Digital Sin, Inc. v. Does 1-5698

Filing 4

Declaration of Jon Nicolini in Support of 3 Ex Parte Application filed by Digital Sin, Inc. (Related document(s) 3 ) (cjl, COURT STAFF) (Filed on 9/2/2011) (cjl, COURT STAFF).

4

Ira M. Siegel, Cal. State Bar No. 78142
email address: [e-mail]
LAW OFFICES OF IRA M. SIEGEL
433 N. Camden Drive, Suite 970
Beverly Hills, California 90210-4426
Tel: [phone]
Fax: [phone]

5

Attorney for Plaintiff Digital Sin, Inc.

1
2
3

6
7
8

UNITED STATES DISTRICT COURT

9

FOR THE NORTHERN DISTRICT OF CALIFORNIA

10
11

Digital Sin, Inc., a California corporation,
Plaintiff,

12
v.

13
14

DOES 1-5698,
Defendants.

15

CASE NO.

CV 11-4397 LB

DECLARATION OF JON NICOLINI
IN SUPPORT OF PLAINTIFF’S EX
PARTE APPLICATION FOR LEAVE
TO TAKE LIMITED DISCOVERY
PRIOR TO A RULE 26(f)
CONFERENCE

16
17
I, Jon Nicolini, declare as follows:

18
19

1.

20

(“CEG”).

21

2.

CEG’s address is 8484 Wilshire Boulevard, Suite 220, Beverly Hills, California

3.

CEG is in the business of discovering infringements, and arranging for the

22
23

I am the Vice President of Technology for Copyright Enforcement Group, LLC

90211.

24

enforcement, of the copyrights of its clients. Plaintiff in this case is a client of CEG. Based on

25

information provided to me, I state that Plaintiff Digital Sin, Inc. creates and distributes motion

26

pictures, and the motion picture named in the Digital Sin, Inc. Complaint is among the motion

27

pictures whose copyrights are the subject of the CEG’s efforts on behalf of Plaintiff.

28
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
1
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

4.

Music and motion picture piracy (i.e., the unauthorized copying and/or

2

distribution of songs and motion pictures) has been a serious problem since at least as early as

3

home audio and video tape cassette players became popular. The problem continued with the

4

introduction of home CD and DVD players. Today the problem persists with the ability to store

5

digital files of songs and motion pictures in the memory of home and/or laptop computers, and

6

for people to distribute such files to each other over the Internet on peer-to-peer networks

7

(sometimes called "P2P" networks) using file sharing software applications such as BitTorrent.

8

Articles describing aspects of music and motion picture piracy could be found, at least until

9

recently, at these web pages, among others, on the Internet:

10

(1) http://www.usvo.com/usvo_videopiracy.pdf (attached to this Declaration as Exhibit B), and

11

(2) http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

12

(attached to this Declaration as Exhibit C).

13

5.

Neither of the two major operating systems for personal computers (i.e., those

14

developed by Microsoft Corporation and Apple, Inc.) nor any of the four most used web

15

browsers, namely, Microsoft Internet Explorer, Mozilla Firefox, Google Chrome and Apple

16

Safari, which are used by well over 90% of users in the United States, include native

17

functionality for peer-to-peer file sharing over the Internet. Regarding the relative popularity of

18

browsers, see the following articles that could be found, at least until recently, at these web

19

pages, among others, on the Internet,

20

http://gs.statcounter.com/#browser-US-monthly-201006-201106-bar (attached

21

Exhibit E)

22

http://www.statowl.com/web_browser_market_share.php?1=1&timeframe=last_3&interval=month&chart_id=4&fltr_b
r=&fltr_os=&fltr_se=&fltr_cn=&timeframe=last_12 (attached to this Declaration as Exhibit

23
24
25
26
27
28

to this Declaration as

F).
Other than Microsoft Internet Explorer and Apple Safari, all other browsers must be intentionally
installed. Therefore, the original seeder and each of the members of the swarm (i.e., each peer)
must have separately installed on their respective computers special software that allows peer-topeer sharing of files by way of the Internet. The most popular type of peer-to-peer file sharing
program utilizes the BitTorrent protocol. The seeder and members of the swarm use software
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
2
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

known in the field as "BitTorrent clients." Among the most popular BitTorrent clients are Vuze

2

(formerly Azureus), µTorrent, Transmission and BitTorrent 7, although many others are used as

3

well. In any event, the seeder and each member of the swarm (i.e., peer) must intentionally

4

install a BitTorrent client (i.e., software application) onto his or her computer before that

5

computer can be used to join a BitTorrent file sharing network.

6

6.

P2P networks distribute infringing copies of motion pictures (and works in other

7

forms such as music and books) with file sharing software such as BitTorrent as follows: The

8

process begins with one user accessing the Internet through an Internet Service Provider ("ISP")

9

and intentionally making a digital file of the work available on the Internet to the public from his

10

or her computer. This first file is often referred to as the first "seed." I will refer to the person

11

making this seed available as the "original seeder." Persons seeking to download such a work

12

also access the Internet through an ISP (which may or may not be the same ISP as used by the

13

original seeder) and seek out the work on a P2P network. With the availability of the seed, other

14

users, who are referred to as "peers," access the Internet and request the file (by searching for its

15

title or even searching for the torrent's "hash" - described below) and engage the original seeder

16

and/or each other in a group, sometimes referred to as a “swarm,” and begin downloading the

17

seed file. In turn, as each peer receives portions of the seed, most often that peer makes those

18

portions available to other peers in the swarm. Therefore, each peer in the swarm is at least

19

copying and is usually distributing, as a follow-on seeder, copyrighted material at the same time.

20

Of the over 20,000 infringers tracked in connection with several cases currently pending, at least

21

95% of the Doe defendants were uploading (i.e., distributing) illegal copies of our clients' motion

22

pictures at the moment indicated by the Timestamp in the respective Exhibit A appended to each

23

complaint, which is also true for this case. In P2P networks, the infringement may continue even

24

after the original seeder has gone completely offline. Any BitTorrent client may be used to join

25

a swarm. As more peers join a swarm at any one instant, they obtain the content at even greater

26

speeds because of the increasing number of peers simultaneously offering the content as seeders

27

themselves for unlawful distribution. As time goes on, the size of the swarm varies, yet it may

28

endure for a long period, with some swarms enduring for 6 months to well over a year depending
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
3
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

on the popularity of a particular motion picture. As a result, the original seed file becomes

2

unlawfully duplicated multiple times by multiple parties, with a potentially exponential increase

3

in the number of illegal copies of any copyrighted work. With respect to any particular swarm,

4

the hash (an alphanumeric representation of a digital file) associated with the copied file's torrent

5

file remains the same.

6
7
8
9

7.

The premise of BitTorrent sharing is well known, and is stated on the

Bittorrent.com website, at least until recently here,
http://www.bittorrent.com/help/guides/beginners-guide (attached

to this Declaration as Exhibit G)

as follows:

10

"BitTorrent is a protocol (a set of rules and description of how to do
things) allowing you to download files quickly by allowing people downloading
the file to upload (distribute) parts of it at the same time. BitTorrent is often used
for distribution of very large files, very popular files and files available for free, as
it is a lot cheaper, faster and more efficient to distribute files using BitTorrent
than a regular download."

11
12
13
14

That is, each peer (i.e. member of a swarm) in a P2P network has acted and acts in cooperation

15

with the other peers by agreeing to provide, and actually providing, an infringing reproduction of

16

at least a substantial portion of a copyrighted work in anticipation of the other peers doing

17

likewise with respect to that work and/or other works. Joining a P2P network is an intentional

18

act, requiring the selection by a peer of multiple links to do so.

19

8.

Depending on the particular P2P network involved, at any one time any number

20

of people, from one or two, to hundreds, to several thousands, unlawfully use the P2P network to

21

upload, that is, distribute, or download, that is, copy, copyrighted material. To the extent that

22

persons using a P2P network identifies themselves, they use "user names" or "network names"

23

which typically are nicknames that do not disclose the true identity of the user, and do not

24

indicate the residence or business address of the user. So, while, as I explain below, we can

25

detect infringements, we can only identify the infringers by their Internet Protocol address and

26

the time that the infringement is detected by us. Note that while we detect an infringement at a

27

particular instant, the infringer may, and likely is infringing at other times as well.

28
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
4
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

9.

