French Appear Ready to Soften Law on Media Piracy

In 2009, French lawmakers, aiming to curb unauthorized file-sharing and to slow the erosion of media industry revenue, approved what was billed as the toughest anti-piracy law in the world. Repeat offenders who ignored two warnings to quit downloading movies or music illegally were confronted with the prospect of a suspension of their Internet connection. The system was emulated in several other countries, including the United States, though generally with softer penalties.

But now the government of President François Hollande appears poised to shut down the agency that was created to enforce the law, imposed under Mr. Hollande’s predecessor, Nicolas Sarkozy, and to defang the measure of much of its menace.

Fleur Pellerin, the French minister in charge of Internet policy, said during a recent visit to a high-technology complex in Sweden that suspending Internet connections was incompatible with the French government’s hopes of spurring growth in the digital economy.

“Today, it’s not possible to cut off Internet access,” she said. “It’s something like cutting off water.”

A report on digital policy that was prepared for the government by Pierre Lescure, the former president of the pay-television company Canal Plus, in April recommended dropping the threat of disconnections and replacing it with a fine of €60, or $78, for repeat offenders. The report also recommended disbanding the enforcement agency, known by its French acronym, Hadopi, and subsuming some of its functions in the French media regulator, Conseil supérieur de l’ audiovisuel.

While government ministers have voiced support for Mr. Lescure’s recommendations, some lawmakers, including Patrick Bloche, an influential Socialist deputy, have suggested that the administration should go further and simply scrap the entire system of warnings and potential penalties.

Despite all the debate that the system has prompted, in and outside France, evidence of its effects remains skimpy. A study by researchers at Wellesley College near Boston and Carnegie Mellon University in Pittsburgh that was published last year showed that the threat of disconnection was directing more French Internet users toward Apple’s iTunes store, a licensed source of digital music. Separate studies, commissioned by Hadopi, have shown a decline in illegal file sharing.

Yet the French music business remains deeply troubled. SNEP, a French recording company group, said Friday that industry revenue fell by 6.7 percent in the first quarter of the year. More alarmingly, revenue from digital outlets fell by 5.2 percent — the first quarterly decline — though the organization said several special factors played a role in this.

Meanwhile, SNEP said the number of visits to illegal music sites by French Internet users had risen by 7 percent between January 2010 and January 2013, to 10.7 million.

Guillaume Leblanc, director general of SNEP, said the group was willing to accept dropping the threat of disconnection, as long as the warning system was preserved, but said the proposed €60 fine was too low.

“Maintaining graduated response is essential for the music industry,” he said. “For the legal offer to keep developing, it’s important to have strong copyright protection on the Internet.”

While Hadopi has sent out hundreds of thousands of warnings to those suspected of being pirates, only a handful of cases have reached the third and supposedly final stage. Several of these were thrown out by the courts; others resulted in fines or suspended sentences.

“If you cannot chop off a few heads as an example, then the chopping machine inspires less fear,” said Jérémie Zimmermann, spokesman for La Quadrature du Net, a group that has campaigned against the law.

Supporters of the law say cutting off large numbers of Internet connections was never the point.

Dead Trigger Faces Rampant Piracy on Android

It's been said many times that Android developers find it hard to make money on Google's mobile platform, and this sad tale is further proof of that.

Developer Madfinger Games announced via Facebook on Monday that it's making its zombie first-person shooter Dead Trigger free on the Android platform, down from the lowly price of only 99 cents.

 

But it's not a new "freemium" model that drove Madfinger's decision: It's what they refer to as the "unbelievably high" piracy rate on Android.

"At first we intend to make this game available for as many people as possible -- that's why it was for as little as buck," the developer explained on Facebook. "However, even for one buck, the piracy rate is soooo giant, that we finally decided to provide DEAD TRIGGER for free.

