megsuppfilesonic

Page1of191INTHEUNITEDSTATESDISTRICTCOURTFORTHEEASTERNDISTRICTOFVIRGINIAAlexandriaDivisionUNITEDSTATESOFAMERICAv.
KIMDOTCOM,MEGAUPLOADLIMITED,VESTORLIMITED,FINNBATATO,JULIUSBENCKO,SVENECHTERNACH,MATHIASORTMANN,ANDRUSNOMM,andBRAMVANDERKOLK,Defendants)))))))))))))))CriminalNo.
1:12CR3IntroductionandSummaryofEvidenceAsperJudgeO'Grady'sOrderofNovember22,2013,theUnitedStatesofAmericahasbeenauthorizedtoprovidenoticetopotentialvictimsinthecriminalcase.
Aspartofthatnotice,thegovernmenthasbeenpermittedtoreleaseasummaryoftheevidencethathasalreadybeenprovidedtothedefendantsintheextraditionprocesspendinginNewZealandandthatwouldhaveotherwisebecomepublicatthedefendants'extraditionhearing(whichhasrecentlybeenrescheduledbytheNewZealandDistrictCourttostartonJuly7,2014).
ThegovernmenttodayhasfurtherservedJudgeO'Grady'schamberswiththenoticepackage(includingacopyofthissummary)andhasinformedtheclerkthatJudgeO'Grady'sOrdermaynowbeunsealed.
Duetothelengthofthedocumentsinthenotice,thegovernmentwillpublishthenoticethroughareleaseonaU.
S.
governmentwebsiteandwillnotfileacopyelectronicallywiththecourtclerk.
ThesummaryreflectsevidencereviewedbyAssistantUnitedStatesAttorneysJayV.
PrabhuandRyanK.
DickeyoftheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaforpurposesoftheextraditionprocessandisnotexhaustiveoftheevidencegatheredbythegovernment.
Theparagraphsareorderedbasedprimarilyonwhentheyweresubmittedtothedefendants.
Additionalinformationisexpectedtobeprovidedinfuturesubmissionstothedefendants.
Personalidentifyinginformationsuchasbankaccountandpassportnumbershasbeenredacted.
Page2of1911.
SinceMarch2010,theFederalBureauofInvestigation("FBI")hasbeeninvestigatingthe"MegaConspiracy,"aworldwidecriminalenterprise,whichoperatesandadministersseveralInternetwebsitesthatreproduceanddistributeinfringingcopiesofcopyrightedworks,includingmotionpictures,televisionprograms,musicalrecordings,electronicbooks,images,videogames,andothercomputersoftware.
KIMDOTCOM("DOTCOM"),MATHIASORTMANN("ORTMANN"),BRAMVANDERKOLK("VANDERKOLK"),FINNBATATO("BATATO"),JULIUSBENCKO("BENCKO"),SVENECHTERNACH("ECHTERNACH"),ANDRUSNOMM("NOMM"),andthecompaniesMEGAUPLOADLIMITEDandVESTORLIMITED(collectively,the"defendants"),aswellasotherindividualsandcompanies,weremembersofthe"MegaConspiracy.
"2.
TheInternetwebsitesoperatedbytheMegaConspiracy(collectively,the"MegaSites")includebutarenotlimitedtoatleastthefollowing:Megaupload.
com;Megavideo.
com;andMegaclick.
com.
3.
Throughouttheinvestigation,theFBIhasobtainedmillionsofpiecesofelectronicmail("e-mail")fromaccountsassociatedwiththesubjectmatterofthisinvestigation,whichspanatimeperiodfromasearlyasapproximatelyMarch2006throughDecember2011.
TheFBIhassearchedforandreviewedparticularitemsandthemesinthesee-mails.
4.
TheFBIhasconductedonlineundercoveractivitiesinvolvingtheMegaSites.
Theseundercoveractivitiesincludeidentifying,viewing,anddownloadingcopyright-infringingmaterialsonthesewebsites;opening"premium"accountsonthesewebsitestoanalyzehowthesewebsitesoperatefromacustomerviewpoint;andperformingnetworkanalysistofurtheranalyzehowthesewebsitesoperate.
Inaddition,theFBIhasreviewedfinancialtransactionsto,from,andbetweenthedefendantsandothers;hasexaminedcomputerserversbelongingtotheMegaConspiracy;andhasconfirmedthatcertainfilesfoundontheserversarecopyrightedworks.
5.
Megaupload.
comisacommercialwebsiteandserviceoperatedbytheMegaConspiracy.
AsofJanuary5,2012,Megaupload.
compubliclyclaimedtohavehadmorethanonebillionvisitorsinitshistory,morethan180millionregistereduserstodate,andanaverageof50milliondailyvisits,andtoaccountforapproximatelyfourpercentofthetotaltrafficontheInternet.
6.
Megaupload.
comoftenpresentsitselfasa"cyberlocker,"whichisaprivatedatastorageprovider.
AsdescribedbelowinthesectionentitledMegauploadIsNotPrimarilya"Cyberlocker",however,aspartofthedesignoftheservice,thevastmajorityofMegaupload.
comusersdonothavesignificantcapabilitiestostoreprivatecontentlong-term.
7.
AnyInternetuserwhogoestotheMegaupload.
comwebsitecanuploadacomputerfile.
Oncethatuserhasselectedafileontheircomputerandclicksthe"upload"button,theMegaConspiracy'sautomatedsystemcalculatesa32-digituniqueidentificationnumberforthefile(calledan"MD5hash")thatisgeneratedusingamathematicalalgorithm.
AftertheMD5hashcalculation,ifthesystemdeterminesthatthefiledoesnotexistonaservercontrolledbytheMegaConspiracy,thenMegaupload.
comreproducesthefileonatleastonecomputerserveritcontrolsandprovidestheuploadinguserwithauniqueUniformResourcePage3of191Locator("URL")linkthatallowsanyonewiththelinktodownloadthefilewithoutenteringapassword.
ThefollowingisanexampleofaMegaupload.
com-generatedURLlink:www.
megaupload.
com/d=BY15XE3V.
8.
AftertheMD5hashcalculation,ifthesystemdeterminesthattheuploadingfilealreadyexistsonaservercontrolledbytheMegaConspiracy,thenMegaupload.
comdoesnotreproduceasecondcopyofthefileonthatserver.
Instead,thesystemprovidesanewanduniqueURLlinktothenewuserthatispointedtotheoriginalfilealreadypresentontheserver.
MultipleURLlinkscanthereforepointtothesamecontentfile.
9.
MembersoftheMegaConspiracyhavepubliclystatedthattheyoperatetheMegaSitesincompliancewiththenoticeandtakedownprovisionsoftheDigitalMillenniumCopyrightAct("DMCA"),codifiedinpartatTitle17,UnitedStatesCode,Section512.
UndertheDMCA,InternetprovidersgainasafeharborfromcivilcopyrightinfringementsuitsintheUnitedStatesiftheymeetcertaincriteria.
Asaninitialmatter,thesafeharborappliesonlytocivilcopyrightinfringementsuits,anddoesnotapplytocriminalprosecutionsforsuchoffenses.
Inanyevent,thesafeharborrequiresthataneligibleproviderhaveanagentdesignatedwiththeU.
S.
CopyrightOfficetoreceiveinfringementnotices,whichtheMegaConspiracyfailedtodountilOctober15,2009,yearsafterMegaupload.
comandmanyofitsassociatedsiteshadbeenoperatingandtheDMCAhadgoneintoeffect.
Furthermore,themembersoftheMegaConspiracydonotmeetthesecriteriabecausetheyarewillfullyinfringingcopyrightsthemselvesonthesesystems;theyhaveactualknowledgethatthematerialsontheirsystemsareinfringing(oralternativelytheyareawareoffactsorcircumstancesthatwouldmakeinfringingactivityapparent,suchas"redflags"indicatingblatantcopyrightinfringement);theyreceiveafinancialbenefitdirectlyattributabletothecopyright-infringingactivity,whichisundertheircontrol;theyfailedtoterminaterepeatinfringers;andtheyhavenotremoved,ordisabledaccessto,knowncopyright-infringingmaterialfromserverstheycontrol.
10.
MembersoftheMegaConspiracyprovidedan"AbuseTool"tomajorU.
S.
copyrightholders,whichwouldpurportedlyremovecopyright-infringingmaterialfromMegaConspiracy-controlledservers.
TheAbuseToolallowedcopyrightholderstoenterspecificURLlinkstocopyright-infringingcontentofwhichtheywereaware,andtheyweretoldbytheMegaConspiracythattheMegaConspiracy'ssystemswouldthenremove,ordisableaccessto,theoffendingmaterial.
TheMegaConspiracy'sAbuseTooldidnotactuallyfunctionasthecopyrightownerswereledtobelieve,however,becausetheAbuseToolonlydisabledthespecificURLlinkidentified,andtheAbuseToolfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
11.
Iftherearemultiplelinkstoafile,thenanyattemptbythecopyrightholdertoterminateaccesstothefileusingtheAbuseToolorotherDMCAtakedownrequestwillfailunlessalloftheURLlinkstotheinfringingfileareknownandsubmitted,becausethefilewillcontinuetobeavailablethroughanyundisclosedURLlinks.
Theinfringingcopyofthecopyrightedwork,therefore,remainsontheMegaConspiracy'ssystemsaslongasasinglelinkremainsunknowntothecopyrightholder.
TheMegaConspiracymaintainsarecordoflinksthathavebeengeneratedbythesystem,butduplicativelinkstoinfringingmaterialsareneitherdisclosedtocopyrightholders,noraretheyautomaticallydisabledordeletedwhenacopyrightholdereitherusestheAbuseToolormakesastandardDMCAcopyrightinfringementtakedownPage4of191request.
Duringthecourseoftheconspiracy,theMegaConspiracyhasreceivedmanymillionsofrequeststoremoveinfringingcopiesofcopyrightedworks,andyettheMegaConspiracyhas,atbest,onlydeletedtheparticularURLofwhichthecopyrightholdercomplained,andpurposefullylefttheactualinfringingcopyofthecopyrightedworkontheMegaConspiracy-controlledserverandanyotheraccesslinkscompletelyintact.
12.
Inadditiontocopyrightedfiles,othertypesofillicitcontenthavebeenuploadedontotheMegaupload.
comservers,includingchildpornographyandterrorismpropagandavideos.
AsdescribedbelowinthesectionentitledWillfulFailuretoRemoveCopyright-InfringingFiles,membersoftheMegaConspiracyhaveindicatedtoeachotherthattheycanautomaticallyidentifyanddeletesuchmaterialsonalloftheirserversbycalculatingMD5hashvaluesofknownchildpornographyorotherillicitcontent,searchingthesystemforthesevalues,andeliminatingthem;infact,somesuchfileswithmatchinghashvalueshavebeendeletedfromtheMegaConspiracy'sservers.
TheMegaConspiracyhasnotimplementedasimilarprogramtoactuallydeleteorterminateaccesstocopyright-infringingcontent.
13.
TheMegaConspiracyattemptstomaskthelargepercentageofinfringingmaterialsavailableontheirsites,andattemptstomirroratruecyberlocker,byomittingcompleteandaccuratesearchfunctionality.
ThecontentavailablefromMegaupload.
comisnotsearchableonthewebsite.
Insteadofhostingasearchfunctiononitsownsite,theMegaConspiracybusinessmodelreliesonthousandsofthird-party"linking"sites,whichcontainuser-generatedpostingsoflinkscreatedbyMegaupload.
com(aswellasURLlinkscreatedbyotherMegaSites,suchasMegavideo.
comandMegaporn.
com).
WhiletheMegaConspiracymaynotoperatethesethird-partysites,foryearstheMegaConspiracyofferedan"UploaderRewards"program,whichpromisedpremiumsubscriberstransfersofcashandotherfinancialincentivesbasedonthenumberoftimesafilehasbeendownloaded.
The"UploaderRewards"programprovidedadirectfinancialincentiveforpremiumuserstopostURLlinksonlinkingsites.
ItwasknowninthepublicthattheMegaConspiracyrewardedsomeuserswhouploadedpopularcopyright-infringingworks,evendespiteclaimsontheMegaSitesthatsuggestedotherwise.
14.
PopularlinkingsitesthatcontainedMegaConspiracy-generatedlinksinclude:ninjavideo.
net,megaupload.
net,megarelease.
net,kino.
to,alluc.
org,peliculasyonkis.
com,seriesyonkis.
com,surfthechannel.
com,taringa.
net,thepiratecity.
org,andmulinks.
com.
AlloftheselinkingsitesmaintainedanindexofURLlinkstoidentifiedcopiesofcopyrightedcontentthatwerestoredonserversdirectlycontrolledbytheMegaConspiracy,andseveralofthesewebsitesexclusivelyofferedMegaupload.
comlinks.
15.
AsdescribedbelowinthesectionentitledAffirmativeRelianceonThird-Party"Linking"Sites,theMegaConspiracycloselymonitorstheInternettrafficfromlinkingsitestotheMegaSites.
TheMegaConspiracyisawarethatlinkingsitesgenerateahighpercentageofthevisitstotheMegaSitesandprovidetheMegaConspiracywithadirectfinancialbenefitthroughadvertisingrevenueandopportunitiesfornewpremiumsubscriptions.
TheMegaConspiracyisalsoawarethatlinkingsitesfacilitatetheunlawfulviewinganddownloadingofcopyright-infringingmaterialsfromtheMegaSites.
MembersoftheMegaConspiracyhaveknowinglyinteractedwithusersoflinkingsitesandhavevisitedthesitesthemselves.
Specifically,someofthedefendantshaveinstructedindividualusershowtolocatelinkstoinfringingcontentontheMegaSites(includingrecommendingspecificlinkingwebsites).
Page5of191SeveralofthedefendantshavealsosharedwitheachothercommentsfromMegaSiteusersdemonstratingthattheyhaveusedorareattemptingtousetheMegaSitestogetinfringingcopiesofcopyrightedcontent.
16.
AsdescribedbelowinthesectionentitledWillfulFailuretoRemoveCopyright-InfringingFiles,incontrasttomembersofthepublic,whoarerequiredtosignificantlyrelyonthird-partylinkingsites,membersoftheMegaConspiracyhaveaccesstoaninternaldatabase,whichprovidesfulllistingsofactualfiletitlesthatarestoredontheirservers(aswellastheMegaupload.
com-generatedURLlinkstothosefiles).
Conspiratorshavesearchedtheinternaldatabasefortheirassociatesandforthemselves,sothattheymaydirectlyaccesscopyright-infringingcontentonserversleasedbytheMegaConspiracy.
Theinternaldatabasecontains,amongotherthings,thefollowingtypesofinformation:filename;fileextensiontype(e.
g.
,.
avi,.
jpg,etc.
);filesize;date;thefile'sMD5hash;whetheralinktothefilehadbeenremovedforabuse(includingforcopyrightinfringement);andthefile's8-digitdownloadnumberforusewiththeMegaupload.
comURLlink(forexample,thelasteightdigitsofthefollowing:ww.
megaupload.
com/d=BY15XE3V).
17.
Thoughthepublic-facingMegaupload.
comwebsiteitselfdoesnotallowsearches,itdoeslistitspurported"Top100files",whichgenerallyincludesfilesthatarefreelyavailableontheInternet,suchasmotionpicturetrailersandsoftwaretrials.
TheTop100list,however,doesnotactuallyportraythemostpopulardownloadsonMegaupload.
com.
Instead,theTop100listhasbeendeliberatelymanipulatedbymembersoftheMegaConspiracy,whichmakesthewebsiteappearmorelegitimateandhidesthepopularcopyright-infringingcontentthatdrivesitsrevenue.
18.
IfauseruploadsavideofiletoMegaupload.
com,thentheusercanviewthefileusinga"Flash"videoplayerontheMegaConspiracy-controlledwebsiteMegavideo.
com.
AccordingtoAlexa.
com,asubsidiarycompanyofAmazon.
comthatanalyzesInternettraffic,Megavideo.
comwasatonepointinitshistoryestimatedtobethe52ndmostfrequentlyvisitedwebsiteontheentireInternet.
BrowsingthefrontpageofMegavideo.
comdoesnotshowanyobviouslyinfringingcopiesofanycopyrightedworks;instead,thepagecontainsvideosofnewsstories,user-generatedvideos,andgeneralInternetvideosinamannersubstantiallysimilartoYoutube.
com.
MembersoftheMegaConspiracy,however,havepurposefullycopiedcontentdirectlyfromYoutube.
cominordertopopulateMegavideo.
com,whichhastheeffectofmakingthewebsiteappearmorelegitimate.
Megavideo.
comprovidesasearchfunction,butanysearchforacopyrightedvideowillnotproduceresultsthatincludethefull-lengthcopyrightedwork,eventhoughthatcopyrighted-workcanbeviewedanddownloadedfromaMegaConspiracy-controlledserversomewhereintheworld.
19.
OnMegavideo.
com,non-premiumusersarelimitedtowatchingonly72minutesofanygivenvideoatatime,which,sincenearlyallcommercialmotionpicturesexceedthatlength,providesasignificantincentiveforuserswhoareseekinginfringingcopiesofmotionpicturestopaytheMegaConspiracyafeeforpremiumaccess.
Inaddition,beforeanyvideocanbeviewedonMegavideo.
com,thenon-premiumusermustviewanadvertisement.
ThepopularityoftheinfringingcontentontheMegaSiteshasgeneratedmorethanUSD$25millioninonlineadvertisingrevenuesfortheMegaConspiracy.
Page6of19120.
PremiumsubscriptionfeescollectedduringtheexistenceoftheMegaConspiracyareestimatedtobemorethanUSD$150million.
21.
AtalltimesrelevanttothechargespresentedintheSupersedingIndictment,thedefendantsandothermembersoftheMegaConspiracyknewthattheydidnothavelicense,permission,authorization,orotherauthorityfromownersofhundredsofthousandsofcopyrightedworkstoreproduceanddistributethoseworks,includingmakingthemavailableovertheInternet.
MembersoftheMegaConspiracyareawareofthewaythattheirwebsitesareactuallyusedbyothers;havethemselvesusedthesystemstoupload,aswellasreproduceanddistribute,infringingcopiesofcopyrightedcontent;andareawarethattheyhavefinanciallybenefitteddirectlyfromtheinfringementofcopyrightedworksthattheyareinapositiontocontrol.
NatureoftheConspiracyandIndividualsandEntitiesInvolved22.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsMichaelC.
Poston,SpecialAgentwiththeFederalBureauofInvestigation("AgentPoston"),totestifytothefollowingfacts:a.
AgentPostonhasbeenaSpecialAgentwiththeFederalBureauofInvestigationforthepastfiveyears.
HeiscurrentlyassignedtotheNationalIntellectualPropertyRightsCoordinationCenterinArlington,Virginia,UnitedStates,wherehisdutiesincludetheinvestigationofcrimesinvolvingtheinfringementofintellectualpropertyrights,includingcriminalcopyrightviolations.
b.
BeginninginatleastSeptember2005andcontinuinguntilatleastJanuary19,2012,intheEasternDistrictofVirginiaandelsewhere,thedefendantsandothersweremembersoftheMegaConspiracy.
Asdescribedbelow,theseconspiratorsformedanumberofbusinesses,whichoperateandadministerseveralInternetwebsitesthatreproduceanddistributeinfringingcopiesofcopyrightedworks,includingmotionpictures,televisionprograms,musicalrecordings,electronicbooks,images,videogames,andothercomputersoftware.
Eachofthedefendantsplayedasignificantroleinthebusiness,andsofurtheredtheobjectivesoftheMegaConspiracy.
AsdescribedbelowinthesectionsentitledDOTCOM'sKnowledgeofCopyrightInfringementandCo-Conspirators'KnowledgeofCopyrightInfringement,DOTCOMandtheotherdefendantsknewthatthebusinessdependedontheknowingreproductionanddistributionofcopyrightedworks.
c.
Throughouttheinvestigation,whichbeganinapproximatelyMarch2010,theFBIhasobtainede-mailsfromnumerousdifferente-mailaccountsassociatedwiththesubjectmatterofthisinvestigation.
Intotal,theseaccountscontainmillionsofe-mails,whichspanatimeperiodfromasearlyasapproximatelyMarch2006throughDecember2011,includingPage7of191e-mailsfromDOTCOM'saccounts.
AgentPostonhaspersonallysearchedforandreviewedparticularitemsandthemesinthesee-mails.
d.
KIMDOTCOM.
AgentPostonhasreviewedcopiesofthefollowingidentificationdocumentsassociatedwithDOTCOM:i.
DOTCOM'sGermandriver'slicenseno.
[REDACTED],issuedMay12,2000,whichlistshisnameas"KimSchmitz";ii.
DOTCOM'sGermanpassportno.
[REDACTED],issuedMay31,2002,whichlistshisnameas"KimSchmitz";iii.
DOTCOM'sFinlandpassportno.
[REDACTED],issuedJuly4,2005,whichlistshisnameas"KimTimJimVestor";iv.
DOTCOM'sFinlandpassportno.
[REDACTED],issuedFebruary12,2010,whichlistshisnameas"KimDotcom";andv.
DOTCOM'sHongKongIdentityCardno.
[REDACTED],issuedFebruary22,2010,whichlistshisnameas"KimDotcom".
TheseidentificationdocumentsallcontainaphotographofDOTCOMandlisthisdateofbirthas[REDACTED]demonstratingthatDOTCOMhasbeenknownbyatleastthefollowingaliases:KimSchmitzandKimTimJimVestor.
Inaddition,theseidentificationdocumentsshowthatDOTCOMisadualcitizenofFinlandandGermany,andaresidentofHongKong.
DOTCOMisalsoaresidentofNewZealand,asdemonstratedbye-mailssentbetweenconspiratorsanddocumentsfiledwiththeNewZealandgovernment.
Inasworndeclaration,datedDecember14,2011,DOTCOMdeclaredasfollows:"IamtheChiefInnovationOfficerofPlaintiffMegauploadLtd.
('Megaupload'),andhavebeenemployedatMegauploadsinceSeptember2005.
"1E-mailssentbetweenconspiratorsdemonstratethatpriortobecomingtheChiefInnovationOfficer,DOTCOMwastheChiefExecutiveOfficerforMEGAUPLOADLIMITEDbetweenSeptember2005andAugust2011.
E-mailsbetweenconspiratorsfurthershowthatDOTCOMistheheadoftheMegaConspiracy,whichemploysmorethan30peopleresidinginapproximatelyninecountries;hehassupervisedthedevelopmentofthewebsitesandcompaniesutilizedintheMegaConspiracy;hehasdirectedthecreationofthenetworkinfrastructurebehindtheMegaSites;hehasnegotiatedcontractswithInternetServiceProvidersandadvertisers;hehasadministeredthedomainnamesusedbytheMegaConspiracy;andheexercisesultimatecontroloverallmajor1DOTCOM'ssworndeclaration,entitled"DeclarationofKimDotcominSupportofPlaintiff'sExParteApplicationforTemporaryRestrainingOrderandOrdertoShowCauseRePreliminaryInjunction,"wasfiledonDecember14,2011,withtheUnitedStatesDistrictCourtfortheNorthernDistrictofCalifornia,inthematterofMegauploadLtd.
v.
UniversalMusicGroup,Inc.
(CaseNo.
11-cv-6216,Doc.
6).
Page8of191decisionsintheMegaConspiracy.
E-mailsshowthatDOTCOMhasarrangedmillionsofdollarsinpaymentsforthecomputerserversutilizedbytheMegaSitesaroundtheworld,andhasalsodistributedproceedsoftheMegaConspiracytohisco-conspirators.
Asdescribedbelow,DOTCOMownsapproximately68%ofMegaupload.
comandallofMegavideo.
com.
Additionally,asdescribedbelowinthesectionentitledDOTCOM'sKnowledgeofCopyrightInfringement,e-mailsshowthatonnumerousinstances,DOTCOMreceivedDMCAcopyrightinfringementtakedownnoticesfromthird-partycompanies,andfurther,thatDOTCOMhaspersonallyreceivedatleastoneinfringingcopyofacopyrightedworkonaMegaSite.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,DOTCOMreceivedmorethanUSD$42millionfromtheMegaConspiracyincalendaryear2010alone.
e.
VESTORLIMITED.
AccordingtodocumentsobtainedfromTheGovernmentoftheHongKongSpecialAdministrativeRegionCompaniesRegistry,onoraboutSeptember6,2005,DOTCOMregisteredthecompanyVESTORLIMITEDinHongKongwithcompanyregistrynumber0994358.
Atthattime,thecompanydirectorwaslistedasKimTimJimVestor,withFinlandpassportno.
[REDACTED],andKimTimJimVestorwaslistedasthesoledirectorandshareholder.
Asdescribedbelow,throughVESTORLIMITED,DOTCOMowns68%ofMEGAUPLOADLIMITED(whichistheregisteredownerofMegaupload.
com)andallofMegavideoLimited(whichistheregisteredownerofMegavideo.
com).
f.
MEGAUPLOADLIMITED.
