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Messages - Matthew Chan

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1531
Normally, I wouldn't post this information in this forum that is focused on stock photo extortion letters and stock photo copyright trolls. It would normally be in the P2P/Bittorrent Lawsuits Forum.

However, this important declaration follows in the footsteps of the RIAA and Righthaven lawsuits where judges understand the scam being run against victims and specifically call out copyright trolls for abusing the legal system over dumb lawsuits.

Stock photo copyright trolls (especially Masterfile) should take heed. 

In the case of Hard Drive Productions vs. Does 1-90, the Federal Court in the Northern District of California explicitly states the following within the Conclusion in Section IV:

http://www.scribd.com/doc/88441359/Hard-Drive-Productions-Order-Denying-Leave-to-Take-Expedited-Discovery

Quote
The court realizes that this decision may frustrate plaintiff and other copyright holders who, quite understandably, wish to curtail online infringement of their works. Unfortunately, it would appear that the technology that enables copyright infringement has outpaced technology that prevents it. The court recognizes that plaintiff is aggrieved by the apparent infringement and is sympathetic toward its argument that lawsuits like this one are the only way for it to find and stop infringers. However, the court will not assist a plaintiff who seems to have no desire to actually litigate but instead seems to be using the courts to pursue an extrajudicial business plan against possible infringers (and innocent others caught up in the ISP net). Plaintiff seeks to enlist the aid of the court to obtain information through the litigation discovery process so that it can pursue a non-judicial remedy that focuses on extracting “settlement” payments from persons who may or may not be infringers. This the court is not willing to do.

It doesn't get any plainer or more clear than that. The Court is calling out the copyright troll quite explicitly and letting everyone know that the Court recognizes the extortion scheme they are running against extortion letter victims relating to P2P/Bittorrent infringements.

This document will be quoted and referred to by all defendants in future copyright troll lawsuits.


1532
PACA's Initial Comments on Copyright Small Claims is very good reading and substantiates many points that ELI has been making for years. It actually reveals what stock photo companies know but they don't want YOU to know as an extortion letter recipient. Naturally, I have many comments on the matter.

The PACA Initial Comments document is something to behold. It is a gift to the ELI Community.

http://www.pacaoffice.org/pdfs/NOI_response_120118A.pdf

According to PACA: "On the legislative front, PACA filed comments on January 16, 2012 to a notice of inquiry published by the Copyright Office on the challenges of enforcing copyright claims of lesser economic value under the federal court system and whether there should be alternative means to enforce claims in which damages sought for infringement are relatively small. PACA supports the Copyright Office in looking at ways copyright owners can enforce certain infringement claims in an less burdensome and expensive forum that would not require legal assistance."

This appears to be in the public domain since they are filing it with the Copyright Office. So, ELI will upload and keep a copy in our document library in case they decide to delete it from their website.

Quote from report. "PACA’s mission is to foster and protect the interests of the picture archive community through advocacy, education and communication. A primary purpose is to actively advocate copyright protection and copyright education."

The industry has done a very poor job educating people or trying to convert alleged infringers into customers. The so-called education by the industry is largely a joke. ELI has done a much better job educating alleged infringers than they have which is why ELI continues to gain goodwill and climb in stature on the Internet. PACA's members are their own worst enemy and continue to drive ELI status upwards.

Quote from report. "Most member organizations manage a large library of visual content and have real concerns regarding the economic impact of infringement.. While infringement of content made available for licensing has always been present, even when images were offered in slide format via catalogs, the ease in which images can be downloaded, distributed and used without obtaining any license or paying a license fee is increasing because of the ease of digital distribution and causing real economic harm to stock libraries and the individual creators."

PACA as with the rest of the stock photo industry keep blaming piracy and infringements as the cause of their lost income.  The reality is the sheer abundance of imagery being pumped out daily diminishes the market value of all the images. Additionally, with high-quality digital cameras being affordable to so many people, there are even more people producing images. Newspapers are going out of business because people don't need newspapers anymore.  Book publishers are going out of business people they aren't needed anymore.  The television industry is in turmoil having to settle for very small viewership.  People spend a lot more time on independent entertainment such as YouTube.  PACA is in denial of these larger technological trends.

Quote from report. "The ability to use the federal court system to redress the harm is limited for two reasons, the difficulty in effectively registering large volumes of images and the resources and effort involved in bringing a claim in federal court."

Boo-hoo. They admit that filing lawsuits in federal court is an uphill battle.

Quote from report. "Because stock libraries manage images owned by numerous individual creators as well as images that are wholly owned, the formalities of registration make it difficult to protect the images that are made available online, in some cases on a daily basis, to the professional image buyer. It would be prohibitive both in terms of personnel and monetary resources to register the individual images on behalf of each copyright owner on such a frequent basis."

Letter recipients need to read this very clearly. Photographers and stock photo agencies want to be in the business but don't want to do the work to register their work. Instead of dumping out work, how about actually selecting those images that are worth something to register? Song writers, book publishers, and authors take the time to SELECTIVELY register their work. They don't register every random brain fart they ever created.  Just because a "professional photographer" took 100 photos doesn't mean all of them are valuable. And if they think they are all valuable, then register all 100 of them! The only people complaining about the copyright registration process seems to be the stock photo industry. I don't hear these complaints from any of the other media industries.

Quote from report. "For example, many members drafted contracts based on the Copyright Office recommendations that members should acquire copyright ownership in the images in order to register the individual images that are maintained in the electronic database. Unfortunately, some federal district courts have recently disallowed this registration, asserting that these registrations only protect the compilation of the images and not the individual images." 

They obviously don't like the recent rulings.

Quote from report. "One of the unfortunate results of these recent decisions is that blatant infringers now attack the validity of the copyright registrations, rather than trying to resolve any copyright infringement claims on an amicable basis. This practice has increased the cost of pursuing such claims by PACA members and is a significant deterrent as the decisions are easily found in any web search." 

These recent decisions did not suddenly become available to everyone. They became more widely accessible because the ELI Team not only helped make available those decisions widely available but we also explained them in way that ordinary people could understand. PACA's members continue their campaign to threaten, mislead, and lie to letter recipients.  ELI will continue to clarify the truth.

Quote from report. "PACA members take seriously the responsibilities of enforcing copyright in the imagery they represent and many stock photo libraries have departments dedicated to copyright compliance in order to resolve infringements and secure licensing fees on behalf of copyright holders. While companies first attempt to resolve claims without resorting to litigation, some claims cannot be resolved either because the infringer refuses to respond, believes that simply removing the infringing content is sufficient, or refuses to pay adequate licensing fees."

What they consider "adequate licensing fees" is actually outrageous, disproportionate, and totally out of line with actual market value. PACA's members hate that even those infringements that fall into statutory damages must somehow be connected to some sense of reality of actual damages, not simply a calculated number that defies explanation. They won't admit that in some situations, a take down is perfectly acceptable solution. Not every so-called infringement is deserving of monetary compensation. And if they want it, then they need to work to prove it.

Quote from report. "At that point, the stock photo library must make a decision as to whether an infringement action is warranted. In most instances, it does not make commercial sense to pursue an action unless there are numerous registered images infringed by a single infringed. Unfortunately, this only encourages infringement and disrespect for copyright in general."

Filing lawsuits continues to be a rare occurrence because it is very expensive and cumbersome. Quite frankly, what PACA doesn't acknowledge is the abuse of the court system by their sister industries by the movie, newspaper, and music industries. Judges have increasingly become tired of heavy-handed, outrageous, disproportionate lawsuits on small parties that cause little or no damages.

Quote from report. "In addition to the obvious financial deterrents in bringing an action that includes costs such as obtaining a court filing index number, (a fee that may exceed the license value of an image use), attorney's fees, expert fees; document production and deposition costs, etc.., there is the difficulty in finding attorneys throughout the country that are willing to handle these type of actions in which the economic value, even with the of availability of statutory damages or attorneys’ fees, may be relatively low."

PACA practically admits to knowing that any damages they might collect would not be financially feasible. Most judges aren't going to rule based on paying the attorney bills.  They are going to rule based on the actual market values and actual damages, not some concocted, astronomical number.

Quote from report. "A company may have the benefit of an in-house lawyer, or a local lawyer that is willing to work with them, but strict jurisdictional requirements may prevent the company from being able to bring a claim in its local federal district. This is an additional deterrent in pursuing claims against defendants that do not reside in the federal district where the stock photo library is located."

All letter recipients should pay heed to this.

All in all, this document was truly a gem of a find for the ELI community. I am quite certain that it was not intended for the ELI Community to read or use to our benefit. Maybe PACA should get a clue and actually use some common sense about their members so-called economic losses.