"Anyway, DEAD TRIGGER is not FREEMIUM, it always was and still remains FREE-TO-PLAY, that means, all players are able to play it without IAP (in-app purchase)!" the statement concludes.

While recent hacks have compromised in-app purchases on iOS, such a move would still be almost laughable on Apple's mobile platforms, where the App Store enjoys a much higher level of security for all but a select few jailbreakers. But it's a sad statement on the Android platform, when users aren't willing to part with even a buck to indulge in a quality game.

Meanwhile, Madfinger still offers Dead Trigger for 99 cents on Apple's mobile platform, and apparently has no plans to change its pricing scheme there.

U.S. Pursues Richard O’Dwyer as Intermediary in Online Piracy

Richard O’Dwyer, an enterprising 24-year-old college student from northern England, has found himself in the middle of a fierce battle between two of America’s great exports: Hollywood and the Internet.

At issue is a Web site he started that helped visitors find American movies and television shows online. Although the site did not serve up pirated content, American authorities say it provided links to sites that did. The Obama administration is seeking to extradite Mr. O’Dwyer from Britain on criminal charges of copyright infringement. The possible punishment: 10 years in a United States prison.

The case is the government’s most far-reaching effort so far to crack down on foreigners suspected of breaking American laws. It is unusual because it goes after a middleman, who the authorities say made a fair amount of money by pointing people to pirated content. Mr. O’Dwyer’s backers say the prosecution goes too far, squelching his free-speech right to publish links to other Web sites.

Mr. O’Dwyer did not respond to requests for an interview, but his mother, Julia, a nurse with the state-run health service, described him as a somewhat reserved young man who grew up playing Super Mario games on his computer and became devoted to coding. He studies interactive media and animation at Sheffield Hallam University and, his mother said, long ago spent the money he had made from his Web site.

“He would take his mates to the cinema and pay for them,” she said.

No matter how Mr. O’Dwyer’s legal problems are resolved, the case against him reflects the complexities of wrestling with piracy in the digital age.

The entertainment industry lobbied Congress hard for the Stop Online Piracy Act, or SOPA, which was withdrawn this year after an online uproar led by Web companies and their consumers. Another bill on Capitol Hill would establish intellectual property attachés in American embassies. An international antipiracy treaty, the Anti-Counterfeiting Trade Agreement, or ACTA, was roundly rejected last week by the European Parliament.

In the last two years, the Obama administration has closed about 800 Web sites suspected of piracy, including those that stream new Hollywood films. In a widely publicized case, the Justice Department has sought to extradite the operators of Megaupload, a site that let users anonymously share movies and music, on criminal copyright infringement.

“There is a problem of copyright infringement on the Internet, and copyright owners have been struggling over how to deal with that,” said Mark A. Lemley, a Stanford law professor who has represented Internet companies like Google in intellectual property disputes. “The U.S. government is aggressively getting involved in turning what used to be civil lawsuits into criminal cases. The combination of that and reaching across the border is new.”

The extradition case against Mr. O’Dwyer has turned him into something of a cause célèbre. Wikipedia’s founder, Jimmy Wales, is leading a crusade to save him, with an online petition that has gathered over 225,000 signatures worldwide in two weeks.

Still, the British home secretary, Theresa May, approved the extradition order in March and said Monday that she would let the order stand. Mr. O’Dwyer has appealed; a hearing in Britain is expected this fall.

His lawyer did not respond to requests for comment. The federal prosecutors in New York who are handling the case also declined to comment. The criminal complaint against Mr. O’Dwyer is sealed.

Mr. O’Dwyer’s story began in 2008 when he set up his Web site, TVShack.net, which allowed users to search for and link to other sites, including ones that the authorities say showed pirated movies and shows. Because the domain name was registered in the United States, it fell under the ambit of American law. The government shut down TVShack.net in summer 2010.

Mr. O’Dwyer was unbowed. TVShack.net had been growing in popularity, and it made about $230,000 from advertising over the course of two years, federal prosecutors say.