AccordingtodocumentsobtainedfromTheGovernmentoftheHongKongSpecialAdministrativeRegionCompaniesRegistry,onoraboutSeptember7,2005,DOTCOMregisteredthecompanyMEGAUPLOADLIMITEDinHongKongwithcompanyregistrynumber0835149.
Atthattime,thecompanydirectorwaslistedasKimTimJimVestor,withFinlandpassportno.
[REDACTED].
Accordingtopubliclyavailableinformation,MEGAUPLOADLIMITEDistheregisteredownerofMegaupload.
comandMegaclick.
com.
Inaddition,accordingtothebusinessregistrationdocuments,thefollowingindividualsandentitiesareshareholdersofMEGAUPLOADLIMITED:i.
VESTORLIMITED–andthereforeDOTCOMhimself–isa68%shareholder;ii.
NetplusInternationalLimitedLLC–ofwhichMATHIASORTMANNisthesoleshareholder–isa25%shareholder;iii.
BasemaxInternationalLimited–ofwhichJULIUSBENCKOisthesoleshareholder–isa2.
5%shareholder;Page9of191iv.
MindpointInternationalLimitedLLC–ofwhichBRAMVANDERKOLKisthesoleshareholder–isa2.
5%shareholder;v.
SVENECHTERNACHisa1%shareholder;andvi.
AninvestorinHongKongistheremaining1%shareholder.
g.
Megaupload.
com.
Megaupload.
comisacommercialwebsiteandserviceoperatedbytheMegaConspiracy.
AccordingtoAlexa.
com,asubsidiarycompanyofAmazon.
comthatanalyzesInternettraffic,Megaupload.
comwasatonepointinitshistoryestimatedtobethe13thmostfrequentlyvisitedwebsiteontheentireInternet.
AsofJanuary5,2012,Megaupload.
compubliclyclaimedtohavehadmorethanonebillionvisitorsinitshistory,morethan180millionregistereduserstodate,anaverageof50milliondailyvisits,andaccountedforapproximatelyfourpercentofthetotaltrafficontheInternet.
h.
Megavideo.
com.
IfauseruploadsavideofiletoMegaupload.
com,thentheusercanviewthefileusinga"Flash"videoplayerontheMegaConspiracy-controlledwebsiteMegavideo.
com.
AccordingtoAlexa.
com,Megavideo.
comwasatonepointinitshistoryestimatedtobethe52ndmostfrequentlyvisitedwebsiteontheentireInternet.
BrowsingthefrontpageofMegavideo.
comdoesnotshowanyobviouslyinfringingcopiesofanycopyrightedworks;instead,thepagecontainsvideosofnewsstories,user-generatedvideos,andgeneralInternetvideosinamannersubstantiallysimilartoYoutube.
com.
AsdiscussedbelowinthesectionentitledCopyingVideosfromYoutube.
com,however,membersoftheMegaConspiracy,includingVANDERKOLKandORTMANN,attheexplicitdirectionofDOTCOM,purposefullycopiedcontentdirectlyfromYoutube.
cominordertopopulateMegavideo.
com,whichhastheeffectofmakingthewebsiteappearmorelegitimate.
OnMegavideo.
com,non-premiumusersarelimitedtowatchingonly72minutesofcontentatatime,which,sincenearlyallcommercialmotionpicturesexceedthatlength,providesasignificantincentiveforuserswhoareseekinginfringingcopiesofmotionpicturestopaytheMegaConspiracyafeeforpremiumaccess.
Inaddition,beforeanyvideocanbeviewedonMegavideo.
com,theusermustviewanadvertisement.
Financialrecords,includingaMEGAUPLOADLIMITEDincomestatementandbalancesheet,showthattheMegaSiteshavegeneratedmorethanUSD$25millioninonlineadvertisingrevenuesfortheMegaConspiracy.
i.
MATHIASORTMANN.
Accordingtoe-mailssentbetweenconspirators,ORTMANNistheChiefTechnicalOfficerandheadoftheTechnicalDepartmentforMEGAUPLOADLIMITED.
Businessregistrationdocumentsattachedtoe-mailsshowthatheisthesoleshareholderofNetplusInternationalLimitedLLC,which,asdescribedabove,makeshima25%shareholderofMEGAUPLOADLIMITED.
Page10of191Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,ORTMANNisacitizenofGermanyandaresidentofGermanyandHongKong.
E-mailssentbetweenconspiratorsfurthershowthatORTMANNhasoverseensoftwareprogrammersthatdevelopedtheMegaConspiracy'swebsites,hashandledtechnicalissueswiththeInternetServiceProviders,andhadauthoritytodistributefundsfromoneoftheMegaConspiracy'smainfinancialaccounts.
Additionally,e-mailsshowthatonnumerousinstances,ORTMANNreceivedDMCAcopyrightinfringementtakedownnoticesfromotherconspiratorsandthird-partycompanies.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,ORTMANNreceivedmorethanUSD$9millionfromtheMegaConspiracyincalendaryear2010alone.
j.
JULIUSBENCKO.
Accordingtoe-mailssentbetweenconspirators,BENCKOistheGraphicDirectorforMEGAUPLOADLIMITED.
Businessregistrationdocumentsattachedtoe-mailsshowthatheisthesoleshareholderofBasemaxInternationalLimited,which,asdescribedabove,makeshima2.
5%shareholderofMEGAUPLOADLIMITED.
Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,BENCKOisacitizenandresidentofSlovakia.
E-mailssentbetweenconspiratorsfurthershowthatBENCKOdesignedtheMegaupload.
comlogos,thelayoutsofadvertisementspace,andtheintegrationoftheonlinevideoplayer.
Additionally,BENCKOhasrequestedandreceivedatleastoneinfringingcopyofacopyrightedworkstoredonaMegaSite.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,BENCKOreceivedmorethanUSD$1millionfromtheMegaConspiracyincalendaryear2010alone.
k.
BRAMVANDERKOLK.
Accordingtoe-mailssentbetweenconspirators,VANDERKOLKistheProgrammer-in-ChargeforMEGAUPLOADLIMITED.
Businessregistrationdocumentsattachedtoe-mailsshowthatheisthesoleshareholderofMindpointInternationalLimitedLLC,which,asdescribedabove,makeshima2.
5%shareholderofMEGAUPLOADLIMITED.
Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,VANDERKOLKisacitizenoftheNetherlandsandaresidentofNewZealand.
E-mailssentbetweenconspiratorsshowthatVANDERKOLKhasoverseensoftwareprogrammingontheMegaConspiracywebsites,aswellastheunderlyingnetworkinfrastructureandadministrationofthe"UploaderRewards"program.
Additionally,inasworndeclaration,VANDERKOLKdeclaredasfollows:IamanemployeeofMEGAUPLOADLIMITED("Megaupload"),whichoperatesavirtuallockerserviceat.
IamresponsiblefortakingdowncontentinresponsetoDigitalMillenniumCopyrightAct(DMCA)takedownnoticeswhicharesenttoMegaupload.
Assuch,IamfamiliarwithandhavepersonalPage11of191knowledgeregardingitspracticesforreceivingandactingontakedownnotices,includingthosesenttotheemailaddresslegal@megaupload.
com.
2E-mailsbetweenconspiratorsshowthatVANDERKOLKhaspersonallyuploadedmultipleinfringingcopiesofcopyrightedworkstotheMegaSitesandhassearchedinternalserverscontrolledbytheMegaConspiracyforinfringingcopiesofcopyrightedworksattherequestofotherconspirators.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,VANDERKOLKreceivedmorethanUSD$2millionfromtheMegaConspiracyincalendaryear2010alone.
l.
SVENECHTERNACH.
Accordingtoe-mailssentbetweenconspirators,ECHTERNACHistheHeadofBusinessDevelopmentforMEGAUPLOADLIMITED.
E-mailsfurthershowthatheisa1%shareholderofMEGAUPLOADLIMITED.
Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,ECHTERNACHisacitizenandresidentofGermany.
E-mailssentbetweenconspiratorsshowthatECHTERNACHleadstheMegaTeamcompany,registeredinthePhilippines,whichistaskedwithremovingillegalorabusivecontentfromtheMegaConspiracywebsites,reviewingadvertisingcampaignsforinappropriatecontent,andrespondingtocustomersupporte-mails.
Additionally,e-mailsshowthatonnumerousinstances,ECHTERNACHreceivedDMCAcopyrightinfringementtakedownnoticesfromthird-partycompanies.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,ECHTERNACHreceivedmorethanUSD$500,000fromtheMegaConspiracyincalendaryear2010alone.
m.
FINNBATATO.
Accordingtoe-mailssentbetweenconspirators,BATATOistheChiefMarketingandSalesOfficerforMEGAUPLOADLIMITED;heisinchargeofsellingadvertisingspaceandsupervisesasalesteamofapproximatelytenpeoplearoundtheworld.
HeisnotashareholderofMEGAUPLOADLIMITED.
Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,BATATOisacitizenandresidentofGermany.
Additionally,e-mailsshowthatonnumerousinstances,BATATOreceivedDMCAcopyrightinfringementtakedownnoticesfromthird-partycompanies,andfurther,thathehaspersonallydistributedalinktoatleastoneinfringingcopyofacopyrightedworkstoredonaMegaSitetoDOTCOM.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,BATATOreceivedmorethanUSD$400,000fromtheMegaConspiracyincalendaryear2010alone.
2VANDERKOLK'ssworndeclaration,entitled"DeclarationofBramvanderKolkinSupportofDefendantMegauploadLimited'sMotiontoDismiss,"wasfiledonMarch28,2011,withtheUnitedStatesDistrictCourtfortheSouthernDistrictofCalifornia,inthematterofPerfect10,Inc.
v.
MegauploadLimitedandKimSchmitz(CaseNo.
11-cv-0191,Doc.
7-6).
Page12of191n.
ANDRUSNOMM.
Accordingtoe-mailssentbetweenconspirators,NOMMisasoftwareprogrammerandHeadoftheDevelopmentSoftwareDivisionforMEGAUPLOADLIMITED.
HeisnotashareholderofMEGAUPLOADLIMITED.
Accordingtoe-mails,someofwhichincludeattachedidentificationdocuments,NOMMisacitizenofEstoniaandaresidentofbothEstoniaandTurkey.
Additionally,e-mailsshowthatNOMMhasaccessedatleastoneinfringingcopyofacopyrightedworkstoredonaMegaSite.
AccordingtoaninternalfinancialstatementforMEGAUPLOADLIMITED,NOMMreceivedmorethanUSD$100,000fromtheMegaConspiracyincalendaryear2010alone.
o.
MegamediaLimited.
AccordingtodocumentsobtainedfromTheGovernmentoftheHongKongSpecialAdministrativeRegionCompaniesRegistry,onoraboutMay20,2006,DOTCOMregisteredthecompanyMegamediaLimitedinHongKongwithcompanyregistrynumber1046613.
Atthattime,thecompanydirectorwaslistedasKimTimJimVestor,withFinlandpassportno.
[REDACTED],andVESTORLIMITEDwaslistedasandremainsthesoleshareholder.
p.
MegavideoLimited.
AccordingtodocumentsobtainedfromTheGovernmentoftheHongKongSpecialAdministrativeRegionCompaniesRegistry,onoraboutMay20,2006,DOTCOMregisteredthecompanyMegavideoLimitedinHongKongwithcompanyregistrynumber1046619.
Atthattime,thecompanydirectorwaslistedasKimTimJimVestor,andMegamediaLimitedwaslistedasandremainsthesoleshareholder.
Accordingtopubliclyavailableinformation,MegavideoLimitedistheregisteredownerofMegavideo.
com.
q.
CarpathiaHosting,Inc.
Accordingtopubliclyavailableinformation,CarpathiaHosting,Inc.
("Carpathia")isanInternethostingproviderfoundedin2003thatisheadquarteredinDulles,Virginia,UnitedStates,intheEasternDistrictofVirginia.
Accordingtoe-mailssentbetweenmembersoftheMegaConspiracyandrepresentativesofCarpathia,theMegaConspiracyleasesapproximatelytwenty-fivepetabytesofdatastoragefromCarpathiatostoreandmanagecontentassociatedwiththeMegaSites(asinglepetabytecontainsmorethanonemilliongigabytes).
Thesee-mailsfurthershowthatmorethan1,000computerserversinNorthAmericaareownedandoperatedbyCarpathiaforthebenefitoftheMegaConspiracy;morethan525ofthesecomputerserversarelocatedinAshburn,Virginia,whichisintheEasternDistrictofVirginia.
r.
CogentCommunications.
Accordingtopubliclyavailableinformation,CogentCommunications("Cogent")isamultinationalInternethostingproviderthatisheadquarteredinWashington,D.
C.
,UnitedStates.
CogentisoneofthelargestcarriersofInternettrafficworldwide.
Accordingtoe-mailssentbetweenmembersoftheMegaConspiracyandrepresentativesofCogent,theMegaConspiracyleasesapproximatelyPage13of191thirty-sixcomputerserversinWashington,D.
C.
,andFrancefromCogenttostoreandmanagecontentassociatedwiththeMegaSites.
s.
Leaseweb.
Accordingtopubliclyavailableinformation,LeasewebisamultinationalInternethostingproviderfoundedin1997thatisheadquarteredintheNetherlands.
Accordingtoe-mailssentbetweenmembersoftheMegaConspiracyandrepresentativesofLeaseweb,theMegaConspiracyleasesorownsapproximately690computerserversfromLeasewebtostoreandmanagecontentassociatedwiththeMegaSites.
Thesee-mailsfurthershowthatLeasewebmanagesapproximatelynineteenpetabytesofdatadedicatedtocontentassociatedwiththeMegaSites.
t.
PayPal,Inc.
Accordinglytopubliclyavailableinformation,PayPal,Inc.
("PayPal")isaU.
S.
-basedglobale-commercebusinessallowingpaymentsandmoneytransfersovertheInternet;infact,PayPalindicatesthatitisinvolvedinapproximately15%ofglobale-commerce.
FinancialrecordsshowthattheMegaConspiracy'sPayPalaccounthasbeenutilizedtoreceivepaymentsfromtheEasternDistrictofVirginiaandelsewhereforpremiumMegaupload.
comsubscriptions,whichhaveincludedfeesofUSD$9.
99formonthlysubscriptions,USD$59.
99foryearlysubscriptions,andUSD$199.
99forlifetimesubscriptions.
ThesamePayPalaccounthasbeenusedbytheMegaConspiracytopayCarpathiaintheUnitedStatesandLeasewebintheNetherlands,andtomakeotherpayments,including,butnotlimitedto,directfinancialrewardstouploadersofpopularcontentintheEasternDistrictofVirginiaandelsewhere.
FromonoraboutNovember25,2006,throughonoraboutJuly2011,thePayPalaccountfortheMegaConspiracyhasreceivedinexcessofUSD$110millionfromsubscribersandotherpersonsassociatedwiththeMegaConspiracy.
u.
MoneybookersLimited.
Accordingtopubliclyavailableinformation,MoneybookersLimited("Moneybookers")isaUnitedKingdom-basedglobale-commercebusinessallowingpaymentsandmoneytransfersovertheInternet.
TheMegaConspiracyhaschargedvariousratesthroughMoneybookersforpremiumsubscriptionsonitswebsites,including9.
99formonthlysubscriptions,59.
99foryearlysubscriptions,or199.
99forlifetimesubscriptions,aswellaspaymentsforadvertising.
Financialrecordsande-mailsbetweenconspiratorsdemonstratethatbetweenAugust1,2010,andJuly31,2011,theMoneybookersaccountsfortheMegaConspiracyhavecollectedinexcessofUSD$5millionfromsubscribersofandadvertisersonMegaSites.
Page14of191MegauploadIsNotPrimarilya"Cyberlocker"23.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
ServicesontheMegaSiteswereofferedtothreebroadcategoriesofusers:unregistered,non-paying,anonymoususers;registered,non-payingusers;andregistered,paying,premiumusers.
Megaupload.
comoftenpresentsitselfasmerelya"cyberlocker,"whichisaprivatedatastorageprovider.
AnyInternetuserwhogoestotheMegaupload.
comwebsitecanuploadacomputerfile.
However,accordingtothewebsite's"FrequentlyAskedQuestions"and"TermsofService",aspartofthedesignoftheservice,onlypaidpremiumsubscribershavearealisticchanceofhavinganyprivatelong-termstorage,sincetheirfilesarenotregularlydeletedduetonon-use.
Unregisteredanonymoususers(referredtoas"Non-Members"bytheMegaConspiracy)areallowedtouploadanddownloadcontentfiles,butanyNon-Member-uploadedcontentthatisnotdownloadedwithin21daysispermanentlydeleted.
Similarly,registeredfreeusers(or"Members")areallowedtouploadanddownloadcontentfiles,buteachuploadedfilemustbedownloadedevery90daysinordertoremainonthesystem.
b.
Inaddition,allusersarewarnedonthewebsite's"FrequentlyAskedQuestions"and"TermsofService"thattheyshouldnotkeepthesolecopyofanyfileonMegaupload.
com,andthatusersbearallriskofdataloss.
TheMegaConspiracy'sdutytoretainanydataforevenapremiumuserexplicitlyendswheneitherthepremiumsubscriptionrunsoutorMegaupload.
comdecides,atitssolediscretionandwithoutanyrequirednotice,tostopoperating.
c.
AsdescribedbelowinthesectionentitledUndercoverActivityofSpecialAgentPoston,afteruploadingafile,Megaupload.
comreproducesthefileonatleastonecomputerserveritcontrolsandprovidestheuploadinguserwithauniqueURLlinkthatallowsanyonewiththelinktodownloadthefilewithoutenteringapassword.
ManyoftheseURLlinksarewidelydistributedthroughouttheInternetonthird-party"linking"sites.
d.
AsdescribedbelowinthesectionentitledUploaderRewardsProgram,betweenSeptember2005andJuly2011,theMegaConspiracyofferedan"UploaderRewards"program,whichofferedpremiumsubscribersfinancialincentivestouploadpopularworks.
Initially,inSeptember2005,theprogramofferedbonuspaymentstouserswhosefilesweredownloaded50,000timeswithinathree-monthperiod.
NearitsconclusioninJuly2011,theprogramofferedtopayuptoUSD$10,000touserswhosefilesweredownloaded5,000,000times.
Aspartofthisprogram,membersoftheMegaConspiracyknowinglyandpurposefullypaidrewardstomanyuserswhouploadedcopyright-infringingcontent,Page15of191despitepublicclaimsthattheMegaSiteswouldnotpayandwouldinfactblocksuchusers.
e.
AsdescribedbelowinthesectionentitledCo-Conspirators'KnowledgeofCopyrightInfringement,membersoftheMegaConspiracyhavesearchedtheinternalMegaupload.
comdatabaseonbehalfoftheirassociatesandontheirownbehalf,sothattheymaydirectlyaccesscopyright-infringingcontentstoredinthepersonalaccountsofMegaupload.
comusers.
24.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsacomputerspecialistwiththeFederalBureauofInvestigationtotestifytothefollowingfacts:a.
OnoraboutJanuary19,2012,theFederalBureauofInvestigationexecutedsearchwarrantsinVirginiaandWashington,D.
C.
,atlocationswheretheMegaConspiracyleasedcomputerserversfortheMegaSites.
ComputerspecialistswiththeFederalBureauofInvestigationcopieddatafromtheseservers,includingmultipledatabasescontaininginformationaboutthefilescontainedontheMegaSites.
b.
ApreliminaryanalysisshowsthatthedatabasescontaininformationaboutusersoftheMegaSites.
OneofthedatabasesshowsthatonoraboutJanuary19,2012,theMegaSiteshadapproximately66.
6milliontotalregisteredusers.
Ofthese,approximately800,000,orroughly1.
2%,werepremiumsubscribers.
Therefore,approximately98.
8%ofusersdidnothavesignificantcapabilitiestostoreprivatecontentlong-term.
Inaddition,ofthe66.
6milliontotalregisteredusers,atmost,only5.
86millionregisteredusers,orlessthan9%,hadeveruploadedafiletoeitherMegaupload.
comorMegavideo.
com.
Therefore,thevastmajorityofusersaccessedtheMegaSitestoviewanddownloadcontent.
c.
ThepreliminaryanalysisfurthershowsthattheMegaConspiracymeasuredthethroughput,orbandwidth,thatfilesontheMegaSiteswereconsuming.
Filesthatdemandedhigherthroughput,whichmeantthatmoreuserswereaccessingthosefilessimultaneously,werestoredonfasterserverslocatedinWashington,D.
C.
Thepreliminaryanalysisofthedatabasesshowsthatthevastmajorityoffilesonthesecomputersareinfringingcopiesofcopyrightedworks,andtheMegaConspiracyhaspurposefullymadetheirrapidandrepeateddistributionaprimaryfocusoftheirinfrastructure.
Page16of191UploaderRewardsProgram25.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFederalBureauofInvestigationtotestifytothefollowingfacts:a.
Accordingtopubliclyavailableinformation,anearlyversionofthe"UploaderRewards"programforpremiumusersofMegaupload.
comfromapproximatelySeptember2005announced:"TodaywearealsointroducingourgroundbreakingUploaderRewards.
Ournewrewardprogrampaysmoneyandcashprizestoouruploaders.
ThismakesMegauploadthefirstandonlysiteontheInternetpayingyouforhostingyourfiles.
Themorepopularyourfilesthemoreyoumake.
"Directlyaddressing"filetraders,"theannouncementcontinued:"Youdeliverpopularcontentandsuccessfulfiles[.
]Weprovideapowerhostinganddownloadingservice.
Let'steamup!
"Inaddition,theannouncementstated:"Youmusthaveatleast50000downloadswithin3monthstoqualify"and"Youmustallowustolistyourfiles&descriptionsonourTop100pages.
"Therewardsincluded"$1USDCashper1000downloadsofyouruploadedfiles",plusanadditionalbonusbetween$50to$5,000forTop100"Megauploaderswiththemostdownloads"duringathree-monthperiod,tobepaidthroughPayPalaccordingtothefollowingranking:Rank1:$5,000USDBonusRanks2-5:$1,000USDBonusRanks6-10:$500USDBonusRanks11-50:$100USDBonusRanks51-100:$50USDBonusb.
Accordingtopubliclyavailableinformation,alaterversionofthe"UploaderRewards"program,availableatleastasearlyasNovember2006,offeredthefollowing:"Foreverydownloadofyourfiles,youearn1rewardpoint.
*Youcanredeemyourrewardpointsforpremiumservicesandcash[.
]"Theprogramrequired"apremiummembershiptoqualifyforapayment.
"RewardswerepaidthroughPayPalaccordingtothefollowingrewardpointtotals:5,000rewardpoints:Onedaypremium50,000rewardpoints:Onemonthpremium100,000rewardpoints:Oneyearpremium500,000rewardpoints:Lifetimeplatinum+$300USD1,000,000rewardpoints:$1,000USD5,000,000rewardpoints:$10,000USDc.
Accordingtopubliclyavailableinformation,atthetimeofitstermination,asrecentlyasJuly2011,the"UploaderRewards"programofferedrewardsaccordingtothefollowingrewardpointtotals:Page17of19110,000rewardpoints:Onemonthpremiummembership50,000rewardpoints:6monthspremiummembership100,000rewardpoints:Oneyearpremium+$100USD500,000rewardpoints:Lifetimeplatinum+$500USD1,000,000rewardpoints:$1,500USD5,000,000rewardpoints:$10,000USDd.
OnoraboutMarch29,2006,VANDERKOLKsentane-mailtoDOTCOMentitled"paymentbatchfile".
Inthee-mail,VANDERKOLKwrote,"Herethepaymentbatchfileofthesecondmegauploadrewardsquarter.
"Hefurtherwrote,thereare3paymentsintherefrompeoplethatweremarkedasmassdownloadersbutgotthebenefitofthedoubtafterinvestigationbyMathias[ORTMANN].
"e.
OnoraboutFebruary5,2007,VANDERKOLKsentane-mailtoORTMANNentitled"rewardpayments".
Attachedtothee-mailwasatextfilelistingproposedrewardamounts,whichrangedfromUSD$100toUSD$1,500,theMegaupload.
comusername,andadescriptionoftheuploadedcontent.
Foroneuser,whohadaproposedrewardamountofUSD$100,VANDERKOLKdescribedtheuploadedcontentas,"10+FullpopularDVDrips(splitfiles),afewsmallpornmovies,somesoftwarewithkeygenerators(warez).
"Theterm"DVDrips"commonlyreferstoinfringingcopiesofcopyrightedmotionpicturesandtelevisionshowscontainedonDVDs.
Theterm"warez"commonlyreferstoinfringingcopiesofcopyrightedcomputersoftware.
VANDERKOLKdescribedtheuploadedcontentofanotheruser,whoalsohadaproposedrewardamountofUSD$100,as"PopularDVDrips.
"f.
OnoraboutFebruary21,2007,VANDERKOLKsentane-mailtoORTMANNentitled"2rewardpaymentfiles.
"Attachedtothee-mailwasatextfilelistingproposedrewardamounts,whichrangedfromUSD$100toUSD$500,theMegaupload.
comusername,andadescriptionoftheuploadedcontent.
