May 7, 2008 1:37 PM PDT

Studios win $111 million judgment against TorrentSpy

In a major win for Hollywood studios, a California federal judge has ordered TorrentSpy to pay nearly $111 million in damages for infringing the copyright of thousands of films and TV shows through its BitTorrent search engine.

The Los Angeles judge, U.S. District Judge Florence-Marie Cooper, also issued a permanent injunction against TorrentSpy, which was once one of the most popular indexes of BitTorrent files before it shut down in March after a two-year copyright battle with the Motion Picture Association of America (MPAA). The company closed its site on March 24, citing financial hardship and a desire to protect the privacy of its users.

MPAA CEO Dan Glickman said the judgment should serve as warning to other search services of file-sharing applications.

"The demise of TorrentSpy is a clear victory for the studios and demonstrates that such pirate sites will not be allowed to continue to operate without facing relentless litigation by copyright holders," he said in a statement.

The judge ordered TorrentSpy to pay $30,000 per copyright infringement--for 3,699 films and shows. That works out to be worth $110,970,000.

How that amount will be paid is unclear. A call to TorrentSpy's attorney was not immediately returned. (Editor's note: Click here for the follow-up story with the TorrentSpy attorney's prickly reaction.)

The judgment puts a fine point on another long battle between technologists and copyright holders.

The studios originally sued TorrentSpy in February 2006, alleging that the site promoted and contributed to online copyright infringement by helping people locate illegally copied films and television shows on the Internet. Last December, a federal judge sided with the MPAA by saying that TorrentSpy had destroyed evidence that would make a fair trial possible.

According to the court, TorrentSpy operators had intentionally modified or deleted directory headings naming copyrighted titles and forum posts that explained how to find specific copyrighted works; concealed IP addresses of users; and withheld the names and addresses of forum moderators. The company had previously been fined $30,000 for violations of discovery orders and were warned of severe sanctions if they continued to ignore the orders.

TorrentSpy's attorney, Ira Rothken, called that ruling "draconian in nature and unfair." He said he did not believe any data was intentionally destroyed, and that some actions were taken to protect the privacy of TorrentSpy users.

Rothken also said at the time that TorrentSpy would appeal any decision on damages.

Still, the permanent injunction prohibits Valence Media, operator of TorrentSpy, from engaging in any activity that "encourages, promotes or solicits, or knowingly facilitates, enables or assists, copyright infringement," according to the court.

CNET News.com's Elinor Mills contributed to this report.

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Add a Comment (Log in or register) 25 comments (Page 1 of 2)
by W2Kuser May 7, 2008 2:18 PM PDT
And yet Google, Yahoo and all other internet indexing services are somehow magically exempt from "encourages, promotes or solicits, or knowingly facilitates, enables or assists, copyright infringement," ... ?
Reply to this comment View all 2 replies
by lkrupp May 7, 2008 2:26 PM PDT
Bit torrents are the home of thieves, pure and simple. You can argue all you want to about legitimate use and it all comes up as empty rhetoric. Bit torrents are used primarily for theft of copyrighted material, end of story.
Reply to this comment View all 2 replies
by DowNET May 7, 2008 2:32 PM PDT
@ W2Kuser Totally agree! File sharing copyrighted material may be wrong but the way this was handled to prove that does not make sense. The war continues...
Reply to this comment
by DowNET May 7, 2008 2:33 PM PDT
@ Ikrupp then google might be guilty to. They point at where these files are.
Reply to this comment
by unknown unknown May 7, 2008 2:39 PM PDT
It was really stupid for TorrentSpy to try modify potentially incriminating posts etc. It just asking for a default judgment. @Ikrupp Considering the amount of traffic BitTorrent and P2P services generate and all the pirate content on video sites, you may as well just expand that to the internet.
Reply to this comment
by cube3 May 7, 2008 3:00 PM PDT
selling advertising on stolen content streams and embeded flash apps..... web2.o just bubbled tech guys...lol
Reply to this comment
by protagonistic May 7, 2008 3:41 PM PDT
Reply to ikrupp RE: "Bit torrents are the home of thieves, pure and simple. You can argue all you want to about legitimate use and it all comes up as empty rhetoric. Bit torrents are used primarily for theft of copyrighted material, end of story." You obviously know nothing about this matter. I and many of the people I know use Bit Torrent clients frequently. And I have never used them for the purpose of downloading copyrighted material. And to the best of my knowledge none of the others I know using BT do either. There are many legitimate uses for bit torrent. Perhaps you could do a bit more research before making such sweeping claims next time.
Reply to this comment
by humanssssss May 7, 2008 4:06 PM PDT
I use Bit Torrent to download the latest Ubuntu. I remembered during the release of Ubuntu I was not able to download Ubuntu due to heavy traffic. Having this service gone is a disservice to the Internet community. MPAA comes after the little guys that can't defend them. Why not sue Google and YouTube. They are the ones that blantantly violate copyright. Under the DMCA, the copyright owners should prove that they own the copyright to the content and ask the site to take them down before legal action should be taken. There's also privacy issue involve too ... site owner may not know the content of the video until they inspect and also fair use. Clips of the movie can be shown so that it won't infringe on copyright. ... etc. etc.
Reply to this comment
by gumpman155 May 7, 2008 5:05 PM PDT
as long as there is greed and people are hungry for money and power there will be no free society. Greed and money don't belive in a free society. This is how communism start when you have more have more have nots and less haves. That means the rich get richer and the poor gets poorer. Greed is greed dosen't matter if its about copyright or what its about its greed. For what is a man profited, if he shall gain the whole world, and lose his own soul? or what shall a man give in exchange for his soul Matthew 16:26. So if you think that Hallywood is right and all of these other people are right to wine and fus about copyright then your just as bad as they are. if he shall gain the whole world, and lose his own soul? or what shall a man give in exchange for his soul Matthew 16:26.
Reply to this comment
by detamosa May 7, 2008 6:44 PM PDT
gumpman155, please stop. On behalf of myself and the rest of the people that are in favor of BitTorrent, please stop talking for us. When you write you come across as very ignorant. I'm sure if we heard you speak it would not sound this way but, I'm afraid your writing skills paint you in a very negative light intellectually. Sorry, but it's true.
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