“America? They have nothing to do with me,” Mr. O’Dwyer’s mother said he had told her. He reopened his site as TVShack.cc, which he reckoned was beyond the reach of the United States.

A few months later came a knock on the door from the British police. A judge ruled that Mr. O’Dwyer would not be prosecuted in Britain. Instead, the United States would seek to extradite him.

His mother was stunned. “This is for fugitives and murderers and terrorists,” she recalled thinking. “Richard has never fled the scene of a crime. He has never left the U.K.!”

A judge released Mr. O’Dwyer on bail. On his mother’s orders, he shut down his site, which makes it difficult to tell how it operated.

At the heart of the O’Dwyer case is a question of what to do about Web sites that help users find unlicensed content.

This article has been revised to reflect the following correction:

Correction: July 16, 2012

An earlier version of this article rendered incorrectly part of the name of SOPA. It is the Stop Online Piracy Act, not Stop Internet Piracy Act.  

U.S. Pursues Richard O’Dwyer as Intermediary in Online Piracy

Richard O’Dwyer, an enterprising 24-year-old college student from northern England, has found himself in the middle of a fierce battle between two of America’s great exports: Hollywood and the Internet.

At issue is a Web site he started that helped visitors find American movies and television shows online. Although the site did not serve up pirated content, American authorities say it provided links to sites that did. The Obama administration is seeking to extradite Mr. O’Dwyer from Britain on criminal charges of copyright infringement. The possible punishment: 10 years in a United States prison.

The case is the government’s most far-reaching effort so far to crack down on foreigners suspected of breaking American laws. It is unusual because it goes after a middleman, who the authorities say made a fair amount of money by pointing people to pirated content. Mr. O’Dwyer’s backers say the prosecution goes too far, squelching his free-speech right to publish links to other Web sites.

Mr. O’Dwyer did not respond to requests for an interview, but his mother, Julia, a nurse with the state-run health service, described him as a somewhat reserved young man who grew up playing Super Mario games on his computer and became devoted to coding. He studies interactive media and animation at Sheffield Hallam University and, his mother said, long ago spent the money he had made from his Web site.

“He would take his mates to the cinema and pay for them,” she said.

No matter how Mr. O’Dwyer’s legal problems are resolved, the case against him reflects the complexities of wrestling with piracy in the digital age.

The entertainment industry lobbied Congress hard for the Stop Online Piracy Act, or SOPA, which was withdrawn this year after an online uproar led by Web companies and their consumers. Another bill on Capitol Hill would establish intellectual property attachés in American embassies. An international antipiracy treaty, the Anti-Counterfeiting Trade Agreement, or ACTA, was roundly rejected last week by the European Parliament.

In the last two years, the Obama administration has closed about 800 Web sites suspected of piracy, including those that stream new Hollywood films. In a widely publicized case, the Justice Department has sought to extradite the operators of Megaupload, a site that let users anonymously share movies and music, on criminal copyright infringement.

“There is a problem of copyright infringement on the Internet, and copyright owners have been struggling over how to deal with that,” said Mark A. Lemley, a Stanford law professor who has represented Internet companies like Google in intellectual property disputes. “The U.S. government is aggressively getting involved in turning what used to be civil lawsuits into criminal cases. The combination of that and reaching across the border is new.”

The extradition case against Mr. O’Dwyer has turned him into something of a cause célèbre. Wikipedia’s founder, Jimmy Wales, is leading a crusade to save him, with an online petition that has gathered over 225,000 signatures worldwide in two weeks.

Still, the British home secretary, Theresa May, approved the extradition order in March and said Monday that she would let the order stand. Mr. O’Dwyer has appealed; a hearing in Britain is expected this fall.

His lawyer did not respond to requests for comment. The federal prosecutors in New York who are handling the case also declined to comment. The criminal complaint against Mr. O’Dwyer is sealed.