The use of P2P networks, such as those accessed with BitTorrent software, to

2

make unauthorized copies of motion pictures has become such common knowledge that it is

3

casually mentioned in newspaper articles. For example, in the article titled "The Glut of Shows

4

Unwatched" published on the New York Times website, and which at least until recently could

5

be seen at this web page:

6

http://www.nytimes.com/2010/09/06/business/media/06carr.html

7

(attached to this Declaration as

Exhibit D),

8

there is this statement by the article's author who was describing his efforts to find a television

9

show he had missed:

10

"Starting to feel desperate, I thought for a moment about hopping on the laptop
and searching BitTorrent for an illegal copy, but given that I make a living
creating original content for a large media company, stealing from another one
did not seem like a good idea."

11
12
13
14

(Emphasis added by me.)
10.

Plaintiff and other similarly situated companies contract with CEG to have CEG

15

determine whether or not copies of their works are being distributed on the Internet without their

16

permission and to identify infringers. Plaintiff does not authorize distribution of its motion

17

pictures on P2P networks.

18

11.

CEG utilizes a system of software components (“the System”) conceptualized,

19

developed, and maintained by me in order to collect data about unauthorized distribution of

20

copies of copyrighted works on P2P networks.

21

12.

The life cycle as it relates to monitoring copyrighted works of CEG’s client's

22

begins as follows. When a copyrighted work is requested to be monitored, my colleagues and I

23

first check to ensure that a copyright registration exists for the work or is in process with the U.S.

24

Copyright Office.

25

13.

In this case, we confirmed that the work at issue in the above-captioned case (the

26

"Work") is titled "My Little Panties #2" and is registered in the United States Copyright Office:

27

Registration Number PA 1-733-587 (also listed in United States Copyright Office records as

28
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
5
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

Registration Number PA0001733587), and that the Copyright Office's or other records show that

2

the copyright is owned by Digital Sin, Inc., the above-identified Plaintiff.

3
4
5

14.

Once the copyright information is confirmed, we use a text-based search to find

digital files on the Internet that have the same title as the copyrighted work.
15.

The digital files for which we search are available on P2P networks. As described

6

above, a person making a copy available on a P2P network typically had obtained his or her copy

7

from a P2P network, and whenever a digital file is located on anyone’s computer on a P2P

8

network, that digital file is typically available to be downloaded from that computer to a

9

requestor’s computer. In every case that a CEG client's motion picture is available on a P2P

10
11
12
13

network, it is an unauthorized distribution of the motion picture.
16.

In this case, the P2P network on which we found unauthorized distribution of

Plaintiff’s Work was a BitTorrent network.
17.

When a digital file with the same name as CEG's client's motion picture is found

14

on a P2P network, CEG downloads a full copy of the file. The file is then forwarded to a two-

15

stage verification computer process and identified by two people. The computer process

16

compares the digital data in the suspect file with digital data in a digital copy of the motion

17

picture obtained from CEG’s client. If the suspect file matches the authorized file, then the two

18

people play the suspect file and watch the motion picture. If both people confirm that a

19

substantial portion of the motion picture in the suspect file is substantially the same as a

20

corresponding portion of CEG’s client’s motion picture, then particular unique data (often

21

referred to as metadata) in the suspect file (now referred to in this Declaration as the "accused

22

file") is noted by the System, and the System searches for additional computers on P2P networks

23

that have the same suspect file.

24

18.

Users subscribe to the services of an ISP to gain access to the Internet. Each time

25

a subscriber accesses the Internet, the ISP provides a unique Internet Protocol (“IP”) address to

26

the subscriber. An ISP generally records the times and dates that it assigns each IP address to a

27

subscriber and maintains for a period of time a record of such an assignment to a subscriber in

28

logs maintained by the ISP. In addition, the ISP maintains records which typically include the
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
6
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

name, one or more address, one or more telephone numbers, and one or more email addresses of

2

the subscriber. P2P technology relies on the ability to identify the computers to and from which

3

users can search and exchange files. The technology identifies those computers by the IP

4

address from which the computer connects to the Internet. Taking advantage of this technology

5

and the unique metadata associated with the file containing unlawful copy of CEG's client's

6

motion picture, CEG's System inspects file-sharing networks for computers that are distributing

7

at least a substantial portion of a copy of a copyrighted work owned by Plaintiff, and when CEG

8

finds such a computer, CEG's System also collects the following publicly accessible information:

9

(a) the time and date the infringer was found, (b) the time(s) and date(s) when a portion of the

10

accused file was downloaded successfully to the accused infringer’s computer, (c) the time and

11

date the infringer was last successfully connected to via the P2P network with respect to the

12

infringer’s computer’s downloading and/or uploading the accused file to the Internet (hereinafter

13

referred to as "Timestamp"), (d) the IP address assigned to the infringer’s computer, (e) the P2P

14

software application used by the infringer and the port number used by the infringer’s P2P

15

software, (f) the size of the accused file, and that file's MD5 checksum, and SHA-1 checksum

16

(the last of which is the unique "hash" referred to above), (g) the percent of the file downloaded

17

by us from the infringer’s computer, (h) the percent of the accused file on the infringer's

18

computer which is available at that moment for copying by other peers, and (i) any relevant

19

transfer errors. In addition, CEG uses available databases to record the name of the ISP having

20

control of the IP address and the state (and often the city or county) associated with that IP

21

address. However, because of the partially anonymous nature of the P2P Internet distribution

22

system used by Defendants, the true names, street addresses, telephone numbers and email

23

addresses of Defendants are unknown to Plaintiff at this time. CEG also downloads the available

24

file from a subscriber's computer, and later runs visual observations to confirm whether or not

25

the file is a copy of at least a substantial portion of a copyrighted work of Plaintiff. CEG has

26

confirmed that each of the files obtained from the Defendants that are listed in Exhibit A

27

attached to the Complaint filed in this case is a copy of a substantial portion of the copyrighted

28

work listed in Exhibit A. All of this information is stored in database files on CEG’s computers.
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
7
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

19.

As indicated above, an Internet Protocol address uniquely identifies each

2

computer connected to the Internet. If one knows a computer’s Internet Protocol address, one

3

can, using publicly available reverse-lookup databases on the Internet, identify the ISP used by

4

that computer and the city (or county) and state in which the computer was located at the date

5

and time that the Internet Protocol address was obtained. However, the actual name and address

6

of the person subscribing to the ISP’s service is neither publicly available, nor available to CEG.

7

20.

However, with the Internet Protocol address and the date and time that the

8

infringer’s computer was accessing the Internet through the ISP, the ISP (be it AT&T, Verizon,

9

Qwest, Comcast or any of many other ISPs) can review its own subscriber logs to identify either

10

(i) the names and addresses of the subscriber, or (ii) the intermediary ISP through which the

11

person is ultimately subscribed to the main ISP. In turn, if the intermediary ISP is provided with

12

the Internet Protocol address and the date and time that the infringer’s computer was accessing

13

the Internet through the ISP, then the intermediary ISP can review its own subscriber logs to

14

identify the name, addresses, telephone numbers and email addresses of the subscriber.

15

21.

With respect to accused files, CEG sends notices (sometimes referred to as

16

"DMCA notices") to ISPs. Each notice includes the identity of an accused file and the Internet

17

Protocol address of the computer having that file available for download, along with the

18

Timestamp associated with it. In the notice, CEG requests that the ISP forward the notice to the

19

ISP's subscriber associated with the Internet Protocol address. Each notice includes, among

20

other information, an address for the accused infringer to contact CEG to arrange for settlement.

21

In the above-captioned case, the Internet Protocol addresses identified in Exhibit A of the

22

Digital Sin, Inc. Complaint are those of subscribers who had not settled with CEG. Exhibit A

23

lists on a Defendant-by-Defendant basis (one Defendant per row) the IP address associated with

24

each Defendant, the identity of the ISP associated with the IP address, the date and time (the

25

Timestamp referred to earlier) that the infringement by that Defendant was last observed, and the

26

software protocol used by the Defendant in infringing the Work, the title of which, along with its

27

copyright registration number, is set forth on the first page of Exhibit A.

28
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
8
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

22.

With respect to Plaintiff’s copyrighted motion picture named in the Complaint,

2

CEG performed the steps described in paragraphs 11-21 above. In summary, at least one

3

computer at each of the respective IP addresses and Timestamps listed in Exhibit A of the

4

Digital Sin, Inc. Complaint was used to make an unauthorized digital file copy of at least a

5

substantial portion of Plaintiff's Work and had such at least substantial portion of Plaintiff's

6

Work on it, and, without authorization, was used to make such file available for download by

7

others on a P2P network. As indicated above, all of the infringers identified as "Doe" defendants

8

in the Digital Sin, Inc. Complaint used BitTorrent software. Further, the hashes associated with

9

the torrent files on the computers having the IP addresses and time stamps listed in Exhibit A are

10

all identical to each other, that is, they all have the same hash. This demonstrates that all the Doe

11

defendants listed in Exhibit A joined the same swarm.

