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Joint Strategic Plan on Intellectual Property Enforcement FIG. 2: IPR-Infringing Websites: Tactics Used to Build Resilience Against Enforcement Activity. Build Redundancy Register hundreds or thousands of domain names to support “mirror sites” to drag rights holders or law enforcement into “whack-a-mole” pursuit Establish Diverse Geographical Footprint Register domain names in numerous jurisdictions to facilitate domain-name hopping Ascertain Safe Havens Register domain names in jurisdictions with weak IPR protections or enforcement, while utilizing service providers that will not assess the veracity of submitted complaints of unlawful actitivity For example, a study commissioned by the European Union Intellectual Property Office (EUIPO), through the European Observatory on Infringements of Intellectual Property Rights, identified various infringement-based business models employed to intentionally benefit from and exploit copyrighted digital content on the Internet, including by way of linking, torrent, streaming, and cyberlocker sites. 25 The illicit online business models appear to be structured to achieve three primary objectives: (i) to shield and conceal identities; (ii) to establish operational redundancies so as to ensure resiliency in the face of enforcement actions; and (iii) to maximize dissemination of infringing third-party content. Examples of some of the tactics employed to realize these objectives are summarized below. Entities engaged in the unlawful exploitation of copyrighted content are reported to conceal or otherwise mask identifying information by providing false or inaccurate registration information when registering a domain name. 26 An operator of a website engaged in illicit activity may also employ one or more evasive registration tactics (FIG. 2,3) such as the registration of hundreds of names across various jurisdictions, in order to increase resilience against any enforcement actions directed at the illicit enterprise. 27 Once domain names have been secured, reporting suggests that the entity seeking to exploit unlicensed third-party content for commercial profit often employs various additional hosting and operational schemes (FIG. 3) in an attempt to shield the illicit enterprise from effective enforcement. Illicit actors use legitimate encrypted technologies and proxy connections such as the TOR browser and virtual private networks (VPNs to “cover the tracks” of traffic to an IPR-infringement-based site, attracting individuals seeking to obtain pirated content undetected. FIG. 3: Evasive Tactics Used to Offer or Access Unlicensed Content. SECTION 1 Use of an anonymizing service, such as a nologging virtual private network (VPN) service Use of reverse proxy sites to re-route traffic to bypass a court injunction Hosting infringing content in multiple offshore havens in an attempt to stay beyond reach of enforcement Use of peer-to-peer (P2P) networking technology, including via BitTorrent protocol Ecouraging seeding of third-party content 22
« Office of the Intellectual Property Enforcement Coordinator Dedicated IPR-infringing websites have widely promoted torrent VPNs, for example, to anonymize Internet protocol addresses and fake or hide a web user’s actual location when accessing libraries of infringing content in violation of applicable laws. 28 Platform operators who facilitate business models predicated on stolen content also develop their business models specifically to evade arrest or civil liability, increase enforcement costs, entice illicit traffic, and generate unreported income for the enterprise and its operators. For these and other reasons, law enforcement actions are often focused on the facilitating platform operator. These unlawful businesses generate income through a variety of payment methods, including: premium subscription fees and donations; payments in digital virtual currencies (such as Bitcoin, which commercialscale IP infringers often use to hide the proceeds of crime from the authorities); and revenue from advertisement and pay-per-click services. 29 Operators of illicit sites deploy additional strategies to maximize income opportunities and safeguard revenue streams for those seeking to exploit unlicensed content on a commercial scale. For example, websites dedicated to profiting illegally from third-party content have been reported to generate hundreds of millions of dollars each year by exploiting payment processing and advertising network platforms in violation of law, and in material breach of the service provider’s and platform’s respective "Terms of Service." 30 A number of piracy sites are reported to use the stolen content (such as a hit movie) to lure consumers and then infect consumers’ computers with malware in order to conduct FIG. 4: How TOR works. Fig. 5: The Onion Router How TOR works User 1’s TOR User 1’s TOR unencrypted. User 1’s TOR client selects a unencrypted. part in its activities. It is also possible for the users to communicate with each other. other illegal schemes to further augment illicit revenue from the exploited content. Such other schemes include 24 TRADEMARKS AND THE INTERNET, WIPO document SCT/24/4, 2010, and http://dictionary.reference.com/browse/virtual-environment spam and phishing campaigns, accessing personally 18 · Research on Online Business Models Infringing Intellectual Property Rights identifiable data, generation of fake advertising traffic, and the serving of pop-ups and other ads. TOR node TOR node TOR node Virtual worlds Virtual worldsSource: 24 is most frequently EU IPO, used Research as a term that on describes Online the many Business different Models Infringing types of multiplayer online games and other multiuser Intellectual interactive worlds. Property Usually a Rights (July 2016) virtual world is 'populated' by avatars that are created by the individual users and who simultaneously and independently explore the virtual world and who takes « FIG. 5: The Financing of a Commercial Piracy Enterprise. Malicious software designed to gain unauthorized access, collect private data, or inflict damage Ad Supported Infringement $$$ A bet controller commands a distributed system of connected computers to act as a group to undertake fake advertising and spam campaigns Membership subscription-based piracy (serviced credit card payments or other methods) Multiple “shell” accounts opened at the same or different banks to avoid detection SECTION 1 23
Page 1: U.S. JOINT STRATEGIC PLAN ON INTELL
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ACKNOWLEDGEMENTS With thanks to, an
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