1533
Getty Images Letter Forum / Picture Archive Council of America (PACA)
« on: April 07, 2012, 11:30:04 PM »
In reading through the many exhibits provided by Oscar Michelen to IN SUPPORT OF DEFENDANTS MOTION TO DISMISS COMPLAINT in the Masterfile vs. Chaga International case, Oscar makes several references to Attorney Nancy E. Wolff and her role as legal counsel to Picture Archive Council of America (PACA).

PACA (Picture Archive Council of America) is a trade organization representing the interests of stock archives ranging from small, individual photographers to large corporations such as Getty Images and Corbis. There are supposedly 100 North American companies and 50 International companies within the membership. Surprisingly, I found the website informative and worth visiting.

http://www.pacaoffice.org/index.shtml

Look up your favorite stock photo company and chances are they are listed here. Most of our favorite players such as Getty Images, Corbis, Masterfile, PicScout, etc. are there. However, I did notice that Hawaiian Art Network wasn't listed.

http://www.pacaoffice.org/ic/paca/devpages/mem_dir_redesign.html

The annual membership fee is fairly steep for North American memberships.

http://www.pacaoffice.org/pdfs/PACA_General_Member_app.pdf

PACA provides an ongoing monthly newsletter which appears to report the ongoings of the stock photo industry. Nancy E. Wolff provides legal updates in each issues. I have scanned a few issues and it is worth reading.

http://www.pacaoffice.org/whatsnewnow.shtml

PACA has an informative and educational section in their Document Library. I especially like the Copyright Education Powerpoint presentation and Video. The Copyright Commandments & Special Release List is worth reading. Keep in mind, it skews towards the stock photo agencies and photographers but there is some good information there.

http://www.pacaoffice.org/library.shtml

I absolutely recommend everyone read the PACA 2011 Piracy Survey Results.
Starting on Page 10 is where ELI readers will want to pay close attention. The results of this report alone would justify its own discussion thread.

http://www.pacaoffice.org/pdfs/Piracy_Survey_Results_2011.pdf

I think PACA will soon become a must-read for many regular ELI readers as this puts another perspective on the industry that engages in extortion letter schemes.


1534
Getty Images Letter Forum / Re: The Hypocrite of the Century!
« on: April 07, 2012, 01:12:55 AM »
Believe me when I tell you that I have a few words on the subject. When I eventually get to this, it will be a full-blown ELI article, not simply an ELI discussion reply. I have been trying to catch up on various cases and news that were not yet reported. I am working my way through my backlog.

1535
Ok, ok!  Thanks for the kick in my tail. I deserve it. I truly need to get to the a good stopping point. If for no other reason, I don't want to embarrass myself further with a runaway deadline.

I already feel bad for getting sidetracked. But this is one of these times I don't mind people ganging up on me to get the darn thing done.  :-)  It will be good for everyone if I do.

1536
Might I remind everyone that regardless of "intent" or "willfulness" that $6 million is simply off the charts and that it would feed the coffers of Masterfile? Even 10% of that is simply off the charts. The defendant is paying in the form of aggravation and paying legal fees so far.

No one can convince me that even if they intentionally or willfully committed the infringements that Masterfile deserves $600,000 much less $6 million.

One of the biggest problems is that these claims are outrageous and unjustifiable. We may agree the defendant needs to pay something but if the defendant loses in a big way here, it hurts everyone else including all of us. We don't need a legal precedent that helps the stock photo agencies. We need a legal precedent that stresses "proportional" and "actual damages", not one that will encourage the stock photo companies to file more of these nonsensical lawsuits.

Might I suggest remembering the big picture of why ELI exists to begin with?  To fight the outrageousness and disproportionate nature of this whole thing.

1537
The case of Masterfile vs. Chaga International is especially significant for ELI to follow not only because of the crazy amount ($6 million) being sued for. It is also significant because our own Oscar Michelen has joined the battle on Chaga's behalf against Masterfile in this lawsuit. This is an opportunity to watch Oscar strut his stuff as this unfolds.

There is a good chance that this case (as with nearly all of Masterfile's prior cases) will settle. However, the many points Oscar brings up regarding the problematic registrations, registration of collections, and copyright registration procedures puts the plaintiffs in a challenging position.