12

23.

CEG sent DMCA notices as described above to the ISPs with respect to all the

13

Doe Defendants in the case. None of the ISPs provided the names and addresses of the Doe

14

Defendants to CEG. However, we could determine that of the 5698 Doe Defendants in this case,

15

at least 1 out of every 4 of the IP addresses is associated with physical address that is likely in

16

California, and of those more than 1 out of every 4 is likely in one of the counties within the

17

Northern District of California (i.e., Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin,

18

Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz, or

19

Sonoma county). However, without information held by the ISPs, we cannot obtain further

20

information needed to identify the Defendants, including their names, and their actual addresses,

21

telephone numbers and email addresses.

22

24.

I am informed that before any discovery can be made in civil litigation, a meeting

23

of the parties or the parties counsel must be held. However, the actual identities of the Doe

24

Defendants are unknown to Plaintiff, and therefore the Digital Sin, Inc. Complaint cannot be

25

served on any defendant. Without serving the Digital Sin, Inc. Complaint on any defendant, the

26

pre-discovery meeting cannot be held. Therefore, Plaintiff needs early discovery from the ISPs,

27

and any intermediary ISPs that may be involved, so that the names and addresses of the accused

28
Nicolini Declaration in Support of Plaintiff’s Ex Parte Application For
9
Leave To Take Discovery Prior To Rule 26(F) Conference - CV 11-4397 LB

1

infringers can be obtained by Plaintiff to enable it to enforce its rights in its copyright and

2

prevent continued infringement.

3

25.

I declare under penalty of peIjury that the foregoing is true and correct of my own

4

personal knowledge, except for those matters stated as information and belief, and those matters

5

I believe to be true, and if called upon to testify I can competently do so as set forth above.

6
7

Executed this&th day of

~

,2011 in Los Angeles, California.

8
9
10
11
12
13
14
15
16
17
18
19

20
21
22

23
24
25
26

27
28
Nicolini Declaration in Snpport of Plaintiff's Ex Parte Application For
Leave To Take Discovery Prior To Rule 26(F) Conference -

10

CV 11-4397 LB

Exhibit B
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

Video Piracy Brief

_______________________

83 HALLS ROAD, P.O. BOX 245 / OLD LYME, CONNECTICUT 06371 / USVO.COM

Exhibit B, Page 1 of 6

1

1

The United States leads the world in the creation and export of intellectual property (IP) and IP-related products.
Piracy, which is the unauthorized use or reproduction of copyrighted or patented material, jeopardizes this.

The freedom and incentive provided to authors, artists, and scientists to create new inventions and artistic works is
an American tradition. U.S. patent law grants the originator of an invention or artistic work legal protection from
copying and the freedom to profit from it. Article I, Section 8, Clause 8, of the U.S. Constitution declares that, "the
Congress shall have power . . . to promote the progress of science and useful arts, by securing for limited times to
authors and inventors the exclusive right to their respective writings and discoveries." The First Congress of the
United States further defined this with the Copyright Act of 1790.
WHY PIRACY IS A PROBLEM
2

The U.S. motion picture industry loses more than $3 billion annually in potential revenue and unless online piracy
is curbed, these losses will become even greater. It costs an average of $82 million per film to produce and
market, with only two in ten movies ever retrieving its total investment from U.S. theatrical exhibition. Each film
must journey through various distribution channels – airlines, home video, satellite delivery, premium and basic
3
cable, over the air TV stations and internationally – in order to break even or make a profit. When piracy of a film
4
occurs at any point in the release sequence, all subsequent markets are negatively affected.
The Internet has the potential to be a convenient means for consumers to be able to watch any movie they want,
when they want. However, with the advent of the Internet, the acquiring and spreading of illegal content is
5
unprecedented. With just a click of a button, content can instantly be sent or received from anywhere in the world.
Over the past few years, piracy has had a devastating impact on the music industry. The Internet has enabled
individuals the ability to download music free onto their computer, in a matter of minutes. The music industry has
been fighting this problem for years, and believes piracy is responsible for the low music sales they have been
experiencing.
The motion picture industry however, has not experienced this problem to the same scale due to the very long time
it takes dial-up users to download a movie. This has started to change as more Internet users continue to upgrade
from slow dial-up Internet access to the fast-speed, broadband access afforded them through cable and DSL
modems. There are roughly 70 million U.S. households with Internet access; of them, about 16 million use
6
broadband access. It has become all too common for newly released films to be illegally available on the Internet
within 24 hours after their debut. And according to studies, millions of downloads of illegal movies occur each
7
week. As broadband access becomes more available and affordable to households, video piracy will likely grow.
Technology continues to improve, making illegal copies higher quality and the means to download them faster and
th
8
easier. Unlike VHS tapes that degrade, the quality of the 1000 digital copy of a DVD is as good as the original.
Although many pirated movies are poor quality, movie studios are concerned that as counterfeit films become
higher quality they could affect VHS and DVD revenues.
HOW PIRACY HAPPENS
With video piracy, there are two basic phases: acquiring an illegal cop y of a film, and distributing the illegal copy.
There are many ways to copy illegally a movie. Some of the methods are:
Camcording: Pirates record a movie as it appears on a theater screen by smuggling a hand-held video camera
into a theater. These copies are usually poor quality both visually and audibly.
Telesync: A more professional method than camcording in order to make a higher quality recording of a film. With
or without the help of a theater employee, the pirate sets up a professional digital camera on a tripod in an empty
auditorium and records the movie. To obtain higher quality sound they may employ methods like using wireless9
transmitters on theater speakers, running cables from the “hearing impaired” outlets or directly from the projection
10
equipment.

Exhibit B, Page 2 of 6

2

Telecine: A sophisticated method where the pirate has access to a film reel at a theater. Using a Telecine
machine the pirate can record a very high quality copy of the movie either directly to a computer’s hard drive or
11
onto VHS tape and then digitize the copy at home.
Screeners: These promotional preview films for marketing purposes are provided to video retailers or film
reviewers before a movie’s official street release. Pirates obtain a screener DVD and make a copy of it.
Downloadable media: A pirate will legally download a movie onto their computer, and then use software to break
the encryption to make an illegal copy.
Streaming media: A pirate will copy a movie that is legally delivered to him or her in a steady stream in near real
time.
PVR/DVR and Video-on-Demand: A pirate can intercept, divert and save media content that has been retrieved
from a storage system, as it is being output to a TV screen
Cable, satellite and Telco TV: A pirate can intercept and save digital media content that has been delivered to a
set-top box and decoded, as it is being output to a TV screen
Workprint: A pirate will obtain an incomplete copy of a film and copy it.
Theatrical print: A pirate steals a film from a theater, film depot, courier service or other industry-related facility.

12

Once a pirate obtains an illegal copy of a movie, depending on the quality of the copy, the pirate can distribute it
either online or sell it as a hard good. To distribute a film over the Internet, the pirate uses file compression
software, and can then use Internet Relay Chat (IRC), which is a system used for chatting and file -swapping. Other
Internet distribution methods are using peer-to-peer file-swapping software like Kazaa, Grokster or Morpheus, or
using popular Usenets, which allow users to post messages, and share audio and video files. If a film is going to
be sold, then copies are made onto VHS tapes, DVDs, or VCDs. These counterfeit films are then sent to illegal
distribution channels in the U.S., or shipped overseas for sale even before the movie’s international theatrical
debut.
WHY PIRACY HAPPENS
There are three groups of pirates: ordinary Internet users, amateurs, and professionals. Many ordinary Internet
13
users believe that if it is on the Internet, it is free to all who can download it.
Those who believe this, will
download and watch an illegal movie if it is easy to do. Amateur pirates are usually computer or Internet hobbyists
with varying skills and motivation for pirating. Some make illegal copies for the “bragging rights” of being the first to
provide a newly released film. Others believe they are providing a service to their Internet community at large.
Some feel they are fighting the power of the movie industry or the government. Then there are those who do it as a
hobby.
On the other hand, professional pirates are motivated by money. They sell illegal videos on the street, at open
markets, on auction websites, etc. International criminal groups are getting rich from the high gain/low risk
14
business of stealing America’s copyrighted works. The FBI reports that, “There is strong evidence that organized
groups have moved into IP crime and that they are using the profits generated from these crimes to facilitate other
15
illegal activities.” The link between organized crime groups and counterfeit goods is well established. Interpol is
sounding the alarm that Intellectual Property Crime is becoming the preferred method of funding for a number of
16
st
terrorist groups.
Participants at the 1 International Conference on IPR hosted by Interpol in Lyon, France in
2001 “all agreed the evidence was indisputable: a lucrative trafficking in counterfeit and pirate products – music,
movies, seed patents, software, tee-shirts, Nikes, knock-off CDs and ‘fake drugs’ accounts for much of the money
17
the international terrorist network depends on to feed its operations.”

