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Digital Piracy on P2P Networks How to Protect your Copyrighted Content

Olesia Klevchuk and Sam Bahun MarkMonitor

© 2014 MarkMonitor Inc. All rights reserved. Agenda

. P2P landscape: history and recent developments . Detection and verification of unauthorized content on P2P sites . Enforcement strategies . Alternatives to enforcements

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P2P Landscape History and Recent Developments

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History of Digital Piracy Streaming to Streaming 1B+ Users . Music piracy enters mainstream with . P2P brought and video piracy . Shift to consumption of streaming content – TV and sports most impacted

P2P Live 300 MM Streaming Users 50 MM Users Napster 25 MM Users 16 MM Users

< 5 MM Today

1995 2000 2005 2010 2015

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First Generation of P2P From Napster to eDonkey2000

. Napster brought P2P to masses

. Centralized server model made it possible to shutdown the network

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Second Generation of P2P , and Torrent Sites

. Ability to operate without central server, connecting users remotely to each other

. Difficult to shutdown

. Attracted millions of users worldwide

. Requires some technical ability, plagued with pop-up ads and

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New P2P piracy

. No to little technical ability is required

. Attractive, user-friendly interface

. BitTorrent powered making enforcements challenging BitTorrent powered streaming app

. Allows you to watch thousands of movies instantaneously

. In the U.S., software was downloaded onto millions of devices

. Interface resembles that of popular legitimate streaming platforms

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P2P Adoption and Usage BitTorrent is among the most popular platforms online

Twitter 307 million users

Facebook 1.44 billion users

Netflix 69 million subscribers

BitTorrent 300 million users

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P2P Piracy Steady trend of a number of P2P infringements

. P2P piracy presents a real threat to content owners as the number of infringements consistently hit billions of cases

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P2P Piracy around the Globe

13% 46%

18% 6%

11% 5%

Source: MarkMonitor Q4 2014

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Piracy Profits From Decrease Monetizing on piracy content

Profits generated P2P piracy

2013 2014

. BitTorrent portals continue to generate more ad revenue overall than any other segment

. Profits generated by Torrent sites shrank by 30% mainly at the expense of growing popularity of streaming platforms

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Detection and Verification P2P Networks

Bittorrent eDonkey Gnutella Ares uTorrent eMule Bareshare Filecroc Azureus K-Lite Nitro Kceasy Wyzo K-Lite Pro Limewire Warez P2P

. Monitors millions of users worldwide Monitoring . Fully compliant with the high standards of the EU Directive and applicable U.S. laws regarding evidence collection procedures

Enforcement . Vendor of choice for the world’s largest anti-piracy programs . Compliant with local regulations

. Notices are delivered to the correct ISP Compliance . Call centers to handle consumer inquiries regarding notices

. Geographic information Reporting . Content breakdown: title, type, etc. . Report on notice quotas

Fighting Piracy Worldwide

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P2P Verification

. File (Hash) Verification: The method used to verify that a file on a P2P network matches a copyrighted asset. • Human – Download a full copy and apply human review of the file. • Fingerprinting – download and process against a database of reference fingerprints. . Peer (Case) Verification: The method used to verify that each peer discovered in a swarm for an infringing file is in fact the file. Peer Verification Levels

Verification Level Step Verification Process 1 2 3 4 5 6 7

1 IP address sharing file with asset name is detected       

2 IP address is verified as active (pinged, etc)       GDPI, P2P BI

3 IP address is detected as having a P2P     

Hash is collected as reported by peer for 4 comparison against a database of hashes for     Notice confirmed infringements Sending, File is partially downloaded and hash is collected P2P BI 5 for comparison against a database of hashes for  confirmed infringements File is partially downloaded for playback and 6  potential analysis against a content ID database Litigation File is fully downloaded for playback and 7  verification

Recommended for business intelligence scanning

Recommended for notice sending based on good faith

Recommended for court level evidence standards

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Enforcement Top Markets with Clear Legal Procedures or Business Practices for P2P Notice Sending

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Things to Consider before sending notices

. Geography: Notices can be sent worldwide, but are not likely to reach the end users without supporting legislation or business practices. . Program Goals: Education, Legal, Conversion, etc… . Notice Language: Does the notice template clearly match with the goals while meeting all legal requirements in a given country? . Graduated Response type programs can be based on legislation, but also on voluntary private agreements between trade associations/individual content owners and ISPs. Alternative use for P2P data

DETECT VERIFY ENFORCE

ANALYZE

Use piracy data to drive insights to convert pirates and direct them to legal content.

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Business Intelligence Data Monitor Global Piracy Trends to Make Intelligent Business Decisions

Learn where and how copyrighted Combined with traditional sources material is being used of media consumption

P2P Sales Data

Cyberlockers Distribution Data

Search Audience Data

. What: quality, language, content type . Where: networks, ISP, geo-locations . How: streaming vs. downloading, ways to find content . Why: benchmark data

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Piracy Data to Create New Revenue Streams Software Company CHALLENGE

. Lack of visibility into piracy market . Pirated copies of . Cracked and hacked copies

STRATEGY

. Use piracy data to measure demand for software . No enforcement – but use data to drive sales

RESULTS

. Piracy conversion strategy . Piracy data as a source of sales leads . Recovering revenue from cracked software as part of sales strategy

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Benefits Of Using Piracy Data Use Data to Enhance Your Business Strategy

. Adapt to shifting piracy landscape . Convert pirates to pay and discourage casual pirates . Making smarter business decisions • Distribution • Marketing • New releases . Recover lost revenues and create additional streams of revenue

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Q&A

Please be sure to submit all your questions via the Q&A tab on your screen.

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Thank You!

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