1.08.2024

Why consumers should beware of the criminal underworld of piracy

Digital piracy has evolved beyond simply accessing copyrighted material. Organized crime syndicates are now heavily involved, creating a complex, underground, multinational network that thrives on stolen content.

For many, piracy seems like a simple act: free streaming sites offering movies, music, and live sports to millions. However, the reality is far more sinister. Many of these sites are controlled by organized crime.

How digital piracy works

The streaming world has become an ecosystem with thousands of players. It can involve a software developer in China, a server farm in Spain and a black-market businessman in Oklahoma as well as hundreds of top-level domains people have never heard of, and hundreds of websites people will never see.

Within the ecosystem, the chain of command begins with a pirate who uses widely available devices to steal cable and satellite feeds and redistribute them.

Other pirates rip online streams from official sites like WatchESPN and Fox Sports Go using advanced coding skills or screen-recording programs.

Many of these stolen and redistributed streams are then further redistributed, often in automated fashion, creating a multi-level sequence of unauthorized activity.

Free websites and pirate subscription services are increasingly interconnected.

In this ecosystem, there are generally three categories of sites – two of which are visible, working in tandem as separate cogs in the same pirate machine.

The unseen site is the hosting site, where the stolen footage actually lives. That stream is then embedded on a destination site, the one you visit, which claims to not be legally responsible for the illegality of the embedded content.

These destination sites often exist in legal grey areas, where some even disguise themselves as blogs or sports news outlets with months-old articles or external links on their main landing pages – this gives these sites the ability to argue that facilitating the unauthorized redistribution of copyrighted content is not their sole purpose.

Destination sites then promote themselves on linking sites – a website or other resource that is easily accessed via hyperlink using a web browser. Linking sites index streams by genre. These linking sites have accelerated the illicit industry’s growth.

Hoa Tran, special counsel at BMVN International, a member firm of Baker McKenzie in Hanoi, revealed adds: “A group of anonymous individuals operate the sites from unknown locations.

These sites usually receive steady revenue streams from selling ad spaces to controversial or potentially criminal businesses, such as gambling or betting sites and malware.

The servers hosting these sites are often placed in obscure locations, including overseas, or their locations are masked through reverse proxy services.” Some of these sites even have the capability to dodge AI-powered screening software.

Piracy takes its place alongside criminal activities as drug trafficking and money laundering

A report titled Film Piracy and Its Connection to Organized Crime and Terrorism foundcompelling evidence of the connection between film piracy and organized crime.

Piracy is high in payoff — with profit margins greater than those of illegal narcotics — and low in risk, often taking place under the radar of law enforcement.

In addition, terrorist groups have in some cases used the proceeds of film piracy to finance their activities.

Worldwide, the criminal penalties for counterfeiting are relatively light and prosecution sparse, researchers of the report added.

In France for example, selling counterfeit products is punishable by a two-year prison term and a USD190,000 fine, while selling drugs is punishable by a 10-year prison term and fines can run into the millions.

Organized crime enterprises run many of these pirate sites, proving that online piracy and copyright infringement in the digital space are rampant and spreading rapidly.

The majority of digital content users exhibit a lax attitude toward intellectual property rights. Aside from having limited knowledge of copyright law, they are also generally unaware of the cybersecurity risks linked to digital piracy.

The advancement of technology is also exacerbating the problems of digital piracy and copyright infringement – the rise of social media for example, has made it easier for people to access and share pirated content online.

Lack of legitimate content options and cost issues are also contributing to the problem. Some individuals find legitimate content to be too pricey, so they turn to pirate sites for entertainment instead.

Partners Against Piracy working to combat piracy

Partners Against Piracy, an Africa-wide multi-stakeholder initiative, is working alongside local governments and prosecutors to actively address the issue of copyright infringement.

The initiative aims to strengthen government agencies through collaboration to facilitate information sharing, enforce IP laws more strongly and combat privacy.

Among these agencies are the Serious Commercial Crime Unit of the Hawks, South African Police Services and the Cybercrime Units in various provinces.

To cast a wider net for tracking down copyright infringement activities, these stakeholders are also collaborating with IP rights holders and internet service providers.

Public awareness initiatives are also part of efforts to educate people on the ill effects of digital piracy on creators, industries and the economy as a whole.

Content piracy involves the unauthorised acquisition, use, sharing or selling of copyrighted content. Put simply, piracy is stealing. If you are aware of any individuals or organisations involved in piracy, you can report them anonymously on: +27 11 289 2684 or [email protected]

For more info on Partners Against Piracy, click here.

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