Exhibit B, Page 3 of 6

3

RECENT MOVIE PIRACIES
Lucasfilm: A week after the new “Star Wars Episode I” blockbuster opened in the United States in May of 1999,
pirated copies were already hitting store shelves in Hong Kong. Reports of widely available video CDs of the film
18
selling from $3.20 to $3.80 were reported. With this experience fresh in executives’ minds, May of 2002, George
Lucas’ highly anticipated Episode II of the Star Wars saga debuted. This time two pirated versions of the film was
available a week before the film opened at the theaters. Reports indicated that the versions appeared to have been
recorded with digital camcorders at a private screening.
Warner Brothers: Rumors circulated that a copy of “Matrix Reloaded” was available online the day before the film
was released at theaters in May of 2003. Within two weeks of its debut, a high-quality copy of the film was
19
available on the Internet for downloading. In addition, low-quality DVD copies were available for purchase. All
20
this, despite Warner Brothers decision to avoid piracy by opening the movie worldwide in 62 countries.
Universal Studios: “The Hulk,” which opened June 20, 2003, was predicted to be one of the blockbuster movie
hits of the summer. However, two weeks before its theater release, a New Jersey man obtained a “workprint” of
the film. The individual is not a professional pirate, rather a self-described computer hobbyist. He used software
tools to defeat security protections in the film designed to prevent unauthorized duplication, and then posted the
copied film onto the Internet. The release of the pirated movie is believed to have contributed to the lower than
expected ticket sales at the box office.
HOW PIRACY IS COMBATED
Piracy is fought on many fronts: legislatively, with law enforcement, and through technology. The Motion Picture
Association of America (MPAA) is tasked with fighting movie piracy and thus takes copyright infringement very
seriously. The MPAA has been vocal in voicing their concerns to Congress, and new laws have been pass ed in
regards to intellectual property protection. Some of the most recent laws are the 1997 “No Electronic Theft Act
(NET Act),” which was viewed as “closing a loophole” in copyright law. It expanded the law to mak e it illegal to
reproduce or distribute copyrighted works, even if the accused acted without commercial purpose or for private
financial gain. The “Digital Millennium Copyright Act of 1998,” for updating U.S. copyright laws for the digital age,
and for preparation in ratifying the World Intellectual Property Organization Copyright Treaty. In the “Digital Theft
Deterrence and Copyright Damages Improvement Act of 1999,” Congress approved a significant hike in the
minimum statutory damages for various types of copyright infringement.
The Department of Justice has a specific section of the criminal division – the Computer Crime and Intellectual
Property Section – devoted to combating cybercrime. In addition, the FBI has created Computer Crime Squads in
21
16 metropolitan areas around the country specifically to investigate cybercrime.
The primary objective of the
FBI's IP program is to reduce the economic loss associated with the counterfeiting and theft of U.S. intellectual
property by criminal conspiracies and other major offenders. To accomplish its objective in the area of IP crime, the
22
FBI is focused on increasing both the quantity and quality of IP investigations and prosecutions.
The MPAA uses Ranger, a sophisticated search engine, to track down illegal movies that are on the Internet.
23
When a pirated movie is found, they send “Cease and desist” letters to the website in violation.
In addition, the
MPAA has an internal Internet piracy task force that works closely with law enforcement agencies throughout the
world to find and catch video pirates. In an attempt to stop illegal copying of movies in theaters, the MPAA has
24
begun using, in certain situations, airport style security to find concealed video cameras.
They have also used
25
theater personnel with night vision goggles to detect video cameras during a movie showing.
Digital Rights Management (DRM) is a general term used to describe various techniques that content providers use
to protect their copyrighted material and define the rights on how their copyright material is to be made available to
users. In the technology industry, most DRM attention is focused on producing better means of ensuring only
authorized users have access to content and in preventing illegal copying of content. The method in which to
achieve this is by making better encryption software and technology. This effort, while needed, continues to be
defeated. As highly intelligent as the individuals in this field are, and as sophisticated the encryption software and
technology continues to evolve, there are equally intelligent hackers and pirates from around the world who are
highly motivated to break the encryptions.

Exhibit B, Page 4 of 6

4

The MPAA is experiencing major problems. In the numerous cases of pirates using digital camcorders to record
movies in theaters, encryption methods are powerless to prevent this. Moreover, with the Internet available
worldwide, fighting piracy by U.S. legislation alone cannot solve this issue. Furthermore, not all countries abide by
or enforce their own copyright laws. In addition, when a website that contains illegal movies is shut down, they
simply relocate.
SUMMARY
As Jack Valenti, president of the MPAA has clearly stated, the real way to combat piracy is by catching and
bringing the pirates to justice. When this occurs, it will send the message to pirates that they can no longer be
26
anonymous and continue to believe pirating movies is high-reward with low risk of being caught.
Combating content piracy is an uphill battle that is unlikely to subside any time soon. Individuals no longer have to
physically steal a product, they can simply download information or transmit it electronically to a single accomplice
or to tens of thousands of people in an instant -- and they can do so with total anonymity. It is hardly surprising that
there are so many organized "hacker" groups engaged in large scale distribution of pirated products over the
Internet or that there are also thousands of websites that exist solely to distribute pirated products when the money
27
to be made from this type of activity can be significant, and the risk of being caught so minimal.

Please visit us at www.usvo.com, to read USA Video Interactive’s press release on our upcoming anti-piracy
software. For more information, contact Edwin Molina, CEO ([e-mail]).

Exhibit B, Page 5 of 6

5

1

http://www.fbi.gov/hq/cid/fc/fifu/about/about_ipc.htm
http://www.mpaa.org/anti-piracy/
“If You Cannot Protect What You Own, You Don’t Own Anything! A brief report concerning the dark underside of Inter net piracy as well as the possibility of a
cleansing redemption to benefit the American consumer”, Presented to the Senate Committee on Commerce, Science and Transportation, on behalf of the member
companies of THE MOTION PICTURE ASSOCIATION OF AMERICA, by Jack Valenti, President and Chief Executive Officer, February 28, 2002
4
http://www.mpaa.org/anti-piracy/
5
“COPYRIGHT & CREATIVITY - The Jewel in America’s Trade Crown": A call to the Congress to protect and preserve the fastest growing Economic Asset of the
United States, Presented by Jack Valenti, President & Chief Executive Officer of the Motion Picture Association of America to The International Trademark
Association, Santa Monica, California, January 22, 2001
6
“The Impact of the Internet on the Law and Economics of the United States Motion Picture Industry,” by Stanford L. Levin, Department of Economics & Finance at
Southern Illinois University, John B. Meisel, Department of Economics & Finance at Southern Illinois University and Timothy S. Sullivan, Department of Economics &
Finance at Southern Illinois University, January 30, 2003
7
“Hollywood hunts for pirates,” By Michael McCarthy, USA TODAY, July 30, 2003
8
“A CLEAR PRESENT AND FUTURE DANGER: The potential undoing of America’s greatest export trade prize, An Accounting of Movie Thievery in the Analog and
Digital Format, in the U.S. and Around the World,” Offered to the House Appropriations Committee, Subcommittee on Commerce, Justice, State, the Judiciary, and
Related Agencies, by Jack Valenti, Chairman & Chief Executive Officer, THE MOTION PICTURE ASSOCIATION, in Ashburn, Virginia, April 23, 2002
9
http://www.divx-digest.com/articles/telesync.html
10
“Secure content protection: An overview of the proposed security mechanisms in digital cinema,” By Michael Strömberg, KTH Advanced Media Technology Lab
Royal Institute of Technology, Stockholm, Sweden
11
“Secure content protection: An overview of the proposed security mechanisms in digital cinema,” By Michael Strömberg, KTH Advanced Media Technology Lab
Royal Institute of Technology, Stockholm, Sweden
12
http://www.mpaa.org/anti-piracy/
13
“COPYRIGHT & CREATIVITY - The Jewel in America’s Trade Crown": A call to the Congress to protect and preserve the fastest growing Economic Asset of the
United States, Presented by Jack Valenti, President & Chief Executive Officer of the Motion Picture Association of America to The International Trademark
Association, Santa Monica, California, January 22, 2001
14
Testimony of Jack Valenti, President and CEO, Motion Picture Association of America, Before The Subcommittee On Courts, The Internet, And Intellectual
Property, Committee on the Judiciary U.S. House of Representatives "International Copyright Piracy: Links to Organized Crime and Terrorism", March 13, 2003
15
http://www.fbi.gov/hq/cid/fc/fifu/about/about_ipc.htm
16
“The links between intellectual property crime and terrorist financing,” text of public testimony of Ronald K. Noble, Secretary General of Interpol Before the United
States House Committee on International Rel ations, One hundred eighth congress, July 16th 2003
17
Testimony of Jack Valenti, President and CEO, Motion Picture Association of America, Before The Subcommittee On Courts, The Internet, And Intellectual
Property, Committee on the Judiciary U.S. House of Representatives "International Copyright Piracy: Links to Organized Crime and Terrorism", March 13, 2003
18
“Pirated copies of 'Star Wars' hit Hong Kong store shelves,” Hong Kong (AP), May 27,1999
19
“Matrix sequel pirated online,” BBC News, May 27, 2003
20
http://keanuweb.com/credits/movie.matrix2.html
21
Remarks of Attorney General John Ashcroft, First Annual Computer Privacy, Policy and Security Institute, May 22, 2001
22
http://www.fbi.gov/hq/cid/fc/fifu/about/about_ipc.htm
23
“A CLEAR PRESENT AND FUTURE DANGER: The potential undoing of America’s greatest export trade prize, An Accounting of Movie Thievery in the Analog and
Digital Format, in the U.S. and Around the World,” Offered to the House Appropriations Committee, Subcommittee on Commerce, Justice, State , the Judiciary, and
Related Agencies, by Jack Valenti, Chairman & Chief Executive Officer, THE MOTION PICTURE ASSOCIATION, in Ashburn, Virginia, April 23, 2002
24
“Mission (Im)possible? Combating Film Piracy in the Digital World,” By Nasya Bahfen, June 24 2003
25
“The movie industry fights off the pirates,” By Andy Seiler and Mike Snider, USA TODAY, May 6, 2003
26
“How Hulk Crushed the Online Pirate,” By P.J. Huffstutter, Times Staff Writer, June 26, 2003
27
http://www.fbi.gov/hq/cid/fc/fifu/about/about_ipc.htm
2
3