Foroneuser,whohadaproposedrewardamountofUSD$300,VANDERKOLKwrote,"30849files,mainlyMp3z,somecopyrightedbutmostofthemhaveaverysmallnumberofdownloadsperfile.
"Theterm"Mp3"referstoanaudioormusicfile,andtheterm"Mp3z"commonlyreferstocopyrightedmusicalrecordings.
Forotherusers,allofwhichwereselectedforrewardpaymentsofUSD$100bytheMegaConspiracy,hewrotethefollowing:"OuroldfamousnumberoneonMU,stillsomeillegalfilesbutIthinkhedeservesapayment";"LoadsofPDFfiles(lookslikescannedmagazines)";"lookslikevietnameseDVDrips";and"ThisuserwaspaidlasttimehasmainlysplitRARfiles,howevermorethan50%deletedthroughabusereports.
"g.
OnoraboutApril15,2007,VANDERKOLKsentane-mailtoORTMANNentitled"rewardbatchpayment.
"Inthee-mail,VANDERKOLKstated:"Wesavedmorethanhalfofthemoney.
MostofthePage18of191disqualificationswerebasedonfraud(automatedmassdownloads).
Theotherdisqualificationshadveryobviouscopyrightedfilesintheiraccountportfolio,butIwasratherflexible(consideringwesavedquitealotonfraudalready).
Totalcost:5200USD.
"Attachedtothee-mailwasafilecontainingtheMegaupload.
comusers'e-mailaddressesandselectedrewardpaymentsforthattimeperiod,whichrangedfromUSD$100toUSD$1,500.
h.
OnoraboutDecember2,2007,DOTCOMsentane-mailentitled"Feedback,opinionsandimprovementsplease!
"toORTMANN,VANDERKOLK,BENCKO,andECHTERNACH,withadraftpressreleaseregardingan"XmasSpecial"forthe"UploaderRewards"program.
Inthee-mail,DOTCOMwrote:ForthewholemonthofDecember&JanuaryyouwillearnDOUBLErewardpointsfordownloadsofyourfiles.
Saygoodbyetothecompetition.
OurRewardsprogramwasalreadythebestbeforethisspecial.
Butnowyoumustbecrazyifyoustilluploadtoothersites:-)ECHTERNACHrespondedwithcomments,andonoraboutDecember3,2007,DOTCOMorderedBENCKOto"putthetextIemailedfirstinthexmasspeciallandingpageandsendmealinktoday.
Alsoletmeseetheanimatedtopandbottom.
"i.
InoraboutlateJune2011,e-mailsbetweenconspiratorsshowthattheMegaConspiracyendedthe"UploaderRewards"program.
Forexample,onoraboutJune30,2011,VANDERKOLKsentane-mailtoDOTCOMandORTMANNentitled"rewards".
Inthee-mail,VANDERKOLKwrote,"We'veremovedtherewardsfromallthesites.
"j.
OnoraboutOctober14,2011,justapproximatelythreemonthsafterendingtheMegaConspiracy's"UploaderRewards"programthatofferedpaymentsthroughPayPalandotherthingsofvaluetorewarduploaders(includingknownandrepeatinfringers),DOTCOMsentane-mailtoaPayPalrepresentative,stating:OurlegalteamintheUSiscurrentlypreparingtosuesomeofourcompetitorsandexposetheircriminalactivity.
Weliketogiveyouaheadsupandadviceyounottoworkwithsitesthatareknowntopayuploadersforpiratedcontent.
Theyaredamagingtheimageandtheexistenceofthefilehostingindustry(seewhatshappeningwiththeProtectIPact).
LookatFileserve.
com,Videobb.
com,Filesonic.
com,Wupload.
com,Uploadstation.
com.
Thesesitespayeveryone(nomatterifthefilesarepiratedornot)andhaveNOrepeatinfringerpolicy.
AndtheyareusingPAYPALtopayinfringers.
Page19of191IndirectcontrasttoDOTCOM'sstatementsinhise-mail,foroversixyearsaspartofthe"UploaderRewards"program,theMegaConspiracypaiduserswhohaduploaded"pirated"content,andasdemonstratedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandMisrepresentationstoCopyrightOwners,theMegaConspiracyfailedtoterminaterepeatinfringers.
CopyingVideosfromYoutube.
com26.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativefromGoogleInc.
totestifytothefollowingfacts:a.
GoogleInc.
istheparentcompanyofYouTube.
b.
AccordingtotheYouTube"TermsofService,"userswhouploadcontenttoYouTuberetainalloftheirownershiprightsintheircontent.
ByuploadingtheircontenttoYouTube,however,suchusersgrantYouTubealicensetouse,reproduce,anddistributesuchcontent.
c.
Ingeneral,thefurtherreproductionanddistributionofvideosthataretakenfromtheYoutube.
complatformviolatesthecopyrightoftheindividualwhouploadedthatvideotoYoutube.
com.
27.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsuserswhouploadedcontenttoYoutube.
com,andwhoretainedcopyrightownershipinsuchuploadedcontent,totestifythattheinfringingcopiesoftheircopyrightedworkswerereproducedanddistributedforcommercialadvantageandprivatefinancialgainbytheMegaConspiracyontheMegaSiteswithoutauthorization.
28.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFederalBureauofInvestigationtotestifytothefollowingfacts:a.
Accordingtoe-mailssentbetweenconspirators,inapproximatelyApril2006,membersoftheMegaConspiracycopiedvideosdirectlyfromYoutube.
comtomakethemavailableonMegavideo.
com.
b.
OnoraboutApril10,2006,VANDERKOLKsentane-mailtoORTMANNasking,"DowehaveaserveravailabletocontinuedownloadingoftheYoutube'svids…Kimjustmentionedagainthatthishasreallypriority.
"Inaddition,VANDERKOLKwrote,"Hope[Youtube.
comis]notimplementingafrauddetectionsystemnow…*praying*".
VANDERKOLKalsowrote:"Wellweonlyhave30%oftheirvideosyet.
.
Inmyopinionit'snicetohaveeverythingsowecandescideandbrainstormlaterhowwe'regoingtobenefitfromit.
"c.
OnoraboutFebruary11,2007,VANDERKOLKsentane-mailtoORTMANNindicatingthat"KimreallywantstocopyYoutubeonetoone.
"Page20of191d.
OnoraboutAugust12,2007,sales@megaupload.
comreceivedane-mailfromacopyrightowner,whocomplainedthatavideofromhisYoutube.
comaccountappearedtohavebeeninfringedbyauseronMegavideo.
com.
Thecopyrightownerwrote,"MyYouTubevideo,inwhichIhadtogetpermissiontoupload,seemstobeincludedinyourmegavideoclips.
.
.
It'snotjustthattheclipisonyourservice,MYclipisonyourservice,meaningtheexactsametitle,sametags,samedescription,andthesametypo.
"Inaddition,thecopyrightownerasked,"Theclipwasuploaded[toMegavideo.
com]11daysago,butthatuser'sprofilesayshehasn'tevenloggedinforSIXTEENdays.
Howisthatpossible"e.
OnoraboutAugust14,2007,ane-mailwassentfrom"MegavideoSupport"toacopyrightholder(whocomplainedthatvideosfromhisYoutube.
comchannelappearedtohavebeeninfringedbytwousersonMegavideo.
com)thatfalselyrepresentedthattheMegaConspiracyhadblockedthetwousers'accounts,whenthesetwoaccountswerestillactiveonJanuary19,2012.
f.
OnoraboutAugust15,2007,ane-mailwassentfrom"MegavideoSupport"toacopyrightholder(whocomplainedthatvideosfromhisYoutube.
comchannelappearedtohavebeeninfringedbyauseronMegavideo.
com)thatfalselyrepresentedthattheMegaConspiracyhadblockedtheuser'saccount,whentheaccountwasstillactiveonJanuary19,2012.
g.
OnoraboutAugust15,2007,ane-mailwassentfrom"MegavideoSupport"toacopyrightholder(whocomplainedthatvideosfromhisYoutube.
comchannel–aswellasthoseofotherYoutube.
comusers-appearedtohavebeeninfringedbyauserofMegavideo.
com)thatfalselyrepresentedthattheMegaConspiracyhadblockedtheuser'saccount,whentheaccountwasstillactiveonJanuary19,2012.
h.
OnoraboutJanuary27,2011,ECHTERNACHreceivedane-mailfromanunindictedco-conspiratorconfirmingthatYoutube.
comremaineda"videoresource"sitethattheyusedas"oursourceforvideoswhichweuploadtomegavideo.
"29.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsacomputerspecialistwiththeFederalBureauofInvestigationtotestifytothefollowingfacts:a.
OnoraboutJanuary19,2012,theFederalBureauofInvestigationexecutedsearchwarrantsinVirginiaandWashington,D.
C.
,atlocationswheretheMegaConspiracyleasedcomputerserversfortheMegaSites.
ComputerspecialistswiththeFederalBureauofInvestigationcopieddatafromtheseservers,includingmultipledatabasescontaininginformationaboutthefilescontainedontheMegaSites.
Page21of191b.
ApreliminaryinvestigationofthedatabasesandassociatedsoftwarecodeshowsthattheMegaConspiracyimplementedasoftwaretooltocopyvideosfromYoutube.
com.
AftercopyingavideofromYoutube.
com,thetoolwouldimportthevideointotheaccountofarandomly-selected,already-existinguseroftheMegaSites.
Inaddition,thetoolwouldassignthevideoarandom,false"view"count.
ThisisconsistentwithwhatisdiscussedinParagraph28(d),whichdescribesanAugust12,2007e-mail,whereacopyrightownercomplainsthatavideofromhisYoutube.
comaccountappearedtohavebeeninfringedbyauseronMegavideo.
com,butthattheMegavideo.
comuserhadnotloggedonduringthattimeperiod.
Manipulationofthe"Top100"30.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFederalBureauofInvestigationtotestifytothefollowingfacts:a.
OnoraboutJuly18,2008,DOTCOMreceivedane-mailfromawebdesigner,regardingthedevelopmentoftheMegaupload.
com"Top100.
"Thatsameday,DOTCOMforwardedthee-mailtoORTMANNandVANDERKOLK,writing:"Number1dowloadwillofcoursebeMegaManager:-)".
b.
OnoraboutOctober25,2009,VANDERKOLKinstructedaMegaConspiracyemployeethroughane-mail,writteninDutch,howtoalterthe"featured"videoslistonMegavideo.
comandthe"Top100"listonMegaupload.
com.
VANDERKOLKwrote,amongotherthings,thattheTop100shouldnotlistanycopyrightedfiles,butinsteadshouldlistgamedemos,softwaredemos,andmovietrailers.
VANDERKOLKinstructedtheemployeetotrackwhatwascurrentlypopularontheInternetandtodownloadmaterialfromwebsitessuchasdownload.
com,apple.
com/trailers,andgamespot.
com.
VANDERKOLKfurtherinstructedtheemployeetocreatefakeaccountsonMegaupload.
comandMegavideo.
comandtouploadthefilestothoseaccounts,sothatitwouldappearthatthefileswereuploadedbyactiveusersinsteadofMegaConspiracyemployees.
WillfulFailuretoRemoveCopyright-InfringingFiles31.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
E-mailssenttotheconspiratorsshowthattheMegaConspiracyhasreceivedmanymillionsofrequests,includingDMCAtakedownrequests,toremoveinfringingcopiesofcopyrightedworksfromtheMegaSites.
PublicrecordsfromtheU.
S.
CopyrightOfficeshowthattheMegaConspiracyfailedtodesignateanagentwiththeU.
S.
CopyrightOfficetoreceiveinfringementnoticesuntilonoraboutOctober15,2009,yearsPage22of191afterMegaupload.
comandmanyofitsassociatedsiteshadbeenoperatingandtheDMCAhadgoneintoeffect.
b.
AspartoftheadministrationofMegaupload.
comandMegavideo.
com,membersoftheMegaConspiracyhaveaccesstoaninternaldatabase,whichcontains,amongotherthings,thefollowinginformation:filename;fileextensiontype(e.
g.
,.
avi,.
jpg,etc.
);filesize;date;thefile'sMD5hash;whetheralinktothefilehadbeenremovedforabuse(includingforcopyrightinfringement);andthefile's8-digitdownloadnumberforusewiththeMegaupload.
comlink(forexample,thelasteightdigitsofthefollowing:www.
megaupload.
com/d=BY15XE3V).
OnoraboutAugust12,2007,VANDERKOLKsentane-mailtoORTMANNregardingaparticularfilelocatedonMegaupload.
com.
Inthee-mail,VANDERKOLKcopiedinformationaboutthefilefromtheMegaupload.
cominternaldatabase,containingmanyofthecategoriesofinformationdescribedabove.
c.
OnoraboutMarch3,2009,DOTCOMsentane-mailtoareporterindicating,"Wheneverauseruploadsanewfileitischeckedagainstourdatabaseandifwealreadyhavetheexactsamefiletheuploadcompletesinstantly.
Thiswayacompletesystembackupintothecloudonlytakesafractionofthetimeitusedtotake.
Andthelongerweexist,themorefileswereceive,thefasterweget.
"Thise-mailconfirmsthattheMegaConspiracyhastheability,fromthemomentafileisuploaded,tolocateidenticalfileswithinthesystem,basedonauniqueidentifier,suchastheMD5hash.
d.
OnoraboutSeptember4,2009,arepresentativeofWarnerBrothersEntertainment,Inc.
("Warner"),sentane-mailtoMegaupload.
com,statingthatWarnerwas"unabletoremovelinks"tocopyright-infringingcontentonMegaupload.
comusingtheAbuseTool.
Inthee-mail,theWarnerrepresentativerequestedanincreaseinWarner'sremovallimit,whichiscontrolledbytheMegaConspiracy.
OnoraboutSeptember8,therepresentativesentafollow-uprequest,andonoraboutSeptember9,therepresentativesentanotherfollow-uprequest.
OnoraboutSeptember10,ORTMANNsentane-mailtoDOTCOM,stating,"Theyarecurrentlyremoving2500filesperday-acursorycheckindicatesthatit'slegittakedownsofcontentthattheyownappearinginpublicforums.
"Theterm"publicforums"likelyreferstothird-partylinkingsites.
ORTMANNalsostated,"Weshouldcomplywiththeirrequest-wecanaffordtobecooperativeatcurrentgrowthlevels.
"DOTCOMrespondedthatthelimitshouldbeincreasedto5,000perday,but"notunlimited",demonstratingthattheMegaConspiracyarbitrarilylimitedtheabilityofcopyrightownerstoremoveinfringingcontentfromtheMegaSites.
ThisisdiscussedfurtherinthesectionbelowentitledDOTCOM'sKnowledgeofCopyrightInfringement.
Page23of191e.
OnoraboutJune24,2010,membersoftheMegaConspiracywereinformed,pursuanttoacriminalsearchwarrantfromtheU.
S.
DistrictCourtfortheEasternDistrictofVirginia,thatthirty-nineinfringingcopiesofcopyrightedmotionpictureswerebelievedtobepresentontheirleasedserversatCarpathiainAshburn,Virginia.
OnoraboutJune29,2010,afterreceivingacopyofthecriminalsearchwarrant,ORTMANNsentane-mailentitled"Re:SearchWarrant–Urgent"toDOTCOMandthreerepresentativesofCarpathiaintheEasternDistrictofVirginia.
Inthee-mail,ORTMANNstated,"Theuser/paymentcredentialssuppliedinthewarrantidentifysevenMegauseraccounts",andfurtherthat"The39suppliedMD5hashesidentifymostlyverypopularfilesthathavebeenuploadedbyover2000differentuserssofar[.
]"TheMegaConspiracyhascontinuedtostorecopiesofatleastthirty-sixofthethirty-ninemotionpicturesonitsserversaftertheMegaConspiracywasinformedoftheinfringingcontent.
f.
E-mailsbetweenconspiratorsdemonstratethattheMegaConspiracyhaseliminatedknownchildpornographyandotherillicitcontent,includingterroristpropagandavideos,bysearchingthesystemforidenticalMD5hashvaluesanddeletingfileswithmatchinghashvalues.
MembersoftheMegaConspiracyhavefailedtoimplementasimilarprogramtoactuallydeleteorterminateaccesstocopyright-infringingcontent.
i.
OnoraboutApril8,2007,DOTCOMsentane-mailtoPayPal,inwhichhestatedthatMegaupload.
comwasworkingtoward"preventingpedophiliacmaterialsfrombeingdistributedthroughourservice[.
]"DOTCOMoutlinedtheir"keyprocedures",whichincludedthefollowing:1.
Keyword-baseduploadalerting.
Wemaintainalistofpatterns/wordscommonlyusedinrelevantfilenamesanddescriptions.
Wheneveranewfileisuploadedwhosefilenameordescriptionmatches,thefileisforwardedtoourcontentauditingteamforfurtherinspection.
2.
Recursivetrackingofuploadersandfiles.
Whenourteamofcontentauditorsreceivesanotificationofanuploadrelatedtochildexploitationeitherthrough(1),orfroma3rdpartysource,theyverifythefile'snature,thencross-matchrelateduploadsbyIP,bythefile'shashfingerprint,andbythesupplieduploadercredentials(userID,e-mailaddresses).
Thisprocedureiseffective,becausethesameuploaderoftenuploadsmorethanonefile,andthesamefileistypicallyuploadedmorethanoncebydifferent,unrelatedpersons.
Theprocessisappliedrepeatedly,leadingtoastep-by-stepcompromiseofmostfileportfolioscontainingpedophiliacmaterial.
ExistingfingerprintsarePage24of191storedpermanentlyandwillimmediatelytriggeranalarmiftheymatchanewupload.
TheMegaConspiracyfailedtoimplementanysimilarproceduresforcopyright-infringingworks.
ii.
OnoraboutAugust14,2007,DOTCOMandVANDERKOLKreceivedane-mail,inwhichtheauthorstated,"Apparently,therearequestionable(possiblybestiality)videosonyoursite.
Canyoupleasehavesomeoverthereremovethefollowingvideoswhichareshownonthisscreenshot"VANDERKOLKrespondedtothee-mail,copyingDOTCOMandORTMANN,asfollows:"Icleanedupmostbestiality[.
]"iii.
OnoraboutAugust14,2010,DOTCOMsentane-mailtohostingcompanyexecutivesDSandJK,andtoORTMANN.
3Inthee-mail,DOTCOMaddressedtheMegaConspiracy'streatmentof"Contentthatisillegalperse,mostnotablypedophiliamaterial.
"DOTCOMstated,"Aspecializedteamofauditorsiscontinuouslyputtinggreateffortsintothediscoveryandeliminationthistypeofcontentbylookingatuploadsources(useraccounts,IPaddresses)ofnewlyreportedfiles,thenidentifyingsimilaritemsuploadedfromthesamesource,leadingtofurtheruploadsources.
Thisprocessisappliedrecursivelyandexhaustively[.
]"DOTCOMfurtherstated,"Asaresult,thefrequencyofnoticescomingfromestablishedmonitoringbodiessuchas'TelefonoArcobaleno'hasdecreasedtonear-zeroasitisnowwellknowninthecriminalscenethatabusingMegauploadforstoringtheirappallingmaterialwouldposegreatriskstothem.
"g.
OnoraboutOctober18,2011,VANDERKOLKsentane-mailtoORTMANN,forwardingacomplaintfromtheVietnameseEntertainmentContentProtectionAssociation.
ThecomplaintindicatedthattheDMCAAbuseToolforMegaupload.
comdoesnotremoveparticulartypesoflinks.
Italsonotedthataparticularlinkingsiteisarepeatinfringer"whereusersandadminteamareallinvolvedinuploadandreuploadassoonasthefilesareremoved.
"Italsostated,"Todate,wehaveremoved24pagesofinfringeddownloadlinksandalmost100%areMegaupload.
"3Pursuanttonormalproceduresatthisstageintheproceedings,theidentitiesofthenon-lawenforcementwitnessesarebeingkeptconfidential.
IncompliancewithU.
S.
law,theidentitiesofthewitnesses,aswellasinformationusefultopreparethedefendants'defense,maybedisclosedtothedefensepriortotrialintheUnitedStates.
Page25of19132.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsacomputerspecialistwiththeFederalBureauofInvestigationtotestifytothefollowingfacts:a.
OnoraboutJanuary19,2012,theFederalBureauofInvestigationexecutedsearchwarrantsinVirginiaandWashington,D.
C.
,atlocationswheretheMegaConspiracyleasedcomputerserversfortheMegaSites.
ComputerspecialistswiththeFederalBureauofInvestigationcopieddatafromtheseservers,includingmultipledatabasescontaininginformationaboutthefilescontainedontheMegaSites.
b.
ApreliminaryanalysisshowsthatthedatabasescontaininformationaboutthefilesuploadedtotheMegaSites,including,amongotherthings,thefollowing:filename;fileextensiontype(e.
g.
,.
avi,.
jpg,etc.
);filesize;date;thefile'sMD5hash;whetheralinktothefilehadbeenremovedforabuse(includingforcopyrightinfringement);andthefile's8-digitdownloadnumberforusewiththeURLlink(forexample,thelasteightdigitsofthefollowing:www.
megaupload.
com/d=BY15XE3V).
ThedatabasepermittedtheMegaConspiracytoidentifyandtrackfiles.
c.
ThepreliminaryanalysisofthedatabasesfurthershowsthatasofonoraboutJanuary19,2012,Megavideo.
comcontainedapproximately14.
9milliontotaluniquevideofiles.
Ofthese14.
9millionfiles,theinternaldatabasereflectsthatapproximately6.
3million,orroughly42%,hadneverbeenviewed.
Ofthe8.
6millionfilesthathadbeenviewedatleastonce,thedatabasereflectsapproximately33milliontotalURLlinkspointingtothesefiles,and34.
9billionrecordedviewsoftheselinks.
ThenumberofURLlinksisgreaterthanthenumberoffilesbecausemultipleURLlinkspointtothesamefile.
Furthermore,ofthe8.
6millionfilesthathadbeenviewedatleastonce,atleastapproximately1.
1millionfiles,orroughly12.
8%,hadreceivedacopyrighttake-downrequest,andofthe33millionURLlinkspointingtothe8.
6millionfiles,atleastapproximately4.
2millionlinks,orroughly12.
7%,hadreceivedacopyrighttake-downrequest.
Inaddition,approximately12.
3millionactiveURLlinks,orroughly37.
3%,pointedtofilesthathadreceivedacopyrighttake-downrequestthroughadifferentURLlink.
d.
ThepreliminaryanalysisofthedatabaseforMegavideo.
comfurtherreflectsapproximately34.
9billionvideostreams,orviews,ofallfiles.
Ofthese,atleastapproximately15billionstreams,orroughly43%,areofuniquevideofilesthathadreceivedatleastonecopyrighttake-downrequest.
Atleast4.
3billionstreams,orroughly12.
3%,areofvideofilesthathadreceivedatleasttencopyrighttake-downrequeststhroughdifferentURLlinks.
ThoughtheMegaConspiracyhadactualknowledgethatitwasreproducinganddistributinginfringingcopiesofcopyrightedworks,itfailedtodeletetheinfringingfilesorterminateaccesstothem.
Page26of191e.
Thepreliminaryanalysisfurthershowsthatforapproximately94,000users,whowereactiveonoraboutJanuary19,2012,theMegaConspiracyreceivedatleastoneDMCAcopyrightinfringementtakedownrequest;forapproximately19,000activeusers,theMegaConspiracyreceivedatleasttentakedownrequests;forapproximately4,438activeusers,theMegaConspiracyreceivedatleast100takedownrequests;andforapproximately642activeusers,theMegaConspiracyreceivedatleast1,000takedownrequests.
f.
Oftheapproximately34.
9billiontotalrecordedviewsofURLlinksonMegavideo.
com,theURLlinksuploadedbyactiveuserswhohadreceivedatleast1,000takedownrequestsaccountedforapproximately5.
1billionviews,orroughly15%;theURLlinksuploadedbyactiveuserswhohadreceivedatleast100takedownrequestsaccountedfor12.
8billionviews,orroughly37%;theURLlinksuploadedbyactiveuserswhohadreceivedatleasttentakedownrequestsaccountedfor19.
9billionviews,orroughly57%;theURLlinksuploadedbyactiveuserswhohadreceivedatleastonetakedownrequestaccountedfor27.
2billionviews,orroughly78%,ofthetotalrecordedviewsofactiveURLlinksonMegavideo.
com.
ThispreliminaryanalysisisbasedonDMCAcopyrightinfringementtakedownrequestssubmittedtotheMegaConspiracy,asreflectedintheinternaldatabase.
Theactualnumberofcopyright-infringingvideofilesstoredonMegavideo.
comsignificantlyexceedsthesefigures,becausecopyrightownerswereunabletolocateandidentifymanyURLlinkstoinfringingcontent.
g.
ThepreliminaryanalysisofthedatabasesandassociatedsoftwarecodeshowsthatMegavideo.
commaintaineda"blacklist"of221uniquefiles,whichwereidentifiedbyMD5hash.
