Established in 1998, Agava is one of Russia’s top 5 web hosting companies employing around 300 people. Last night, police investigators arrived at a datacenter where Agava has some of its operations.
The investigators had a self-awarded warrant which allowed them to conduct a search in order to retrieve evidence located on servers used by Agava client iFolder.ru, a large file-hosting service and Russia’s 51st most-visited site
The police had been working on an investigation into an individual who used iFolder to upload child pornography a while ago. The person was caught by the police, but investigators wanted to search to see if he had uploaded more material.
Agava employees offered their full co-operation in assisting them to find the data in question. However, the police turned down the offer and insisted they were going to seize all of Agava’s servers, more than 100 in total, and waited for several hours for a vehicle to come and collect them.
In the end the mass seizure did not take place but police did cut the power and seal them all off. Some of those affected are Agava’s primary DNS servers, but fortunately their secondary units were unaffected.
“Agava considers this unprecedented event as putting in jeopardy and dimming the future of every business in RuNet,” said the company in an announcement. “We are determined to challenge and overcome the excessive and destructive actions we encountered, to protect our customer’s interests. We thank our clients in advance for their patience, and for media and other support they provide us with.”
Even though the police have stated they have no problem with iFolder continuing its operations, the investigation has rendered the site completely non-operational. On a normal day, 180,000 people upload or download from the service resulting in 1.5 million pageviews. Total users per month is around 4.3m.
This action against iFolder follows the unilateral decision to seize the domain name of Russia’s biggest torrent site, Torrents.ru.
Article from: TorrentFreak, check out our new blog at FreakBits.
18.Mar.10 
TorrentFreak 
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The entertainment industry is known to commission reports and research that hugely benefit their lobbying practices. A new report, “Building a Digital Economy” was released yesterday. This report investigates the impact of piracy on Europe’s creative sector and was paid for by the same industry.
As expected, the reports paint a disastrous picture. In just 5 years from now the total number of lost jobs in Europe could grow to 1.2 million and the lost revenue for the industry may skyrocket to €240 billion in the same time frame. The report was quickly praised by anti-piracy outfits including the BPI and IFPI who will use it in their political lobbying efforts.
Of course, those who took the time to take a good look at the report will have seen that there are many assumptions and statistical tricks that led to these outrageous claims. We will discuss a few of them below and show that depending on what sources are used, one could come to entirely different conclusions.
- The report suggests that there’s a direct correlation between Internet traffic growth and lost jobs. That is, the more traffic that is generated on the Internet, the more money will be lost. This correlation is 1 according to the report, which assumes that all growth in Internet traffic will increase piracy at the same rate.
- The report makes another bogus assumption by stating that more traffic will mean more piracy and thus more lost revenue. It does not account for the fact that people might consume higher quality files which are greater in file-size. All projections are based on bandwidth and not the number of pirated goods.
- The report cites some academic literature which suggests that piracy leads to a decrease in sales. Studies that reported the opposite or a null-effect were carefully left out. This bias defines the entire outcome of the report. If they used studies that found a positive effect they would have found that piracy would create hundreds of thousands of jobs in the years to come.
- The report uses fixed substitution rates. They assume that 10 downloaded albums results in one lost sale and this figure is not adjusted for the projected increase in piracy. One would think that the public’s budget for entertainment is limited and that the substitution rate would go down as piracy goes up.
- Related to the previous point, if the industry did indeed lose over €240 billion in revenue by 2015, consumers would have a lot of extra cash to spend. Depending on where this money was spent it might create more jobs than the entertainment industry claims it is losing. As a report commissioned by the Dutch Government showed last year, the overall effect of piracy on the economy might actually be positive.
- It gets even more ridiculous when we take a closer look at the claims. In the UK consumers spent €6.3bn on audiovisual products in 2008. If the projected trends continued, the ‘lost’ revenue because of piracy would exceed the actual revenue, meaning that the music and movie industries would end up having to pay people for pirating their products.
- Lastly, the researchers seem to have trouble putting a decent report together as they messed up the legend of one of the critical figures. In this figure the bars for “file-sharing” and “global Internet traffic” are switched around. This makes us skeptical about the other statistics that are published in the report.