The recent docket is here:
http://www.scribd.com/doc/88226398/Masterfile-vs-Chaga-International-Docket

The initial complaint is here:
http://www.scribd.com/doc/88226171/Masterfile-vs-Chaga-International-Complaint

Oscar Michelen's Declaration in Support of Motion for Summary Judgment is practically mandatory reading.  If anyone wants to see Oscar pull out the big guns, this is one of them so far. Oscar goes to town and provides 24 Exhibits consisting of nearly 200 pages to support his case!
http://www.scribd.com/doc/88228764/Masterfile-vs-Chaga-Oscar-Michelen-in-Support-for-Motion-to-Dismiss-Complaint

The Memorandum of Law in Support for Summary Judgment as to Liability is also another big gun being brought out. Only the brave and the bold dare try to get through this one. Lots of meat and potatoes here. Even I am going to need some time to digest this one in its entirety.  (I recommend everyone take small bites and chew well before swallowing.)
http://www.scribd.com/doc/88229310/Masterfile-vs-Chaga-Memorandum-of-Law-in-Support-for-Summary-Judgment-as-to-Liability

Apparently, Oscar's response caught the opposing attorney, Steve Weinberg, off-guard. Weinberg had to file an extension document from Israel!
http://www.scribd.com/doc/88229536/Masterfile-vs-Chaga-Weinberg-Declaration-for-Time-Extension

A Joint Stipulation to Extend Time for Replies and Proposed Order was submitted to the Judge. Presumably, it will be accepted as both plaintiff and defendant counsel have agreed to this.
http://www.scribd.com/doc/88229831/Masterfile-vs-Chaga-Joint-Stipulation-to-Extend-Time-for-Replies-Proposed-Order

We will continue to use this thread for further updates on this case.

1538
http://www.extortionletterinfo.com/getty-images-license-compliance-new-online-payment-system/

Getty Images and their License Compliance department has recently (and conveniently) implemented an online payment system for those willing to pay full fare with no fuss or dispute. (We think it would be stupid for anyone to actually do so but it accommodates those who don’t care about their money and want to avoid conflict at all cost.)

Page 1 is a screen shot showing the payment login page.

http://www.scribd.com/doc/88220709/Getty-Images-License-Compliance-Payment-Login-Screen-Shot

The case number and access codes are now included within the Getty Images Extortion Letters themselves. This appears to have begun in early 2012.

Page 2 is a screen shot showing the actual payment page where you can pay with a credit card.

http://www.scribd.com/doc/88220709/Getty-Images-License-Compliance-Payment-Login-Screen-Shot

You cannot make any partial payments or otherwise alter the payment amount. Essentially, the payment amount is the amount listed within the extortion letter.

Anyone who uses this online payment system to make a payment without challenging the stated amount is obviously ignorant and doesn’t know about their extortion scheme.

1539
You are welcome.

Don't bother calling. It is a waste of time. Keep it in writing, no emails. Otherwise, your general approach is about right.

1540
I am sure this is a setback for the CEO who has stated he would have to get out of the business at some point. He can't cash out like he intended. He will have to continue whipping his extortion department to continue threatening people out of money.

Also, we had never heard of an Arius3D settlement demand letter before and still haven't heard of one. I am wondering if the Aruis3D was concerned about taking on Masterfile's reputation for extorting people.

In the press release, it mentions Masterfile's strong financials but the secret is out that the major stock photo companies use the extortion letter scheme to create new revenues to offset the fact that the stock photo business is becoming a commodity business and actually going down the tank.

Getting in to the stock photo business is like trying to fight your way into the newspaper business. Titanic, anyone?

It's possible that Arius3D was interested in Masterfile's library of photos but not willing to pay to an inflated value due to the artificial inflation of including Masterfile's extortion / collection revenues.  Masterfile may count it as revenues but NOT from traditional stock sales. That might have been problematic for Arius3D who does not appear to run an extortion scheme as far as we know.

There are very few people who want to buy a business whose primary line of revenues and profits comes from threatening to sue people. It makes for a shitty business model not to mention an ongoing PR nightmare.

Everything I just stated is speculation on my part.

1541
I've always been a bit uncertain using the letter date as the actual date of discovery myself. I have wondered how long it takes between actual discovery and generation of the letter. But using the letter date is fairly safe since it builds in an unknown amount of "cushion" to their actual discovery date.