URLlinkstofilesontheblacklistweresupposedlyautomaticallydisabledbythesystem.
h.
ThepreliminaryanalysisofthedatabasesfurthershowsthatonoraboutJanuary19,2012,Megaupload.
comcontaineduptoapproximately206milliontotaluniquefiles.
AffirmativeRelianceonThird-Party"Linking"Sites33.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
Megaupload.
comdoesnotprovideasearchfunction,andalthoughMegavideo.
comdoesprovideasearchfunction,anysearchforafull-lengthcopyrightedvideowillnotproduceanyrelevantresults.
Instead,theMegaConspiracybusinessmodelreliesonthousandsofthird-party"linking"sites,whichcontainuser-generatedpostingsoflinkscreatedbyMegaupload.
com(aswellasURLlinkscreatedbyotherMegaSites,suchasMegavideo.
comandMegaporn.
com).
WhiletheMegaConspiracymayPage27of191notoperatethesethird-partysites,foryearstheMegaConspiracyofferedtheprogramdescribedaboveinthesectionentitledUploaderRewardsProgram,whichprovidedadirectfinancialincentiveforpremiumuserstopostURLlinksonlinkingsites.
b.
OnoraboutNovember13,2006,VANDERKOLKsentane-mailtoanotherindividualthatcontainedonehundredMegaupload.
com-generatedlinkstoinfringingcopiesofcopyrightedmusicalrecordingsbytheartistArminvanBuuren.
c.
OnoraboutOctober31,2008,DOTCOMforwardedane-mailtoORTMANNfromacustomerentitled"Sharebee.
com"andstatingthat"Sharebee.
comhaveuploadedover1millionfilestomegauploadin2008.
"ORTMANNrespondedtoDOTCOMthatSharebee.
comwasa"multifilehosteruploadservice.
"Sharebee.
comisalinkingsitethatallowsthemassdistributionoffilestoanumberoffilehostinganddistributionservices,includingMegaupload.
com,andcreatesclickablelinkstoaccessthatcontentfrommultiplesites.
d.
OnoraboutNovember23,2008,DOTCOMreceivedane-mailfromaMegaSiteuserentitled"videoproblems.
"Thee-maildescribed,"I'vebeentryingtowatchDexterepisodes,but…thesounddoesn'tmatchupwiththevisual…Ididn'tchoosetouseyoursite,youseemtodominateepisodes6and7ofDexteronalluc[.
org,alinkingsite].
"DOTCOMforwardedthee-mailtoORTMANNandwrote,"…onmanyforumspeoplecomplainthatourvideo/soundarenotinsync…Weneedtosolvethisasap!
""Dexter"isacopyrightedtelevisionseriesonthepremiumcablechannelShowtime.
e.
OnoraboutJanuary14,2009,BATATOsentane-mailmessagetoaMegaupload.
comadvertisersaying"YoucanfindyourbanneronthedownloadpagesofMegaupload.
com.
Justchoosealinkforexamplefromthissite:www.
mulinks.
com…"f.
OnoraboutMay7,2009,ORTMANNsentane-mailinGermantoDOTCOMindicatingthetopreferringorlinkingsitestoMegaupload.
combyMegauploadpremiumusers.
Thelinkingsitesincluded:seriesyonkis.
com,surfthechannel.
com,sharebee.
com,taringa.
net,watch-movies-links.
net,cinetube.
es,andmegauploadforum.
net.
g.
OnoraboutMay17,2009,NOMMsentane-mailtoORTMANNentitled"CompetitorLinksReport.
"Thee-mailindicatedthatthetopthird-partysitesusedtoreachMegavideo.
comcontentwereseriesyonkis.
com,peliculasyonkis.
com,dospuntocerovision.
com,cinetube.
es,andsurfthechannel.
com,whicharealllinkingsites.
Page28of191h.
OnoraboutJune6,2009,BATATOsentane-mailtoanadvertiserindicating,"BannerswillbeshownonthedownloadpagesofMegaupload.
Youwillfindsomelinkshereforexample:http://mulinks.
com/news.
php".
i.
OnoraboutNovember30,2009,BATATOsentane-mailtoanadvertiserstating:"Pleasegotomulinks.
comandcopypasteOneofthoseURLstoyourbrowser.
YouwillthenSeewherethebannerappears.
"j.
OnoraboutJanuary28,2010,inane-mailentitled"activatingoldcountries,"auserofaMegaConspiracysiteaskedBATATO:"wherecanweseefullmovies"BATATOreplied,"Youneedtogotoourreferrersites.
Suchaswww.
thepiratecity.
orgorwww.
ovguide.
com[.
]Therearethemovieandserieslinks.
YoucannotfindthembysearchingonMVdirectly.
Thatwouldcauseusalotoftrouble;-)"k.
OnoraboutDecember10,2010,DOTCOMforwardedacomplaintfromauserthat"Megakeyisnotworking"toORTMANNandVANDERKOLK.
Intheforward,DOTCOMwrites:"thisdoesn'tworkyetweareadvertisingit.
whyisitnotworking"Intheuser'se-mail,hecomplainedthatheinstalledMegakey,whichprovidesMegaConspiracyadvertisingtousersinexchangeforpremiumaccesstoMegaupload.
comandMegavideo.
com,andtheuserwasstillreceivingamessageaboutthe"megavideotimelimit.
"Thee-mailincludedapparentscreenshotsoftheuser'scomputer,whichshowsthelinkingsiteanimefreak.
tvbeingusedtoattempttowatchanepisodeofthecopyrightedtelevisionseries"FruitsBasket"onMegavideo.
com.
l.
OnoraboutSeptember17,2011,VANDERKOLKsentane-mailtoORTMANN,attachingaGoogleAnalyticsreportonreferralstoMegaupload.
comfromthelinkingsiteTaringa.
net.
Thesinglepagereportindicatesthat,betweenAugust17,2010,andSeptember16,2011,Taringa.
netprovidedmorethan72millionreferralstoMegaupload.
com,withthetop10linksincludingcopyrightedsoftwareandmusictitles.
Thepageindicates,forexample,thatthelinkingsiteproduced164,214visitstoMegaupload.
comforadownloadofthecopyrightedCD/DVDburningsoftwarepackageNeroSuite10.
Thissoftwareprogramhadasuggestedretailpriceof$99.
Page29of191MisrepresentationstoCopyrightOwners34.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
MembersoftheMegaConspiracyprovidedan"AbuseTool"tomajorU.
S.
copyrightholderstopurportedlyremovecopyright-infringingmaterialfromMegaConspiracy-controlledservers.
TheAbuseToolallowedcopyrightholderstoenterspecificURLlinkstocopyright-infringingcontentofwhichtheywereaware,andtheyweretoldbytheMegaConspiracythattheMegaConspiracy'ssystemswouldthenremove,ordisableaccessto,theoffendingmaterial.
TheMegaConspiracy'sAbuseTooldidnotactuallyfunctionascopyrightownerswereledtobelieve,however,becausetheAbuseToolonlydisabledthespecificURLlinkidentified,andtheAbuseToolfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
b.
OnoraboutMay2,2006,ane-mailwassentfromthe"MegauploadAbuseDesk"toarepresentativeofacopyrightholderfalselyrepresentingthattherepresentativecould"removeabatchoffilesfromourservers"byusingtheAbuseTool.
TheAbuseTool,however,didnotactually"removeabatchoffiles"fromtheservers,because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
c.
OnoraboutJanuary25,2008,ane-mailwassentfromthe"MegauploadAbuseDepartment"toarepresentativeofacopyrightholderfalselyrepresentingthatthe"takedowntool"would"remove"videosand/orfiles"fromoursystemimmediately.
"The"takedowntool"(referredtohereastheAbuseTool),however,didnotactually"remove"videosorfilesfromtheMegasystem,because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
d.
OnoraboutMay6,2008,ane-mailwassentfromthe"MegauploadAbuseDesk"toarepresentativeofacopyrightholderfalselyrepresentingthatMegavideowas"oneofthefewonlinevideocommunitiesthatma[de]itimpossibletofraudulentlyhostfull-lengthfeaturemoviesduetoahuman-assistedautomaticdetection/deletionmechanism.
"AsdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,however,itwasnotPage30of191"impossibletofraudulentlyhostfull-lengthfeaturemovies"ontheMegaSitesbecausetheMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
e.
OnoraboutMay6,2008,ane-mailwassentfromthe"MegauploadAbuseDesk"toarepresentativeofacopyrightholderfalselyrepresentingthattheuseoftheAbuseToolwouldprovide"directdeletionrights,whichwillcompletelybypassourabuseteamandtakefilesandfilmsofflineimmediately.
"TheAbuseTool,however,didnotactually"takefilesandvideosofflineimmediately"because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
f.
OnoraboutMay12,2008,ane-mailwassentfrom"megsupp@googlemail.
comOnBehalfOfMegauploadSupport"toarepresentativeofacopyrightholderfalselyrepresenting,"WearetakinggreatcareinexpeditiouslydeletinganymaterialreportedtousthroughDMCAtakedownnotices.
"TheMegaConspiracydidnotactually"delet[e]anymaterialreportedtousthroughDMCAtakedownnotices"because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
g.
OnoraboutJune19,2008,arepresentativeofvariouscopyrightownerssentane-mailtodmca@megavideo.
com,statingthataparticularpremiumuser(herein"VV")was"currentlyhostingatleast57fullcontentmovieswithouttheauthorizationfromthecopyrightholders,"andthatVV"appearstobeusingyourservicestoprofitfromourclients'intellectualproperty.
"Inaddition,therepresentativestatedthat"wehavealreadysentover85noticesofcopyrightinfringementtoMegaVideo.
com"regardingVV,andthatVVshouldbeconsidereda"Repeatinfringer[].
"AsearlyasFebruary2008,theMegaConspiracyhadreceivednoticesfromcopyrightholdersindicatingthattherewereatleast127URLlinkstocontentuploadedbyVVthatwasinfringingand,afterreceivingtheJune19,2008e-mail,theMegaConspiracyreceivedadditionalnoticesfromcopyrightholdersindicatingthatatleast107URLlinkstocontentuploadedbyVVwereinfringing.
Despitetheserepeatedinfringementnotifications,theMegaConspiracydidnotterminateVV'saccount;furthermore,PayPalrecordsshowthattheMegaConspiracymadefivepaymentstotaling$3,400toVV,startinginmid-March2008andcontinuingintolate2009,aspartofthe"UploaderRewards"program.
DuringthenearlysixyearsthatVVhasbeenaregistereduseroftheMegaSites,VVhasuploadedPage31of191approximately16,950filestoMegavideo.
comandMegaupload.
com,whichgeneratedmorethan34millionviews.
VV'suploadsincludedmanyinfringingcopiesofcopyrightedmotionpictures,includingOcean'sThirteen,Ratatouille,andEvanAlmighty.
RepeatinfringerVVlastuploadedafiletoaMegaSiteonoraboutJanuary7,2012,andVV'saccountwasstillactiveonoraboutJanuary19,2012.
h.
OnoraboutJuly10,2008,ane-mailwassentfrom"megsupp@googlemail.
comOnBehalfOfMegauploadSupport"toarepresentativeofacopyrightholderfalselyrepresentingthattheuseoftheAbuseToolwould"takedownillegalcontentinrealtime.
"TheAbuseTool,howeverdidnotactually"takedownillegalcontentinrealtime"because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
i.
OnoraboutNovember23,2010,membersoftheMegaConspiracycausedacommunicationtobesentfromacomputerserverintheEasternDistrictofVirginiatoarepresentativeofacopyrightholderstating"1fileand1videoremovedfromoursystem"inresponsetoatakedownrequestthatincludedalinktothe2010versionofthecopyrightedfilm"ANightmareonElmStreet.
"ThisrepresentationwasfalsebecausetheMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
j.
OnoraboutMarch9,2011,membersoftheMegaConspiracycausedacommunicationtobesentfromacomputerserverintheEasternDistrictofVirginiatoarepresentativeofacopyrightholderstating"2filesremovedfromoursystem"inresponsetoatakedownrequestthatincludedlinkstothe2009versionofthecopyrightedfilm"Fridaythe13th"(intwoparts).
ThisrepresentationwasfalsebecausetheMegaConspiracyonlydisabledthespecificURLlinksidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
k.
OnoraboutMarch11,2011,membersoftheMegaConspiracycausedacommunicationtobesentfromacomputerserverintheEasternDistrictofVirginiatoarepresentativeofacopyrightholderstating"2filesremovedfromoursystem"inresponsetoatakedownrequestthatincludedlinkstocopiesofepisodesofthecopyrightedtelevisionshow"ModernFamily.
"ThisrepresentationwasfalsebecausetheMegaConspiracyonlydisabledthespecificURLlinksidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
Page32of191l.
OnoraboutApril30,2011,membersoftheMegaConspiracycausedacommunicationtobesentfromacomputerserverintheEasternDistrictofVirginiatoarepresentativeofacopyrightholderinresponsetoatakedownrequestthatincludedalinktothecopyrightedmotionpicture"FastFive.
"ThisrepresentationwasfalsebecausetheMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
m.
OnoraboutMay13,2011,ane-mailwassentfromthe"MegauploadAbuseDesk"toarepresentativeofacopyrightholderfalselyrepresentingthattheuseoftheAbuseToolwould"takedownmaterialfromMegavideo.
"TheAbuseTool,however,didnotactually"takedownmaterialfromMegavideo"because,asdescribedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandUndercoverActivityofSpecialAgentPoston,theMegaConspiracyonlydisabledthespecificURLlinkidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
n.
OnoraboutAugust10,2011,membersoftheMegaConspiracycausedacommunicationtobesentfromacomputerserverintheEasternDistrictofVirginiatoarepresentativeofacopyrightholderstating"6filesand6videosremovedfromoursystem"inresponsetoatakedownrequestthatincludedlinkstothe2010versionofthecopyrightedmotionpicture"ANightmareonElmStreet.
"ThisrepresentationwasfalsebecausetheMegaConspiracyonlydisabledthespecificURLlinksidentified,andfailedtodisableaccesstotheunderlyingcopyright-infringingmaterialorremovethefilefromtheserver.
InfringementoftheCopyrightedMotionPicture"Taken"35.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
Accordingtoane-mailobtainedthroughtheinvestigation,onoraboutOctober25,2008,VANDERKOLKuploadedaninfringingcopyofthecopyrightedmotionpicture"Taken"toMegaupload.
com.
Theexactfilenamewas"Taken2008DVDRipRepack[AReleaseLoungeH264ByMicky22].
mp4.
"Onthatsamedate,VANDERKOLKe-mailedtheURLlinkforthefiletoanotherindividual.
Themotionpicture"Taken"wouldnotbereleasedinUnitedStatesmovietheatersuntilonoraboutJanuary30,2009,andwouldnotbecommerciallydistributedintheUnitedStatesuntilonoraboutMay12,2009.
b.
Inanundercovercapacity,AgentPostonviewedanddownloadedthemotionpicture"Taken"onoraboutNovember27,2011,fromMegaupload.
com'sserversatCarpathiainAshburn,Virginia.
Page33of191Copyright-InfringingWorksAvailableontheMegaSites36.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothecopyright-infringingworksthatwerereproducedanddistributedontheMegaSitesduringthe180daysuptoandincludingJanuary19,2012,asdescribedinthesectionentitledUndercoverActivityofSpecialAgentPoston.
37.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsacomputerspecialistwiththeFederalBureauofInvestigationtotestifytothefollowingfacts:a.
OnoraboutJanuary19,2012,theFederalBureauofInvestigationexecutedsearchwarrantsinVirginiaandWashington,D.
C.
,atlocationswheretheMegaConspiracyleasedcomputerserversfortheMegaSites.
ComputerspecialistswiththeFederalBureauofInvestigationcopieddatafromtheseservers,includingmultipledatabasescontaininginformationaboutthefilescontainedontheMegaSites.
b.
Apreliminaryanalysisofthedatabasesshowsthatforthe180daysuptoandincludingAugust31,2010,thefollowingcopyright-infringingworkswerereproducedanddistributedonaMegaSite:i.
Thecopyrightedmotionpicture"IpMan2",whichwasdownloadedupto443,400timesfromtheMegaSites.
ii.
Thecopyrightedmotionpicture"Kick-Ass",whichwasdownloadedupto395,320timesfromtheMegaSites.
iii.
Thecopyrightedmotionpicture"PrinceofPersia",whichwasdownloadedupto268,254timesfromtheMegaSites.
c.
Apreliminaryanalysisofthedatabasesshowsthatforthe180daysuptoandincludingAugust16,2008,thefollowingcopyright-infringingworkswerereproducedanddistributedonaMegaSite:i.
Thecopyrightedmotionpicture"Cloverfield",whichwasdownloadedupto506,535timesfromtheMegaSites.
ii.
Thecopyrightedmotionpicture"MeettheSpartans",whichwasdownloadedupto144,174timesfromtheMegaSites.
iii.
Thecopyrightedmotionpicture"TheForbiddenKingdom",whichwasdownloadedupto92,226timesfromtheMegaSites.
iv.
Anepisodeofthecopyrightedtelevisionseries"PrisonBreak,"whichwasdownloadedupto89,764timesfromtheMegaSites.
d.
Apreliminaryanalysisofthedatabasesshowsthatforthe180daysuptoandincludingOctober31,2007,atleasttencopiesofcopyright-infringingPage34of191workswerereproducedanddistributedfromtheYoutube.
complatformonaMegaSite.
Forexample,atleast80videosfromasingleYoutube.
comuserwerereproducedanddistributedontheMegaSites.
DOTCOM'sKnowledgeofCopyrightInfringement38.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
OnoraboutApril10,2006,VANDERKOLKsentane-mailtoORTMANNasking,"DowehaveaserveravailabletocontinuedownloadingoftheYoutube'svids…Kimjustmentionedagainthatthishasreallypriority.
"Inaddition,VANDERKOLKwrote,"Hope[Youtube.
comis]notimplementingafrauddetectionsystemnow…*praying*".
VANDERKOLKalsowrote:"Wellweonlyhave30%oftheirvideosyet.
.
Inmyopinionit'snicetohaveeverythingsowecandescideandbrainstormlaterhowwe'regoingtobenefitfromit.
"b.
OnoraboutFebruary11,2007,VANDERKOLKsentane-mailtoORTMANNindicatingthat"KimreallywantstocopyYoutubeonetoone.
"c.
OnoraboutMay17,2007,arepresentativefromGoogleAdSense,anInternetadvertisingcompany,sentane-mailtoDOTCOMentitled"GoogleAdSenseAccountStatus.
"Inthee-mail,therepresentativestatedthat"[d]uringourmostrecentreviewofyoursite[Megaupload.
com,]"GoogleAdSensespecialistsfound"numerouspages"withlinksto,amongotherthings,"copyrightedcontent,"andthereforeGoogleAdSense"willnolongerbeabletoworkwithyou.
"Thee-mailcontainslinkstospecificexamplesofoffendingcontentlocatedonMegaupload.
com.
d.
OnoraboutDecember11,2007,acreditcardpaymentprocessore-mailedECHTERNACHandVANDERKOLKregarding"complaints"thattheprocessorhadreceivedfromthird-partiesinvolvingcopyright-infringingmaterialsfoundontheMegaSites,includingonecomplaintinwhichathird-partystated:"wehavepulledover65fullvideosfromMegarotic.
That's$200kincontentwepaidfor.
"Inthee-mailtoECHTERNACHandVANDERKOLK,theprocessorstated,amongotherthings:"youarenotallowedtosellorfinanciallybenefitfromthecontentthatisinfringingincopyrightsonyoursite";and"youarenotallowedtocontinuewithallowingtheusertouploadcontentifyoucanhaveknowledgeoftheinfringingofcopyright.
"DOTCOMrespondedtothee-mail,stating"TheDMCAquotesyousentmearenotrelevant.
Weareahostingcompanyandallwedoissellbandwidthandstorage.
Notcontent.
Allofthecontentonoursiteisavailablefor'freedownload'.
"Page35of191e.
OnoraboutDecember12,2007,BATATOdistributedaMegaupload.
comlinktoaninfringingcopyofthecopyrightedmusicfile"LouisArmstrong–Wehaveallthetimeintheworld.
mp3"toDOTCOM.
AninfringingcopyofthiscopyrightedworkwasstillpresentonserversleasedbytheMegaConspiracyasofSeptember2,2011.
f.
OnoraboutJune30,2008,abuse@megaupload.
comreceivedane-mailentitled"illegallinks",inwhichtheauthorwrotethatMegaupload.
com"isbeingusedforviolationsofcopyrightmaterialinvideo.
"Theauthorwasnotidentifiedasacopyrightowner,buttheauthorlistedoveronehundredandthirtyURLlinksto"illegalcontent"onMegaupload.
com.
OnoraboutJuly1,2008,DOTCOMforwardedthemessagetoORTMANNandVANDERKOLK,instructingthem:"Neverdeletefilesfromprivaterequestslikethis.
Ihopeyourcurrentautomatedprocesscatchessuchcases.
"g.
OnoraboutAugust11,2008,DOTCOMrequestedthattheMegaConspiracy'scontractwithLeasewebdropastandardclauserequiringcontractterminationforviolationsofLeaseweb's"AcceptableUsePolicy.
"Thestandardclauseincluded,butwasnotlimitedto,violationsregardingcopyrightinfringement.
h.
OnoraboutNovember17,2008,DOTCOMforwardedane-mailtoORTMANNfromacustomerthatindicated:"Ijustwanttostartofbysayingthatilovethesite,buttodayidiscoveredsomethingiwouldconsideraflawd.
IwaswatchingavideoofMythBusterswhenirecivedamessagethatsaid'Youhavewatched3079minutesofvideotoday'".
ORTMANNrespondedtoDOTCOMthatthiswasthecorrectbehavioroftheservice.
"MythBusters"isacopyrightedtelevisionseriesontheDiscoveryChannel.
i.
OnoraboutNovember23,2008,DOTCOMforwardedane-mailtoORTMANNandECHTERNACHfromanon-premiumcustomerthatindicated"iguessweneedtofindanewhobbybecausewatchingpiratedmaterialviamegavideoisnowover-ratedandruinedbecauseofthisvideobandwidthlimit.
"j.
OnoraboutFebruary4,2009,legal@megaupload.
comreceivedane-mailfromarepresentativeofvariouscopyrightowners,includingSonyBMGMusicEntertainmentMexico,ColumbiaPicturesIndustries,Inc.
,DisneyEnterprises,Inc.
,ParamountPicturesCorporation,TwentiethCenturyFoxFilmsCorporation,andWarnerBros.
EntertainmentInc.
Inthee-mail,therepresentativestatedthat"infringingitemsarebeingoffered[ontheMegaSites]inamannerthatisnotauthorizedbyourmembersoritsagents,orthelaw.
"Therepresentativewentontolistover6,000URLlinkstocopyright-infringingmaterialsavailableontheMegaSites.
OnoraboutApril23,2009,legal@megaupload.
comreceivedanothere-mailfromthePage36of191samerepresentative,listingover6,000URLlinkstocopyright-infringingmaterialsavailableontheMegaSites.
OnoraboutApril23,2009,DOTCOMsentane-mailmessagetoVANDERKOLK,ORTMANN,andBENCKOinwhichhecomplainedaboutthedeletionofURLlinksinresponsetoinfringementnoticesfromthecopyrightholders.
Inthemessage,DOTCOMstated:"Itoldyoumanytimesnottodeletelinksthatarereportedinbatchesofthousandsfrominsignificantsources.
IwouldsaythatthoseinfringementreportsfromMEXICOof'14,000'linkswouldfallintothatcategory.
Andthefactthatwelostsignificantrevenuebecauseofitjustifiesmyreaction.
"k.
OnoraboutApril24,2009,DOTCOMsentane-mailtoBENCKO,ORTMANN,andVANDERKOLKindicating,"Irememberedthesteepdropofrevenueatthesametimein2008andthoughtthatthismighthavealsobeencausedbycarelessmasslinkdeletions.
Thismademeverymad,especiallybecauseItoldyouthatsuchmassdeletionsshouldbepreventedandsourcescheckedmuchmorecarefully.
Iamsuresuchmasslinkdeletionsarealsocontributingtoadropofrevenue…InthefuturepleasedonotdeletethousandsoflinksatonesfromasinglesourceunlessitcomesfromamajororganizationintheUS.
"l.
OnoraboutMay25,2009,NOMMsentane-mailtoDOTCOMandORTMANNentitled"statusreport.
"NOMMwrote,"IhavebeenprocessingHDvideosforsometimenowtofindbestofthebestforshowcase(Mathiasgavespecification).
EventhoughwehavelotsofHDcontentuploadedmostseemstobeproblematicqualityorlegalitywise.
"Theterm"HD"referstohighdefinitioncontent.
m.
OnoraboutOctober3,2009,DOTCOMsentane-mailentitled"FWD:Re:ReporterhopingtospeakaboutcopyrightedcontentonMegavideo"toanemployeeandtoORTMANNcontainingaseriesofstatementspurportedlyfrom"[BL],PublicRelations,MegaHQ"toareporterforForbes.
com.