About USA Video Interactive Corp.
USVO is a developer and supplier of Internet media delivery services, systems, and innovative end
-to-end
solutions. The Company developed its StreamHQ™ architecture to provide a wide range of business customers
with value-added media delivery services. USVO holds the pioneering patent for store -and-forward video, filed in
1990 and issued by the United States Patent and Trademark Office on July 14, 1992; it has been cited by at least
165 other patents. USVO holds s imilar patents in Germany, Canada, England, France, Spain, and Italy. For more
information, visit www.usvo.com.
USA Video Interactive Corporate Headquarters Office: 83 Halls Road, Old Lyme, Connecticut, 06371
Telephone (860) 434 - 5535 Facsimile (860) 4 34 5782; Canada Office: 507 - 837 West Hastings Street, Vancouver, BC V6C 3N6. Trading symbol on the OTCBB: USVO; Trading symbol on the TSX
Venture Exchange US; Trading symbol on the Berlin and Frankfurt Stock Exchanges: USF. CUSIP 902924208. For more information contact Edwin Molina
(860) 434 - 5535; [e-mail]
The press release may contain forward-looking statements. Actual results may differ materially from those projected in any forward-looking
statements. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those
described.

The TSX Venture Exchange (TSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Exhibit B, Page 6 of 6

6

Exhibit C
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

DVD piracy in the U.S. becomes an industry. - Free Online Library

Periodicals

Thu4/14/11 3:27 PM

Literature
Search

Keyword

Title

Author

Topic

Member login
User name
Password
Login

TE

X

T

Remember me Submit articles free

Join us Forgot password?

17,158,756 articles and books
The Free Library > Business and Industry > Business > Video Age International > March 1, 2003
The Free Library > Communications > Telecommunications industry > Video Age International > March 1, 2003
The Free Library > Date > 2003 > March > 1 > Video Age International

DVD piracy in the U.S.
becomes an industry.
industry Market Analysis
Ads by Google
Quick access-12-page custom reports Any
industry, any US market area
www.bizminer.com

Marketing Content
Submit Your Project Online. 80,000 Workers
Complete it ASAP.
Clickworker.com

CD Duplication Services
Same Day, Very Low Prices We're In Los Angeles
www.HollywoodDisc.com/CDDuplication

Link to this page
Audiovisual piracy is a rich but dangerous business
in the U.S. Last November, two armed would-be
robbers broke into a small illegal CD and
DVD manufacturer in Manhattan and one of them
was killed. Similarly, a few months earlier, in July,
also in New York, two men were wounded at the
facility of a small illegal home video duplicator
located near the Empire State Building.

Article Details
Printer friendly

Cite/link

Email

Feedback

Author: Serafini, Dom
Publication: Video Age International
Geographic Code: 1USA
Date: Mar 1, 2003
Words: 1272
Previous Article: Calendar of events.
Next Article: Sumner's clever U.K. adventure.
Topics: Motion picture industry
Crimes against
Movie industry
Crimes against
Music industry
Crimes against
Statistics
Piracy (Copyright)
Statistics

Los Angeles Mom Makes
$84/hr Online
We Investigated How She Makes
$8,000/Month. You Won't Believe
How...

According to the MPAA, the U.S. studios'
association, over 400 labs for illegal duplication and
replication of audiovisual content are discovered
every year in the U.S., most of them in the New
York metropolitan area. Miami, Florida, serves as
the center of audiovisual piracy for Latin America.

Los Angeles Mom's Teeth
Trick
Mom discovers one simple trick to
turn yellow teeth white for under
$4

1 Trick of a Tiny Belly:

Ads by Google
Compliance Trend Survey
Share Your Opinion & Get Rewarded. Take the
Compliance Survey Today!

Cut down a bit of your belly every
day using this 1 weird old tip.

Info.IronMountain.com/Compliance

Online Market Research
Actionable Customer Insights via Private Online
Communities.
thinkpassenger.com

In 2001, the legit U.S. music market was valued at
$13.7 billion with the piracy marker estimated at
$4.5 billion. In the same year, the theatrical market
was valued at $68.2 billion. But piracy caused
losses of $3 billion (excluding Internet piracy, which
is not quantifiable). It is estimated that last year,
DVD sales and rentals reached $10.6 billion in the
U.S.
The number of illegal CDs in circulation worldwide
in 2001 was estimated at 950 million, but only 20

Related Articles
Finding the source of DVD piracy is elusive.
IT'S EVEN BIGGER THAN DRUGS CD, DVD
PIRACY MAKES BILLIONS IN CHINA.
The good, the bad and the ugly of TV piracy.
PIRACY GETS TOP BILLING ON VISIT MAYOR TO
PRESS FAKE-DVD ISSUE.
HOLIDAY BLITZ TAKES AIM AT DVD PIRATES
SHOPPERS RECEIVE WARNING.

http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 1 of 6

Exhibit C, Page 1 of 6

DVD piracy in the U.S. becomes an industry. - Free Online Library

million of these were confiscated. It is also
estimated that 130 million blank DVDRs were sold
worldwide in 2002.
According to the RIAA, the recording industry
association, illegal sellers of CDs can deprive U.S.
stores of 3540 percent of their business, in addition
to diminished revenues for artists, technicians and
the state, in the form of uncollected taxes. In
California alone some 18,000 jobs were lost
because of audiovisual piracy. Retailers in America
don't seem to care for parallel imports, which mostly
hurt the owners of audiovisual rights. Often DVDs
and CDs cost less in the U.S. than in Europe, but
the EC is not in favor of technologies that may
hinder free use. Therefore, parallel imports from
countries where DVDs are less expensive or face
fewer restrictions could be more a matter of illegal
imports than of piracy.

Thu4/14/11 3:27 PM

Los Angeles Mom Makes
$84/hr Online
We Investigated How She Makes
$8,000/Month. You Won't Believe
How...

