back to article Australian court slaps down Hollywood's speculative invoices

The legal brawl between the owners of film Dallas Buyers Club (DBC) and Australian internet service provider iiNet has dealt a blow to Big Content's speculative invoicing practices by requiring a bond to be paid before the film's owners can contact suspected pirates. DBC's owners initiated legal action back in February, when …

  1. veti Silver badge

    I think a pig just flew by

    That's got to be the most sensible legal ruling I've ever read about digital piracy. And coming from Australia, of all places...

    Maybe, just maybe, it'll successfully send the message to the copyright holders that Australia is not the US and you can't get away with those kinds of shenanigans there. But I fear it's more likely, the received message will be "we need the TPPA to straighten out these uppity Aussies and bring their law into line with good ol' American law".

    1. LaeMing
      Unhappy

      Re: I think a pig just flew by

      Don't worry, I'm sure there is a sealed-section in the TPP to put the kibosh on this sort of thing soon.

    2. Alan Brown Silver badge

      Re: I think a pig just flew by

      "And coming from Australia, of all places..."

      The same Australia which ruled DVD region coding as an illegal restraint of trade.

      1. John Tserkezis

        Re: I think a pig just flew by

        "The same Australia which ruled DVD region coding as an illegal restraint of trade."

        The very same Australia that STILL manufactures region 4 DVDs regardless.

        1. Alan Brown Silver badge

          Re: I think a pig just flew by

          "The very same Australia that STILL manufactures region 4 DVDs"

          Perhaps, but region-locked players were effectively made illegal by the decision.

          This may well change with TPP.

  2. Mark 85

    I'm gathering that they're not going to get as much money as they wanted since 2 of the 4 "billings" were tossed out... I think the judge is being very reasonable and wish we had more of his ilk here in the States.

    BTW, wasn't this the firm that was seeding torrents with their film? I might be wrong.

    1. Alan Brown Silver badge

      " wasn't this the firm that was seeding torrents with their film? "

      I think you're confusing this mob with Prenda Law.

      If there's any evidence that the litigants were the seeders there would be a universe of hurt descending on their collective heads.

      dietrolldie and fightcopyrighttrolls have both been tracking things and provide pretty good analyses of the playing field - they're so good that the litigants have sought to have them barred from the evidence pool as they show how vexatious the trolls really are.

  3. sms123

    Its worth less than A$9 a copy on a commercial basis

    Presumably you could avoid at least paying the cost of downloading the film by finding a second-hand or bargain bin copy of the DVD and only be left on the hook for your share of the legal proceedings if the letters ever appear.

    It's currently available for 12.98 as part of a buy 2 get one free offer at JB:

    https://www.jbhifi.com.au/movies-tv-shows/movies-tv-shows-on-sale/drama/dallas-buyers-club/565163/

    That values the movie at less than A$9 per copy if you want to get a few others as well.

    1. Tom 35

      Re: Its worth less than A$9 a copy on a commercial basis

      In Canada you can get it for $8.88 CND at Amazon.ca and it's only $15 list.

      I don't see then getting any big piles of cash out of this.

  4. Likkie

    HA!

    A similar article on Crikey went on to say:

    "...Perram has also ordered that Voltage cannot seek to lodge a case in the Federal Circuit Court as a means to get around the Federal Court, and has also ordered that any future preliminary discovery cases of this kind be brought before him, rather than any other judge where Voltage might be hoping for an easier run."

    1. Anonymous Coward
      Pint

      Re: HA!

      I seem to recall similar judicial jurisdiction preemption occurring here in the US as well (Prenda?). Must be another indicator that "The End Times Are Really, Really Nigh!" Courts making sense. R-i-g-h-t....

    2. Alan Brown Silver badge

      Re: HA!

      "and has also ordered that any future preliminary discovery cases of this kind be brought before him"

      Based on the experience of similar orders in the USA, these trolls are quite likely to ignore the judge and try shopping around anyway.

  5. This post has been deleted by its author

    1. VinceH

      Re: Loophole

      It's a bond - provided they do as they've been told, it would eventually be returned to them and, as such, is not a cost.

      1. This post has been deleted by its author

      2. <shakes head>

        Re: Loophole

        now if you lend yourself teh money at 100%interest then you can charge the interest as a cost, presuming acces to a seperate company.

        to make it more fun,

        1) open a new conpany

        2)inver the bond amoun tin the new company

        3) len to new company at 100% ( based on unlikely postivie outcome)

        4) charge teh interest as a cost

        i should be an accountant

        1. Jimmy2Cows Silver badge

          I should be an account

          No, no, no... You should be an English teacher.

          1. Adam 1

            Re: I should be an account

            Or a YouTube comment moderator.