InDOTCOM'soriginale-mailtohisemployee,heinformsherthat"Iusedyournameintheemailsbelow.
Ihopeyoudon'tmind.
Pleasebecareful.
ThelargerwegetthemorepeoplewanttoknowmoreaboutMega.
Letsstaybelowtheradar.
"TheForbes.
comreporterhadaskedaboutKIMSCHMITZandTIMVESTOR'sroleinthecompany.
DOTCOMwroteinresponse,"IcanconfirmthatnobodybythenameofKimSchmitzisassociatedwithourcompany.
"DOTCOMfurthertellsthereporter"Wehaveapolicynottodisclosedetailsaboutourbusinessperformance.
ButIcantellyou(offtherecord)thatweareasmallandhumblebusinesstryingtoearnenoughtopaythebandwidthbill.
Oursitehasgrowntobepopularbutitisnoteasytomonetizethetrafficinthiseconomy.
"DOTCOMalsoindicates,"Thevastmajorityofusersisuploadinghomevideos,webcamcaptures,contenttheyownorhavetherighttocopyandotherlegitimatecontent.
"Page37of191n.
OnoraboutJuly8,2010,DOTCOMsentane-mailtoORTMANNandECHTERNACHentitled"attention.
"Inthee-mail,DOTCOMcopiedalinktoanewsarticleentitled"PirateBayandMegauploadEscapeDomainSeizurebyUS.
"Thearticlediscussedhow,"[a]spartofaninitiativetocrackdownonInternetpiracyandcounterfeiting,theUSGovernmentrecentlytookactionagainstsitesmakingavailablemoviesandTVshows.
"Inadditiontothelinktothearticle,DOTCOMwrote,infull:thisisaseriousthreattoourbusiness.
Pleaselookintothisandseehowwecanprotectourselfs.
Iseverythingregardingourdomainrecordsnow100%inorderShouldwemoveourdomaintoanothercountry(canadaorevenHK)Suggestions,please.
ECHTERNACHresponded:"Incasedomainsarebeingseizedfromtheregistrar,itwouldbesafertochooseanon-USregistrar[.
]"o.
OnoraboutSeptember5,2010,BENCKOsentane-mailtoDOTCOM,ORTMANN,andVANDERKOLK.
Attachedtothee-mailmessagewasascreenshotofBENCKOloggedintoaMegaupload.
comfiledownloadpagewithafilenameof"Meet.
Dave.
2008.
avi".
"MeetDave"isacopyrightedmotionpicture.
p.
OnoraboutNovember1,2010,ECHTERNACHforwardedane-mailfromaUniversalMusicGroup("UMG")executivetoDOTCOMandORTMANN,whichdiscussedrequirementsthatUMGwouldrequireofMegauploadbeforetheycoulddiscusslicensingforMegaBox,amusic-hostingserviceallegedlybeingdevelopedbytheMegaConspiracy.
Includedinthelistofrequirementswas"proactivefingerprintfilteringtoensurethatthereisnoinfringingmusiccontenthostedonitsservice;proactivetextfilteringforpre-releasetitlesthatmaynotappearinfingerprintdatabasesatanearlystage;terminatetheaccountsofusersthatrepeatedlyinfringecopyright;limitthenumberofpossibledownloadsfromeachfile;processrightholdertakedownnoticesfasterandmoreefficiently.
"q.
OnoraboutJanuary13,2011,DOTCOMsentaproposedMegaupload.
compublicstatementregardingpiracyallegationsagainstthewebsitetohostingcompanyexecutivesDSandJK.
OnoraboutJanuary13,2011,DSrepliedtoDOTCOM:"Itlooksaccuratetome.
goodluck.
"Thesameday,JKreplied,"Usingthewords,'….
vastmajorityislegitimate.
'Opensyouup.
It'sanadmissionthatthereare'bad'thingsonyoursite.
Iwouldgetridofthatsoitsimplyreadsthatitislegitimate.
"r.
OnoraboutFebruary5,2011,ORTMANNrespondedinane-mailtoDOTCOM,copyingECHTERNACHandVANDERKOLK,aboutanPage38of191articlethatDOTCOMsenthimentitled"how-to-stop-domain-names-being-seized-by-the-us-government.
"ORTMANNindicatesthestatusoftheMegaConspiracy'scompletionoftherecommendationsmadeinthearticle.
s.
OnoraboutFebruary10,2011,DOTCOMforwardedacomplainttoORTMANNfromaTaiwanesebroadbandserviceprovideraboutproblemsitsusershavehaddownloadingfromMegaupload.
com.
Inthescreenshotsthatareintheoriginale-mailcomplaintiswhatappearstobeanongoingdownloadofacopyrightedTheSimpsonsepisodefromFoxTelevisionentitled"TreehouseofHorrorXIII.
"Inthee-mail,therepresentativeoftheTaiwanesebroadbandserviceproviderwrote,"AlltheIPshavethesameroutingpathfrom[theTaiwanesebroadbandserviceprovider]tomegauploadservers[.
]"Thescreenshots,whichareclearlyvisibleinthee-mail,visuallydemonstratethedownloadpathtakenbythedownloadedfile,fromtheprovider'sconnectiontoCogenttotheMegaConspiracy'sservers.
t.
OnoraboutFebruary18,2011,DOTCOMforwardedane-mailinquiryentitled"'RepeatOffender'InfringementPolicy"toORTMANN.
Intheoriginale-mail,arepresentativeofacopyrightholderindicatesthatMegaupload.
comdoesnotspecifyany"repeatoffenderorrepeatinfringerpolicy"initsTermsofService.
Therepresentativepointsoutthatthe"SafeHarbor"provisionoftheDMCA"requiresthatprovidersdealappropriatelywithrepeatoffenders"andasksfortheterminationofrepeatoffendersonMegaupload.
com.
AsdemonstratedinthesectionsentitledWillfulFailuretoRemoveCopyright-InfringingFilesandMisrepresentationstoCopyrightOwners,theMegaConspiracyfailedtoterminaterepeatinfringers.
u.
OnoraboutJuly6,2011,DOTCOMforwardedanonlinestoryfromSpiegel.
tvtoORTMANNaboutthetakedownofthelinkingsitekino.
tobylawenforcementinGermany,andwrote,inGerman:"PossiblynotflytoGermany"v.
OnoraboutAugust11,2011,DOTCOMforwardedane-mailtoORTMANNfromauserwhostated:"Iusedtobuymonthlyfeestohelpwiththecostofyouguysdoingbusiness.
…Imissbeingabouttoviewtvshowsonyouservice.
MymostfavoritewasTruebloodandbattlestarGallactica.
Iwouldbehappytocontinuetopayfortheservice,butsomethingwouldneedstochange.
Idon'tmindyourservicesbeboggeddownfromtimetotime.
Idon'tmindpaying,butineedtogetsomethingfortheserviceIpayfor.
""TrueBlood"isacopyrightedtelevisionseriesonthepremiumchannelHomeBoxOffice.
"BattlestarGalactica"isacopyrightedtelevisionseriesthatoriginallyairedontheSci-FiChannel.
Page39of191w.
OnoraboutOctober10,2011,JK,anexecutivefromahostingprovider,sentane-mailtoORTMANNentitled"Article.
"Thee-mailcontainedalinktoanewsarticle,whichdiscussedhowaDutchcourtordereda"major"website"todeleteallinfringingcontentfromitsservers.
"Thearticleasked:"Couldfile-hostingserviceslikeMegaUploadandRapidSharebenext"Inthee-mail,JKaskedORTMANN:"Doyouhaveanyconcernsthatthiskindofthingcouldfinditswaytoyou"ORTMANNrespondedtoJK,withacopytoDOTCOM,statingthatthesitesinthearticle"provideasearchindexcoveringtheirentirecontentbase,includingtheinfringingmaterial.
"Asdescribedabove,Megaupload.
comdidnotprovideanysearchindexwhatsoevertothepublic,buthadaninternalindexthatrevealsmanyhundredsofthousandsofcopyright-infringingworksontheMegaSites.
Co-Conspirators'KnowledgeofCopyrightInfringement39.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowing:a.
OnoraboutAugust31,2006,VANDERKOLKsentane-mailtoanassociateentitled"lol".
AttachedtothemessagewasascreenshotofaMegaupload.
comfiledownloadpageforthefile"Alcohol1201.
9.
53105complete.
rar"withthefollowingdescription:"Alcohol120,concrack!
!
!
!
ByChaOtiX!
"Thecopyrightedsoftware"Alcohol120"isaCD/DVDsoftwareprogramsoldbywww.
alcohol-soft.
comthatfacilitatesthecopyingofCDsandDVDs.
b.
OnoraboutFebruary13,2007,ORTMANNsentane-mailtoVANDERKOLKentitled"myconcernsaboutthethumbnailstable.
"Inthee-mail,ORTMANNaskedVANDERKOLKtocreate"adummylifetimepremiumuser,"statingthat"[t]hisisveryimportanttopreventthelossofsourcefilesduetoexpirationorabusereports.
"c.
OnoraboutAugust15,2007,BENCKOsentVANDERKOLKane-mailmessageindicating:"thesopranosisinFrench:((([EXPLETIVEREDACTED].
.
canuplsfindmesomeagain""TheSopranos"isacopyrightedtelevisionseriesthatpreviouslyairedonthepremiumchannelHomeBoxOffice.
d.
OnoraboutOctober4,2007,BENCKOsentVANDERKOLKane-mailmessageentitled"pls"requesting:"canuplsgetmesomelinkstotheseriescalled'Seinfeld'fromMU""Seinfeld"isacopyrightedtelevisionseriesthatremainsinsyndication.
e.
OnoraboutOctober18,2007,BENCKOsentane-mailtoVANDERKOLKindicatingthat"sorrytobotherbutifyouwouldhaveasecondtofindmesomelinksforthe'GrandArchives'bandidbeveryhappy.
"OnPage40of191oraboutthesameday,VANDERKOLKrespondedtoBENCKOwithane-mailthatcontainedaMegaupload.
comlinktoaGrandArchivesmusicalbumwiththestatement"That'sallwehave.
Cheersmate!
"f.
OnoraboutJuly9,2008,VANDERKOLKsentane-mailtoathird-party,entitled"funnychat-log.
"Inthee-mail,VANDERKOLKcopiedthetextofapreviousonlineconversationbetweenhimselfandORTMANN,inwhichVANDERKOLKhadstated:"wehaveafunnybusiness.
.
.
moderndayspirates:)".
ORTMANNresponded,"we'renotpirates,we'rejustprovidingshippingservicestopirates:)".
g.
OnoraboutSeptember1,2008,VANDERKOLKuploadedaninfringingcopyofthecopyrightedtelevisionprogramentitled"BBC.
Earth.
-.
The.
Power.
Of.
The.
Planet.
5of5.
Rare.
Earth.
XviD.
AC3.
MVGroup.
org.
avi"toMegaupload.
comande-mailedtheURLlinktoanotherindividual.
AninfringingcopyofthiscopyrightedworkwasstillpresentonserversleasedbytheMegaConspiracyasofSeptember8,2011.
h.
OnoraboutOctober13,2008,BATATOsentane-mailtoanadvertiser,whichincludedascreencaptureoftheMegaupload.
comdownloadpageforthefile"MyBlueBerryNights.
part1.
rar".
Thescreencapturealsocontainedanopenbrowserwindowtothelinkingsitewww.
mulinks.
com.
"MyBlueberryNights"isacopyrightedmotionpicture.
i.
OnoraboutOctober14,2008,BATATOsentane-mailtoanadvertiserthatcontainedtwoMegaupload.
comlinks.
Oneofthelinksdirectedtoafile"DanInRealLife.
part2.
rar",whichwasaportionofaninfringingcopyofthecopyrightedmotionpicture"DaninRealLife.
"j.
OnoraboutDecember5,2008,NOMMsentVANDERKOLKane-mail,whichincludedascreenshotofNOMM'saccountusingMegavideo.
comtowatchaninfringingepisodeofthecopyrightedtelevisionshow"Chuck.
"Theepisodeintheimage–Season2,Episode9–initiallyairedonDecember1,2008,fourdaysbeforethee-mail.
k.
OnoraboutMay25,2009,BATATOsentane-mailtoORTMANNthatcontainedcustomers'e-mails.
Oneofthecustomere-mailsindicated:"WewatchedTakensuccessfulyandthentriedtowatchthe'AlphabetKiller'adaylaterandgotthemessagetoupgradeifwewantedtocontinuewatching.
""Taken"and"TheAlphabetKiller"arecopyrightedmotionpictures.
l.
OnoraboutFebruary1,2010,BATATOsentane-mailtoanunindictedco-conspiratorwiththesubject"[tradeit]–Campaignstats"stating:"Wecan'tdeliver[HongKong]trafficbecausethecompanyisbasedin[HongPage41of191Kong]andwedon'twanttoexperienceanytroublewithlicenseholdersetc.
Remember,Itoldyouaboutthattopic;-)".
m.
OnoraboutNovember15,2010,BATATOforwardedane-mailtoORTMANNentitled"member-issue"thatwasreceivedbyaMegaConspiracyemployeefromauser.
Intheforward,BATATOwrote"Fanpost;-)".
Thee-mailfromtheuserstated:"Ipaidyesturdayhowevercan'tworkitout!
!
!
\IhavebeentryingtoseeRobinHod,3thseason,chapter10,anddonotsucceed.
Pleasehelpmesolveit–orcancelmypayment!
""RobinHood"isacopyrightedtelevisionseriesthatwasoriginallyreleasedbytheBritishBroadcastingCorporation.
n.
OnoraboutFebruary25,2011,BATATOsentane-mailtoNOMMandVANDERKOLKregardingproblemswithgetting"pre-roll"advertisingforMegavideo.
combecauseofa"copyrightissue.
"Hise-mailcontainsmessagesbetweenemployeesofMegaclick.
comandathird-partyadvertisingservice.
Inanearlymessage,theMegaclick.
comemployeeinformsBATATOthatthethird-partyadvertisingserviceconsidersitillegaltomonetizeinfringingcontentthroughadvertisingimmediatelypriortoviewingthecontent.
o.
OnoraboutJune7,2011,VANDERKOLKsentane-mailtoORTMANNforwardingaFrenchcomplaintaboutinfringementoftheircopyrightedmotionpictures.
Inthee-mail,VANDERKOLKstated:"Theybasicallywantustoaudit/filtereveryupload,andarethreateningwithactionagainstusiftheirmaterialcontinuestoappearonMV.
"AlthoughtheMegaConspiracyroutinelyauditsandfiltersuploadsforefficiencypurposesbycheckingthesystemforidenticalfiles,theMegaConspiracyhasrefusedtodosoforthepurposeofpreventingcopyrightinfringement.
p.
OnoraboutJuly6,2011,BATATOsentane-mailtoORTMANNforwardingastringofe-mailsinGermanfromanadvertisingentitysayingthatacustomerwantstheircampaignsonaMegaSitediscontinuedbecauseofconcernsrelatedtothekino.
totakedown.
Thewebsitekino.
to,whichwasparticularlypopularinGerman-speakingcountries,wasalinkingsitethatindexedmaterialstoredonallegedcyberlockers,includingtheMegaSites.
InJuneof2011,lawenforcementinGermany,Spain,France,andtheNetherlandsarrestedmorethanadozenpeopleinvolvedintheoperationofthewebsite.
UndercoverActivityofSpecialAgentPoston40.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:Page42of191a.
AgentPostonconductedanonlineanalysisofMegaupload.
comandMegavideo.
com.
Theanalysisshowedthatthesewebsitesofferbothfreeandpremiumaccesstotheirservices.
PremiumaccessallowssubscriberstosimultaneouslydownloadanunlimitednumberoffilesfromMegaupload.
comandtouploadanunlimitednumberoffilesofunlimitedsizes.
Freeaccesslimitssubscriberstouploadingamaximumfilesizeof2Gigabytes("GB")perfile,uptoatotalof200GB.
AsinglepremiumaccountprovidespremiumaccesstoMegaupload.
comandMegavideo.
com.
Inanundercovercapacity,AgentPostonpurchasedaone-year"premium"accountforUSD$59.
99.
Atthattime,therateforpremiumaccountsvariedbasedonlocationfromUSD$9.
99permonth(oraone-yearfeeofUSD$59.
99oralifetimefeeofUSD$199.
99)acceptedbyPayPalto9.
99permonth(withsimilardiscountsforextendedterms)acceptedbyMoneybookers.
Financialrecords,includingaMEGAUPLOADLIMITEDincomestatementandbalancesheet,showthattheMegaSiteshavegeneratedmorethanUSD$150millioninpremiumsubscriptionrevenuesfortheMegaConspiracy.
b.
Inanundercovercapacity,AgentPostonbrowsedthefrontpageofMegavideo.
com,whichdoesnotshowanyobviouslyinfringingcopiesofanycopyrightedworks.
Instead,thepagecontainsvideosofnewsstories,user-generatedvideos,andgeneralInternetvideosinamannersubstantiallysimilartoYoutube.
com.
AgentPoston'sanalysisfurthershowedthattheMegavideo.
comwebsitealloweduserstosearchforvideofilesandtobrowsevideofilesundercategoriessuchas"Entertainment,""Comedy,""Music,"and"VideoGames.
"Whilebrowsingunderthe"Entertainment"category,AgentPostonsuccessfullyviewedanumberofcopyright-infringingvideofiles,includingmotionpictures.
Conductingasearchforthefiles'titlesthroughtheMegavideo.
comsearchfunction,however,didnotrevealtheexistenceofthesecopyright-infringingtitlesinthereturnedsearchresults.
c.
Inanundercovercapacity,AgentPostonuploadedanumberoffilestoMegaupload.
com.
Afteruploadingafile,Megaupload.
comreproducedthefileonatleastonecomputerserveritcontrolledandprovidedtheuploadinguserwithauniqueURLlinkthatallowedanyonewiththelinktodownloadthefilewithoutenteringapassword.
ThefollowingisanexampleofaMegaupload.
com-generatedURLlink:www.
megaupload.
com/d=BY15XE3V.
d.
Inanundercovercapacity,AgentPostonvisitedthefollowingthird-partylinkingsites:ninjavideo.
net,megaupload.
net,megarelease.
net,kino.
to,alluc.
org,peliculasyonkis.
com,seriesyonkis.
com,surfthechannel.
com,taringa.
net,thepiratecity.
org,andmulinks.
com.
AlloftheselinkingsitesmaintainedanindexofURLlinkstoidentifiedcopiesofcopyrightedcontentthatwerestoredonserversdirectlycontrolledbytheMegaPage43of191Conspiracy,andseveralofthesewebsitesexclusivelyofferedMegaupload.
comlinks.
e.
Inanundercovercapacity,AgentPostonvisitedsidereel.
comandsearchedforaparticularepisodeoftheAmericantelevisionprogramModernFamily,acopyrightedworkoriginallyreleasedbytheAmericanBroadcastingCompany.
Sidereel.
comlistedapproximatelysixtydistinctURLscorrespondingtothatparticularepisode,allofwhichwerethenlabeledasbeinghostedonMegavideo.
com.
AgentPostonsuccessfullyviewedanddownloadedfiftyofthesixtycopyright-infringingvideofiles,allfiftyofwhichwerehostedonMegavideo.
com.
MultipleuniqueURLslinkedtothesamecopyright-infringingvideoofthatparticularepisode.
f.
Inanundercovercapacity,AgentPostonuploadedtoMegaupload.
comacopyrightedvideothathadbeenprovidedbythecopyrightowner,withtheexpressauthorizationtouploadthework.
Theuploadtookapproximatelythirty-fiveminutes.
Asdescribedabove,Megaupload.
comassociatedthisfilewithauniqueURLlink.
AgentPostonuploadedadditionalcopiesofthesamefile,andMegaupload.
comprovidedadditionaluniquelinks,whichresultedinmultipleuniquelinkstothesamecopyrightedvideoonserversoperatedbyMegaupload.
com.
Theseadditionaluploadsofthesameexactfiletookonlyafewseconds.
ThisconfirmsthatMeagupload.
comdoesnotcreateasecondcopyofthefile,butinsteadcreatesnewURLlinkstotheoriginalfile.
Afteruploadingthefiles,thecopyrightownersubmittedtoMegaupload.
comaDMCAtakedownnoticelistingonlyasubsetoftheuniqueURLlinksprovided.
AgentPostonconfirmedthatMegaupload.
comdisabledthelinkidentifiedinthetakedownnoticebutnottheinfringingvideofileitself,astheremaininglinkscontinuedtoprovideaccesstothevideo.
Megaupload.
comdidnotnotifythecopyrightownerthattherewereotherURLlinksassociatedwiththesamefile,andMegaupload.
comdidnotnotifyAgentPoston,inhisundercovercapacityastheuploader,thatthelinkshadbeendisabledbasedonaDMCAtakedownnotice.
g.
Inanundercovercapacity,AgentPostonsearchedfor,identified,viewed,anddownloadedtenormorecopiesofoneormorecopyrightedworks,whichhadatotalretailvalueofmorethanUSD$2,500,duringthesix-monthperioduptoandincludingJanuary19,2012,allofwhichwerepubliclyavailableovertheInternetfromMegaupload.
com,andallofwhichwerestoredoncomputerwebserversownedbyCarpathiaandlocatedinAshburn,Virginia,UnitedStates,whichisintheEasternDistrictofVirginia.
Thesecopyright-infringingworksincludedthefollowing:i.
OnoraboutNovember20,2011,AgentPostonviewedanddownloadedaninfringingcopyofthehighdefinitionversionofthecopyrightedmotionpicture"LordoftheRings:FellowshipoftheRing"fromMegavideo.
com.
ThatmotionpicturehadbeenPage44of191releasedinUnitedStatesmovietheatersonoraboutDecember19,2001,andwascommerciallydistributedinahighdefinitionformatintheUnitedStatesforthefirsttimeinApril2010.
ii.
OnoraboutNovember20,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedmotionpicture"TheTwilightSaga:BreakingDawn"fromMegavideo.
com.
ThatmotionpicturehadbeenreleasedinUnitedStatesmovietheatersonoraboutNovember18,2011,andwascommerciallydistributedintheUnitedStatesonoraboutFebruary11,2012.
iii.
OnoraboutNovember27,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedmotionpicture"Taken"fromMegaupload.
com.
ThatmotionpicturehadbeenreleasedinUnitedStatesmovietheatersonoraboutJanuary30,2009,andwascommerciallydistributedintheUnitedStatesonoraboutMay12,2009.
iv.
OnoraboutNovember29,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedmotionpicture"HappyFeetTwo"fromMegavideo.
com.
ThatmotionpicturehadbeenreleasedinUnitedStatesmovietheatersonoraboutNovember18,2011,andwouldnotbecommerciallydistributedintheUnitedStatesuntilatimeperiodafterthedateoftheoriginalextraditionrequest.
v.
OnoraboutNovember29,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedmotionpicture"PussinBoots"fromMegavideo.
com.
ThatmotionpicturehadbeenreleasedinUnitedStatesmovietheatersonoraboutOctober28,2011,andwouldnotbecommerciallydistributedintheUnitedStatesuntilatimeperiodafterthedateoftheoriginalextraditionrequest.
vi.
OnoraboutNovember29,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedmotionpicture"TheAdventuresofTinTin"fromMegaupload.
com.
ThatmotionpicturewouldnotbereleasedinUnitedStatesmovietheatersuntilonoraboutDecember21,2011,andwouldnotbecommerciallydistributedintheUnitedStatesuntilatimeperiodafterthedateoftheoriginalextraditionrequest.
vii.
OnoraboutNovember29,2011,AgentPostonviewedanddownloadedaninfringingcopyofthecopyrightedtelevisionprogram"BoredtoDeath(Season3,Episode8)"fromMegavideo.
com.
ThattelevisionprogramhadoriginallyairedinPage45of191theUnitedStatesonthepremiumchannelHomeBoxOfficeonoraboutNovember28,2011.
viii.
OnoraboutNovember29,2011,AgentPostondownloadedaninfringingcopyofthecopyrightedsoftwareprogram"DungeonSiegeIII"bySquareEnix,Inc.
,fromMegaupload.
com.
Themanufacturer'ssuggestedretailpriceforthissoftwareisUSD$49.
99.
ix.
OnoraboutNovember29,2011,AgentPostondownloadedaninfringingcopyofthecopyrightedsoftwareprogram"EcotectAnalysis2011"byAutodesk,Inc.
fromMegaupload.
com.
Themanufacturer'ssuggestedretailpriceforthissoftwareisUSD$1,495.
00.
x.
OnoraboutDecember9,2011,AgentPostondownloadedaninfringingcopyofthecopyrightedsoftwareprogram"3DSMax2012"byAutodesk,Inc.
fromMegaupload.
com.
Themanufacturer'ssuggestedretailpriceforthissoftwareisUSD$3,495.
00.
FinancialTransfers41.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsAgentPostontotestifytothefollowingfacts:a.
