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Prenda law judge says porno copyright trolls are frauds, identity thieves; $80K in fines and disbarment pending

Judge Wright has issued his long-awaited ruling in the case of Prenda Law, the notorious porno copyright trolls who used fraud and bullying to extort millions from Internet users by threatening to sue them for downloading pornography videos with embarrassing titles. Prenda used a combination of offshore shell companies, obfuscation, and even identity theft to disguise the ownership of their con, and when they landed before Judge Wright, it all started to unravel.

The judge has fined Prenda $80,000 ($40K in fees, doubled for punitive measure) and asked the FBI to investigate them for racketeering. He held that their operation was a fraud, that they had committed identity theft, and, importantly, identified Steele, Hansmeier, and Paul Duffy as the "de facto owners" of Prenda. He's asked the lawyers' bar associations to have them disbarred. And he made a lot of Star Trek references!

Nevertheless, it is clear that the Principals’ enterprise relies on deception. Part of that ploy requires cooperation from the courts, which could only be achieved through deception. In other words, if the Principals assigned the copyright to themselves, brought suit in their own names, and disclosed that they had the sole financial interest in the suit, a court would scrutinize their conduct from the outset. But by being less than forthcoming, they defrauded the Court. They anticipated that the Court would blindly approve their early-discovery requests, thereby opening the door to more settlement proceeds.

As for penalties, they begin with attorneys' fees. Prenda will have to pay these to the two defense lawyers who have been instrumental in this case: Morgan Pietz and Nicholas Ranallo. Wright awards $36,150 in fees to Pietz, $1,950 in fees to Ranallo, as well as legal costs (copying and filing fees, for example) to both. He then doubles the amount "as a punitive measure," arriving at $81,319.72. In a footnote, Wright says that the sum "is calculated to be just below the cost of an effective appeal"—a final dig at the Prenda business model of settlement offers just below the cost of defense. The Prenda folks have 14 days to pay up.

The harshest penalties are saved for last. First, Judge Wright suggests the Prenda lawyers should be disbarred, writing "there is little doubt that Steele, Hansmeier, Duffy, [and] Gibbs suffer from a form of moral turpitude unbecoming an officer of the court." In many states, including California, crimes reaching the standard of "moral turpitude" lead to automatic disbarment. Wright will be referring the four lawyers to every state bar in which they are admitted to practice...

Third, though Plaintiffs boldly probe the outskirts of law, the only enterprise they resemble is RICO. The federal agency eleven decks up is familiar with their prime directive and will gladly refit them for their next voyage. The Court will refer this matter to the United States Attorney for the Central District of California. The [court] will also refer this matter to the Criminal Investigation Division of the Internal Revenue Service and will notify all judges before whom these attorneys have pending cases.

Prenda hammered: Judge sends porn-trolling lawyers to criminal investigators [Joe Mullin/Ars Technica]

Former FBI counterterrorism agent implies that US records all US phone calls


Glenn Greenwald notes the alarming revelation from a CNN Out Front interview between host Erin Burnett and Tim Clemente, "a former FBI counterterrorism agent," where Clemente claimed that the FBI had access to recordings of every phone call made in America:

BURNETT: Tim, is there any way, obviously, there is a voice mail they can try to get the phone companies to give that up at this point. It's not a voice mail. It's just a conversation. There's no way they actually can find out what happened, right, unless she tells them?

CLEMENTE: "No, there is a way. We certainly have ways in national security investigations to find out exactly what was said in that conversation. It's not necessarily something that the FBI is going to want to present in court, but it may help lead the investigation and/or lead to questioning of her. We certainly can find that out.

BURNETT: "So they can actually get that? People are saying, look, that is incredible.

CLEMENTE: "No, welcome to America. All of that stuff is being captured as we speak whether we know it or like it or not."

Are all telephone calls recorded and accessible to the US government? (via /.)

12-year-old calls out cop for illegal parking, cop refuses to provide badge number

In this short video, a young man who identifies himself as a 12-year-old named Jeremy approaches a Las Vegas Metro motorcycle cop who has illegally parked his motorcycle on a sidewalk, apparently in order to get a soft drink. The young man politely asks the cop if he had any emergency reason to park, and then requests his badge number. The cop refuses to answer either question, and asks Jeremy if he is a lawyer. Jeremy avows again that he is a 12-year-old, and reiterates his request for a badge number. The cop continues to refuse, and eventually drives off. Perhaps the officer can be identified through this footage and reported to a superior who can work with him to correct his misunderstandings about his relationship to the law and his obligations to the public.

Cop called out by a 12 year old for illegally parking his motorcycle. Refuses to give his badge number. (youtube.com)

CISPA is not dead! It's coming back -- get ready!


