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Napster and Sonos Sued For Millions In Unpaid Music Royalties

An anonymous reader quotes a report from TorrentFreak: Napster, the brand synonymous with the music piracy boom of the early 2000s, has a new copyright challenge. Together with audio giant Sonos, Napster faces a lawsuit demanding over $3.4 million in alleged unpaid copyright royalties. Filed by collective rights management organization SoundExchange, the complaint (PDF) centers on missed payments related to the "Sonos Radio" service, which until 2023 was powered by Napster's music catalog. [...] Sonos Radio launched in April 2020 with Napster as the authorized agent, submitting the required royalty reports and royalties to SoundExchange. While all went well initially, payments stopped around May 2022. At the time, Napster had been acquired by venture capital firms Hivemind and Algorand, with a focus on "web3" technologies, including cryptocurrencies and blockchain. According to the complaint, the takeover resulted in a "complete breakdown of reporting and payment for the Sonos Radio service." The alleged payment problems eventually came to light during an audit initiated by SoundExchange in 2023, which concluded that Sonos and Napster owed millions in unpaid royalties. Sonos and Napster are no longer partners in the radio service, as the audio equipment manufacturer switched to Deezer around April 2023. That appears to have solved the royalty issues, but SoundExchange still believes it is owed more than $3 million. "In total, Sonos, and its agent Napster, have failed to pay at least $3,423,844.41 comprising royalties owed for the period October 2022 to April 2023, interest, late fees, and auditor fee-shifting costs, and subtracting Sonos and Napster's payments made to date. "Late fees and interest continue to grow," SoundExchange adds, while requesting compensation in full. The complaint lists one count of "underpayment" of statutory royalties, and one count of "non-payment" of royalties, as determined by the audit. For both Copyright Act violations, SoundExchange requests damages of at least $3.4 million.

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Pirate Site Visits Dip To 216 Billion a Year, But Manga Piracy Is Booming

An anonymous reader quotes a report from TorrentFreak: Fresh data released by piracy tracking outfit MUSO shows that pirate sites remain popular. In a report released today, MUSO reveals that there were 216 billion pirate site visits globally in 2024, a slight decrease compared to the 229 billion visits recorded a year earlier. TV piracy remains by far the most popular category, representing over 44.6% of all website visits. This is followed by the publishing category with 30.7%, with film, software and music all at a respectable distance. Pirate site visitors originate from all over the world, but one country stands tall above all the rest: America. The United States remains the top driver of pirate site traffic accounting for more than 12% of all traffic globally, good for 26.7 billion visits in 2024. India has been steadily climbing the ranks for years and currently sits in second place with 17.6 billion annual visits, with Russia, Indonesia, and Vietnam completing the top five. As a country with one of the largest populations worldwide, it's not a complete surprise that the U.S. tops the list. If we counted visits per internet user, Canada and Ukraine would top the list. While pirate site visits dipped by more than 5% in 2024, one category saw substantial growth. Visits to publishing-related pirate sites increased 4.3% from 63.6 to 66.4 billion. The increase is largely driven by the popularity of manga, which accounts for more than 70% of all publishing piracy. Traditional book piracy, meanwhile, is stuck at 5%. The publishing piracy boom is relatively new. Over the past five years, the category grew by more than 100% while the overall number of global pirate site visits remained relatively flat. Looking at the global demand, we see that the U.S. also leads the charge here, followed by Indonesia and Russia. Notably, Japan, the home of manga, ranks fifth in the publishing category. This stands out because Japan is not listed in the global top 15 in terms of total pirate site visits. In the other content categories, MUSO's data shows a dip in pirate site visits. The changes are relatively modest for TV (-6.8%) and software (-2.1%) but the same isn't true for the music and film categories. In 2024, there were 18% fewer visits for pirated movies compared to a year earlier. MUSO notes that this is due to a "lighter blockbuster calendar" which reduced piracy peaks. "The drop in demand is as much about what wasn't released as it is about access," the report explains. The music category saw a 19% decline in piracy visits year over year, with a more uplifting explanation for rightsholders. According to MUSO, the drop can be partly attributed to "secure app ecosystems" and the "wide adoption of licensed platforms like Spotify and Apple Music."