Accordingtofinancialrecordsobtainedthroughtheinvestigation,onoraboutMay28,2005,DOTCOMopenedaPayPalbusinessaccountforMEGAUPLOADLIMITED(accountno.
[REDACTED],the"PayPalaccount").
DOTCOMopenedtheaccountunderthenameKimSchmitzandlistedhisdateofbirthas[REDACTED].
b.
Accordingtofinancialrecordsobtainedthroughtheinvestigation,onoraboutJune27,2006,DOTCOMopenedabusinessaccountforMEGAUPLOADLIMITEDattheDBSBank(HongKong)Limited(accountno.
[REDACTED],the"DBSaccount").
DOTCOMsignedunderthenameKimTimJimVestor.
c.
Accordingtofinancialrecords,fromMay2005throughJuly2010,MEGAUPLOADLIMITEDreceivedapproximatelyUSD$112.
6millionthroughthePayPalaccount,primarilyfrompremiumuserfeesandadvertisingrevenue.
BetweenJanuary2008andJuly2010,theMegaConspiracytransferredapproximatelyUSD$63.
8millionfromthePayPalaccountintotheDBSaccount.
d.
E-mailssentbetweenconspiratorsdemonstratethatDOTCOMhadtheauthoritytodistributefundsfromtheMegaConspiracy'smainfinancialaccounts.
Forexample,onoraboutJune15,2010,andagainonoraboutPage46of191June1,2011,andonoraboutNovember11,2011,theChiefFinancialOfficer("CFO")ofMEGAUPLOADLIMITEDsente-mailstoDOTCOM,asking:"Pleaseauthorizethefollowingpayments[.
]"IntheJune15,2010e-mail,thepaymentsincludedthefollowing:USD$30,292forthepurchaseofnewInternetdomainnames;andHKD$12,816.
32foranAmericanExpressbusinesscreditcard.
IntheJune1,2011e-mail,thepaymentsincludedthefollowing:USD$93,621.
60toCogentforthepaymentofInternetbandwidth,hosting,andsupportservicesrelatingtotheMegaSites;andUSD$951,112toCarpathiaforthepaymentofhostingandsupportservicesrelatingtotheMegaSites.
TheCFOnotedthattheCarpathiainvoicehadbeen"approvedbyMathias[ORTMANN]".
IntheNovember11,2011e-mail,thepaymentsincludedUSD$125,000fortheservicesofadigitaladvertisingagency.
e.
E-mailssentbetweenconspiratorsdemonstratethatORTMANNalsohadauthoritytodistributefundsfromtheMegaConspiracy'smainfinancialaccounts.
Forexample,onoraboutJune30,2010,theCFOsentane-mailtoORTMANN,attachinganinvoicefromCarpathiaforthepaymentofhostingandsupportservicesrelatingtotheMegaSites.
ORTMANNrespondedonoraboutJuly3,2010,stating:"ThisonewasalsojustpaidthroughPayPal.
NotethatIdeductedUSD4000forachargethatverylikelydoesn'tbelongtous.
Acorrectedversionoftheinvoicemayfollow.
"Asanotherexample,onoraboutJuly14,2009,ORTMANNsentane-mailtotheCFO,attachinganinvoicefor"softwaredevelopmentandconsultingperformances"relatingtoMEGAUPLOADLIMITED.
ORTMANNwrote:"Foryourrecords-thepaymenthasbeensentthroughPayPal.
"Asanotherexample,onoraboutOctober27,2011,arepresentativeofCogentsentane-mailtoORTMANN,regardingapaymentforInternetbandwidth,hosting,andsupportservicesrelatingtotheMegaSites,wherethepaymentwasdeficientbyUSD$366,600.
Inresponse,ORTMANNdirectedtheMEGAUPLOADLIMITEDCFOasfollows:"PleaseverifythatCogentcorrectlystatesthatourlastwiretothemisUSD366,600short.
Ifso,pleaseenterthepaymentforimmediateauthorizationbyKim.
Ifwe'relucky,they'llgetitbyMonday.
"f.
E-mailssentbetweenconspiratorsdemonstratethatBATATOrequestedthattheMegaConspiracytransferfundsforthepaymentofadvertising.
Forexample,onoraboutJanuary14,2010,anadvertisersentane-mailtoBATATOrequestinga"creditback"forwhatappeartobeadvertisingservices.
BATATOforwardstherequesttoCFO,stating,"Pleaserefundthebelowmentionedamounttohim.
"TheCFOresponds,"IsitinUS$US$2,493.
00"BATATOreplies,"Yes,thanks.
"OnoraboutNovember22,2010,anadvertisersentane-mailtoBATATOrequestingarefundforwhatappeartobeadvertisingservices.
BATATOforwardstherequesttotheCFO,whorespondsbyaskingBATATO,"PleaseconfirmtheamountisUS$11,109.
17.
"BATATOresponds,"Yestheamountiscorrect.
"Page47of191g.
E-mailssentbetweenconspiratorsdemonstratethattheMegaConspiracytransferredfundsfromtheDBSaccounttoanaccountmaintainedbyBATATO,forthepurposeofpurchasinga2009Mercedes-BenzML350CDI4MATICOff-RoaderforDOTCOM'smotherasaChristmasgiftinDecember2009.
Thereceiptattachedtooneofthee-mailsrevealsthatthevehiclewaspurchasedonoraboutDecember15,2009,forapproximatelyEUR82,500,fromDiamlerAGNiederlassungMünchen,IngolstdterStrae,München,Germany.
h.
E-mailssentbetweenconspiratorsdemonstratethatVANDERKOLKrequestedthattheMegaConspiracytransferfundsforvariouspaymentsrelatingtotheMegaSites,includingfortranslationservices.
Forexample,onoraboutJanuary19,2009,VANDERKOLKsentane-mailtoORTMANNandtheCFO,attachinginvoicesfortranslationservicesandwriting,"settlealltheattachedtranslatorinvoicesbyPayPal.
"OnoraboutAugust10,2009,VANDERKOLKe-mailedORTMANNandtheCFO,attachinginvoicesfortranslationservicesandwriting,"Thanksforpayingassoonaspossible!
"Inaddition,e-mailsbetweenconspiratorsdemonstratethatVANDERKOLKrequestedthattheMegaConspiracytransferfundsforpaymentsasdescribedaboveinthesectionentitledUploaderRewardsProgram.
i.
FinancialrecordsdemonstratethattheMegaConspiracytransferredfundsfromtheDBSaccounttoanaccountatHSBC,AccountNo.
[REDACTED](the"3833account"),heldinthenameofBRAMVANDERKOLK.
Thesetransfersincludedthefollowing:EUR100,000.
00onoraboutApril27,2009;HKD$7,500,000.
00onoraboutJanuary19,2010;EUR5,010.
00onoraboutDecember20,2010;andHKD$15,885,381.
00onoraboutMarch17,2011.
Inaddition,financialrecordsdemonstratethatVANDERKOLKtransferredfundsfromthe3833accounttoanotheraccountatHSBC,heldinthenameofVANDERKOLK'swife.
Thesetransfersincludedthefollowing:EUR5,000.
00onoraboutSeptember27,2010;HKD$100,000.
00onoraboutDecember20,2010;andHKD$100,000.
00onoraboutJune6,2011.
FinancialrecordsfurtherdemonstratethatafterApril27,2009,VANDERKOLKtransferredfundsfromthe3833accounttoanaccountatHSBCNewZealand,AccountNo.
[REDACTED],heldinthenameofBRAMVANDERKOLK.
Thesetransfersincludedthefollowing:NZD$7,500.
00onoraboutApril26,2011;NZD$150,000.
00onoraboutApril27,2011;NZD$100,000.
00onoraboutMay3,2011;andNZD$150,000.
00onoraboutMay23,2011.
j.
Accordingtofinancialrecords,multipletransfersinvolvingtheproceedsofcriminalcopyrightinfringementandwirefraudintheEasternDistrictofVirginiaandelsewhere,weremadefromtheDBSaccounttoaSunTrustBankaccountinAtlanta,Georgia,heldinthenameofCogentCommunications(accountno.
[REDACTED],the"SunTrustaccount")forPage48of191thepaymentofInternetbandwidth,hosting,andsupportservicesrelatingtotheMegaSites.
Thesepaymentsincludedthefollowing:-onoraboutFebruary25,2009,atransferofapproximatelyUSD$625,000;-onoraboutMarch27,2009,atransferofapproximatelyUSD$875,000;-onoraboutApril27,2009,atransferofapproximatelyUSD$875,000;-onoraboutMay27,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutJune29,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutJuly27,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutAugust28,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutSeptember28,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutOctober28,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutNovember25,2009,atransferofapproximatelyUSD$1,000,000;-onoraboutJanuary25,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutFebruary26,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutMarch29,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutApril27,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutMay27,2010,atransferofapproximatelyUSD$1,000,000;Page49of191-onoraboutJune28,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutJuly23,2010,atransferofapproximatelyUSD$1,450,000;-onoraboutAugust27,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutSeptember24,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutOctober28,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutNovember29,2010,atransferofapproximatelyUSD$1,000,000;-onoraboutDecember28,2010,atransferofapproximatelyUSD$1,667,500;-onoraboutJanuary26,2011,atransferofapproximatelyUSD$1,475,000;-onoraboutFebruary28,2011,atransferofapproximatelyUSD$1,100,000;-onoraboutMarch29,2011,atransferofapproximatelyUSD$682,600;-onoraboutApril26,2011,atransferofapproximatelyUSD$1,000,000;-onoraboutMay27,2011,atransferofapproximatelyUSD$1,000,000;-onoraboutJune2,2011,atransferofapproximatelyUSD$93,600;-onoraboutJune28,2011,atransferofapproximatelyUSD$1,093,600;and-onoraboutJuly26,2011,atransferofapproximatelyUSD$1,093,600.
k.
Accordingtofinancialrecords,multipletransfersinvolvingtheproceedsofcriminalcopyrightinfringementandwirefraudintheEasternDistrictofVirginiaandelsewhereweremadefromtheDBSaccounttoaPNCPage50of191BankN.
A.
accountinRichmond,Virginia,heldinthenameofCarpathiaHosting,Inc.
(accountno.
[REDACTED],the"PNCaccount")forthepaymentofhostingandsupportservicesrelatingtotheMegaSites.
Thesepaymentsincludedthefollowing:-onoraboutDecember20,2010,atransferofapproximatelyUSD$720,000;-onoraboutMarch31,2011,atransferofapproximatelyUSD$1,060,274;-onoraboutMay5,2011,atransferofapproximatelyUSD$950,000;-onoraboutJune2,2011,atransferofapproximatelyUSD$950,000;and-onoraboutJuly5,2011,atransferofapproximatelyUSD$950,000.
l.
Accordingtofinancialrecords,multipletransfersinvolvingtheproceedsofcriminalcopyrightinfringementandwirefraudintheEasternDistrictofVirginiaandelsewhereweremadefromtheDBSaccountbyamemberoftheMegaConspiracy,andthetransfersweredirectedtoanABNAMROBANKNVaccountforLeasewebintheNetherlands,includingthefollowing:-onoraboutMay5,2009,atransferofapproximatelyUSD$733,000;and-onoraboutDecember16,2009,atransferofapproximatelyUSD$800,000.
m.
Accordingtofinancialrecords,multipletransfersinvolvingtheproceedsofcriminalcopyrightinfringementandwirefraudintheEasternDistrictofVirginiaandelsewhere,weremadefromthePayPalaccounttothebenefitofindividualsintheEasternDistrictofVirginiaaspartofthe"UploaderRewards"program,includingthefollowing:i.
OnSeptember29,2007,andMarch11,2009,amember(s)oftheMegaConspiracymadetransfersofUSD$1,500(totalingUSD$3,000)toPA,aresidentofNewportNews,Virginia;ii.
StartingasearlyasJanuary27,2008,multipletransfersweremadetoCB,aresidentofAlexandria,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$500toCB,includingtransfersofUSD$100onJanuary27,2008;USD$300onOctober8,2009;andUSD$100onFebruary1,2010;Page51of191iii.
StartingasearlyasFebruary11,2008,multipletransfersweremadetoND,aresidentofFallsChurch,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$900toND,includingtransfersofUSD$100onFebruary11,2008;USD$100onMarch3,2008;USD$300onMarch15,2008;USD$100onMarch29,2008;andUSD$300onApril15,2008;iv.
StartingasearlyasApril29,2009,multipletransfersweremadetoNA,aresidentofAlexandria,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$600toNA,includingtransfersofUSD$100onApril29,2009;USD$100onMay25,2009;andUSD$400onJuly31,2009;v.
StartingasearlyasApril29,2009,multipletransfersweremadetoNS,aresidentofFairfax,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$300toNS,includingtransfersofUSD$100onApril29,2009;USD$100onApril26,2010;andUSD$100onMay8,2010;vi.
StartingasearlyasJuly31,2009,multipletransfersweremadetoTT,aresidentofWoodbridge,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$2,700toTT,includingtransfersofUSD$100onJuly31,2009;USD$100onAugust9,2009;USD$100onSeptember2,2009;USD$200onSeptember18,2009;USD$200onOctober8,2009;USD$200onNovember8,2009;USD$600onNovember24,2009;USD$1,000onDecember23,2009;andUSD$200onFebruary1,2010;andvii.
StartingasearlyasAugust9,2009,multipletransfersweremadetoCW,aresidentofMoseley,Virginia.
Amember(s)oftheMegaConspiracytransferredatotalofUSD$2,900toCW,includingtransfersofUSD$100andUSD$600onAugust9,2009;apaymentofUSD$500onOctober8,2009;atransferofUSD$1,500onDecember23,2009;andapaymentofUSD$200onJune21,2010.
n.
Accordingtofinancialrecords,multipletransfersinvolvingtheproceedsofcriminalcopyrightinfringementandwirefraudintheEasternDistrictofVirginiaandelsewhere,weremadebytheMegaConspiracyforyachtrentalsintheMediterraneanSea,includingthefollowing:onoraboutApril8,2011,VESTORLIMITEDtransferredapproximatelyUSD$616,000toNBSforyachtrental;onoraboutApril18,2011,VESTORLIMITEDtransferredapproximatelyUSD$3,606,000toECLforyachtrental;onoraboutMay27,2011,MEGAUPLOADLIMITEDtransferredapproximatelyUSD$212,000toECLforyachtrental;onoraboutJune22,2011,VESTORLIMITEDtransferredapproximatelyUSD$1,127,000toPage52of191NBSforyachtrental;andonoraboutJune24,2011,VESTORLIMITEDtransferredapproximatelyUSD$2,394,000toSYMforyachtrental.
VictimTestimony42.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsrepresentativesfromtheMotionPictureAssociationofAmerica("MPAA"),theRecordingIndustryAssociationofAmerica("RIAA"),andtheBusinessSoftwareAlliance("BSA"),aswellasothercopyrightowners,totestifytothefollowingfacts:a.
TheMPAArepresentativewilltestifyregardinginfringingcopiesofcopyrightedmotionpicturesandtelevisionprogramsthatwereavailableontheMegaSites.
b.
TheRIAArepresentativewilltestifyregardinginfringingcopiesofcopyrightedmusicalrecordingsthatwereavailableontheMegaSites.
c.
TheBSArepresentativewilltestifyregardinginfringingcopiesofcopyrightedcomputersoftwarethatwereavailableontheMegaSites.
d.
TheMPAA,RIAA,andBSArepresentatives,aswellasothercopyrightowners,willtestifythattheinfringingcopiesofcopyrightedworksthatwereavailableontheMegaSites,andthatweredownloadedbythirdpartiesandAgentPoston,inanundercovercapacity,werecopyrightedatthetimetheyweredownloaded.
Inaddition,theserepresentativeswilltestifythattheMegaSiteswerenotauthorizedbythecopyrightownerstoreproduceordistributethesecopyrightedworks.
Theywillalsotestifyregardingthesuggestedretailpriceoflegitimatecopiesoftheircopyrightedworks.
e.
Theserepresentativeswillfurthertestifythattheestimatedvalueofthecopyright-infringingworksthatwerereproducedordistributedineachalleged180-dayperiod,inaggregate(withrespecttoeachalleged180-dayperiod),exceedsUSD$2,500.
f.
Theserepresentativeswillfurthertestifyregardingthedatesuponwhichparticularworkswerecommerciallydistributed.
43.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsrepresentativesfromthevariouscopyrightownerstotestifythattheyreliedonrepresentationsmadebytheMegaConspiracythatproperDMCAcopyrighttakedownnoticessubmittedthroughtheAbuseToolorotherwisewoulddisableaccesstotheunderlyingcopyright-infringingmaterialorwouldremovethefilefromtheMegaSites,ratherthanmerelydisablingthespecificURLlinkidentified.
44.
AgentPostonhasviewedphotographsofDOTCOM,ORTMANN,BATATO,andVANDERKOLKandhasidentifiedthepersonsdepictedinthephotographsasthedefendants.
AgentPostoncanstatethattheindividualsinthephotographsarethedefendantsbasedonPage53of191havingreviewede-mailssentbyortothedefendants,suche-mailincludingidentificationdocumentscontainingphotographs,asdescribedinParagraph22.
ContentsandFunctionalityoftheMegaSites'Databases45.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsacomputerspecialistwiththeFederalBureauofInvestigation("FBI")totestifytothefollowingfacts:a.
Everydigitalfilehasa"fingerprint,"whichcanbegeneratedbyapplyingamathematicalalgorithmtothefile.
Thoughavarietyofalgorithmsexist,aparticularalgorithm,knownasMessage-Digest5("MD5"),producesaneffectivelyunique32-digitidentificationvalue,commonlycalledan"MD5hash.
"Alteringafile,forexamplebychangingthelengthofthefile,willchangeitsMD5hash.
Iftwousers,usingthemostprevalenttechniques,eachcreateacompresseddigitalback-upcopyofthesamemotionpictureDVDondifferentcomputers,thetwoback-upcopieswillhavedifferentMD5hashes.
Evenifasingleusercreatestwocompresseddigitalback-upcopiesofthesamemotionpictureDVDonthesamecomputer,thetwoback-upcopieswillhavedifferentMD5hashesbecausetheywerecreatedatdifferenttimes.
b.
OnoraboutJanuary19,2012,theFBIexecutedsearchwarrantsinVirginiaandWashington,D.
C.
,atlocationswheretheMegaConspiracyleasedcomputerserversfortheMegaSites.
4ComputerspecialistswiththeFBIcopieddatafromtheseservers,includingmultipledatabasescontaininginformationabouttheMegaSites.
AsstatedinParagraphs31and32,thesedatabasescontaininformationaboutthefilesuploadedtotheMegaSites,including,amongotherthings,thefollowing:filename;fileextensiontype(e.
g.
,.
avi,.
jpg,etc.
);filesize;date;thefile'sMD5hash;whetheralinktothefilehadbeenremovedforabuse(includingforcopyrightinfringement);andthefile's8-digitdownloadidentifierforusewiththeURLlink(forexample,thelasteightdigitsofthefollowing:www.
megaupload.
com/d=BY15XE3V).
Inaddition,thedatabasescontaininformationaboutwhouploadedaparticularfile,including,withrespecttoregisteredusers,theuser'sname,address,e-mailaddress,andusername.
c.
ApreliminaryanalysisshowsthatthedatabasescontainrecordsofvirtuallyeveryfileavailableonMegavideo.
comandMegaupload.
comonoraboutJanuary19,2012,theURLlinksassociatedwiththosefiles,andinformationaboutwhichusersuploadedthefilesandassociatedlinks.
WheremultipleURLlinkspointedtothesamefile,thedatabasesidentify4AsstatedinParagraph2,theInternetwebsitesoperatedbytheMegaConspiracy(collectively,the"MegaSites")includebutarenotlimitedtoatleastthefollowing:Megaupload.
com;Megavideo.
com;andMegaclick.
com.
Page54of191whichusercreatedeachlinkandwhetherthatlinkhasbeenthesubjectofacopyrighttakedownrequest.
Foranygivenregistereduser,thedatabasesidentifyeveryfileandlinkuploadedbythatuser,includingfilesandlinksthathavebeenthesubjectofacopyrighttakedownrequest.
ThedatabasesthereforeprovidedtheMegaConspiracywithsufficientinformationtoidentifyrepeatinfringers.
FailuretoTerminateRepeatInfringers46.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtofinancialrecords,beginningin2006uptoandincluding2011,theMegaConspiracymademorethan$3million5inpaymentstopremiumusersaspartoftheUploaderRewardsprogram.
Theapproximateyearlypaymentsareasfollows:2006:$25,0002007:$195,0002008:$830,0002009:$1,180,0002010:$1,120,0002011:$340,000b.
AsstatedinParagraph25(e),onoraboutFebruary5,2007,VANDERKOLKsentane-mailtoORTMANNentitled"rewardpayments.
"Attachedtothee-mailwasatextfilelistingtheuserswhomVANDERKOLKhadselectedforrewardpayments.
Thefilecontainedtheusers'e-mailaddresses,usernames,andamountsofrewardpaymentsforthattimeperiod.
Foroneuser,whohadaproposedrewardamountof$100,VANDERKOLKdescribedtheuploadedcontentas,"10+FullpopularDVDrips(splitfiles),afewsmallpornmovies,somesoftwarewithkeygenerators(warez).
"Theterm"DVDrips"commonlyreferstoinfringingcopiesofcopyrightedmotionpicturesandtelevisionshowsoriginallycontainedoncommercialDVDs.
Theterm"warez"commonlyreferstoinfringingcopiesofcopyrightedcomputersoftware.
VANDERKOLKdescribedtheuploadedcontentofanotheruser,whoalsohadaproposedrewardamountof$100,as"PopularDVDrips.
"RepeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
VANDERKOLKdescribedTHasa"knownpaiduser(vietnamesecontent).
"5Unlessotherwisenoted,allmonetaryamountsareinUnitedStatesDollars.
Page55of191c.
AsstatedinParagraph25(g),onoraboutApril15,2007,VANDERKOLKsentane-mailtoORTMANNentitled"rewardbatchpayment.
"Inthee-mail,VANDERKOLKstated:"Wesavedmorethanhalfofthemoney.
Mostofthedisqualificationswerebasedonfraud(automatedmassdownloads).
Theotherdisqualificationshadveryobviouscopyrightedfilesintheiraccountportfolio,butIwasratherflexible(consideringwesavedquitealotonfraudalready).
Totalcost:5200USD.
Thanksforpaying!
:)"Intheattachedrewardpaymentfile,repeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
d.
OnoraboutJune7,2007,VANDERKOLKsentane-mailtoORTMANNandDOTCOMentitled"Rewardbatchpaymentfile.
"Inthee-mail,VANDERKOLKwrote:HiMathias,Herebytherewardbatchpaymentforthepast10days:-Icaughtonefraudsterwiththree100USDredemptions.
-One1500USDredemptionfromourfriend[TH].
-Two1500USDredemptionsfromMRV[Megarotic.
com]users,withmainlyAsianvideosintheirportfolio:[userportfoliosredacted]Ithinkweshouldreallyconsiderimplementinga"silentslider"forMRVrewardpoints,Ithinkit'sabittooeasynow.
-Ididn'taddfour100USDredemptionsfor[usernameredacted],aBelgianguythatuploadsgayporntoMRV,healsoe-mailedusthathisPayPalisblockedandhewantedtouseGooglecheckout.
-Therestisstandard100USDredemptionsTotalcosts:5900USD(whichmorethanhalfisgeneratedthroughMRV)Thanksforpaying!
BramIntheattachedrewardpaymentfile,repeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
e.
OnoraboutJuly3,2007,VANDERKOLKsentane-mailentitled"Rewardpayments"toORTMANN.
Inthee-mail,VANDERKOLKwrote:"HiMathias,Herebythebatchpaymentfilefortherewardsoverthelast15days.
Totalcosts:6200USD.
Two1500USDredemptionsfromfamousVietnameseusersagain.
Otherthanthatonlyonehundreddollarredemptions,mainlyMU[Megaupload.
com]users.
IbannedPage56of191around25%andcaughtsomefraudstersaswell.
TimeforslidersforMU&M(R)VI'dsay.
.
.
Bram.
"Intheattachedrewardpaymentfile,repeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
f.
OnoraboutAugust24,2007,VANDERKOLKsentane-mailtoORTMANN,entitled"Rewardpayments.
"Inthee-mail,VANDERKOLKwrote,"Herebytherewardsbatchpaymentfile.
Totalcosts:$12,800USD.
Lot'sof1500dollarredemptionsfromVietnameseuploadersagain…"VANDERKOLKalsowrote,"Icheckedeveryfile/videoportfolio;howeverletmeknowifit'stoomuch,thenI'llcheckwhoelsewecandisqualifyforwhateverreason"Intheattachedrewardpaymentfile,repeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
g.
OnoraboutOctober24,2007,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote:"HiMathias,Herebytherewardbatchpaymentfile.
Iwasabitmorestrictnow,butstillthetotalamountis$8900.
It'sreallytooeasytomakerewardswithsplitarchivefiles,andweshouldreallyimplementtheIPlimitationperXfilesperdayassoonaspossible.
Thanks!
Bram[.