Mr. O’Dwyer’s story began in 2008 when he set up his Web site, TVShack.net, which allowed users to search for and link to other sites, including ones that the authorities say showed pirated movies and shows. Because the domain name was registered in the United States, it fell under the ambit of American law. The government shut down TVShack.net in summer 2010.

Mr. O’Dwyer was unbowed. TVShack.net had been growing in popularity, and it made about $230,000 from advertising over the course of two years, federal prosecutors say.

“America? They have nothing to do with me,” Mr. O’Dwyer’s mother said he had told her. He reopened his site as TVShack.cc, which he reckoned was beyond the reach of the United States.

A few months later came a knock on the door from the British police. A judge ruled that Mr. O’Dwyer would not be prosecuted in Britain. Instead, the United States would seek to extradite him.

His mother was stunned. “This is for fugitives and murderers and terrorists,” she recalled thinking. “Richard has never fled the scene of a crime. He has never left the U.K.!”

A judge released Mr. O’Dwyer on bail. On his mother’s orders, he shut down his site, which makes it difficult to tell how it operated.

At the heart of the O’Dwyer case is a question of what to do about Web sites that help users find unlicensed content.

Tech and Media Executives Are Likely to Debate Piracy

But lately some of the highest-paid executives at the world’s largest media companies have talked a lot about the lessons they learned from a failed industrywide attempt to pass antipiracy legislation six months ago.

In January, the technology industry led by Google, Facebook and Wikipedia revolted against two bills called SOPA and PIPA — short for Stop Online Piracy Act and Protect Intellectual Property Act. The legislation, largely the product of media companies to protect movies, television shows, video games and music against online theft from rogue foreign Web sites, sparked a reaction that quickly shifted from an arcane policy debate to an online consumer rebellion.

Wikipedia went black to protest SOPA and more than seven million people signed online petitions, many of which said the bills would “break the Internet.” Congress, overwhelmed by the popular opposition, quickly backpedaled, leaving the legislation to die.

“They tsunamied the conversation with rhetoric, and we were unprepared to fight back,” Tom Dooley, chief operating officer at Viacom, said of the technology industry. “We’re going to have to find a solution that works better for everyone.”

On Tuesday, the titans of both media and technology will convene in Sun Valley, Idaho, for an exclusive annual conference sponsored by the boutique investment firm Allen & Company. It will be the first time since the piracy debate went viral that top technology and entertainment executives will assemble en masse on neutral ground to discuss major issues affecting both industries.

“There’s an agreement on both sides that there should be some period of time when everyone steps back and reassesses,” said Michael O’Leary, a senior executive vice president for the Motion Picture Association of America.

The Sun Valley conference, known as “summer camp for moguls,” is off limits to reporters (though dozens still turn out) and famously private. In between bike rides, hikes and cocktail parties, the executives will hold meetings, listen to a variety of speakers and attend panel discussions with luminaries from sports to politics.

A preliminary list of attendees at this year’s conference includes Rupert Murdoch and Chase Carey, the chief executive and chief operating officer of News Corporation; Philippe Dauman, chief of Viacom; Jeffrey L. Bewkes, chief of Time Warner; and Mark Zuckerberg and Sheryl Sandberg of Facebook. Tim Cook, chief of Apple, and Google’s co-founder Sergey Brin are also expected to attend.

In the months since the SOPA debates, media executives have discussed piracy with obvious shell shock.

“I think we didn’t help ourselves down in Southern California by trying to jam something in Congress; we screwed that up,” Ari Emanuel, co-chief executive of the William Morris Endeavor talent agency, said at the All Things D conference in May. He added: “When SOPA died, a lot of conversations died. But they’ll start up again.”

In the aftermath, Hollywood has increased its efforts to get online payment companies, cloud services and Internet service providers to voluntarily help curtail pirated movies, TV and music, particularly from foreign Web sites.

