Rightscorp (previously) is the extortion outfit that terrifies people into paying it money for unproven accusations of copyright violations, enlisting ISPs to cut off subscribers who won't cough up.
Despite high-profile support from some of the copyright industry's biggest players, the company has been in a financial death-spiral, under increasing scrutiny over its illegal tactics, and its inability to win in court.
Now, the company's latest filings show that its Q3/2017 "settlement" revenues are down 48% compared to Q3/2016, and its losses for the first three quarters of this year are up to a total of $1,448,899, a significant increase over its 2016/Q1-3 losses of $1,380,698.
The company finished September 2017 with only $3,147, and was forced to issue 2.5m new shares and sell them for a total of $50,000 just to keep the lights on. The company has warned its investors that without an infusion of at least $250K-500K it will likely cease to operate.
The company suggests that such an infusion would allow it to shift its business model to weaponizing surveillance data it has amassed on downloaders, so that rightsholders can sue ISPs for not disconnecting users.
This selling of ‘pirate’ data is listed by Rightscorp in its financial reports as “consulting services” and thus far at least, it’s proving to be a crucial source of income.
“During the three months ended September 30, 2017, we generated revenues of $76,666 from consulting services rendered under service arrangements with prominent trade organizations,” Rightscorp reports.
“Under the agreements, the Company is providing certain data and consultation regarding copyright infringements on such organizations’ respective properties. During the three months ended September 30, 2016, we had no consulting services revenue.”
Rightscorp: Revenue From Piracy Settlements Down 48% in 2017 [Andy/Torrentfreak]