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UPDATE MarkMonitor Labels Legitimate Websites as Illegal Internet Piracy Heavens

Posted: 12th Jan, 2011 By: MarkJ
internet piracyMarkMonitor, a self confessed global leader in enterprise brand protection, has monitored "illegal traffic levels" on 43 file-sharing sites and found that they generated more than 53 billion visits per year. The firm identified Rapidshare.com, Megavideo.com and Megaupload.com as being the top three "Digital Piracy" heavens, allegedly accounting for 21 billion visits per year.

Still, many of the related file sharing (cyberlocker) websites do not set out to encourage piracy and originally only started life as perfectly legitimate online file storage services, which are sadly often abused by pirates. The study found that North America and Western Europe represented the host location for 67% of the sites classified as "Digital Piracy".

In December 2010 the British Phonographic Industry (BPI) estimated that 13% of broadband ISP users in the UK were using such sites to access music unlawfully (here). MarkMonitor estimates the worldwide economic impact of online piracy and counterfeiting at £128bn ($200bn) annually.

Frederick Felman, CMO of MarkMonitor, said:

"In the online world, unlike the physical world, supply and demand are virtually limitless so it is imperative to understand both online distribution channels as well as digital promotional vehicles in order to develop effective mitigation strategies. Examining traffic patterns and geographic information are vital in identifying and prioritizing enforcement actions rather than playing ‘whack-a-mole’ with egregious offenders."

However the number of visits that a website receives probably isn't a good gauge of how many actual downloads have occurred, which would also be a civil (unlawful) and not illegal offence. Indeed most such sites are used for legitimate purposes too, for example we use one to store our private home videos and share them with family and friends.

In addition RapidShare.com has successfully fended off more than a few legal cases against it, with the Higher Regional Court of Dusseldorf (Germany) this week ruling that the site was already taking "reasonable measures" to tackle the problem.

Naturally the situation represents a headache for both Rights Holders and File Storage sites alike. Unlike P2P (BitTorrent) transfers, websites give no public visibility of connection data, which makes it virtually impossible to identify who is downloading what; unless the website shares its private data (requires a court order and the data obtained would most likely be fake registration details or logs of only limited statistical use).

Meanwhile the websites themselves have a nightmare trying to police the situation and, in fairness, most usually respond to link removal requests quite quickly. As any website owner will known, you can usually only act once the files have been uploaded and then identified to you, which is always after the fact and then they could simply be re-uploaded again somewhere different.

Unfortunately this is the way of the internet. Any online website or service that allows files to be exchanged could potentially be abused and the only way to stop that is to switch off the internet.
Download the Report (PDF)
http://www.markmonitor.com/download/report/MarkMonitor_-_Traffic_Report_110111.pdf
UPDATE 13th January 2011

RapidShare has responded by threatening legal action against MarkMonitor's recent report, which unfairly labelled it as a "Digital Piracy" site.

RapidShare Company Statement

We have read with incomprehension the study of American enterprise brand protection company MarkMonitor which names RapidShare the world’s biggest online piracy platform. This defamation of RapidShare as a digital piracy site is absurd and we reserve the right to take legal action against MarkMonitor. RapidShare is a legitimate company that offers its customers fast, simple and secure storage and management of large amounts of data via our servers.

Apart from getting wrong what the company’s business model is, there are some serious questions about the study’s methodology. For example, the authors conclude that RapidShare has to be the biggest digital piracy site from looking at the number of page visits, totally ignoring the fact that millions of customers use the service for perfectly legitimate purposes. Private customers use RapidShare to share their personal pictures, videos and documents or to make backup copies of their hard drives. Business clients rely on our services to exchange large files with colleagues at different sites, with clients or with service providers or to make available free programmes or programme updates to its customers.

Furthermore, in an interview with mediapost.com MarkMonitor’s vice president of communications Te Smith said that she did not consider websites like YouTube piracy sites as they "have procedures in place where brandowners can take down the material." RapidShare offers the exact same take down features to copyright owners as YouTube does. Now, where is the difference?

Of course, that does not mean that we are turning a blind eye to the fact that some people misuse our service to upload copyright-protected works to our servers. However, these users are in the absolute minority compared with those who use our services to pursue perfectly legitimate interests. Furthermore, we take a great many steps to prevent and combat copyright infringements. In fact, several courts have acknowledged that we do even more than we would be legally required to – with the latest decision coming from the Higher Regional Court of Dusseldorf in December 2010.

However, the study confirmed our resolution to actively raise awareness about what RapidShare is and what RapidShare does. Therefore, we have mandated a Washington-based lobbying firm some weeks ago. We are optimistic that this decision will eventually pay off.
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