Months before the debates erupted in January, American Express, Discover, MasterCard, PayPal and Visa agreed on a set of best practices to reduce the sale of counterfeited pirated goods. In 2010, Yahoo, PayPal, GoDaddy, Google and others formed a nonprofit intended to combat the sale of illegal pharmaceuticals online, one issue SOPA and PIPA were initially meant to address.

The Sun Valley conference could provide a tranquil backdrop for the continued construction of a fence between media and technology.

“We thought about what’s in the long-term interest of the Internet ecosystem. And that’s a set of best practices that people feel comfortable with,” said Cary Sherman, chief executive of the Recording Industry Association of America.

Tech and Media Executives Are Likely to Debate Piracy

But lately some of the highest-paid executives at the world’s largest media companies have talked a lot about the lessons they learned from a failed industrywide attempt to pass antipiracy legislation six months ago.

In January, the technology industry led by Google, Facebook and Wikipedia revolted against two bills called SOPA and PIPA — short for Stop Online Piracy Act and Protect Intellectual Property Act. The legislation, largely the product of media companies to protect movies, television shows, video games and music against online theft from rogue foreign Web sites, sparked a reaction that quickly shifted from an arcane policy debate to an online consumer rebellion.

Wikipedia went black to protest SOPA and more than seven million people signed online petitions, many of which said the bills would “break the Internet.” Congress, overwhelmed by the popular opposition, quickly backpedaled, leaving the legislation to die.

“They tsunamied the conversation with rhetoric, and we were unprepared to fight back,” Tom Dooley, chief operating officer at Viacom, said of the technology industry. “We’re going to have to find a solution that works better for everyone.”

On Tuesday, the titans of both media and technology will convene in Sun Valley, Idaho, for an exclusive annual conference sponsored by the boutique investment firm Allen & Company. It will be the first time since the piracy debate went viral that top technology and entertainment executives will assemble en masse on neutral ground to discuss major issues affecting both industries.

“There’s an agreement on both sides that there should be some period of time when everyone steps back and reassesses,” said Michael O’Leary, a senior executive vice president for the Motion Picture Association of America.

The Sun Valley conference, known as “summer camp for moguls,” is off limits to reporters (though dozens still turn out) and famously private. In between bike rides, hikes and cocktail parties, the executives will hold meetings, listen to a variety of speakers and attend panel discussions with luminaries from sports to politics.

A preliminary list of attendees at this year’s conference includes Rupert Murdoch and Chase Carey, the chief executive and chief operating officer of News Corporation; Philippe Dauman, chief of Viacom; Jeffrey L. Bewkes, chief of Time Warner; and Mark Zuckerberg and Sheryl Sandberg of Facebook. Tim Cook, chief of Apple, and Google’s co-founder Sergey Brin are also expected to attend.

In the months since the SOPA debates, media executives have discussed piracy with obvious shell shock.

“I think we didn’t help ourselves down in Southern California by trying to jam something in Congress; we screwed that up,” Ari Emanuel, co-chief executive of the William Morris Endeavor talent agency, said at the All Things D conference in May. He added: “When SOPA died, a lot of conversations died. But they’ll start up again.”

In the aftermath, Hollywood has increased its efforts to get online payment companies, cloud services and Internet service providers to voluntarily help curtail pirated movies, TV and music, particularly from foreign Web sites.

Months before the debates erupted in January, American Express, Discover, MasterCard, PayPal and Visa agreed on a set of best practices to reduce the sale of counterfeited pirated goods. In 2010, Yahoo, PayPal, GoDaddy, Google and others formed a nonprofit intended to combat the sale of illegal pharmaceuticals online, one issue SOPA and PIPA were initially meant to address.

The Sun Valley conference could provide a tranquil backdrop for the continued construction of a fence between media and technology.

“We thought about what’s in the long-term interest of the Internet ecosystem. And that’s a set of best practices that people feel comfortable with,” said Cary Sherman, chief executive of the Recording Industry Association of America.