Evan from Fight for the Future sez, "All of your phone calls, emails, petition signatures, and tweets are working. The privacy-killing back-from-the-dead zombie bill CISPA is a bit stalled in the Senate, with over $605 million in lobbying spent on it already, it's bound to be back to haunt us in some form soon. So we made an infographic to get everyone up to speed. This Spring, we'll be organizing the largest online privacy protest in history, to send this bill back where it belongs. Join us?"

Read the rest

Infographic: how money corrupts Congress, and what to do about it


Money wins Elections is an excellent, scrolling infographic that illustrates how money corrupts the American legislative process, showing that time and again, Congress has voted the way that the big money told it to, against the prevailing popular opinion. It's all in support of the American Anti-corruption Act, and it was created by Tony Chu for part of his MFA thesis project.

Money wins Elections

Bloomberg publishes CEO-to-employee-pay chart


Alan sez, "Bloomberg got tired of waiting for the SEC to implement its own rule requiring disclosure of data on how many times the median salary the CEO makes for publicly traded companies so they did a little sleuthing of public data and a little averaging math and calculated the ratio for the top 250 of the S&P 500 companies. The data are searchable and sortable and there's space for companies to comment, which quite a few have done. To my surprise Oracle is not #1, though it is the only tech firm in the top 10."

Top CEO Pay Ratios (Thanks, Alan!)

How Congress flies

You know how aviation is a spiralling horror-show of discomfort and bad service? Well, not if you're in Congress:

At Washington’s Reagan National Airport, they have their own special parking spaces—right up close to the terminal—that they don’t even have to pay for. As Bloomberg Television’s Hans Nichols reports, this perk costs the Metropolitan Washington Airport Authority $738,760 in foregone revenue. (The best part of this clip, though, is seeing Republican Senator Rand Paul of Kentucky haul ass to get away from Bloomberg’s cameraman.)

Being a member of Congress also means never having to rush to catch a flight. The airlines allow lawmakers the special privilege of simultaneously booking themselves on multiple flights, so that if they are late or their flight is canceled, they’re guaranteed a spot on the next one. A few years ago, a prominent senator paused in the middle of a conversation with me to bark at an aide, “Book me on the 6, 7, and 8 p.m. shuttles!”

To members of our fly-in-Tuesday-fly-home-Thursday Congress, these perks are a big deal. Most fly a lot, and many fly first class

The Pampered World of Congressional Air Travel [Businessweek/Joshua Green]

(via Digg)

Rumored Statue of Liberty face-recognition supplier harasses and threatens journalist

Slate's Ryan Gallagher caught wind of a new face recognition software being rolled out at the Statue of Liberty. He interviewed a rep from Total Recall, who were reported to be representing Cognitec, the German company whose product, FaceVACS was going in on Liberty Island. Halfway through the interview, Total Recall's director of business development Peter Millius terminated the call, saying that the project was on hold, or possibly cancelled, "vetoed" by the Park Police.

Then it got weird. Cognitec and its lawyers began to barrage Gallagher with emails and letters warning him that if he wrote about this, they'd sue him. When he asked Total Recall for clarification, they threatened to sue him, personally, for harassment. The National Park Service didn't have much to say about the bid, saying "I'm not going to show my hand as far as what security technologies we have." Go, security-through-obscurity! Hurrah for spending tax dollars without any transparency!

Gallagher reported the whole story, including the threats. Whatever merits or demerits Total Recall and Cognitec have as companies, turning into weird, opaque legal-threat-generating machines in the middle of an interview and harassing and intimidating journalists sounds like the kind of thing that should disqualify them from getting any of the American public's money.

“We do work with Cognitec, but right now because of what happened with Sandy it put a lot of different pilots that we are doing on hold,” Peter Millius, Total Recall’s director of business development, said in a phone call. “It’s still months away, and the facial recognition right now is not going to be part of this phase.” Then, he put me hold and came back a few minutes later with a different position—insisting that the face-recognition project had in fact been “vetoed” by the Park Police and adding that I was “not authorized” to write about it.

That was weird, but it soon got weirder. About an hour after I spoke with Total Recall, an email from Cognitec landed in my inbox. It was from the company’s marketing manager, Elke Oberg, who had just one day earlier told me in a phone interview that “yes, they are going to try out our technology there” in response to questions about a face-recognition pilot at the statue. Now, Oberg had sent a letter ordering me to “refrain from publishing any information about the use of face recognition at the Statue of Liberty.” It said that I had “false information,” that the project had been “cancelled,” and that if I wrote about it, there would be “legal action.” Total Recall then separately sent me an almost identical letter—warning me not to write “any information about Total Recall and the Statue of Liberty or the use of face recognition at the Statue of Liberty.” Both companies declined further requests for comment, and Millius at Total Recall even threatened to take legal action against me personally if I continued to “harass” him with additional questions.

