Thursday, May 29, 2014

Major Victory Over Copyright Trolls: A Deeper Look

As we announced this morning, a federal appeals court handed copyright trolls a major defeat today by taking away one of their most powerful tactics: the ability to sue large groups of John Doe defendants together with minimal evidence. Now that the dust is clearing, we’re filling in the details.

This case, AF Holdings v. Does 1-1058, is one of the few mass copyright cases to reach an appellate court, and the first to look into fundamental procedural problems that have tilted the playing field firmly against the Doe Defendants. With this decision on the books, we suspect that even more federal trial courts will say "No" to the sordid business of cookie-cutter lawsuits seeking seeking cash payouts from dozens or even hundreds of Internet subscribers.

This appeal was brought by several internet service providers (Verizon, Comcast, AT&T and affiliates) with amicus support from EFF, the ACLU, the ACLU of the Nation's Capitol, Public Citizen, and Public Knowledge.

On the other side was notorious copyright troll Prenda Law. Prenda, and other groups like it, wanted to use the courts' subpoena power to identify Internet subscribers, then shake them down for $2,000-$4,000 "settlements." They assuredly didn’t want to invest the time and expense needed to actually figure out who, if anyone, likely infringed a copyright. Trolls use court processes not to enforce their rights or to protect a legitimate business, but to make a profitable business out of groundless threats and intimidation.

In this case, Prenda sued 1058 Does (anonymous defendants identified only by an Internet Protocol address) in federal district court in the District of Columbia. It then issued subpoenas demanding that ISPs give them the names of subscribers. The ISPs objected to this request, arguing that most of the IP addresses were associated with computers located outside of the DC court's jurisdiction. Limits on the courts' jurisdiction are a vital protection for the rights of defendants, because without this safeguard, Internet subscribers in Oregon (for example) can be forced to defend themselves in D.C. That made it even more likely that subscribers would choose to pay the troll a few thousand dollars to make the case go away, even if they had not infringed any copyright.

We also explained to the district court that joining together many subscribers in one lawsuit was fundamentally unfair and improper under the rules governing when defendants can be sued together (known as ‘joinder’). Lumping dozens or hundreds of Internet subscribers together denies them a real opportunity to explain their unique circumstances in court, such as who uses their Internet connection and when.

by Mitch Stoltz, EFF |  Read more: