Judge rejects copyright trolls' BitTorrent conspiracy theory

By Timothy B. Lee
Ars Technica

April 2, 2012

http://arstechnica.com/tech-policy/news/2012/04/judge-rejects-copyright-trolls-bittorrent-conspiracy-theory.ars


A federal judge has rejected attempts by several copyright holders to 
compel ISPs to hand over the identifying information of numerous 
customers without actually filing copyright lawsuits against them. The 
Friday opinion by James F. Holderman of the Northern District of 
Illinois is the latest sign of growing judicial skepticism toward the 
new wave of copyright trolling campaigns.

While mass litigation against illicit file sharing was pioneered by the 
recording industry, recent lawsuits have often focused on the sharing of 
pornography rather than music. Many would-be defendants, regardless of 
their actual guilt, are anxious to settle to spare themselves the 
embarrassment of having their names publicly associated with online porn.

Judge Holderman notes that as this dynamic has become clear, the courts 
have become skeptical of plaintiffs who appeared more interested in 
harvesting contact information than actually pursuing lawsuits. For 
example, in some jurisdictions, judges have insisted that plaintiffs sue 
defendants one at a time, incurring court filing fees for each lawsuit. 
Some judges have also insisted that each lawsuit be limited to 
defendants in one specific judicial district rather than targeting 
defendants across the country.

In response to this "stiffening judicial headwind," as Holderman puts 
it, some litigators have adopted a new tactic: sue just one Internet 
user, but use that lawsuit as a pretext to subpoena other defendants who 
had participated in the same BitTorrent swarm. The plaintiffs in these 
lawsuits claim that the other users had participated in a "conspiracy" 
to assist one another in distributing particular copyrighted works.

But courts increasingly find this tactic suspect, and Holderman rejected 
it, noting that conspiracy charges require evidence of an agreement 
among the purported conspirators. The mere fact that several BitTorrent 
users' computers communicated with one another does not constitute a 
conspiracy among the users, he said.

"BitTorrent users remain anonymous to other BitTorrent users, and have 
no connection to them beyond the mere fact that they downloaded the same 
file," Holderman wrote. "It is therefore not a reasonable calculation 
that the individuals connected to the subpoenaed IP addresses will have 
any discoverable information related to the current defendants."

Holderman's ruling, on top of last week's ruling in Florida, suggests 
growing judicial hostility toward the copyright trolling business model. 
The courts are designed to decide the legal merits of significant 
disputes between parties. Yet the monetary harm of any specific act of 
file-sharing is so small—and the legal process is so expensive—that it's 
rarely in the interests of copyright holders to actually litigate 
against even guilty defendants.

So instead, some copyright holders use the threat of expensive 
litigation to extort settlements. Because the copyright holder's threat 
is based on the cost of litigation (and risk of public embarrassment) 
more so than the damages a defendant would face in the event of a loss, 
innocent defendants have virtually as much incentive to settle as guilty 
ones do. That's not how things are supposed to work, and more and more 
judges are refusing to play along.

Further reading

Judge Holderman's decision (ia600803.us.archive.org)

http://ia600803.us.archive.org/25/items/gov.uscourts.ilnd.265453/gov.uscourts.ilnd.265453.23.0.pdf
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