Lady Liberty’s Watching You (via Reddit)

(Image: Statue of Liberty Paris, a Creative Commons Attribution (2.0) image from francehousehunt's photostream)

What's big, corrupt, terrifying and worse than ACTA? TPP. Here we go again!


Remember ACTA, the terrifying, secret SOPA-on-steroids copyright treaty that the US government tried to ram down the world's throat? Well, it's back, only this time it's called the Trans-Pacific Partnership, and it's limited (for now) to the Pacific Rim. The TPP negotiators are meeting (in secret, natch) in Peru to twirl their mustaches and cackle, and EFF has posted a great infographic summing up their nefarious plan (see the whole thing after the jump):

The TPP is likely to export some of the worst features of U.S. copyright law to Pacific Rim countries: a broad ban on breaking digital locks on devices and creative works (even for legal purposes), a minimum copyright term of the lifetime of the creator plus seventy years (the current international norm is the lifetime plus fifty years), privatization of enforcement for copyright infringement, ruinous statutory damages with no proof of actual harm, and government seizures of computers and equipment involved in alleged infringement. Moreover, the TPP is worst than U.S. copyright rules: it does not export the many balances and exceptions that favor the public interest and act as safety valves in limiting rightsholders’ protection. Adding insult to injury, the TPP's temporary copies provision will likely create chilling effects on how people and companies behave online and their basic ability to use and create on the Web.

Read the rest

When trademark becomes a tool for stealing our language

My latest Guardian column is "Trademarks: the good, the bad and the ugly," and it looks at why trademark, at its best, does something vital -- but how trademark can be abused to steal common words from our language and turn them into a twisted kind of pseudo-property.

Trademark lawyers have convinced their clients that they must pay to send a threatening notice to everyone who uses a trademark without permission, even where there is no chance of confusion. They send letters by the lorryload to journalists, website operators, signmakers, schools, dictionary publishers – anyone who might use their marks in a way that weakens the association in the public mind. But weakening an association is not illegal, despite the expansion of doctrines such as "dilution" and "naked licensing."

When called out on policing our language, trademark holders and their lawyers usually shrug their shoulders and say, "Nothing to do with us. The law requires us to threaten you, or we lose our association, and thus our mark." This is a very perverse way of understanding trademark.

The law is there to protect the public interest, and the public interest isn't undermined by the strength or weakness of an association with a specific word or mark with a specific company. The public interest extends to preventing fraud, and trademark uses the motivation of protecting profits to incentivise firms to uphold the public interest.

Trademarks: the good, the bad and the ugly

Congress fixes "sequester" air traffic control disaster just in time for their own flights home


The Congressional deadlock known as the sequester has been tough on America, especially on travellers, as air traffic controllers found themselves with mandatory 10% paycuts (attained through one-day-in-ten furloughs) and the delays on good-weather days at major airports like JFK shot up to snowpocalypse-like 2-3 hour slogs. But don't worry, Congress is on it! They've fixed things for the air traffic controllers -- and just in time! After all, Congress is recessing, and the Congresscritters themselves will all have to fly home.

Unlucky for them -- and the rest of America -- many of the most experienced air traffic controllers who'd been delaying retirement threw up their hands at this situation and left their jobs permanently, leaving a talent gap in one of America's most vital and esoteric industries.

On Thursday night and Friday afternoon, however, the Senate and House were literally moved to action by jet fumes: Congress rushed legislation to patch funding for air traffic controllers furloughed by the automatic budget cuts known as the “sequester” just before jetting home for a week in their states.

The Senate passed the bill without a vote Thursday night. House lawmakers approved the legislation, 361-41, before scampering out of town Friday.

The legislation stopped FAA staff reductions that left planes idling on runways across the country and canceled some flights altogether.

Before members rush for airports, Congress ends sequester flight delays [David Grant/Christian Science Monitor]

(Image: AIR TRAFFIC CONTROL, CONTROL TOWER (INTERIOR), a Creative Commons Attribution (2.0) image from publicresourceorg's photostream)

Debunking the HTML5 DRM myths


Kyre sez, "The Free Culture Foundation has posted a thorough response to the most common and misinformed defenses of the W3C's Extended Media Extensions (EME) proposal to inject DRM into HTML5. They join the EFF and FSF in a call to send a strong message to the W3C that DRM in HTML5 undermines the W3C's self-stated mission to make the benefits of the Web 'available to all people, whatever their hardware, software, network infrastructure, native language, culture, geographical location, or physical or mental ability.' The FCF counters the three most common myths by unpacking some quotes which explain that 1.) DRM is not about protecting copyright. That is a straw man. DRM is about limiting the functionality of devices and selling features back in the form of services. 2.) DRM in HTML5 doesn't obsolete proprietary, platform-specific browser plug-ins; it encourages them. 3.) the Web doesn't need big media; big media needs the Web. There is also a new coalition of 27 internet freedom companies and groups standing up to the W3C."