I also think it's foolish to assume that the date of their letter is the date of their discovery. I'm certain there is a period of days, if not weeks or months that pass before they send out a notice.

1542
It appears to be a clerical oversight by Scribd.

Photo Attorney Carolyn E. Wright's extortion letter has been restored by Scribd.

Another successful DMCA counter-notification letter in the ELI file.


1543
Although it has been brought up several times over the last few years, I am warming up to the idea of an online petition. I have traditionally been very resistant to the idea of preparing an online petition because I wasn't sure of the impact it might have nor did I feel a good enough job could be done to prepare one. There have been attempts in the past but I felt the efforts lacked credibility for a variety of reasons.

However, I am beginning to have a change of heart mainly because of the success and experience I gained in another online petition I sponsored.

http://www.change.org/petitions/reality-steve-extortion-lawsuit

It isn't tops on my priority list but now it is on my to-do list if and when I get around to it. And I intend to do a good write-up so that it carries some weight. But it will take time for me to formulate a strategy and wording that can reach beyond the stock photo letter recipients.

1544
Good points made here.  I definitely agree with "Don't be the softest target."  Definitely agree on deny where it absolutely needs to be denied. But don't deny in areas where it makes you look like an idiot.

I most definitely agree that many people aren't that articulate but everyone needs to start learning at some point.

I know people are clamoring for "form letters" to make things easier. I get a bit concerned when people say they will follow my letters as a template. That wasn't the intent and those letters are 4 years old. Although I stand by my letters, the letters I would write today would be far different and a bit shorter given what I know today.

I won't say I won't eventually create some but I am very resistant to it because I think using form letter takes away from the message plus you can't have form letters for every permutation of circumstance.

I would say most of us agree on more points than disagree, otherwise there would more online slugfests. LOL.

Matt, we're in agreement here, I think.

Of course, I'm not implying in any way that people should "fight it every step of the way", and lose out in the end.
I should reiterate that one should not make things "worse" by going straight to implying that oneself is "guilty".
Now, I'm simply saying saying, "don't admit guilt".  I'm not saying deny everything, unless something is in fact untrue.
Many people aren't that articulate, and that's the danger.

I'd also like to say that one should be professional, etc.  But don't appear to be the "softest target out there".
Because such a person will be the first in line if there's a lawsuit.
Not that many lawsuits have historically occurred.

Just my opinion, but I do think that we're on the same page here, even if we word it slightly differently.

S.G.

1545
This has been discussed before so I won't get into a lengthy post. An "apology" is not always an admission of guilt. It depends on the phrasing. In circumstances where you are very likely to be in a losing position on a single point (the screen shot of your web page for example), an apology looks way better than saying "nope that is not my screen shot" and making them "work" for it.

There is a live Hollywood extortion case I am covering where the defendant at around $350/hour is "fighting it every step of the way" and bleeding to death financially on a technicality vs. conceding the point and moving forward to the central allegation.  There is a real possibility he will be broke before the case advances to the next step.

FWIW, Oscar and I have discussed this at length. Unless you are deep-pocketed, sometimes it is best to to concede a minor point and move the case along to a resolution.

Obviously, if they ENTIRELY made a mistake and it is not your website, then offer no apology. But on the rare chance, a case goes to court, you could be called to testify. And if you are caught perjuring (that is criminal offense), you will wish that you only had the infringement case to deal with.

Remember, these letters you write can work for you or against you.  I believe in congruency all the way from written letters to live testimony.  Your credibility is much higher.

I am NOT saying to apologize on everything or absolutely nothing. What I am saying that an apology can actually be a helpful tool if used correctly.  I have used the apology strategy many times in life including in court. Some think it takes power AWAY from you. Many times, it BESTOWS more power to you because it helps defuse a point.   It depends on how it is used.

For example, don't say "I apologize that I am a copyright infringer".  But you might say, "I apologize for the inconvenience this is causing you and your company" or "I apologize that this entire incident and dispute has occurred" or "I apologize that my web designer used your photos without my knowledge and permission."  "I apologize for unknowingly buying a template that had infringing images." (Innocent infringement).

Some examples of using "regret" in a strategic way:
"I regret that you and I cannot seem to agree on this". "I regret that you will not accept my reasonable settlement offer which is based on true market value, not an inflated one." "I regret you will not provide me the information I requested to make an informed decision".

I could use "I apologize" and "I regret" all day long to make the the other guy look bad and concede minor points. 


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