Los Angeles Mom's Teeth
Trick
Mom discovers one simple trick to
turn yellow teeth white for under
$4

1 Trick of a Tiny Belly:
Cut down a bit of your belly every
day using this 1 weird old tip.

Thanks to recent technological advances,
audiovisual piracy is moving from pressed
(replicated) CDs and DVDs to illegal DVD-Rs and
CD-Rs via duplication (burning or recordable).
Nowadays one can legally buy blank CD-Rs at 30
cents each, even in small quantities. Therefore, to
distinguish their product, big recording labels don't
use CD-Rs (recognizable by the bluish hue on one
side), and employ expensive replication equipment.
To compensate for the losses due to piracy, U.S.
recording companies recently decided to increase
the average retail cost of CDs from $15 to $17
each, well aware that this could cause a surge in
illegal sales (where costs amount to about $5 per
disc). The retail cost of legal CDs includes the
"royalty" fee. The Philips CD license agreement
lowered the fee from $0.03 to $0.0 175 on each
recorded CD made since July 2002, whereas the
cost of polycarbonate resins increased to $3 per
pound, representing 40 percent of the production
cost of a blank CD-R.
To reduce piracy, some companies also produce
their CDs in such a way that they cannot be used
in computers or transferred onto MP3 players, and
they insert a CSS encoding program in DVDs.
These systems may discourage consumers, but
they seldom work with professional pirates.
The least expensive way to produce illegal CDs and
DVDs is through duplication with a burner worth
about $9,000, but this can only be used for limited
quantities. Recently, though, Marcan has introduced
a new duplication system able to copy 100 CD-Ps
at a time. Replicating large quantities of discs from
a master is much more expensive. Such equipment
can cost up to $500,000.
A way to control piracy consists in monitoring the
manufacturers of duplication equipment (about 40 in
the U.S.), as well as replicators of CDs and DVDs
(about 50). However, used equipment is not as
easy to trace, except by way of repair parts and
maintenance.
Since most recordable drivers are produced by
Pioneer, it's also possible to monitor piracy at the
source, controlling the distribution of small
http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 2 of 6

Exhibit C, Page 2 of 6

DVD piracy in the U.S. becomes an industry. - Free Online Library

Thu4/14/11 3:27 PM

equipment. In fact, there are only nine basic
producers of drivers in the world, including Philips,
Sony and Ricoh. Drivers labeled with other brand
names such as Dell and Apple are always
repackaged versions of the original brands.
Furthermore, since the number of polycarbonate
producers is also small (Dow Plastic, Bayer
Polyolefins, GE Plastics, among others), the
production of blank CDs and DVDs could also be
monitored. Optical grade polycarbonate is not that
common, and replication uses a lot of it.
An element that would elude authorities' control is
the packaging industry; CD and DVD cases can be
purchased for as low as $0.49 each. But only large
groups such as Sony and Du Pont produce the
plastic material used to make those cases.
According to Barry Rosenstock, president of Anchor
Digital, a DVD production company, the New York
market is flooded by replicated lowend pirated
DVDs from Taiwan, mainly produced by Ritek,
Primedisc and Optodisc, costing one-fourth of what
other illegal DVDs may cost. Conversely, much of
the piracy done in the U.S. is on CD-R and DVDR, the recordable formats. Most DVD duplicators
are made by Bravo, but there are also machines
which are made by various companies. However,
these almost always use Pioneer drivers to do the
burning.
Katherine Cochrane, president of CD-Info, said that
most made-in-theU.S. piracy concerns CD-RIDVDR, while pressed discs are imported, since it's very
difficult to hide replicating equipment.
According to Tony Perez, director of the anti-piracy
division of International Recording Media
Association (IRMA), "Pirates seeking high volume
production will not invest in expensive injection
moulding equipment, but rather
misrepresent themselves to legitimate replicators
and get them to manufacture product." The
duplication cost of a DVD is $0.95 (for 5,000 items
without cases) versus $2.50 for a VHS tape.
Nine organizations fight piracy in the U.S., including
the MPAA (video), RTAA (music), IRMA (duplication
and recording), BSA (software), VSDA (video and
CD retailers), IDSA (Internet), in addition to the FBI
and local police.
U.S. associations against audiovisual piracy:
* www.mpaa.org/anti-piracy
* www.siia.net/piracy/
* www.bsa.org/usa/antipiracy/
* www.riia.org/protect-campaign-1.cfm
* www.ifpi.org
* www.recordingmedia.org (Irma)
* www.idsa.com

http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 3 of 6

Exhibit C, Page 3 of 6

DVD piracy in the U.S. becomes an industry. - Free Online Library

Thu4/14/11 3:27 PM

* www.vsda.org
* www.sdmi.org
RELATED ARTICLE: 2002 Statistics (source: IRMA)
Replication in the world:
* CD-Audio: 4.35 billion units
* DVD-Video: 1.32 billion units
Replication in North America:
* CD-Audio: 1.63 billion units
* DVD-Video: 630 million units
CD-R demand:
* 4.225 million worldwide
* 1.3 billion in North America
Home Video
* Rental: 103 million worldwide, 70 million in North
America
* Sales: 1.183 billion worldwide, 650 million in North
America
DVD Sales and Rentals: $10 billion in the U.S.
(According to IRMA, 9.72 billion optical discs were
replicated worldwide in 2000. IRMA lists 21 types of
optical discs relevant to the piracy market, including
CD-Audio, CD-Rom, CD-Video, DVD-Video, DVDRom and DVD-Audio).
Historical notes:
* The CD was introduced by Philips in 1979.
* The CD player was sold for the first time in Japan
in 1982 by Sony (the CDP 101) and in the U.S. by
Philips in 1983 (the CD 100). Philips used a
Luciano Pavarotti recording for its early
presentations.
* The first commercial U.S. CD was 52nd Street by
Billy Joel.
* The CD-R was introduced in 1988.
* The DVD (digital versatile disc) player was first
sold commercially in 1997.
* There are two main DVD formats: DVD-5 and
DVD-9.
* Today, 40 million American families own a DVD
player.
COPYRIGHT 2003 TV Trade Media, Inc.
No portion of this article can be reproduced without the
express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group
is a Thomson Corporation Company.
http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 4 of 6

Exhibit C, Page 4 of 6

DVD piracy in the U.S. becomes an industry. - Free Online Library

Thu4/14/11 3:27 PM

Please bookmark with social media, your votes
are noticed and appreciated:

industry Cheat Sheets
Ads by Google
All salespeople need to know about 10 industries.
Nothing they don't.
www.industrysalesguides.com

APMEX® - Gold & Silver
Low Prices. Order Online 24/7! Changing How the
World Buys Gold.
www.APMEX.com/Gold&Silver

Reader ratings:

3 [2 vote(s)] You can rate
this article by selecting 1 to 5 stars on the left.

Reader Opinion
Title:
Comment:

Submit

Sales Reports for Axapta
Ads by Google
Get Sales Analysis in Excel Fast by Product by
Customer by Dimension
precision-point.com/axapta_reports

Learn Affiliate Marketing
Discover How Affiliate Mktg Can Improve Your
Business 100% Online!
www.USanFranOnline.com

Sinalco International
Holistic business model Range of non-alcoholic
soft drinks.
Sinalco.in

Aerospace Manufacturers
Receive Qualified RFQs/ RFPs 5.3 Million+
Industrial Buyers
www.globalspec.com

The Free Library > Business and Industry > Business > Video Age International > March 1, 2003
The Free Library > Communications > Telecommunications industry > Video Age International > March 1, 2003
The Free Library > Date > 2003 > March > 1 > Video Age International
Publications by Name

Publications by Date

Authors

Literature

A-D E-O P-T U-Z

before 1995 1995-1999
2000-2004 2005-2009 2010-

ABCDEFGHIJKLM
NOPQRSTUVWXYZ

ABCDEFGHIJKLM
NOPQRSTUVWXYZ

Terms of use | Copyright © 2011 Farlex, Inc. | Feedback | For webmasters | Submit articles

http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 5 of 6

Exhibit C, Page 5 of 6

DVD piracy in the U.S. becomes an industry. - Free Online Library

Thu4/14/11 3:27 PM

http://www.thefreelibrary.com/DVD+piracy+in+the+U.S.+becomes+an+industry-a0103403775

Page 6 of 6

Exhibit C, Page 6 of 6

Exhibit D
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

The Media Equation - More Videos to Watch Than Hours in the Day - NYTimes.com

HOME PAGE

TODAY'S PAPER

VIDEO

MOST POPULAR

Fri9/10/10 11:24 AM

Subscribe to The Times

TIMES TOPICS

Welcome, irasiegel1

Log Out

Help

TimesPeople

Search All NYTimes.com

Business Day

Media & Advertising
WORLD

U.S.

N.Y. / REGION

BUSINESS

TECHNOLOGY

SCIENCE

Global

HEALTH

DealBook

SPORTS

Markets

OPINION

Economy

ARTS

Energy

STYLE

Media

TRAVEL

Personal Tech

JOBS

REAL ESTATE

Small Business

AUTOS

Your Money

THE MEDIA EQUATION

The Glut of Shows Unwatched
By DAVID CARR
Published: September 5, 2010

The great thing about modern technology is that
you never have to miss anything on television.
That’s also the terrible thing about it.