  6. Anonymous Coward
    Anonymous Coward

    if you got one of these letters, how do you defend the claim?

    On the basis that I hadn't even heard of the film...nor to I use torrent services

    But a letter arriving accusing someone of a download and asking for royalties etc... what do you do? I dont think I could prove that I had not downloaded any named content on from the net, let alone a specific movie?

    It seems an undefendable claim unless they force access to the machine with the content still on.

    I may as well attempt to prove I didn't read a particular story on El-reg as far as I can see.

    1. Paul Crawford Silver badge

      Re: if you got one of these letters, how do you defend the claim?

      The first point, and most important, is that an IP address is not a personal identifier.

      At most (and assuming the IP address was correctly recorded and time-stamped and correlated with your ISP's DHCP server) it tells them that someone using "your" connection (assuming you are the bill payer, most likely to get the letter) was attached to the bit torrent swarm.

      Most countries do not make the bill payer responsible for other using the connection unless they have actual knowledge of misuse. A bit like you can't be prosecuted for your car being stolen and used in a bank robbery, but you can if you offered it knowing it would be used in such a crime.

      These days most folk share there wifi password with anyone visiting their home, neighbours that have faults and need to get on-line, etc, as they have no reason to suspect criminal intent. In addition numerous routers have piss-poor security anyway and I believe Windows 10 is also going to make wifi sharing more common among acquaintances as well.

      So basically unless you confess to it they have little case, the only real risk is they try and get a seizure of your PC to get it forensically analysed to prove the alleged copyright material was on a PC directly controlled by you. Possible, but a major cost to them and most of these trolling firms want a cheap settlement hence the threatening letters.

      Given the time scale between the threat letter and any possible action, it would be unfortunate for the prosecution if your machine was replaced due to age, or had a virus and was securely wiped and re-installed before it came to seizure and court proceedings, as they could have a lot of expenses to pay to you...

      1. Paul Crawford Silver badge

        Re: if you got one of these letters, how do you defend the claim?

        I am not a lawyer, so if you are threatened then look around and get support as there are a few organisations that have sprung up to fight this sort of extortion racket.

        In most cases that trolls have 'won' it was because the defendant did not turn up at court to defend their side and so a summary judgement was made in favour of the troll. That is very different from the court deciding that the trolls' arguments are strong enough, but trolls tend not to point that out for some funny reason...

        1. Paul Crawford Silver badge

          Re: if you got one of these letters, how do you defend the claim?

          Here are some stats:

          https://torrentfreak.com/adult-movie-outfit-is-most-litigious-copyright-plaintiff-in-u-s-150812/

          "6,050 cases filed since January 2009 ... only 137 cases went to court in the period, with 126 concluded via default judgment, 10 via consent judgment and just a single case settled via full trial"

      2. Alan Brown Silver badge

        Re: if you got one of these letters, how do you defend the claim?

        "Most countries do not make the bill payer responsible for other using the connection unless they have actual knowledge of misuse. A bit like you can't be prosecuted for your car being stolen and used in a bank robbery, but you can if you offered it knowing it would be used in such a crime."

        You might think so, but there's a guy who's been in a Florida jail for the last 11 years under almost exactly this scenario (loaned car to flatmate, flatmate used it in execution of crime in which someone got killed. Car owner was in bed asleep at the time. Prosecution accepted that he had no knowledge of what the flatmate planned, but car owner got life for accessory to murder.)

      3. Alan Brown Silver badge

        Re: if you got one of these letters, how do you defend the claim?

        "Given the time scale between the threat letter and any possible action, it would be unfortunate for the prosecution if your machine was replaced due to age, or had a virus and was securely wiped and re-installed before it came to seizure"

        This has happened. The trolls have gone for charges of "evidence tampering" or "contempt of court" - and managed to get the judge to agree in some (but by no means all) cases.

    2. glen waverley

      Re: if you got one of these letters, how do you defend the claim?

      AC said "I may as well attempt to prove I didn't read a particular story on El-reg as far as I can see."

      Based on my experience perusing El Reg, the usual method of showing one did not read the article is by posting a comment.

    3. eldakka

      Re: if you got one of these letters, how do you defend the claim?

      " I dont think I could prove that I had not downloaded..."

      I don't think you understand how the law works...

    4. Anonymous Coward
      Anonymous Coward

      Re: if you got one of these letters, how do you defend the claim?

      Presuming you don't know how to secure your modem do you mean?

      I would have thought your ISP would take all the weight off your hands by explaining their cheapo security to the Dumb Buyers Club. Why not drop them a line?