]"Theterm"IP"appearstoreferto"InternetProtocol"address.
Intheattachedrewardpaymentfile,repeatinfringerTH,discussedbelow,wasamongthoselistedasbeingentitledtoa$1,500payment.
h.
OnoraboutDecember19,2007,VANDERKOLKsentseveralteste-mailstohimselfentitled"MegauploadRewards"or"MegauploadRewards[test].
"Ineache-mail,VANDERKOLKwrote,"Ourrewardsdeskverifieseachuser'sportfoliopriortoauthorizinganawardpayment.
"i.
PriortoNovemberof2010,Megavideo.
comdisplayedtheidentityoftheuploadertogetherwiththecorrespondingvideo.
InoraboutNovemberof2010,theMegaConspiracymadeitmoredifficultforcopyrightholderstoidentifyrepeatinfringersbyremovingtheidentityoftheinfringingfile'suploaderfrompublicpartsoftheMegaSites.
TheMegaConspiracyhadtheabilitytoidentifyallusers—includingrepeatinfringers—simplybyaccessingtheirowninternaldatabase.
j.
AccordingtoapreliminaryreviewoftheMegavideo.
comdatabases,asofJanuary19,2012,therewere33activeuseraccountsthathadmorethan10,000URLlinksdisabledthroughcopyright-infringementtakedownnotices.
Intotal,linkscreatedanddistributedbytheserepeatinfringeraccountsattractedmorethan475millionviewsonMegavideo.
com.
HadtheMegaConspiracyterminatedtheaccountsoftheserepeatinfringers,forwhichtheyhadactualknowledge,theMegaSiteswouldhavelostthesemillionsofviews.
Therewere641useraccountsthathadatleast1,000URLlinksdisabledthroughcopyright-infringementtakedownPage57of191notices.
Linkscreatedanddistributedbytheserepeatinfringeraccountsattractedmorethan5billionrecordedviews.
Therewere4,437useraccountsthathadatleast100URLlinksdisabledthroughcopyright-infringementtakedownnotices.
Linkscreatedanddistributedbytheseaccountsattractedmorethan12.
8billionviews(roughly36%ofthetotalviewseverrecordedonMegavideo.
com).
Therewere19,091useraccountsthathadatleast10URLlinksdisabledthroughcopyright-infringementtakedownnotices.
Linkscreatedanddistributedbytheseaccounts,whichincludedcopyright-infringingmaterials,attractedmorethan19.
8billionviews(roughly57%ofthetotalviewseverrecordedonMegavideo.
com).
Therewere93,878useraccountsthathadatleast1URLlinkdisabledthroughcopyright-infringementtakedownnotices.
Linkscreatedanddistributedbytheseaccounts,whichincludedcopyright-infringingmaterials,attractedmorethan27.
2billionviews(roughly77%ofthetotalviewseverrecordedonMegavideo.
com).
RepeatInfringerandUnindictedConspirator"RK"47.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromDecemberof2008throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"RK")6maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover300,000takedownrequestsforURLlinkstoinfringingmaterialsuploadedbyRKthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan41millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedRKandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenJulyof2009andAprilof2011,theMegaConspiracymade40separatepaymentstotaling$5,500toRKaspartoftheUploaderRewardsprogram.
Forexample,onoraboutJune21,2010,theMegaConspiracypaid$200toRKaspartoftheUploaderRewardsprogram.
BetweenJune21andJuly14,2010,RKuploadedfordistributionmorethan30,000URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan30,000takedownrequestsforURLlinkstoinfringingcontentcreatedbyRK.
Evenafterprocessingthesetakedownrequests,theMegaConspiracypaidhiman6Aspreviouslyprovidedinfootnote3,pursuanttonormalproceduresatthisstageintheproceedings,theidentitiesofthenon-lawenforcementwitnessesarebeingkeptconfidential.
IncompliancewithU.
S.
law,theidentitiesofthewitnesses,aswellasinformationusefultopreparethedefendants'defense,maybedisclosedtothedefensepriortotrialintheUnitedStates.
Page58of191additional$700onJuly14,2010,andcontinuedtopayhimthroughAprilof2011.
Apreliminaryreviewindicatesthatmorethan98%ofthefilesuploadedbyRKarecopyright-infringingworks.
Theseinfringingworksincludedentireseasonsofcopyrightedtelevisionprograms,suchas24,30Rock,BigLove,Bones,BurnNotice,ColdCase,Dexter,Entourage,FamilyGuy,FridayNightLights,Friends,GilmoreGirls,GossipGirl,Heroes,HouseM.
D.
,HowIMetYourMother,LietoMe,Lost,OneTreeHill,PrisonBreak,Smallville,SonsofAnarchy,SouthPark,Supernatural,TheBigBangTheory,TheWestWing,TrueBlood,andTwoandaHalfMen.
OtheruploadsbyRKthatwerenotdetectedbycopyrightholdersandyetwereuploadedtoRK'saccountwiththeMegaConspiracyincludedcopyrightedmotionpictures,suchasAliceinWonderland,Avatar,Braveheart,ForrestGump,Gladiator,HarryPotterandthePhilosopher'sStone,HarryPotterandtheChamberofSecrets,HarryPotterandthePrisonerofAzkaban,HarryPotterandtheGobletofFire,HarryPotterandtheOrderofthePhoenix,HarryPotterandtheHalf-BloodPrince,Inception,IronMan2,MonstersvsAliens,OBrother,WhereArtThou,PulpFiction,SavingPrivateRyan,StarWars:EpisodeI—ThePhantomMenace,StarWars:EpisodeII—AttackoftheClones,StarWars:EpisodeIII—RevengeoftheSith,StarWars:EpisodeIV—ANewHope,StarWars:EpisodeVI—ReturnoftheJedi,TheCuriousCaseofBenjaminButton,TheDarkKnight,TheGreenMile,TheLastKingofScotland,TheLordoftheRings:TheFellowshipoftheRing,TheLordoftheRings:TheTwoTowers,TheLordoftheRings:TheReturnoftheKing,ToyStory3,andTransformers.
Thisevidenceshowsthatdespitereceivingmorethan300,000noticesofcopyrightinfringementassociatedwiththeconductofRK,morethanhalfofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayRKonatleast40separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan41millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoRK.
b.
OnoraboutSeptember17,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerRKwasamongthoselistedasbeingentitledtoapaymentof$100.
c.
OnoraboutNovember24,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentforthelast2weeks+.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerRKwasamongthoselistedasbeingentitledtotwoseparatepayments,onefor$200,andanotherfor$100.
Page59of191d.
BetweenonoraboutMarch4,2010,andAugust31,2010,RKcreatedfordistributionmorethan140,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsPrisonBreak,Nip/Tuck,LietoMe,InPlainSight,Heroes,GossipGirl,HumanTarget,HowIMetYourMother,GilmoreGirls,Entourage,WhiteCollar,DesperateHousewives,VeronicaMars,TheVampireDiaries,TrueBlood,Supernatural,SonsofAnarchy,SavingGrace,OneTreeHill,Lost,Justified,Hung,Glee,Fringe,Dexter,TheCloser,TheClevelandShow,Chuck,BurnNotice,Bones,BigLove,30Rock,BetterOffTed,and24.
e.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerRKwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan200,000URLlinkstoinfringingcontentuploadedanddistributedbyRK,andhadalreadypaidRKatleast$3,300aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaConspiracymadeatleasttwoseparatepaymentsof$100eachtoRKthroughPayPal.
RepeatInfringerandUnindictedConspirator"MB"48.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJuneof2009throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"MB")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover46,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyMBthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan14millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedMBandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenSeptemberof2009andMayof2011,theMegaConspiracymade27separatepaymentstotaling$4,200toMBaspartoftheUploaderRewardsprogram.
Forexample,onoraboutDecember23,2009,theMegaConspiracypaid$500toMBaspartoftheUploaderRewardsprogram.
BetweenDecember23,2009,andFebruary1,2010,MBuploadedfordistributionmorethan10,000URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan1,500takedownrequestsforPage60of191URLlinkstoinfringingcontentcreatedbyMB.
Evenafterprocessingthesetakedownrequests,theMegaConspiracypaidhimanadditional$500onFebruary1,2010,andcontinuedtopayhimthroughMayof2011.
Apreliminaryreviewindicatesthatmorethan96%ofthenon-pornographyfilesuploadedbyMBtoMegavideo.
comarecopyright-infringingworks.
Theseinfringingworksincludedentireseasonsofcopyrightedtelevisionprograms,including24,30Rock,AllyMcBeal,ArrestedDevelopment,Babylon5,BattlestarGalactica,Bones,BreakingBad,BuffytheVampireSlayer,BurnNotice,Chuck,CurbYourEnthusiasm,DarkAngel,Deadwood,DesperateHousewives,Entourage,FamilyGuy,FridayNightLights,Fringe,Futurama,GilmoreGirls,GossipGirl,Heroes,HouseM.
D.
,HowIMetYourMother,Law&Order,Law&Order:CriminalIntent,Law&Order:SpecialVictimsUnit,MadMen,Monk,MyNameIsEarl,Nip/Tuck,OneTreeHill,Oz,PrisonBreak,Psych,PushingDaisies,RobotChicken,Rome,Smallville,SonsofAnarchy,TheBigBangTheory,TheO.
C.
,TheSimpsons,TheWire,TheX-Files,TrueBlood,TwoandaHalfMen,VeronicaMars,WhiteCollar,Will&Grace,andXena:WarriorPrincess.
Thisevidenceshowsthatdespitereceivingmorethan46,000noticesofcopyrightinfringementassociatedwiththeconductofMB,morethanhalfofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayMBonatleast27separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan14millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoMB.
b.
OnoraboutSeptember17,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerMBwasamongthoselistedasbeingentitledtoapaymentof$100.
OnSeptember18,2009,theMegaConspiracypaid$100toMBthroughPayPal.
c.
OnoraboutNovember24,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentforthelast2weeks+.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerMBwasamongthoselistedasbeingentitledtoapaymentof$100.
BetweenSeptember18,2009,andNovember23,2009,theMegaConspiracyreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan2,000URLlinkstoinfringingcontentuploadedanddistributedbyMB,andduringthattimeperiodpaidMBatleast$600aspartoftheUploaderRewardsprogram.
OnoraboutNovember24,2009,theMegaConspiracypaid$100toMBthroughPayPal.
Page61of191d.
BetweenonoraboutMarch4,2010,andAugust31,2010,MBcreatedfordistributionmorethan16,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsTheCloser,ColdCase,TheClevelandShow,24,BurnNotice,TheBigBangTheory,TrueBlood,Visitors,TheWire,TheVampireDiaries,TwoandaHalfMen,VeronicaMars,SouthPark,Smallville,PrisonBreak,NCIS,Lost,GossipGirl,LaFemmeNikita,GilmoreGirls,FamilyGuy,Fringe,DesperateHousewives,Dexter,andCSI:NewYork.
e.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerMBwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan35,000URLlinkstoinfringingcontentuploadedanddistributedbyMB,andhadalreadypaidMBatleast$3,800aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaConspiracymadetwoseparatepaymentsof$100eachtoMBthroughPayPal.
RepeatInfringerandUnindictedConspirator"BM"49.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,onSeptember7,2009,aparticularrepeatinfringer,premiumuser,andunindictedconspirator(hereinreferredtoas"BM"),createdaURLlinktoaninfringingcopyofthecopyrightedcomputersoftwareTheSims2.
Theexactfilenamewas"(PCGAMEITA)TheSims2CD1.
iso.
"BM'sdescriptionofthefileincludedtheInternetwebsitebaixemuito.
com,athird-partylinkingsitethatfeaturedcopyright-infringingcomputersoftwareandtelevisionprograms.
Thatinfringingsoftwarewasdownloadedmorethan7,300timesthroughBM'slinkpriortoDecember17,2009,whentheMegaConspiracyprocessedatakedownrequestforthefile.
ThetakedownrequestwasprocessedmanuallybydefendantVANDERKOLK,whodisabledaccessonlytothelinkandnottotheinfringingcontent.
TheinfringingfileremainedaccessibleontheMegaSitesbecauseotherlinkspointedtothesamefile.
OnoraboutDecember21,2009,fourdaysafterVANDERKOLKprocessedthetakedownrequest,BMcreatedasecondURLlinktothesameinfringingfile,againlistingbaixemuito.
cominthedescription.
Theinfringingsoftwarewasdownloadedmorethan27,000timesthroughBM'ssecondlinkpriortoMarch16,2010,whenarepresentativeofthecopyrightownersubmittedanothertakedownrequestthroughtheAbuseTool.
Thefollowingday,March17,2010,thetakedownrequestwasprocessedmanuallybydefendantVANDERKOLK,whodisabledaccessonlytothesecondlinkandnottothePage62of191infringingcontent.
TheinfringingfileremainedaccessibleontheMegaSitesthroughotheractivelinks.
OnMarch17,2010,BMcreatedathirdlinktothesameinfringingfile,againlistingbaixemuito.
cominthedescription.
Theinfringingsoftwarewasdownloadedmorethan80,000timesthroughBM'sthirdlinkpriortoSeptember1,2010,whenVANDERKOLKmanuallyprocessedanothertakedownrequestforthefile.
VANDERKOLKdisabledaccessonlytothethirdlink,andtheinfringingfileremainedaccessibleontheMegaSitesthroughotheractivelinks.
OnSeptember1,2010,BMcreatedafourthlinktothesameinfringingfile,againlistingbaixemuito.
cominthedescription.
VANDERKOLKmanuallyprocessedatakedownrequestforthefileonanunknowndate,disablingaccessonlytothefourthlinkandnottotheinfringingcontent.
TheinfringingfileremainedaccessibleontheMegaSitesthroughotheractivelinks.
OnJuly1,2011,BMcreatedafifthlinktothesameinfringingfile,againlistingbaixemuito.
cominthedescription.
ThisfifthlinkwasstillactiveasofJanuary19,2012.
Intotal,theMegaConspiracyreceivedover1,500takedownrequestsforURLlinkscreatedbyBMthroughhisuploadsofcopyright-infringingcontenttotheMegaSites.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedBMandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
RepeatInfringerandUnindictedConspirator"DD"50.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromAugustof2011throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"DD"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast190takedownrequestsforURLlinkstoinfringingmaterialscreatedbyDDthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan800,000viewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
ApreliminaryreviewindicatesthatbetweenAprilandNovemberof2009,DDuploadedfordistributioninfringingcopiesofcopyrightedmotionpictures,includingBodyofLies,Cloverfield,EagleEye,Fast&Furious,OneMissedCall,TheIncredibleHulk,Transformers,andUpInSmoke.
Duringthesametimeperiod,healsouploadedinfringingcopiesofcopyrightedtelevisionprograms,includingFamilyGuy(morethan10episodes),Futurama(morethan40episodes),HouseM.
D.
(morethan35episodes),andSouthPark(morethan55episodes).
Despitehavingreceivedtakedownrequestsforthesecopyright-infringingworks,theMegaConspiracyneverterminatedDDandneverpurposefullyandcompletelyblockedaccesstotheinfringingPage63of191content.
Instead,financialrecordsshowthatonoraboutDecember23,2009,theMegaConspiracypaid$100toDDaspartoftheUploaderRewardsprogram.
Thisevidenceshowsthatdespitereceivingmorethan190noticesofcopyrightinfringementassociatedwiththeconductofDD,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetorewardDDforhisuploadingofcopyrightedworks.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan800,000sitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoDD.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,DDcreatedfordistributionatleast3URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthemusicalrecording"TheShadySituation"byEminem,andthecomputerprogramsLucionFileConvertProfessionalandDVDINFOProExtreme.
RepeatInfringerandUnindictedConspirator"CW"51.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJanuaryof2009throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"CW"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast1,100takedownrequestsforURLlinkstoinfringingmaterialscreatedbyCWthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan8.
2millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedCWandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatfromAugustof2009throughAprilof2011,theMegaConspiracymadeeightseparatepaymentstotaling$3,400toCWaspartoftheUploaderRewardsprogram.
ApreliminaryreviewindicatesthatCWuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasBleach(morethan250episodes),FullMetalPanic!
(morethan20episodes),KaleidoStar(morethan20episodes),andMaria-samagaMiteru(morethan50episodes).
Thisevidenceshowsthatdespitereceivingmorethan1,100noticesofcopyrightinfringementassociatedwiththeconductofCW,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetorewardCWonmultipleoccasionsforhisuploadingofcopyrightedworks.
TheMegaConspiracydidthistogeneratePage64of191advertisingandsubscriberinterestwithmorethan8.
2millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoCW.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,CWcreatedfordistributionatleast9URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsBleach,NarutoShippuuden,andAngelBeats.
c.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerCWwasamongthoselistedasbeingentitledtoapaymentof$100.
RepeatInfringerandUnindictedConspirator"RD"52.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromFebruaryof2009throughJanuaryof2012,particularrepeatinfringerandunindictedconspirator(hereinreferredtoas"RD")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover115,000takedownrequestsforURLlinkstoinfringingmaterialcreatedbyRDthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan16millionviewsofcopyright-infringingfilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedRDandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenJulyof2009andAprilof2011,theMegaConspiracymade25separatepaymentstotaling$3,300toRDandgrantedRDcomplimentarypremiumaccesstotheMegaSites,whichwasacommodityofvalue,aspartoftheUploaderRewardsprogram.
Forexample,onoraboutNovember5,2010,theMegaConspiracypaid$400toRDaspartoftheUploaderRewardsprogram.
BetweenNovember5andDecember11,2010,RDcreatedmorethan34,000URLlinkstocopyright-infringingmaterialsontheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedover10,000takedownrequestsforURLlinkstoinfringingcontentcreatedbyRD.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidRDanadditional$500onDecember11,2010,andcontinuedtopayhimthroughAprilof2011.
Apreliminaryreviewindicatesthatmorethan98%ofthefilesuploadedfordistributionbyRDtoMegavideo.
comandMegaupload.
comarecopyright-infringingworks.
Theseworksincludedcopyrightedtelevisionprogramsandmotionpictures,includingGlee,GossipGirl,HouseM.
D.
,HowIMetYourMother,Chuck,Dexter,30Page65of191Rock,Spider-Man,Spider-Man2,Spider-Man3,TrueBlood,andtheentirefirstfourseasonsofthetelevisionseries24.
Thisevidenceshowsthatdespitereceivingmorethan115,000noticesofcopyrightinfringementassociatedwiththeconductofRD,theMegaConspiracychosetopayRDonatleast25separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan16millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoRD.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,RDcreatedfordistributionmorethan30,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsTrueBlood,JerseyShore,Entourage,Futurama,PrettyLittleLiars,SouthPark,andTheVampireDiaries.
c.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerRDwasamongthoselistedasbeingentitledtoa$100payment.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan57,000URLlinkstoinfringingcontentuploadedanddistributedbyRD,andhadalreadypaidRDatleast$3,300aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaConspiracypaid$100toRDthroughPayPal.
RepeatInfringerandUnindictedConspirator"LR"53.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromMarchof2007throughJanuaryof2012,aparticularinfringerandunindictedconspirator(hereinreferredtoas"LR")maintainedanaccount,whichattimesincludedpaidandlifetimepremiumstatus,ontheMegaSites.
ApreliminaryreviewofthefilesuploadedbyLRindicatesthatheuploadedfordistributionthefollowingcopyright-infringingworks:Eurotrip,Alias,DesperateHousewives,AccordingtoJim,Weeds,Greek,GilmoreGirls,AmericanIdol,Dawson'sCreek,Dexter,TheLWord,Friends,andScrubs.
Intotal,theMegaConspiracyreceivedtakedownrequestsforover35,000URLlinkstoinfringingmaterialscreatedbyLRthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan72millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedLRandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowPage66of191thatbetween2008and2011,theMegaConspiracymadesixseparatepaymentstotalingover$38,000toLRandgrantedLRcomplimentarypremiumaccesstotheMegaSitesaspartoftheUploaderRewardsprogram.
Forexample,onoraboutSeptember18,2009,theMegaConspiracymadea$10,000paymenttoLRaspartoftheUploaderRewardsprogram.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan72millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoLR.
RepeatInfringerandUnindictedConspirator"JV"54.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJanuaryof2009throughJanuaryof2012,aparticularinfringerandunindictedconspirator(hereinreferredtoas"JV")maintainedanaccount,whichattimesincludedpaidandlifetimepremiumstatus,ontheMegaSites.
ApreliminaryreviewindicatesthatJVuploadedcopyright-infringingworks,includingGlee,GossipGirl,DesperateHousewives,TheMentalist,TrueBlood,LietoMe,Medium,Lost,andBones.
Intotal,theMegaConspiracyreceivedtakedownrequestsforover11,000URLlinkstoinfringingmaterialscreatedbyJVthroughuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan140millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedJVandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetween2009and2011,theMegaConspiracymademorethan35separatepaymentstotalingmorethan$20,000toJVandgrantedJVcomplimentarypremiumaccesstotheMegaSitesaspartoftheUploaderRewardsprogram.
Forexample,onoraboutApril26,2010,theMegaConspiracygrantedlifetimepremiumstatusonJVandmadea$500paymenttoJV.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan140millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoJV.
RepeatInfringerandUnindictedConspirator"AD"55.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtothepreliminaryreviewofthedatabases,fromSeptemberof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"AD")maintainedanaccount,whichatPage67of191timesincludedpaidandlifetimepremiumstatus,ontheMegaSites.
ApreliminaryreviewofthefilesuploadedbyADindicatesthatheuploadedcopyright-infringingworks,suchasLost,Smallville,Heroes,PrisonBreak,andKyleXY.
Intotal,theMegaConspiracyreceivedtakedownrequestsforover2,900URLlinkstoinfringingmaterialscreatedbyADthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan10millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Inaddition,onoraboutApril28,2008,DOTCOMreceivedane-mailaddressedtodmca@megaupload.
comfromWarnerBrothersEntertainmentidentifyinginfringingcontentmadeavailablebyADandrequestingthathisaccountbesuspended.
Despitehavingreceivedthesetakedownrequestsandthisnotification,theMegaConspiracyneverterminatedADandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FollowingtheApril28,2008notification,ADcontinuedtouploadinfringingcontent,suchasaninfringingepisodeofLostinMayof2010,whichgeneratedmorethan18,000copyright-infringingviewsbeforerepresentativesofthecopyrightownersubmittedatakedownnoticeforthatinfringingcontent.
Financialrecordsshowthatinsteadofterminatingtheidentifiedaccount,between2008and2011,theMegaConspiracymade17separatepaymentstotalingmorethan$3,500toADandgrantedADcomplimentarypremiumaccesstotheMegaSitesaspartoftheUploaderRewardsprogram.
Forexample,onoraboutJuly31,2009,theMegaConspiracypaid$1,500toAD.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan10millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoAD.
RepeatInfringerandUnindictedConspirator"IS"56.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromMayof2010throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"IS")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast39,000takedownrequestsforURLlinkstoinfringingcontentcreatedbyISthroughheruploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan4millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedISandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromMayof2010throughJanuaryof2012,ISuploadedfordistributioninfringingcopiesoftelevisionprograms,includingAmericanDad,DesperateHousewives,Dexter,Entourage,GossipGirl,Glee,HowIMetPage68of191YourMother,ProjectRunway,TheSimpsons,TwoandaHalfMen,andWeeds.
RatherthanterminatingISuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardspaymentstoIS.
Forexample,onoraboutAugust8,2010,theMegaConspiracypaid$100toISaspartoftheUploaderRewardsprogram.
BetweenAugust8andSeptember2,2010,ISuploadedmorethan5,000URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan5,000takedownrequestsforURLlinkstoinfringingcontentcreatedbyIS.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidISanadditional$200onSeptember2,2010,andcontinuedtopayherthroughMayof2011.
BetweenMayof2010andMayof2011,theMegaConspiracymade16rewardspaymentstoISforatotalof$2,400.
Apreliminaryreviewindicatesthatmorethan99%ofthefilesuploadedfordistributionbyIStotheMegaSitesarecopyright-infringingworks.
Thisevidenceshowsthatdespitereceivingmorethan39,000noticesofcopyrightinfringementassociatedwiththeconductofIS,theMegaConspiracychosetopayISonatleast16separateoccasionsforherinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan4millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoIS.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,IScreatedfordistributionmorethan23,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsEntourage,LietoMe,TrueBlood,Futurama,BurnNotice,Weeds,JerseyShore,FamilyGuy,PrettyLittleLiars,andTheBigBangTheory.
c.
BetweenonoraboutJuly23,2011,andJanuary19,2012,IScreatedfordistributionatleast100URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsGossipGirl,BoardwalkEmpire,DesperateHousewives,TheVampireDiaries,HouseM.
D.
,Grey'sAnatomy,TrueBlood,Entourage,andJerseyShore.
d.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerISwasamongthoselistedasbeingentitledtotwoseparatepayments,onefor$300,andanotherfor$200.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan24,000URLlinkstoinfringingcontentuploadedanddistributedbyIS,andhadalreadypaidISatleast$1,700aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaPage69of191ConspiracymadetwoseparatepaymentstoISthroughPayPal,onefor$300,andanotherfor$200.
