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Joint Strategic Plan on Intellectual Property Enforcement<br />

One recent study, for example, probed a sample of<br />

800 websites dedicated to distributing pirated movies<br />

and television shows, and found that one out of every<br />

three content theft sites contained malware, including<br />

delivering adware 31 and botnets. 32 The study found that<br />

consumers are 28 times more likely to get malware from<br />

a content theft site than from similarly visited licensed<br />

content providers. 33 As such, it has been suggested<br />

the unscrupulous website operators exploit IP to “the<br />

detriment of society, businesses and the ordinary user of<br />

the Internet.” 34<br />

Canada, Hong Kong, Romania, and the United Arab<br />

Emirates. 35 Host locations changed every few minutes<br />

by use of an underground service that rotated the<br />

websites on computers that were part of a botnet<br />

of 450,000 “trojaned” systems, making a single<br />

website appear to be hosted in the United States at<br />

one moment, only to then appear to be hosted in<br />

Singapore at the next moment. 36<br />

FIG. 7: Example of Global Software Piracy Operation.<br />

FIG. 6: How Malvertising Works.<br />

Global organized<br />

crime ring registered<br />

domain names<br />

in 22 countries<br />

Underground service<br />

changed host location<br />

every few minutes by<br />

rotating websites on<br />

infected computers that<br />

were part of a botnet of<br />

450,000 “trojaned”<br />

systems<br />

Example of tactics<br />

that work together<br />

to perpetrate fraud<br />

and exploitation of<br />

copyrighted<br />

works globally<br />

These websites<br />

were hosted in<br />

18 countries<br />

around the world<br />

including Canada,<br />

Hong Kong, Romania<br />

United Arab<br />

Emirates<br />

These are<br />

connected with the<br />

operation of approx.<br />

10,000 websites<br />

SECTION 1<br />

1. Attacker registers as an Advertiser with<br />

Self-Service Ad Platform<br />

2. User visits website<br />

3. User Targeting Data sent to Ad Platform<br />

4. Impression sold to Attacker<br />

5. Malvertisement served to Ad Platform<br />

6. Malvertisement served to Website<br />

7. Exploit kit loads<br />

8. Vulnerable browser plugins discovered<br />

9. Malware installed on User’s device<br />

Source: Digital Citizens Alliance (December 2015)<br />

As an example of how these tactics all come<br />

together to perpetrate fraud and permit an actor to<br />

engage in commercial-scale criminal exploitation of<br />

copyrighted works (FIG. 7): One global organized<br />

crime ring registered domain names in 22 different<br />

countries in connection with the operation of<br />

approximately 10,000 websites, which in turn were<br />

hosted in 18 countries around the world, including<br />

Similarly, the Office of the U.S. Trade Representative<br />

(USTR) has noted that Internet-enabled piracy within many<br />

countries includes: “pirate servers…that allow users to<br />

play unauthorized versions of cloud-based entertainment<br />

software; online distribution of software and devices that<br />

allow for the circumvention of technological protection<br />

measures (TPMs), including ‘game copiers’ and mod<br />

chips that allow users to play pirated games on physical<br />

consoles; and set-top or media boxes preloaded with<br />

large volumes of pirated content or configured with apps<br />

to facilitate access to infringing websites. Piracy facilitated<br />

by Internet-based services presents unique enforcement<br />

challenges for right holders.” 37<br />

“Game copiers,” for example, are unlawful devices<br />

openly and knowingly advertised for the purpose of<br />

allowing users to make and play unauthorized copies<br />

of video games (FIG. 8), depicting popular video game<br />

character, on right).<br />

The circumvention devices may be transported<br />

to markets around the world through elaborate and<br />

deceptive schemes, including by shipping “game<br />

24

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