There seems to be no way to even slow the massive intellectual property piracy on the internet. Recently, Congress introduced the Stop Online Piracy Act (SOPA) legislation. This is really just the tip of the iceberg. When Congress fails to act the market does what the market does. Federal copyright infringement litigation is still alive and well in America. Movie producers, most notably adult content providers, have joined forces with piracy management firms to track BitTorrent file sharing. There is nothing new about tracking BitTorrent file sharing; however, the movie industry has taken a new tact. It appears that movie producers have created compilations (movie without new content) and under the advice of lawfirms have registered the compilations with the Library of Congress to obtain formal copyright registration in the US. Then under the pretext of a copyrighted work the movie producers have mysteriously seeded BitTorrent swarms, see lawsuit Complaint. The movie producer knows that thousands or tens of thousands of copies have been shared and the movie producer has received no remuneration. Well, the movie was never for sale, so calculating damages is difficult, or total entrapment. Either way, the file sharing was illegal and the downloaders were no doubt acting in bad faith.
So, what we have is some movie producers creating fake movies just to go after wrong doers. One problem is that the system is not efficient because the only method for tracking BitTorrent files is through IP addresses. IP addresses do not necessarily identify the downloader. So, many innocent people are identified through this spurious identification method. Even innocent people are faced with the high legal costs to make the case go away and the potential embarrassment of even being accused of theft.
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