We can go on for a while listing the many implausibilities and research failures but we have to draw a line somewhere. Unfortunately, most news outlets won’t take the time to read through the report, meaning that these figures will be re-posted without questioning the source.
Both the UK Pirate Party and the Open Rights Group have responded to the report criticizing its one-sidedness and propagandistic nature.
“I am fed up of hearing corporate propaganda being deployed in order to justify intrusions on our rights to freedom of speech, privacy and to a fair trial,” Jim Killock, Executive Director of the Open Rights Group said in a comment on the report.
“The claimed losses of £1200 per household in the UK are clearly ludicrous. I certainly don’t know anyone who has an extra £1200 in their pockets thanks to piracy,” Pirate Party UK leader Andrew Robinson added.
The entertainment industry lobby, however, has already managed to get support from various politicians in the EU Parliament and will continue to use the report to justify their call for tougher measures against online piracy. We can only hope that the majority of them will see through the misleading setup and bogus numbers.
Article from: TorrentFreak, check out our new blog at FreakBits.
18.Mar.10 TorrentFreak Comments Off
Following a court case initiated by the IFPI, in February 2008 a Danish judge ruled that ISP Tele2 had to block its customers from accessing The Pirate Bay. The music group had successfully argued that that Tele2 was assisting in mass copyright infringement by providing its subscribers access to the tracker.
Sebastian Gjerding, spokesperson for Piratgruppen, a pro-piracy lobby whose goals include the reformation of copyright law, was outraged by the news.
“The verdict is absurd. It will block access for Danish users to the world’s largest distributor of culture and knowledge – copyrighted or not,” he told TorrentFreak. “It’s true that you can access copyrighted material through The Pirate Bay, as you can with Google or Rapidshare. Should they be blocked as well?”
Very quickly controversy hit the ruling when it was revealed that Kristian Løkkegaard, the only expert witness in the case, was previously employed by the Johan Schlüter Law Firm who worked with the IFPI on anti-piracy cases.
Nevertheless, later in 2008 the Eastern High Court upheld the ruling. Tele2 said they would fight on and in April 2009 a Danish appeals body accepted a petition from Telenor to take the case to the Supreme Court.
“We are pleased that we now have the opportunity to find out whether it is Internet Service Providers’ responsibility to ensure the closure of a website,” said Telenor’s regulatory chief Nicholai Kramer Pfeiffer.
The same question has just been clarified to the north of Denmark in Norway, where the courts gave two clear decisions that there is no legal basis under Norwegian law for ISPs to block The Pirate Bay.
The answer to the Danish question is not far away now, as a date has just been tabled for the Supreme Court hearing. Three hours have been set aside to hear the case on 20 May 2010 starting at 9:00am.
Unusually for this type of hearing both sides will be present in person and the public will be allowed to view proceedings although seating is limited.
A final decision is expected to be handed down around a week later.
Article from: TorrentFreak, check out our new blog at FreakBits.
17.Mar.10 TorrentFreak Comments Off
Half a decade ago ‘maVen‘ was one of the most active movie release groups on the Internet, known for distributing high quality ‘Telesync‘ versions of major blockbuster titles. In the summer of 2006 ‘maVen’ releases suddenly halted, and it later became apparent that the FBI had caught one of its key members.
An FBI investigation into ‘maVen’ had been running for some time and was handed to the Canadian Police in April 2006. A few months later Geremi Adam was arrested after he allegedly recorded the movies “How to Eat Fried Worms” and “Invincible” at a Montreal movie theater.
They seized his laptop and other equipment and later released him, only for him to be arrested again at another theater just a month later. According to the police, Adam had been selling copies of movies on the Internet using the alias ‘maVen,’ which were then re-sold on the web and the streets.
Following Adam’s arrest came a 14 month wait as the police combed computer systems and equipment looking for evidence to convict him. The FBI had labeled him the ‘World Leader’ in Internet piracy and his case went before court several months later.
Today the verdict came in, and the Court sentenced Adam to two and a half months in prison – the prosecution had demanded four. The defense lawyer had argued for community service because Adam suffers from depression and a troubled childhood, but despite these arguments, the Court decided to opt for a prison sentence.
As of today there are still dozens of ‘maVen’ releases available on BitTorrent, although most of these files have no active downloaders anymore.