Don’t let the myths fool you: the W3C’s plan for DRM in HTML5 is a betrayal to all Web users.

Canada Post claims exclusive use of the words "postal code"

Canada Post -- a failing, state-owned Crown Corporation -- not only claims a copyright on the database of postal codes (a collection of facts, and not the sort of thing that usually attracts copyright). They also claim a trademark on the words "postal code," and have sent legal threats to websites that use the words factually, to describe actual postal codes.

Canada Post disagrees. The crown corporation now argues that the very term “postal code” is subject to a trademark owned by Canada Post. Anyone using the term “postal code,” therefore, does so at their own risk.

“Canada Post has adopted and used Canadian Official Mark POSTAL CODE,” the statement of claim reads. “The Defendants have passed off their wares and services as and for those of Canada Post contrary to section 7(c) of the Trade-marks Act.”

What this means is Canada Post is changing direction in their lawsuit against Geolytica.

Geolytica has argued since the lawsuit began that they did not copy the Canada Post postal code database, but instead built their own based on the feedback of their own users. They crowd-sourced it. This makes Canada Post’s original copyright claim trickier, even if you set aside the facts vs. intellectual property argument.

Canada Post says they hold trademark on the words ‘postal code’

UK ISPs betray customers, collaborate on government surveillance

Britain's Communications Data Bill -- AKA the Snooper's Charter -- would effectively eliminate private communications in the UK, giving government and the police the power to spy on virtually everything you do online (which is rapidly merging with everything you do, full stop). The major ISPs in the UK have apparently been turned to the government's cause, and have been quietly supporting the bill, which strips their customers of any semblance of privacy.

The government defends this proposal by saying that they're not intercepting "messages," only "envelopes." That is, they'll get the subject lines, social graph data, who is talking, where, how often, and who replies, how long the messages are, and so on. I like to imagine Alan Turing taking this approach to informational significance: "Mr Churchill, I'm sorry, there's no point in what you're asking us to do: all we can decode from the Nazis is who is sending messages, who receives them, what they're about, where they're sent from, how often they're sent, and how long they are. Nothing compromising." (Then I imagine the ghost of Turing haunting Home Secretary Teresa May, who claims that none of that kind of data compromises Britons' privacy).

In an open letter to the major ISPs, the Open Rights Group, Big Brother Watch, and Privacy International accuse the ISPs of entering into a conspiracy of silence on the surveillance system:

It has become clear that a critical component of the Communications Data Bill is that UK communication service providers will be required by law to create data they currently do not have any business purpose for, and store it for a period of 12 months.

Plainly, this crosses a line no democratic country has yet crossed – paying private companies to record what their customers are doing solely for the purposes of the state.

These proposals are not fit for purpose, which possibly explains why the Home Office is so keen to ensure they are not aired publicly.

There has been no public consultation, while on none of your websites is there any reference to these discussions. Meetings have been held behind closed doors as policy has been developed in secret, seemingly the same policy formulated several years ago despite widespread warnings from technical experts.

That your businesses appear willing to be co-opted as an arm of the state to monitor every single one of your customers is a dangerous step, exacerbated by your silence

Consumers are increasingly concerned about their privacy, both in terms of how much data is collected about them and how securely that data is kept. Many businesses have made a virtue of respecting consumer privacy and ensuring safe and secure internet access.

Sadly, your customers have not had the opportunity to comment on these proposals. Indeed, were it not for civil society groups and the media, they would have no idea such a policy was being considered.

We believe this is a critical failure not only of Government, but a betrayal of your customers' interests. You appear to be engaged in a conspiracy of silence with the Home Office, the only concern being whether or not you will be able to recover your costs.

ISPs In ‘Conspiracy Of Silence’ With Government On Snooper’s Charter (via ./)

CISPA: Congress wants to create unlimited Internet spying powers - KILL THIS BILL! KILL IT WITH FIRE!

CISPA is the latest Congressional proposal to do something unbelievably horrible with the Internet -- this time, it's letting US law enforcement and intelligence service raid all of your data, all the time, without letting you know, regardless of your service provider's privacy policy, in the name of preventing "cyberattacks," whatever they are.

It's about as horrible as it can be: the House Rules Committee won't even allow privacy-protecting amendments on the agenda; the bill's sponsor Rep. Mike Rogers dismisses people who oppose CISPA as 14-year-olds in their parents' basements; and a bunch of tech companies are lobbying in favor of CISPA because the bill cannily immunizes them from liability for firehosing your personal, sensitive information all over the place.

The sole bright light is this: the Obama White House has taken an uncharacteristically progressive stance on privacy this time around, and has threatened to veto the bill.

The Electronic Frontier Foundation is, as always, the best place to go to find things you can (and should, and MUST) do to kill this insane proposal.

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