  7. Anonymous Blowhard

    "Australia is a sophisticated jurisdiction with copyright laws that in many ways resemble those of other nations"

    But it's judges seem to be capable of interpreting copyright laws in a way that makes sense, and not just using the letter of the law to beat up citizens on behalf of corporations.

    It's not a free pass for alleged infringers, but the copyright holders have to demonstrate what they believe they've lost, forget about punitive damages, and put their money where their mouth is.

  8. Aedile

    Hmmm...

    If I own a physical copy of the movie (DVD or BluRay) can I download it legally?

    If so how would the DBC/MPAAs of the world know if I had owned the copy before I downloaded it? IE after getting sued I visit a friend who owns it and acquire their copy via a discrete cash transaction.

    Or are they getting busted for uploading?

    1. John Brown (no body) Silver badge

      "If so how would the DBC/MPAAs of the world know if I had owned the copy before I downloaded it?"

      They are after torrent users, who more or less by definition, are also uploading the content while downloading it, ie acting as "distributors". That's how torrents are supposed to work. AIUI, it's possible to join a torrent and "leech", ie only download, but some clients will refuse or severely limit the connection speed if you don't share back the sections you've downloaded.

      1. kyza

        So I wonder how they'd asses the value if someone had only seeded about 0.01% of the file, which I am told is not an uncommon occurrence when you have crappy upstream on a popular torrent.

        'Yes m'lud, I did distribute the material, but only approximately 1 second of the credits.'

    2. veti Silver badge

      I don't know what Australian law says about this specifically, but in most places - owning the movie on DVD or Blu-Ray does not automatically give you the right to download it from an unauthorised source.

      It's like trying to argue that it's OK for you to buy cocaine from a street dealer because you're a pharmacist. I mean, you can try, but I wouldn't give much for your chances.

  9. Anonymous Coward
    Anonymous Coward

    Just read the ruling...

    It has some amazing analogies, including "the Court was not going to open the sluice gates until it saw the proposed correspondence and until DBC satisfied the Court that it was that approved correspondence, and not something else, such as a dead cat, that DBC was going to send to account holders. "

    My respect for the judiciary in Australia has just gone up dramatically - dry humour in a judgement.

  10. WolfFan Silver badge

    Question

    So they have to post a umpty-ump dollar bond. Sounds good. Now, is this just one bond and they can send out umty-ump dunning letters, or is this one bond per dunning letter? 'Cause if it's just the one bond, then put it up and send out a few thousand letters, demanding a few thousand dollars per. If only a small percentage pay up, they're still ahead even if they lose the bond. Posting the bond will just be part of the cost of doing business. Given that the typical movie will already have a budget of millions to hundreds of millions of dollars, adding $600k would just be petty cash... unless it's $600k/letter.

    1. Alan Brown Silver badge

      Re: Question

      One bond - and the content + targets of the letters must be approved by the court

      If they play naughty, they'll lose the bond - and effectively be barred from any further legal action in Australia (plus find themselves treated with hostility in the courts of most other countries)

      One of the principles of copyright legislation in most countries is to ban infringement actions from being a viable income stream in themselves. Once evidence emerges that companies are doing that, judges invariably get pretty steamed up.

      What has been coming out over US cases is clear evidence of "3rd party litigation funding" - this is explicitly illegal in a lot of jurisdictions. In particular it appears a german company seems to be coordinating a lot of the activity.

      https://www.techdirt.com/articles/20140603/18021127448/international-men-mystery-how-discredited-german-anti-piracy-company-may-secretly-be-behind-malibu-medias-copyright-trollery.shtml

      Additionally there's the question of whether these outfits actually have standing to sue. In most jurisdictions the litigating party has to be the copyright holder, not simply assigned to take action by them and this has led to a bunch of dismissals (when challenged, the trolls tend to fold their tents and disappear into the night)

      It's worth reading the fightcopyrighttrolls and dietrolldie websites - these have been acting as clearing houses keeping all the decisions and discovery in one place.

  11. Alan Brown Silver badge

    Crosslinks

    It's worth noting that at least some of the attorneys are tied up with multiple troll teams, including the infamous Prenda Law.

    It's quite possible (as has been proven with the Prenda cases) that the initial seeders of the torrents were in fact the trolls themselves, or their agents.

  12. rtb61

    With loser pay in civil suits, it is all a big bluff. In court, the claimed IP address is just that a claimed IP address. They claim it infringed at a particular time with particular content, the ISP claims it was a particular users IP at a particular time but does not warrant the accuracy of that data.

    Play in court and fail to prove a particular individual did what was claimed they did and lose and pay and then pay again for a defamation suit and of course in Australia for psychological damage caused by the threat of loss and the court case.

    Lose once, precedent is set and youch, lose every time. They could end up spending millions to lose tens of millions (hence the bond).

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