Article from: TorrentFreak, check out our new blog at FreakBits.
17.Mar.10 TorrentFreak Comments Off
In early February reviews of hot new streaming TV site TVGorge.com started appearing.
“If you’re outside of the US and sick of not being able to see good TV online or just tired of waiting for Hulu to get your favorite shows, you’ll want to check out TVGorge and its huge archive of shows,” wrote Lifehacker.
“The amount – and quality – of the content on TVGorge is nothing short of impressive,” wrote TechCrunch. “All episodes from all eight seasons of 24 are on there, for instance, in addition to dozens of episodes of shows like Californication, 30 Rock, Heroes, Lost, CSI, Mad Men, Grey’s Anatomy, The Simpsons, and so on. I counted 128 TV shows on the site.”
TVGorge was an indexing service and didn’t carry any material on its own servers. The site’s engine found sources for new TV episodes stored on other sites and either embedded or linked to the videos found. Users flagged broken links and also added their own links to TV shows.
The videos available via TVGorge came with no geo-lockouts, meaning that anyone worldwide could enjoy them without being bugged by “this show is not available in your area” type messages.
In total TVGorge linked to approximately 5500 episodes, 10,000 embedded videos, offered 60,000 external links, and reached 3 million people a month.
While nearly every review of the site was positive, most contained an element of doubt. Is TVGorge actually legal? Could it survive longer term? The general consensus was ‘no’ and ‘no’. Although it could be argued that the answer to the first question is still possibly up for debate, the latter proved fairly accurate.
Around a week ago, TorrentFreak received information that TVGorge was being threatened with legal action. At that stage the site was still fully operational, but very quickly the situation changed. We are now able to confirm that TVGorge was ordered to cease and desist by the MPAA on behalf of the companies they represent.
“TVGorge has recently been advised to remove all of our indexed content,” said the site’s operators in a statement.
“We understand content owners have a need to protect their content and we can only hope they take the initiative to provide easy access to all of their great TV shows at an international level. If anything, hopefully we have shown them that people are desperately looking for a place to watch their favourite TV shows.”
The site’s operators are remaining upbeat and say they will continue to index streaming sources for the TV shows they list, but of course, these will now link to authorized sources instead with the same restrictions that drove people to sites like TVGorge in the first place.
The new sources for TV shows are slightly less exciting….
Nevertheless, TVGorge won’t stagnate. The site will take on a new shape by becoming a TV guide featuring breaking news, forums, episode guides, TV schedules, show and episode reviews and linking to or embedding authorized sources from around the world.
Although TVGorge’s legal woes may be over, TorrentFreak has been informed that many other streaming sites are also currently the subject of legal threats and unwanted attention.
Considering the seriousness of the situation it would be irresponsible for us to publish the information we have been given without absolute confirmation, but we are told that in one particular case in a European country, a police investigation is underway against a major site. We asked the site and its host questions, particularly since the news we received corresponded directly with some site downtime, but the responses we received were generally pretty vague.
It may well be that their hands are tied. Time will tell.
Article from: TorrentFreak, check out our new blog at FreakBits.
16.Mar.10 TorrentFreak Comments Off
China is no stranger to Internet censorship. The country’s Great Firewall includes many well known sites, but up until now BitTorrent sites have never been blocked.
There was a short blocking incident two years ago when Mininova, isoHunt and The Pirate Bay were hijacked and redirected to the leading Chinese search engine, Baidu. However, this issue was solved in a matter of days without an official explanation.
In the years that followed the Chinese government mainly targeted local BitTorrent sites, leaving the previously mentioned sites unharmed. According to reports from isoHunt’s owner Gary Fung, this tolerant stance might have changed as visits from China to isoHunt have plunged dramatically.
The drop in traffic is so significant that any technical difficulties have to be ruled out. Last Saturday, isoHunt had only 1,349 visitors from China compared to 131,362 the week before, a massive 99% decrease.
Despite the signs that this ban of isoHunt is intentional, there hasn’t been any official word from the Chinese authorities on the situation. Whether it has anything to do with the recent P2P site crackdown in China, where the authorities shut down hundreds of local sites including some of the biggest BitTorrent trackers, is unknown.
IsoHunt owner Gary Fung told TorrentFreak that he recommends that Chinese users who want to continue using the site should access it through a foreign proxy. Gary said that China was never a huge source of traffic for his site, but sees the ban as a “big deal” for the ongoing net censorship debate.
Although China’s authorities are not known for their democratic principles, speaking out against the ban might help. “China has flipflopped between site bans, so putting on pressure and people voicing opinions do matter,” Gary added, referring to China’s previous banning and unbanning of websites such as Wikipedia.
The Pirate Bay, BTjunkie and all the other major foreign BitTorrent sites are unaffected and remain accessible in China. For now.
Update: We learned that The Pirate Bay is blocked in at least some parts of China as well.
Article from: TorrentFreak, check out our new blog at FreakBits.
16.Mar.10 TorrentFreak Comments Off
Last year LANVA reported the IP-addresses of 106 users of the country’s largest BitTorrent site to the police. The anti-piracy group claimed that the site’s users were sharing a copy of the Windows 7 Ultimate operating system and took action on behalf of Microsoft without notifying the software company.
The self-proclaimed investigators evidence consisted of a screenshot of peers as listed by uTorrent. The evidence was gathered in conjunction with a local police officer, but none of the parties involved was authorized to conduct an investigation of this kind.
LANVA nevertheless took one of the 106 users to court, hoping to set a favorable precedent that would allow them to go after other alleged copyright infringers. The case went before the courts and the verdict handed down today was not the one the anti-piracy outfit had hoped for.
Citing faulty evidence, the District Court judge closed the case and fully acquitted the sole defendant Sergej Bernotas. The judge stated that LANVA had no right to collect and use the information they gathered. In addition, the judge ruled that such evidence gathering techniques have to be approved before they can be used.
Sergej Bernotas Came Out As a Winner
For now, uTorrent and for that matter all other BitTorrent clients remain uncertified as proper evidence collection tools. To be used as such, the developers would also have to give their approval, something that obviously didn’t happen in this case.
At the court hearing it also became clear that the police officer involved had no IT experience and simply carried out what LANVA told him to. When the policeman was asked what tools he used to gather evidence he replied “a computer” resulting in laughs from the audience.
Aside from the action against several LinkoManija users, the alleged operator of the site is also facing legal action from LANVA and Microsoft. In January software giant Microsoft sued the alleged operator, demanding $43 million from the defendant and his company for assisting in the illegal distribution of Office 2003 and 2007.
The case against the operator is still ongoing, but today’s ruling makes it unlikely that LANVA will be successful in pursuing the site’s users. The anti-piracy outfit does have the option to appeal, but if they do the case won’t be heard before the coming winter.
Article from: TorrentFreak, check out our new blog at FreakBits.
15.Mar.10 TorrentFreak Comments Off
Despite many rulings which have declared file-sharing sites legal if they don’t profit directly from copyright infringements, in recent years its become something of a custom in Spain for music rights groups to attempt to close down sites in advance of a full hearing to assess their legality.
One such case involves eDonkey link site elrincondejesus.com and although fairly low profile worldwide, the site will now start to set headlines.
Back in May last year, site and bar owner Jesus Guerra received a complaint from music group SGAE (Sociedad General de Autores y Editores) which alleged the site abused the copyrights of its members.
In a June court appearance, SGAE hoped to get an early injunction to shut Elrincondejesus immediately in advance of a full hearing which would happen at a later date. Guerra protested that his site is legal, carries no advertising and simply provides links like any other search engine.
Judge Raul N. García Orejudo threw out the request for an immediate closure of the site in July, declaring: “P2P networks, as a mere transmission of data between Internet users, do not violate, in principle, any right protected by Intellectual Property Law.”
Now the full case has been heard and the outcome is nothing short of a disaster for SGAE.
In order to assess if there had been a breach of Spain’s Intellectual Property Act, the court had to decide if simply providing links to copyrighted works was the same as making those works available to the public. Judge Raul N. García Orejudo decided that offering an index of links and/or linking to copyright material is not the same as distribution and noted that under current law there is nothing which prohibits such sites from operating.