RECOMMEND
TWITTER
E-MAIL
SEND TO PHONE

Last Sunday, I
PRINT
was traveling and
Apple Faces Many Rivals for
REPRINTS
did not see “Mad
Streaming to TVs (September 6,
SHARE
Men.” As someone
2010)
who cares about
Drilling Down: Life Without a TV
Set? Not Impossible (September 6,
being in the know, when I got back on
2010)
Monday, I wanted to catch up on the
episode. Because I spend time on
Twitter, I already knew that the episode included a creative session
conducted in the nude, so I wanted to see it for myself before I came
across other spoilers.
Related

Having set my DVR — I subscribe to the FiOS television service from
Verizon — for just such a circumstance, my wife and I plopped down
on Monday night for a little time with Don and Peggy. I hit play, and
then the screen went blank. After several more attempts, I called in
the household’s chief technology officer.
“You recorded the high-def channel,” said my 13-year-old daughter
Maddie, adding that seeing as I own a cheap set from Costco, it
wasn’t going to play.
Check, but not checkmate. Verizon has an on-demand service, but as
it turns out “Mad Men” doesn’t show up for a few days. Starting to
feel desperate, I thought for a moment about hopping on the laptop
and searching BitTorrent for an illegal copy, but given that I make a
living creating original content for a large media company, stealing
from another one did not seem like a good idea.
Then I remembered iTunes. Right there for $2.99, Season 4, Episode
6, “Waldorf Stories.” As I took the iPad downstairs to put it closer to
the wireless signal, I told my wife it was going to take about 30
minutes to download. When I got back upstairs, she was already
asleep and I shrugged and settled in for a little me time with the
Mad Men. I woke up in the middle of the night with the iPad
perilously balanced on my less-than-flat midsection, wondering what
I had missed.

Log in to see what your friends are sharing on
nytimes.com. Privacy Policy | What’s This?

Log In With Facebook

What’s Popular Now
Judge Rules That Military
Policy Violates Rights of Gays

Reviving Ground Zero Interactive Feature

MOST POPULAR - BUSINESS
E-MAILED

BLOGGED

VIEWED

1. Lobbyists Rush to Hire G.O.P. Staff Ahead of Vote
2. A Rock Impresario Gambles on ‘Spider-Man’
3. Falling Rates Aid Debtors, but Hamper Savers
4. On Clean Energy, China Skirts Rules

http://www.nytimes.com/2010/09/06/business/media/06carr.html

Page 1 of 3

Exhibit D, Page 1 of 3

The Media Equation - More Videos to Watch Than Hours in the Day - NYTimes.com

That was Monday. By Wednesday, Steve Jobs, the sensei of all
consumer desires, had announced the resurrection of Apple TV. For
$99, I could buy a new geegaw from Apple that would allow me to
rent, not buy, television shows for 99 cents that would play on
devices that won’t fit on my stomach, like big flat-screen televisions.
(Then again, for the time being only Fox and ABC are doing
television business with Apple, so it would not have ended my search
for “Mad Men.”)

Fri9/10/10 11:24 AM

4. On Clean Energy, China Skirts Rules
5. After Fine, Botox Awaits Approval for Migraine
6. Union Accuses China of Illegal Clean Energy Subsidies
7. Harvard Endowment Reports 11% Return for Year
8. Bedbugs Bad for Business? Depends on the Business
9. Genentech Scientist to Lead Rockefeller University
10. Ron Bloom Is Obama’s Manufacturing Emissary
Go to Complete List »

Apple is hardly alone. Amazon, Netflix and Google are getting in the
television game. And all of them want to make sure that I have the
means to dial up the programming I want at a time of my choosing
on a device of my selection. Everyone wants to make sure that I
never miss a thing.
But maybe I should. Television, which was once the brain-dead part
of the day, had become one more thing that required time, attention
and taste. I have fond memories of the days when there were only
three networks and I could let my mind go slack as I half-watched
Diane and Sam circle each other on “Cheers,” because that was pretty
much the only thing on.
Did watching those shows raise my cultural I.Q. or put me in the
thick of social media discussions over whether Snooki was actually
the author of her own place in the cultural narrative? Um, no. But
neither did it turn me into a cool hunter, worried about missing
something, or a technologist, juggling devices and platforms the
minute I got home.
In the dawning era of an always-on database of television, even
shows I missed on purpose now find me. It was always a source of
iconoclastic pride that I never saw a single episode of “Seinfeld” or
“Friends” back when they were in their prime, but in the era of
multiplying channels and ubiquitous choices, those shows have now
hunted me down.
The media world today is less the paradox of choice than the
inundation by options. Right now, waiting patiently next to my
television, I have “The Girl With the Dragon Tattoo,” “Sin Nombre”
and “Sunshine Cleaning.” The latter two movies have been sitting
there for months, and I can’t remember the last time I used the DVD
player for something not related to work.
My DVR is groaning at 79 percent of capacity, including that episode
of “Deadliest Catch” from two months ago in which the captain dies.
I ordered up episodes of “The Good Wife” for my iPad after hearing
about it from friends and seeing that it got lots of Emmy
nominations, but when I settled in on a long airplane ride to catch
up, some guilty time with “Hot Tub Time Machine” got in the way.
That both recent and ancient television is, or will soon be, a few
clicks away just adds to a buffet of media of all types I can’t possibly
finish. My iTunes library would not fit on my new iPad because I
have about 75 gigabytes of music, 20,000 songs or so, many of which
I have yet to hear.
http://www.nytimes.com/2010/09/06/business/media/06carr.html

Page 2 of 3

Exhibit D, Page 2 of 3

The Media Equation - More Videos to Watch Than Hours in the Day - NYTimes.com

Fri9/10/10 11:24 AM

Our ability to produce media has outstripped our ability to consume
it. The average photograph now gets looked at less than once simply
because there is almost zero cost and effort to producing one.
And gone now is the guilty pleasure of simply staring at something
mildly entertaining. We don’t watch TV anymore as much as it seems
to watch us, recommending, recording and dishing up all manner of
worthy product. Yes, it’s the New Golden Age of Television, but I
miss the old idiot box. It made me feel less stupid.
E-mail: [e-mail];
twitter.com/carr2n
A version of this article appeared in print on September 6, 2010, on
page B1 of the New York edition.

Get the full newspaper experience, and more, delivered to
your Mac or PC. Times Reader 2.0: Try it FREE for 2 full
weeks.
Past Coverage

E-MAIL
PRINT

TiVo to Offer Boxes That Go Beyond The Recorder (March
3, 2010)
TV Finds That Mortal Foe, DVR, Is a Friend After
All (November 2, 2009)
DRILLING DOWN; Children Watch More TV Than
Ever (November 2, 2009)
Later Viewings of Shows On DVRs Brighten
Ratings (October 13, 2009)

REPRINTS

Related Searches
Television

Get E-Mail Alerts

Digital Video Recorders

Get E-Mail Alerts

Computers and the Internet

Get E-Mail Alerts

DVD (Digital Versatile Disc)

Get E-Mail Alerts

INSIDE NYTIMES.COM
BUSINESS »

MOVIES »

OPINION »

TRAVEL »

OPINION »

Op-Ed:
Trading Away
the Stimulus

A Rock Impresario Gambles Movie Review: I’m Still
on ‘Spider-Man’
Here
Home

World

U.S.

N.Y. / Region

Business

Copyright 2010 The New York Times Company

Privacy

Economic recovery
depends on the
government taking
more effective steps to
reduce the trade deficit.

Technology

Science

Terms of Service

Health

Search

MOVIES »

When a Fringe
Figure
Becomes News

A Room for Debate
forum on how the news
media should have
responded to Terry
Jones and his plan to
burn the Koran.

Aggression on Wheels,
With Bruises as Badges
Sports

Corrections

Opinion
RSS

Arts

Style

First Look

Travel
Help

Jobs
Contact Us

Even Robert Redford Has
to Work to Sell New Film

Real Estate
Work for Us

Autos

Back to Top

Advertise

Site Map

MORE IN MEDIA & ADVERTISING (23 OF 2

Talk to the Newsroom: The
Articles
Read More »

http://www.nytimes.com/2010/09/06/business/media/06carr.html

Page 3 of 3

Exhibit D, Page 3 of 3

Exhibit E
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

Top 5 Browsers in the United States from Jun 10 to Jun 11 | StatCounter Global Stats

Mon7/25/11 6:28 PM

Get free, real-time web analytics for your site now!

