So this company is suggesting that it's better to allow your customers to break the law and then threaten to sue (making money from the settlement), rather than have them use legal channels?
Why bother with tracking the downloads or caring at all what the user does? Just get a list of all internet users everywhere, send a nastygram insinuating that they've done something illegal, and send a bill. Some percentage of people will pay. Those interweb thingees are mostly just used for piracy anyway, right?
Random threats of lawsuits are infinitely more profitable than no threats at all.
The premise that 25% of people pay up without questions seems highly questionable. The only source for this is the company itself, correct?
Edit: why the downvote? Take a look at the direct quote from the article:
However, not everyone who receives a letter will pay up, but DRS says that an impressive 25% of all recipients do without asking questions. This figure is much higher than most people assumed previously.
Why would one take such a surprising number on face value, especially from a company with such a shady business model?
I buy the 25%, only because it was based on responses in Germany. This is the country where I get yelled at for jaywalking at 3am and some subways work on the honor system. Germans are ridiculously honest.
In fact, now that I think about it, 25% seems low. What's happening in Germany?! Pretty soon, when I visit, I'll be forced to pay for my subway rides. Clean up your act Germany!
I jaywalk all the time (well, not all the time, but you get what I mean) in Germany and I have never ever been yelled at. But it is uncommon, at least in the smaller towns. In bigger cities nobody would bat an eye, but you'd better be careful because unlike say Amsterdam it is not the expected behaviour.
they mainly own copyrights to pornographic movies. i guess that helps with the "no questions asked" part. i got such a letter myself, but ISPs in europe don't have to give out personal data unless the request comes from a judge.
This commenter nailed it: "It’s ’speculative invoicing’."
Also, the title is a bit shady. It's 150 times more profitable per instance, but only 25% (according to the company) pay up, meaning that it's really only 37.5 times more profitable.
I think you need to qualify the title. $0.60 is what you get for every legal download, 150 times that is what you might get if you happen to catch someone, find out her address and if she then also pays.
DigiRights "developed" the technology to automate those "requests for damages" letters, so they are marketing it as being very profitable - no big surprise.
DigiRights, the company making those claims is highly suspicious. my parents actually got a letter from them. well their ISP got the letter wrote to my parents something like "digirights says you downloaded XYZ (porno movie). we didn't tell DigiRiths who you are, but please: stop it."
i doubt DigiRights is acting legally in austria, where i live. this is currently being viewed at.
According to wikipedia, http://en.wikipedia.org/wiki/May_you_live_in_interesting_tim... , "May you come to the attention of those in authority" is an escalation of the better known curse "May you live in interesting times". Today it's a depressingly common threat, too.
It looks like RIAA and the other mobsters are going about it wrong, maybe they should be hitting up more people for smaller amounts.
The trick of a good parasite is to let the host live and be a small enough nuisance that the host won't kill the parasite.
That is indeed the pirate's dilemma: how do I steal all my music, movies, and videogames while making sure Content, Inc. doesn't move to a business model where all the value is on their servers and you can, at best, rent access to it. It has already happened in China, and looking at the PC game sales charts in America it is pretty much complete there, too.
Oh, those weren't the parasites you were talking about? My bad.
* buy cheap copyright like 1940s movies
* make divx files, name after non-existing pornos
* anonymously seed to major torrent site
* startup your auto-legal-threat-software
* collect money
It's a scary world we live in.