In making his decision the judge also looked at the finances of the site. He said the site was not a business since the operator of Elrincondejesus made no direct or indirect profits from its operation. Apparently on a roll after confirming non-profit file-sharing sites are legal, he gave users of those sites a nice surprise too.
“P2P networks are mere conduits for the transmission of data between Internet users, and on this basis they do not infringe rights protected by Intellectual Property laws,” he declared. Therefore, if an individual uses P2P networks like eDonkey or BitTorrent to obtain copyright material for non-profit reasons, the act is completely legal.
The outcome of this case is such bad news for SGAE it’s expected they will appeal the decision. Or get the law changed. Or both.
Article from: TorrentFreak, check out our new blog at FreakBits.
15.Mar.10 TorrentFreak Comments Off
This week there are two newcomers in the top 10. Oscar winner The Hurt locker is the most downloaded movie on BitTorrent.
The data for our weekly download chart is collected by TorrentFreak, and is for informational and educational reference only. All the movies in the list are DVDrips unless stated otherwise.
RSS feed for the weekly movie download chart.
Article from: TorrentFreak, check out our new blog at FreakBits.
15.Mar.10 TorrentFreak Comments Off
One of the most significant changes in the new uTorrent is uTP, the ‘micro transfer protocol’. UTP is a new and improved implementation of the BitTorrent protocol which is designed to be more network-friendly than its predecessor.
With uTP, uTorrent has become more network aware as it will throttle itself if congestion is detected in the network. The uTorrent teams hopes this improvement will eliminate the need for ISPs to throttle BitTorrent traffic, while its users should see less interference with other local applications.
The effectiveness of uTP is still being debated, but some people in the BitTorrent community have noticed another issue. According to some owners of private BitTorrent trackers, uTorrent is no longer playing fair. Since uTorrent users are the only ones using the new protocol, uTorrent favors its own kind over other clients.
This means that when connecting to other clients, uTorrent users will give preference to other uTorrent users, behavior that some have characterized as unfair. As a result, several private BitTorrent trackers have refused to put the newer uTorrent releases on their whitelists, effectively banning the client and forcing their users to stick with the older versions.
Simon Morris, BitTorrent’s VP of Product Management admits that the tracker owners have a point, but says that it is very hard to innovate without having to face such technical downsides. “This is part of the challenge of innovation… but hopefully a challenge we’ll overcome,” Morris told TorrentFreak.
“We’re well aware of these discussions and have been very receptive to the feedback we have received. uTP is being constantly tuned and like any advanced technology on the internet there are edge cases where there’s room for improvement,” Morris adds.
BitTorrent Inc. has opened up the specifications of the uTP protocol and hosted a conference in their San Fransisco offices a few weeks ago to discuss uTP in detail with developers of some of the most popular Bittorrent clients. According to Morris, other popular client developers have shown interest in implementing uTP into their own applications.
Widespread support for the new protocol would of course be the easiest way to get rid of the unfairness allegations, but uTorrent’s major competitor Vuze has no plans to support uTP in the short term. On the other hand, Vuze doesn’t believe the unfairness will result in a noticeable disadvantage for its users.
“In terms of speed, we do not buy-in to the ‘threat’ cited by some, claiming that uTP can result in slower downloads for non-uTP clients due to uTP clients favoring each other during the torrent cold start phase,” Olivier Chalouhi, CTO told TorrentFreak.
Vuze is keeping a close eye on how uTP evolves and will consider adding it to their own client as the technology matures. For now Vuze will continue to work on their own congestion solutions and speed improvements. They have already added UDP transfer support, but not as the primary protocol.
“Vuze added support for UDP transport a few years ago, as a fallback for when TCP connection attempts fail. To date, Vuze chose not to implement UDP as a first-class protocol, as we consciously wanted to avoid claims of a Vuze-specific protocol bias, which we do not believe serves the BitTorrent community at large,” Chalouhi said.
Whether uTorrent’s choice to push uTP forward results in any significant disadvantages for users of other clients is still open for debate. BitTorrent Inc. is, however, committed to play fair and will make the necessary adjustments where needed.
Thus far, only a few private trackers have decided to ban uTorrent and there are currently no signs that it will spread out to more.
Article from: TorrentFreak, check out our new blog at FreakBits.
14.Mar.10 TorrentFreak Comments Off
