Time Warner Cable Won’t Hand Over Subscriber Data to For-Profit Copyright Settlement Factory

Phillip Dampier May 17, 2010 Editorial & Site News 6 Comments

The U.S. Copyright Group sells its services: "Congratulations! By reviewing our site you have decided to take the first step down an efficient, no-hassle and no-cost path to recovering losses due to illegal downloading and stopping film piracy. With well over seventy combined years of legal and technical experience, the US Copyright Group will work for you at no cost." For those they accuse of piracy, a quick and easy $1,500 cash settlement will make the nightmare go away.

Stop the Cap! already deals with a variety of ISP-invented Internet Overcharging schemes, but that doesn’t mean there aren’t more profit-making schemes out there.  For 50,000 movie downloaders who grabbed copies of Steam Experiment, Uncross the Stars, Gray Man, Call of the Wild 3D, or Far Cry, chances are a letter like this sent to Verizon customers was in the mail a few weeks ago, warning your identity was about to be disclosed:

Dear Customer:

This is to notify you that Verizon has received a deposition subpoena requiring the production of records associated with the following IP address:

(xx.xx.xx.xxx)

Verizon has no information as to the purpose of the deposition subpoena or has the nature of the action or investigation being undertaken. Any questions you have should be directed to the party who issued the deposition subpoena.

Please be advised that, unless Verizon is served with a motion for a protective order or a motion to quash by 12:00pm on May 13, 2010, Verizon intends to produce the records by the date specified in the deposition subpoena. Motion papers can be served upon Verizon via fax number xxx-xxx-xxxx.

If you are a Time Warner Cable customer, chances are your letter never arrived.  That’s because the Internet Service Provider is fighting back against what it considers requests that have grown “out of control.”

A group of Washington, D.C. lawyers calling itself the U.S. Copyright Group has developed a profit-making business scheme seeking quick cash settlements from those accused of downloading copyrighted movies created by independent producers.  The group has filed thousands of requests for identities of those behind the IP addresses logged while downloading movies produced by its clients.  While this isn’t new — the record industry used to file lawsuits to discourage piracy — the U.S. Copyright Group is among the rare breed that treats the offense of copyright infringement as a for-profit business opportunity.

Only the Group’s methods may in fact cost every consumer, pirate or not, higher broadband bills as providers deal with tens of thousands of demands for identification.

Time Warner Cable is among the ISP’s that have had enough.

They’re upset after being included in the U.S. Copyright Group’s latest trawling effort against those who downloaded Uwe Boll’s Far Cry.  Critics say the only real crime was the movie itself.  But Time Warner Cable faces combing through 809 IP addresses identified as theirs in hopes of identifying the presumed-guilty offenders, who will later receive U.S. Copyright Group’s legal threats and offers for a settlement.  For a provider that says it receives only 567 IP identity requests a month, almost entirely from law enforcement officials, the prospect of dealing with 809 more over a single obscure movie is daunting.

Time Warner wants the requests quashed — telling the court if it has to reply to this volume of requests, it will not be able to fulfill urgent law enforcement requests that pertain to suicide threats, child abduction, and even terrorism.  Besides, at an average cost of $45 per request, someone will have to pay.  That someone is eventually you — all to fulfill the profit motivations of a group of DC lawyers.  Even worse, the group demanded compliance within 30 days, quite a demand for four full-time workers (and one temp) who make up the ISP’s Subpoena Compliance team.

For those receiving advance warning that their identity is about to be disclosed, the settlement offer package that is certain to follow weeks later leaves little doubt about what outcome the Group wants for these cases — a quick settlement and no time inside an actual courtroom.

Making your copyright infringement allegation go away with a $1,500 confidential settlement is as easy as writing your credit card number in the appropriate box. You can even earn reward points!

The group even offers an online, easy-to-complete PDF settlement form with spaces to enter your Visa, Mastercard, or Discover card number to pay the $1,500 settlement.  You don’t even have to admit you did anything wrong, as long as they get their money.  If you regret your decision later on, however, look out.  If you open your mouth in public or online to disparage the agreement or your participation in it, you automatically owe a $15,000 penalty (plus costs) for breaching confidentiality.  You also sign away your rights to challenge the group in court, even if it later turns out you were wrongly identified.

While the U.S. Copyright Group cashes settlement checks they only had to ask to receive, the group doesn’t seem to mind increasing everyone else’s costs.

Ars Technica notes Time Warner thinks the entire approach to these lawsuits may be invalid:

Filing lawsuits can be expensive; Most federal courts charge a $350 filing fee per case, along with a new set of paperwork. Each case also creates another docket to keep track of, making thousands of cases an administrative nightmare.

Instead of going this route, plaintiffs have gone the RIAA route, simply filing mass lawsuits against groups of “John Does,” in some cases by the thousands. But, says TWC, channeling its inner Ray Beckerman, “It is not evident from the complaint in this case that there is anything common to the 2,094 defendants that would justify joining them in a single litigation… Courts facing these identical circumstances have repeatedly held that a plaintiff may not join in a single action multiple defendants who have allegedly downloaded or facilitated the download of copyrighted material at different times and locations.

“Thus, if the plaintiff wants to sue these 2,094 defendants, it owes this court 2,094 separate filing fees, and it must file individual actions. Plaintiff then would be unable to combine together a single, massive discovery request with which to burden non-party ISPs such as TWC.”

Third, plaintiff lawyers keep expanding the scope of their subpoenas. The first complaint filed alleged 426 infringing IP addresses belonging to TWC subscribers. But when the company finally received a subpoena, it found requests for 809 IP addresses.

Taken together, said TWC, these “discovery abuses” mean that the judge should quash the subpoena. Alternately, the judge should limit the plaintiff to 28 TWC subpoenas each month.

Regardless of your views on piracy, compliance on the terms the U.S. Copyright Group demands raises the prospect of increased costs for providers like Time Warner Cable — the same increased costs used repeatedly as justification for rate increases.  Turning copyright compliance into a for-profit business may enrich a select group of DC lawyers, but ultimately every broadband customer could pay the price.

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gabe morrow
gabe morrow
14 years ago

my distaste for time warner cable due to past metered billing efforts almost makes me want them to lose metered billing is just a little worse then this

Jay Ovittore
Editor
14 years ago

Am I reading this right! Time Warner Cable does something right! As we always say here…we will call you out when you are wrong and we will give the due kudos when you are right! Kudos TWC!

Sunshine1970
Sunshine1970
14 years ago

Whoa. TWC does something right. I’m glad they are my service provider. I don’t use BitTorrent, anyway, so I’m not affected by this but it’s nice to see TWC putting up a fight on this (even though it’s in their interest than the file sharers’ interest) What I’m worried about is my IP being confused with someone elses’ who is being targeted. How would I go about even proving I didn’t do anything? Our IP’s do change ever so slightly every once in a while (Last year until November I was using 70.xx.xx.xxx, and now I have one that is… Read more »

SAL-e
SAL-e
14 years ago

Sorry Phillip, This time you are factually incorrect. BitTorrent is arguably the most efficient protocol for transferring big files to big number of users. That is why it become so popular. Here in the USA it does not work very well because the networks are build with gates where the ISPs are deploying their so called network management systems (a.k.a. deep packet analyzing firewalls). Those systems simply can’t handle the big number of simultaneous connections that BitTorrent protocol can initiate. Second BitTorrent is not equal to piracy. In fact because I strongly disagree with current Copyright Regime in USA, which… Read more »

jr
jr
14 years ago

Verizon folds so easily

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