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Football and Other Premium TV Being Pirated At 'Industrial Scale'

An anonymous reader quotes a report from the BBC: A lack of action by big tech firms is enabling the "industrial scale theft" of premium video services, especially live sport, a new report says. The research by Enders Analysis accuses Amazon, Google, Meta and Microsoft of "ambivalence and inertia" over a problem it says costs broadcasters revenue and puts users at an increased risk of cyber-crime. Gareth Sutcliffe and Ollie Meir, who authored the research, described the Amazon Fire Stick -- which they argue is the device many people use to access illegal streams -- as "a piracy enabler." [...] The device plugs into TVs and gives the viewer thousands of options to watch programs from legitimate services including the BBC iPlayer and Netflix. They are also being used to access illegal streams, particularly of live sport. In November last year, a Liverpool man who sold Fire Stick devices he reconfigured to allow people to illegally stream Premier League football matches was jailed. After uploading the unauthorized services on the Amazon product, he advertised them on Facebook. Another man from Liverpool was given a two-year suspended sentence last year after modifying fire sticks and selling them on Facebook and WhatsApp. According to data for the first quarter of this year, provided to Enders by Sky, 59% of people in UK who said they had watched pirated material in the last year while using a physical device said they had used a Amazon fire product. The Enders report says the fire stick enables "billions of dollars in piracy" overall. [...] The researchers also pointed to the role played by the "continued depreciation" of Digital Rights Management (DRM) systems, particularly those from Google and Microsoft. This technology enables high quality streaming of premium content to devices. Two of the big players are Microsoft's PlayReady and Google's Widevine. The authors argue the architecture of the DRM is largely unchanged, and due to a lack of maintenance by the big tech companies, PlayReady and Widevine "are now compromised across various security levels." Mr Sutcliffe and Mr Meir said this has had "a seismic impact across the industry, and ultimately given piracy the upper hand by enabling theft of the highest quality content." They added: "Over twenty years since launch, the DRM solutions provided by Google and Microsoft are in steep decline. A complete overhaul of the technology architecture, licensing, and support model is needed. Lack of engagement with content owners indicates this a low priority."

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Cloudflare CEO: Football Piracy Blocks Will Claim Lives

Cloudflare CEO Matthew Prince warned that LaLiga's ISP blocking campaign -- intended to stop football piracy -- has caused widespread collateral damage by blocking millions of unrelated websites, including emergency services, in Spain. He called the strategy "bonkers" and expressed fear that lives could be lost due to the overblocking. TorrentFreak reports: Posting to X last week, Prince asked if anyone wanted any general feedback, declaring that he felt "in an especially truthful mood." The first response contained direct questions about the LaLiga controversy, the blame for which LaLiga places squarely on the shoulders of Cloudflare. For the first time since Cloudflare legal action failed to end LaLiga's blocking campaign, Prince weighed in with his assessment of the current situation and where he believes it's inevitably heading. "A huge percentage of the Internet sits behind us, including small businesses and emergency resources in Spain," Prince explained. "The strategy of blocking broadly through ISPs based on IPs is bonkers because so much content, including emergency services content, can be behind any IP. The collateral damage is vast and is hurting Spanish citizens from accessing critical resources," he added. [...] Despite LaLiga's unshakable claims to the contrary, Prince believes that it's not a case of 'if' disaster strikes, it's 'when.' "It's only a matter of time before a Spanish citizen can't access a life-saving emergency resource because the rights holder in a football match refuses to send a limited request to block one resource versus a broad request to block a whole swath of the Internet," Prince warned. "When that unfortunately and inevitably happens and harms lives, I'm confident policy makers and courts in Spain and elsewhere will make the right policy decision. Until then, it'll be up to users to make politicians clear on the risk. I pray no one dies." The suggestion that LaLiga's demands were too broad, doesn't mean that Cloudflare is refusing to help, Prince suggested. On the contrary, there's a process available, LaLiga just needs to use it. "We've always been happy and willing to work with rights holders in conjunction with judicial bodies to protect their content. We have a clear process that works around the world to do that," Prince explained.

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