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March 27, 2008 12:46 PM PDT

After TorrentSpy closure, what's next for MPAA?

by Greg Sandoval

The movie industry has seen mixed results from suing individuals for file sharing but continues to clobber BitTorrent search engines.

TorrentSpy, once one of the most popular indexes of BitTorrent files, shut down on Monday following a two-year copyright battle with the Motion Picture Association of America (MPAA). TorrentSpy, accused in a lawsuit of encouraging copyright infringement, finally crumpled under the legal costs.

This can't come as good news to Gary Fung, chief executive of IsoHunt. His company was among a group of torrent-file search engines, which also included TorrentSpy, accused of copyright infringement in a 2006 lawsuit filed by the MPAA. With TorrentSpy gone, the MPAA can now set its sights on IsoHunt.

But Fung points out that TorrentSpy was never able to argue the main copyright issues in court. The presiding judge found in favor of the film studios after ruling that TorrentSpy destroyed evidence. Fung says he is determined to take up the copyright issue to the end. Unlike TorrentSpy, he doesn't care what it costs.

"The demise of TorrentSpy is a clear victory for the content industries and sends a clear message to operators of other illegal BitTorrent portals that they will not be allowed to operate in the United States without facing relentless litigation by copyright holders."
--statement from MPAA

The courts have not yet ruled on whether search tools can be held liable for copyright infringement. Most relevant cases have been settled before going to trial, copyright experts said. It's important to note that IsoHunt and TorrentSpy don't store any unauthorized movie files on their sites but the search engines are often used to find pirated copies.

"There is no reason for us not to see this through. We've come this far," Fung told CNET News.com on Thursday. "TorrentSpy shutting down doesn't mean a victory for the MPAA. The judge declared that TorrentSpy didn't adhere to court procedures. That's different than a judge deciding against the company after hearing their arguments."

But Fung is up against an MPAA legal juggernaut that is playing on its home turf, is fresh off a series of court victories, and has plenty of money. The lobbying group for the six largest movie studios said in a statement on Thursday that it took issue with TorrentSpy's suggestion earlier this week that it lost on a technicality.

"TorrentSpy's characterization of the site's closure as a voluntary decision conveniently ignores the fact that after two years of intense litigation by the major Hollywood studios, a federal court found TorrentSpy liable for copyright infringement," the MPAA said in the statement. "Late last year the court imposed the harshest sanction against the TorrentSpy defendants and ruled in favor of the studios because of TorrentSpy's brazen, continuous, and systematic destruction of evidence and subversion of the judicial process. In short, the ruling meant that TorrentSpy would have to shut down their site sooner or later."

The MPAA's case against IsoHunt is in the U.S. District Court of Central California in Los Angeles, which is perceived by many to be extremely friendly to copyright holders.

Whether that is true, the film industry has racked up plenty of file-sharing victories. Besides TorrentSpy, the MPAA was blamed for driving LokiTorrent and SuprNova.org out of business. And more recently, the MPAA won important legal precedents in the TorrentSpy case.

In June, TorrentSpy was ordered by a federal judge to provide the film studios with user information found in the company's computer RAM. TorrentSpy filed an appeal and argued that data in a computer's RAM was too temporary to be considered "stored information," and that it was impractical for companies to produce such material as part of a civil suit.

In August, the judge denied TorrentSpy's appeal. The decision will conceivably enable the MPAA to gain access to users' personal information in similar cases, say legal experts.

"The demise of TorrentSpy is a clear victory for the content industries," the MPAA said in its statement, "and sends a clear message to operators of other illegal BitTorrent portals that they will not be allowed to operate in the United States without facing relentless litigation by copyright holders."

Fung said he's been fighting the MPAA's attempts to require him to turn over user logs on the grounds that his company is based in Canada, which has stricter privacy laws than the United States.

But the 25-year-old CEO acknowledges that the U.S. and Canadian governments have agreed to honor court decisions in each other's countries.

"IsoHunt is located in Canada and has a slightly different set of circumstances than TorrentSpy," said IsoHunt's attorney, Ira Rothken, who also represented TorrentSpy. "IsoHunt is waiting for the (judge's decision) on a motion for summary judgment. The company is looking forward to defending itself and being the first to go to trial in a search-engine case."

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) (8 Comments)
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ironic
by Dalkorian March 27, 2008 2:28 PM PDT
Isn't it ironic that the MPAA and RIAA's actions over the last few
years has made me WANT to go find "illegal" movies and music? I
certainly will NOT support their archaic, outdated and obsolete
business models! May they burn in hell.
Reply to this comment
It's all about choice now!
by Mercury23 March 27, 2008 9:05 PM PDT
We have the ability to sample music and movies like never before. If there is a movie we are unsure of, we can download it and see if it's worth buying. We now have the ability to buy individual songs, listen to 30 second samples of them to determine if they are worth buying or we can download a full album in 5 minutes on bittorrent to see if it's worth getting.

The RIAA needs to understand that their business model is outdated. Consumers are educated now and they can no longer get us to buy a CD that contains only 2 good tracks. It's a new era and they need to learn to adapt.

MPAA is in a similar pickle and I am surprised that they let sites like NetFlix operate. I know tons of people who rent from NetFlix and rip the movies before sending them back. That should be enough to give any lawyer hired by the MPAA a spastic colon.
Don't buy music, don't rent movies
by savagesteve13 March 27, 2008 2:45 PM PDT
The only way the RIAA/MPAA will be hurt if the people stop buying their garbage.
Get a hobby, go to school, get fit, but don't be a slave to an industry that hates the very same people that keep them in business.
Reply to this comment
Money going to waste
by kyle172 March 27, 2008 3:11 PM PDT
Why spend millions of dollars in court fees and lawyers when buy now they could of had their own movie rental shop online
Reply to this comment
Well,
by GlennAllen March 27, 2008 3:55 PM PDT
for the one or two movies a year that "Hollywood" makes that are actually worth watching, I can wait another year or more to watch for nothing on some free channel or website (hulu for now and the near future). And if I really want to own it so I can watch it whenever I want (without commercial breaks and "editing"), then maybe--maybe!--I'll wait till the DVD is on sale for $4 or $5 at Best Buy or Circuit City or wherever. There are so few being made now that are worth watching, it's hardly worth my time to pay that much attention.
Reply to this comment
When they take down TPB, I'll be impressed.
by Penguinisto March 27, 2008 4:56 PM PDT
Seriously - when/if the MPAA manages to take down The Pirate Bay, then I'll be impressed by their course of action.* Anything else is just 'low-hanging fruit' for lack of a better term.

/P

*the MPAA has tried, by means legal and (IMHO) illegal, to do so... so far, The Pirate Bay is still online.
Reply to this comment
Speaking of...
by Mercury23 March 27, 2008 9:07 PM PDT
Demonoid's tracker came back online last month :)

TorrentSpy was filled with a lot of garbage and low quality rips.

I miss Oink.cd (RIP)
Hilarious
by badasscat March 27, 2008 7:58 PM PDT
This is like trying to get rid of all the ants in the world by picking up one ant at a time, crushing it between your fingers, then putting out a press release after killing each ant saying all the other ants had better watch out, because there's nowhere to run!

This litigation campaign is no less laughable, and hasn't been since that first Napster "victory". Yay, the **AA beat Napster, so piracy is dead, right? Meanwhile, 6-7 years later...

What a waste of money.
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