Main

Press

FAQ

About

Feedback

Loading...

Line
Bar

Statistic:

Browser

Country/Region:

United States of America

Time Period: Jun 10 to Jun 11

Save Graph Image

Download Data

Embed:

.jpg format

.csv spreadsheet format

html source snippet

<div id="browser-US-monthly-20100

http://gs.statcounter.com/#browser-US-monthly-201006-201106-bar

Page 1 of 2

Exhibit E, Page 1 of 2

Top 5 Browsers in the United States from Jun 10 to Jun 11 | StatCounter Global Stats

Learn

Customize

Identify search engine usage trends
Get market share stats for mobile browsers
Find the most popular operating systems

Keep Updated

Select a statistic (e.g. search engine)
Choose a region/country
Pick a time period & view your graph

Recent Global Stats News Items

Subscribe to our Global Stats News Feed

Fri, 01 Jul 2011
Chrome Breaks 20% Globally in June

Follow Global Stats on Twitter
Join our mailing list to receive news items by email.
Email Address:

Mon7/25/11 6:28 PM

Sign Up!

Wed, 01 Jun 2011
Firefox 4 Becomes Leading Firefox Version
Wed, 23 Mar 2011
Firefox 4 Hits the Ground Running and Eclipses Internet
Explorer 9

Copyright 1999-2011 © StatCounter, All rights reserved. Get free, real-time web analytics for your site now!

http://gs.statcounter.com/#browser-US-monthly-201006-201106-bar

Page 2 of 2

Exhibit E, Page 2 of 2

Exhibit F
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

Exhibit F, Page 1 of 1

Exhibit G
to
DECLARATION OF JON NICOLINI IN SUPPORT OF PLAINTIFF’S EX PARTE
APPLICATION FOR LEAVE TO TAKE LIMITED DISCOVERY PRIOR TO A RULE 26(f)
CONFERENCE

A Beginner's Guide to BitTorrent - Videos & Guides - Help - BitTorrent - Delivering the World's Content

Mon7/25/11 7:26 PM

English

Get Started

Features

Community

Free Download

Help

Beginner's Guide
Help

Videos & Guides

Beginner's Guide

What is BitTorrent?
BitTorrent is the global standard for delivering high-quality files over the Internet. With an installed
base of over 160 million clients worldwide, BitTorrent technology has turned conventional distribution

FAQ
Videos & Guides
Beginner's Guide
Send Files

economics on its head. The more popular a large video, audio or software file, the faster and cheaper

BitTorrent Connection Guide

it can be transferred with BitTorrent. The result is a better digital entertainment experience for

BitTorrent WebUI

everyone.

Creating A Torrent

BitTorrent is a protocol (a set of rules and description of how to do things) allowing you to download

How To Make The PC - TV
Connection

files quickly by allowing people downloading the file to upload (distribute) parts of it at the same time.
BitTorrent is often used for distribution of very large files, very popular files and files available for free,

Using RSS Feeds

as it is a lot cheaper, faster and more efficient to distribute files using BitTorrent than a regular
download.

Forums

BitTorrent Mainline is a client. A 'client' in this case is a computer program that follows the rules of a
protocol. For example, HTTP (HyperText Transfer Protocol) is the protocol used to download web
pages and other content - like this page - and your HTTP client (or browser) is the program you use to

User Manual

get those web pages. Some popular browsers include Microsoft Internet Explorer, Mozilla Firefox,
Safari, and Opera. To an extent, they all work the same way because they follow the same set of rules.
The BitTorrent Mainline client will give you access to the world of content on the protocol in a
lightweight, fast and reliable package.

How do I download files using BitTorrent?
Just like you need a URL like 'www.google.com' to go to a web site and download content, you need
a 'torrent file', a small file that tells the BitTorrent client the necessary info to download the content
you want. This is generally obtained from a torrent website. Many websites offer torrents as one
method of downloading files. For example, OpenOffice.org, a free alternative to Microsoft Office, can
be downloaded using BitTorrent. Other sites, like legaltorrents.com, offer torrents of all kinds of things
- these sites are just repositories of torrents and usually don't actually create any of the content
available. They're known as indexes or trackers - there is a subtle difference between the two. (The
Wikipedia article on BitTorrent trackers explains the difference.)
http://www.bittorrent.com/help/guides/beginners-guide

Page 1 of 3

Exhibit G, Page 1 of 3

A Beginner's Guide to BitTorrent - Videos & Guides - Help - BitTorrent - Delivering the World's Content

Mon7/25/11 7:26 PM

Wikipedia article on BitTorrent trackers explains the difference.)
Once you've obtained the torrent file from wherever, you simply need to import it into BitTorrent.
There are several ways of doing this.
Click File then Add Torrent in BitTorrent (or press CTRL+O) and locate the torrent file.
Double-click the torrent file. (Only works if you've associated .torrent files with BitTorrent - BitTorrent
asks you if it should do this the first time you run it. If you clicked 'No', you can do this by going to
Options, then Preferences in BitTorrent, then clicking Associate with .torrent files under
Windows Integration.)
(advanced) Click File then Add Torrent from URL in BitTorrent (or press CTRL+U), and enter a URL
from which the .torrent file can be obtained.
But before you start downloading, make sure you've followed the BitTorrent Connection Guide.
It doesn't take long and will help ensure that your torrent experience is faster and more consistent.

BitTorrent finished downloading, but now it says it's
Seeding. What does that mean?
Seeding is where you leave your BitTorrent client open after you've finished your download to help
distribute it (you distribute the file while downloading, but it's even more helpful if you continue to
distribute the full file even after you have finished downloading). Chances are that most of the data
you got was from seeds, so help give back to the community! It doesn't require much - BitTorrent will
continue seeding until the torrent is removed (right click the torrent, then hit Remove). Proper practice
is to seed until the ratio of upload:download is at least 1.00.

Can I really download anything?
BitTorrent is purely a content distribution method, just like a web browser, and similarly, does not
incorporate any technology to monitor or restrict your activity. There is also nothing in BitTorrent that
prevents anyone from seeing your IP address. Take care to follow your country's laws concerning
copyrighted content.

How do I know that someone isn't sending out viruses on
BitTorrent?
In short, you don't. You should treat something downloaded with BitTorrent just like any file
downloaded from the internet - that is, if you don't trust the source of the file, then you should use
caution when opening it. If the torrent site you obtained it from offers comments, be sure to read
those first. But regardless of the comments, running a virus scan on the downloaded files is usually a
good idea. BitTorrent guarantees that the content you download is not altered from when the torrent
was originally created, but if the source files used to create the torrent were already infected, this will
provide no protection!

http://www.bittorrent.com/help/guides/beginners-guide

Page 2 of 3

Exhibit G, Page 2 of 3

A Beginner's Guide to BitTorrent - Videos & Guides - Help - BitTorrent - Delivering the World's Content

Mon7/25/11 7:26 PM

Where can I find out more?
This guide and the User Manual is a good place to start. There is also a lot of BitTorrent reference
information available on the internet, and searching for "bittorrent" on Google is a good start. The
following sites are particularly useful:
Brian's BitTorrent FAQ and Guide - a great resource to all things BitTorrent, with far more info than
this page, though some of it is a bit technical.
BitTorrent FAQ - Provides a list of common questions and answers and solutions to a number of
common problems.
BitTorrent User Manual - The main documentation for BitTorrent. Explains everything related to the
client. Press F1 while viewing the BitTorrent window, or go to Help -> BitTorrent Help.
The BitTorrent specification - Technical information on the way BitTorrent works.
BitTorrent.org - a forum for developers to exchange ideas about the direction of the BitTorrent
protocol.

Like

16 people like this. Be the first of your friends.

@BitTorrent

BitTorrent Blog

Community Forums

Yeah!! Pioneer One Episode 3 is out!

Now Taking Reservations – µTorrent Plus

bit torrent for nokia e63

Download it from the @Bittorrent App Studio

View Post

View Post

or VODO http://vo.do/pioneerone
@pioneeronetv
View Tweet

Free Download
Version 7.0.1 for Mac

Betas & Other Platforms

Get Started

Company

Help

Download

Find Torrents

About BitTorrent

FAQs

Windows

Apps

Jobs at BitTorrent

Videos & Guides

Windows Beta

BitTorrent DNA

Forums

Mac

Technology Partners

User Manual

About Us Press Privacy Policy EULA Terms IRC

http://www.bittorrent.com/help/guides/beginners-guide

Page 3 of 3

Exhibit G, Page 3 of 3