RepeatInfringerandUnindictedConspirator"CL"57.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromOctoberof2005throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspiratorlocatedintheEasternDistrictofVirginia(hereinreferredtoas"CL")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Thepreliminaryreviewshowsthatmorethan500copyright-infringingvideofilesuploadedfordistributionbyCLtoserversdirectlycontrolledbytheMegaConspiracygeneratedmorethan3millionviews.
TheMegaConspiracyreceived264takedownrequestsforURLlinkstoinfringingmaterialcreatedbyCLthroughhisuploadsofcopyright-infringingcontenttotheMegaSites.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedCLandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenMarchof2009andFebruaryof2010,theMegaConspiracymadefiveseparatepaymentstotaling$500toCLaspartoftheUploaderRewardsprogram.
Forexample,betweenDecember22,2008,andMarch11,2009,theMegaConspiracyprocessedatleast98takedownrequestsforURLlinkstoinfringingmaterialscreatedbyCL.
Notwithstandingthesetakedownrequests,theMegaConspiracypaid$100toCLonMarch11,2009,andcontinuedtopayhimthroughFebruaryof2010.
Areviewofthefiletitlesofthemorethan500copyright-infringingworksuploadedbyCLincludeavarietyofcopyrightedmotionpicturesandtelevisionprograms,includingmultipleepisodesofFamilyGuy,RobotChicken,andMyNameIsEarl;atleastonemotionpicturestillintheatersatthetimeoftheupload(TheHangover);manymotionpicturesuploadednearthedateoftheircommercialDVDrelease,includingDrillbitTaylor,MissMarch,ForgettingSarahMarshall,TropicThunder,YouDon'tMessWiththeZohan,andHortonHearsaWho;andsuchmotionpicturesasTheJerk,Poltergeist,FerrisBueller'sDayOff,TheGoonies,andTitanic.
Thisevidenceshowsthatdespitereceiving264noticesofcopyrightinfringementassociatedwiththeconductofCL,morethan60%ofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayCLonatleastfiveseparateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan3millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoCL.
Page70of191b.
BetweenonoraboutFebruary18,2008,andAugust16,2008,CLcreatedfordistributionmorethan20URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthemotionpicturesForgettingSarahMarshall,TheIncredibleHulk,JeepersCreepers2,TheRuins,MeettheSpartans,andDrillbitTaylor.
c.
BetweenonoraboutMarch4,2010,andAugust31,2010,CLcreatedfordistributionmorethanadozenURLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthemotionpictures2012,BoondockSaints2,Avatar,TheLovelyBones,SherlockHolmes,ShutterIsland,TheGoonies,TheCrazies,Legion,TheChipmunks2,Zombieland,TheToothFairy,andThePrincessandtheFrog.
RepeatInfringerandUnindictedConspirator"DK"58.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJanuaryof2009throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"DK")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover46,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyDKthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan21millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedDKandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenOctoberof2009andMayof2011,theMegaConspiracymade26separatepaymentstotaling$3,900toDKaspartoftheUploaderRewardsprogram.
Forexample,onoraboutDecember23,2009,theMegaConspiracypaid$300toDKaspartoftheUploaderRewardsprogram.
BetweenDecember23,2009,andFebruary1,2010,DKuploadedmorethan6,500URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan2,800takedownrequestsforURLlinkstoinfringingcontentcreatedbyDK.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidhimanadditional$700onFebruary1,2010.
BetweenFebruary1andMarch9,2010,DKuploadedmorethan3,800URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan4,000takedownrequestsforURLlinkstoinfringingcontentcreatedbyDK.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidhimanadditional$300onMarch9,2010,andcontinuedtopayhimthroughMayof2011.
Apreliminaryreviewindicatesthatmorethan96%Page71of191ofthefilesuploadedfordistributionbyDKarecopyright-infringingworks.
Theseinfringingworksincludedvoluminouscollections(andinmanycasesentireseasons)ofpopularcopyrightedtelevisionprograms,suchas24,30Rock,AmericanDad,Angel,BattlestarGalactica,TheBigBangTheory,BigLove,Bones,BreakingBad,Chuck,CSI:Miami,CurbYourEnthusiasm,Deadwood,DesperateHousewives,Entourage,FamilyGuy,FridayNightLights,Friends,Fringe,GilmoreGirls,Glee,GossipGirl,Grey'sAnatomy,Heroes,HowIMetYourMother,HouseM.
D.
,It'sAlwaysSunnyinPhiladelphia,Lost,LaFemmeNikita,Law&Order:SVU,Monk,TheOffice,PrettyLittleLiars,PrisonBreak,Psych,Seinfeld,TheSimpsons,Smallville,TheSopranos,SouthPark,Supernatural,TrueBlood,TheWire,andXena:WarriorPrincess,andavarietyofcopyrightedmotionpictures,suchasAstroboy,Atonement,Avatar,AClockworkOrange,TheDevilWearsPrada,GhostsofGirlfriendsPast,InsideMan,LiesandIllusions,MaxPayne,PineappleExpress,PiratesoftheCaribbean:AtWorld'sEnd,QuantumofSolace,andRatatouille.
Thisevidenceshowsthatdespitereceivingmorethan46,000noticesofcopyrightinfringementassociatedwiththeconductofDK,morethanhalfofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayDKonatleast26separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan21millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoDK.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,DKcreatedfordistributionmorethana28,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsSkins,SonsofAnarchy,TheOffice,HouseM.
D.
,HowIMetYourMother,30Rock,Grey'sAnatomy,FamilyGuy,Entourage,Lost,CurbYourEnthusiasm,Dexter,SouthPark,ColdCase,TheVampireDiaries,TheWire,andTrueBlood.
c.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerDKwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan40,000URLlinkstoinfringingcontentuploadedanddistributedbyDK,andhadalreadypaidDKatleast$3,600aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaConspiracymadetwoseparatepaymentsof$100eachtoDKthroughPayPal.
d.
BetweenonoraboutJuly23,2011,andJanuary19,2012,DKcreatedfordistributionmorethan40URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionPage72of191programsJerseyShore,Dexter,TrueBloodandPrettyLittleLiars,andthecomputersoftwareRedFaction:Armageddon.
RepeatInfringerandUnindictedConspirator"EG"59.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromDecemberof2009throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"EG")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover30,000takedownrequestsforURLlinkstoinfringingmaterialcreatedbyEGthroughheruploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan9millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedEGandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenFebruaryof2010andAprilof2011,theMegaConspiracymade13separatepaymentstotaling$1,900toEGaspartoftheUploaderRewardsprogram.
Forexample,onoraboutFebruary1,2010,theMegaConspiracypaid$500toEGaspartoftheUploaderRewardsprogram.
BetweenFebruary1andMarch9,2010,EGuploadedfordistributionmorethan5,000URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan2,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyEG.
Evenafterprocessingthesetakedownrequests,theMegaConspiracypaidheranadditional$200onMarch9,2010,andcontinuedtopayherthroughAprilof2011.
Apreliminaryreviewindicatesthatmorethan98%ofthefilesuploadedfordistributionbyEGarecopyright-infringingworks.
Theseinfringingworksincludedvoluminouscollectionsofepisodes(andinseveralcasesentireseasons)ofpopularcopyrightedtelevisionprograms,suchas24,AllyMcBeal,AmericanDad,BattlestarGalactica,BigLove,Bones,BostonLegal,BuffytheVampireSlayer,Carnivale,Entourage,Futurama,Heroes,HouseM.
D.
,HowIMetYourMother,Monk,Law&Order,Law&Order:SVU,TheOffice,MyNameIsEarl,Psych,RobotChicken,Roswell,TheSimpsons,SouthPark,Will&Grace,andXena:WarriorPrincess,aswellasalibraryofmorethanahundredcopyrightedmotionpictures.
Theevidenceshowsthat,despitereceivingmorethan30,000noticesofcopyrightinfringementassociatedwiththeconductofEG,morethanhalfofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayEGonatleast13separateoccasionsforherinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan9millionsitevisitsPage73of191andinfringementscomingasaresultoffinancialincentivesmadedirectlytoEG.
b.
BetweenonoraboutMarch4,2010,andAugust31,2010,EGcreatedfordistributionmorethan12,000URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsColdCase,24,Chuck,CSI,CSI:Miami,CSI:NewYork,BurnNotice,TheBigBangTheory,Bones,PrisonBreak,Supernatural,TheSimpsons,TheSecretLifeoftheAmericanTeenager,Rome,GossipGirl,Fringe,FamilyGuy,Dexter,DesperateHousewives,LietoMe,Lost,LaFemmeNikita,HowIMetYourMother,andBreakingBad.
c.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerEGwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
PriortoApril8,2011,theMegaConspiracyhadreceivedandprocessedcopyright-infringementtakedownnoticesidentifyingmorethan24,000URLlinkstoinfringingcontentuploadedanddistributedbyEG,andhadalreadypaidEGatleast$1,700aspartoftheUploaderRewardsprogram.
OnoraboutApril8,2011,theMegaConspiracymadetwoseparatepaymentsof$100toEGthroughPayPal.
RepeatInfringerandUnindictedConspirator"JP"60.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromapproximatelyJulyof2009throughNovemberof2011,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"JP")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivednearly70,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyJPthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan680,000accessesofknowncopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy(withhundredsofthousandsofadditionalaccessestoinfringingmaterialsuploadedbyJPthatwerenotdiscoveredbycopyrightholders).
Despitehavingreceivednearly70,000takedownrequests,theMegaConspiracyneverterminatedJPandneverpurposefullyandcompletelyblockedaccesstotheinfringingmaterial.
Instead,financialrecordsshowthatbetweenSeptemberof2010andDecemberof2010,theMegaConspiracymadefiveseparatepaymentstotaling$700toJPaspartoftheUploaderRewardsprogram.
Apreliminaryreviewindicatesthatsubstantiallyallofthemorethan100,000filesuploadedfordistributionbyJPareinfringingcopiesofcopyrightedtelevisionprograms.
ThesecopiesincludedoftencompletePage74of191seasons(oftenwithnumerouscopiesofthesameepisode)of30Rock,90210,America'sNextTopModel,TheBigBangTheory,BoardwalkEmpire,BurnNotice,Chuck,Dexter,Entourage,FamilyGuy,Futurama,Glee,GossipGirl,Grey'sAnatomy,Hellcats,HouseM.
D.
,HowIMetYourMother,Hellcats,JerseyShore,KeepingUpwiththeKardashians,KourtneyandKhloeTakeMiami,LietoMe,Lost,MadMen,ModernFamily,Nikita,OneTreeHill,TheOffice,PrettyLittleLiars,TheSimpsons,Smallville,SonsofAnarchy,SouthPark,TopGear,TwoandaHalfMen,TrueBlood,Weeds,andTheVampireDiaries.
Forexample,JPuploadedmorethan35copiesofthepremiereepisodeofthecopyrightedtelevisionprogramChuck.
ManyoftheinfringingfilesuploadedbyJPhadthewords"DVDrip"oridentifiedthespecificpiracygroupand/orlinkingsitethatoriginallymadethemavailableontheInternet.
OnoraboutSeptember2,2010,theMegaConspiracypaid$100toJPaspartoftheUploaderRewardsprogram.
Priortothattime,morethan16,000URLlinkstocopyright-infringingmaterialsreproducedanddistributedbytheMegaSiteshadbeencreatedbyJP,andtheMegaConspiracyprocessedmorethan15,000takedownrequestsforURLlinkstoinfringingcontentuploadedbyJPduringthattime.
BetweenSeptember2,2010,andOctober5,2010,JPcreatedmorethan17,000URLlinkstocopyright-infringingmaterialstotheMegaSites,andtheMegaConspiracyprocessedmorethan8,000takedownrequestsforURLlinkstoinfringingcontentuploadedbyJPduringthattime.
OnoraboutOctober5,2010,theMegaConspiracypaid$200toJPaspartoftheUploaderRewardsprogram.
BetweenOctober5,2010,andNovember5,2010,JPcreatedmorethan17,000URLlinkstocopyright-infringingmaterialsreproducedanddistributedbytheMegaSites.
BetweenNovember5,2010,andDecember11,2010,JPcreatedanadditional14,613URLlinkstocopyright-infringingmaterialsreproducedanddistributedbytheMegaSites,andtheMegaConspiracyprocessedmorethan2,400takedownrequestsforURLlinkstoinfringingcontentuploadedbyJPduringthattime.
OnoraboutDecember11,2010,theMegaConspiracymadetwoseparatepaymentsof$100eachtoJPaspartoftheUploaderRewardsprogram.
Thisevidenceshowsthatdespitereceivingnearly70,000noticesofcopyrightinfringementassociatedwiththeconductofJP,asubstantialpercentageofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayJPon5separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan680,000sitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoJP.
RepeatInfringerandUnindictedConspirator"PA"61.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:Page75of191a.
Accordingtoapreliminaryreviewofthedatabases,fromMarchof2007throughSeptemberof2009,aparticularrepeatinfringer,whowasaresidentoftheEasternDistrictofVirginiaandanunindictedconspirator(hereinreferredtoas"PA"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast23takedownrequestsforURLlinkstoinfringingcontentcreatedbyPAthroughhisuploadsofcopyright-infringingcontenttotheMegaSites.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedPAandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenSeptemberof2007andMarchof2009,theMegaConspiracymadetwoseparatepaymentstotaling$3,000toPAaspartoftheUploaderRewardsprogram.
BetweenApril2007andSeptember28,2007,PAuploadedfordistributionmorethan2,000URLlinkstohundredsofwhatappeartobecopyrightedtelevisionprogramsandmotionpictures(primarilyinVietnamese),includingonevideoentitledVietNamNgayNay6,thathadreceivedacopyrighttakedownrequestthatwasprocessedbydefendantVANDERKOLKhimself.
Infact,theuploadofthatparticularworkbyPAappearedonathird-partylinkingsitehttp://mtvmediavnfilm.
blogspot.
comalongwithmorethan20additionallinkstothesameinfringingworkonMegaupload.
com.
OnSeptember29,2007,theMegaConspiracypaidPA$1,500aspartoftheUploaderRewardsprogram.
Afterthatpayment,PAmademorethan4,700uploadsofmostlyVietnameseworks.
Alsouploadedwerecopiesofcopyright-infringingmotionpicturesthatincludethephrase"DVDRips"inthetitle,suchasIndianaJonesandtheRaidersoftheLostArkandWhyMe,Sweetie!
(HongKong);andcopiesofcopyright-infringingmotionpicturesthatincludetheterm"CDs"inthetitle,suchasGaroojigi(Korean)andMyMightyPrincess(Korean).
OnMarch11,2009,theMegaConspiracypaidPAanother$1,500aspartoftheUploaderRewardsprogram.
Intotal,theMegaConspiracyreceivedatleast23takedownnoticesforcopyrightedworksuploadedbyPA.
Accesstotheseknownworkswasneverpurposefullyandcompletelyblocked,andPAwasneverterminatedasauseroftheMegaSitesforrepeatinfringement.
Thisevidenceshowsthatdespitereceivingmorethan20noticesofcopyrightinfringementassociatedwiththeconductofPA,allofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayPA$3,000forhisinfringementofcopyrightedworksusingMegaupload.
com.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan3milliondownloadscomingasaresultoffinancialincentivesmadedirectlytoPA.
Page76of191RepeatInfringerandUnindictedConspirator"TH"62.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromatleastonoraboutFebruaryof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"TH")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedover1,200takedownrequestsforURLlinkstoinfringingmaterialcreatedbyTHthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan1.
2milliondownloadsofcopyright-infringingfilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedTHandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenOctoberof2006andAprilof2011,theMegaConspiracymade26separatepaymentstotalingmorethan$50,000toTHaspartoftheUploaderRewardsprogram.
Theevidenceshowsthat,despitereceivingmorethan1,200noticesofcopyrightinfringementassociatedwiththeconductofTH,allofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayTHonatleast26separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan1.
2milliondownloadsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoTH.
b.
URLlinkscreatedanddistributedbyTHbetweenonoraboutFebruary18,2008,andAugust16,2008,generatedover10milliondownloads,morethananyotheruserontheMegaSites.
Morethan130oftheseURLlinksreceivedcopyright-infringementtakedownnotices.
c.
THregularlysente-mailstosupport@megaupload.
com.
E-mailssenttosupport@megaupload.
comwereattimes(includingduringthetimesspecifiedinthee-mails,below)automaticallyforwardedtoDOTCOM,ORTMANN,andVANDERKOLK'se-mailaccounts.
d.
OnoraboutDecember7,2006,THsentane-mailtosupport@megaupload.
comentitled"ThankstoMegaupload,"thankingMegaupload.
comforarecentrewardpaymentof$1,000,basedonhavingaccumulated1,000,000rewardpointsinhispremiumaccount.
Thatsameday,ORTMANNrespondedtosupport@megaupload.
com,omittingTH,asking,"Wow,doeshereallyhavethatmanypremiumpointsAnyway,hegetsallthoseNguyensscatteredaroundtheglobetosignup,soit'smoneywellspent!
"Thefollowingday,ORTMANNreceivedfromPage77of191support@megaupload.
comane-mailstating,"Yes,theguycanalmostconverthisthird1Millionpointstoanother1000bucks[.
]"e.
OnoraboutDecember20,2006,THsentane-mailtosupport@megaupload.
comentitled"TheLastNote.
"THcomplainedthathehadnotreceiveda$1,000rewardpaymentbasedonhavingaccumulated1,000,000rewardpointsinhispremiumaccount.
THstatedthatifhewasnotpaid"within24hours,"thenhewouldexposethepaymentfailureon"over100Vietnamesewebsitesintheworld.
"Hefurtherstated,"Ireallydonotcareaboutyourpaymentornot.
Idonotgiveyouachancetocheatmillionsofuseranduploadersanymore.
"OnoraboutDecember21,2006,DOTCOMrespondedtoORTMANNandVANDERKOLK,omittingTH,writing,"Thisisthefifthe-mailfromthisguy.
WHYTHE[expletiveredacted]DOESNOONECARE"Thatsameday,ORTMANNrepliedtoDOTCOMandVANDERKOLK,writing,"Wedocare.
Bramwasabouttogivemethefinalconfirmationthatthepaymentislegit,andIamsendingitnow.
"f.
OnoraboutJanuary5,2007,THsentane-mailtosupport@megaupload.
com,whichwasnearlyidenticaltotheDecember20,2006e-mailhepreviouslysent.
OnoraboutJanuary5,2007,ORTMANNwrotetoanothermemberoftheMegaConspiracy,"Moneysent.
.
.
withatotalofover11millionpageviewsofthefilesinhisaccount,hesurelydeservesit!
"g.
Asdescribedabove,VANDERKOLKregularlye-mailedORTMANN,andattimesDOTCOM,regardingrewardpayments.
Attachedtothesee-mailswererewardpaymentfiles,whichlistedtheusers'e-mailaddresses,usernames,andamountsofrewardpaymentsforthattimeperiod.
OnoraboutMarch10,2007,VANDERKOLKsentane-mailentitled"rewardpayments"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
h.
OnoraboutMarch26,2007,VANDERKOLKsentane-mailentitled"rewardpaymentbatchfile"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
i.
OnoraboutMay7,2007,VANDERKOLKsentane-mailentitled"Batchpaymentrewards"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
j.
THregularlye-mailedsupport@megaupload.
comtonotifymembersoftheMegaConspiracythatTHhadbeenpaidthroughtheUploaderRewardsprogram.
Thesee-mailsincludedthedateandamountofPage78of191payment.
Hesentmorethanadozensuche-mailsbetweenJune7,2007,andMarch3,2008.
k.
OnoraboutJune17,2007,THsentane-mailtosupport@megaupload.
comentitled"Filemanager.
"THwrote,"IwouldliketogetthelinksinmyFileManager,butIcannotseeanylinksinmyaccount.
Pleaseadjustthesystemassoonaspossible.
Thanksinadvance.
"Thatsameday,ORTMANNresponded,"Youcurrentlyhave30,000filesinyouraccount,totalingalmost2.
5terabytes.
Asyouknow,weofficiallyonlyallow250gigabytesofstorageperpremiumaccount,andourinfrastructureandfilemanageraredesignedandbuiltaroundthislimitation.
Weareamazedthatyourfilemanagerhasworkeduptothispoint,actually!
Anyway,wehavestrengthenedourinfrastructuretohandleextremeaccountslikeyours.
Letusknowifyoucanseeyourfilesagain.
"l.
OnoraboutSeptember17,2007,VANDERKOLKsentane-mailentitled"Rewardpayments"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
m.
OnoraboutOctober10,2007,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
n.
OnoraboutNovember7,2007,VANDERKOLKsentane-mailentitled"rewardpaymentsfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Ipreparedanotherrewardspaymenttoday.
"Intheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
o.
OnoraboutNovember18,2007,VANDERKOLKsentane-mailentitled"rewardpaymentsfile"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
p.
OnoraboutDecember2,2007,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
q.
OnoraboutDecember19,2007,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
r.
OnoraboutFebruary9,2008,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Thee-mailcontainednotext,butPage79of191intheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$10,000payment.
s.
OnoraboutJanuary8,2008,VANDERKOLKsentane-mailentitled"Batchpaymentfile"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$10,000payment.
t.
OnoraboutFebruary27,2008,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfile.
Itshouldbeabout80.
000USD.
Thanks!
Bram[].
"Intheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$1,500payment.
u.
OnoraboutMarch2,2008,THsentane-mailtosupport@megaupload.
comentitled"Rewardpoints.
"THwrote,"Pleaseadjustthesystemforrewardpointsassoonaspossible.
BecauseAvailablePointsdonotincreasetomatchwithTotalDownloadsthatincreaseeveryhours.
Thisproblemlastsfor2weeks.
Pleasemakeafairthingforuploaders.
"Thefollowingday,DOTCOMrespondedtoORTMANN,omittingTH,writinginGermanthatitshouldgivethempausewhentheirmainuploadercomplains.
ORTMANNrepliedtoDOTCOMthatsameday,writinginGermanthatanewUploaderRewardpolicywascausingTHtolosepoints,andthatTHwillneedtotryharderifhewantstocontinueearningasmuchas$10,000permonththroughtheprogram.
v.
OnoraboutMarch15,2008,THsentane-mailtosupport@megaupload.
com,writing,"Iwouldliketoinformthat:IaminVietnamnow.
SO,IusetheinternetwithIPinVietnam.
PleaseallowmetodownloadoruploadwithIPinVietname.
Thanks.
"Thatsameday,ORTMANNresponded,"Don'tworry.
Wedon'tdisableVietnameseusers.
"w.
OnoraboutMarch19,2008,THsentane-mailtosupport@megaupload.
comentitled"RewardPoints.
"THcomplainedaboutanewUploaderRewardpolicythatwascausingTHtolosepoints.
THstatedthatifthepolicywasnotadjusted,thenhewould"postonover120websitesandnotifyuserstostopbuyingpremiumaccount[s]withMegaupload.
"OnoraboutMarch19,2008,DOTCOMrespondedtoTH,writing,"Youandyourfriendsareatmost1%ofourtraffic.
Sopleasedon'toverestimateyourimportancetous.
WearethankfulforyoursupportofMegauploadinthepastandIthinkwehavealwaysbeenfairtoyou.
"DOTCOMfurtherwrote,"Inthefutureyouwillalsoearnrewardsforeverypremiumcustomerthatyoubringtous.
"Page80of191x.
OnoraboutMay10,2008,THsentane-mailtosupport@megaupload.
com.
THwrote,"IjustcamebacktoUSA,andnowmyIPfordownloadingoruploadingfromUSA.
Iwouldliketostartworkingforyounow.
WouldyoupleaseletmeknowwhentherenovationwillbedoneandhowthenewruleisThanks[.
]"OnoraboutMay11,2008,ORTMANNresponded,"Welcomeback!
Therenovationisstillinprogress,butwecanofferyouamanualadjustmentofyourearnedpointsaccordingtothenewstandardasaspecialexception.
Pleasesendusarequestbeforeeveryredemptionyouplantomake.
"OnoraboutMay12,2008,DOTCOMrespondedtoORTMANN,omittingTH,writing:"Juhu.
[TH]isback:-)"TheGermanword"juhu"means"yay"inEnglish.
y.
OnoraboutSeptember17,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoapaymentof$400.
z.
OnoraboutNovember13,2009,VANDERKOLKsentane-mailentitled"Files"toanunindictedconspiratorandemployeeoftheMegaSites.
VANDERKOLKattachedtothee-mailarewardpaymentlist,similartothetypehesenttoORTMANN(asdescribedabove),whichcontainedtheindividuals'usernames,e-mailaddresses,andpaymentamounts.
Therewardpaymentlistincludeda$1,500rewardpaymenttoTH.
aa.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Thee-mailcontainednotext,butintheattachedrewardpaymentfile,repeatinfringerTHwasamongthoselistedasbeingentitledtoa$100payment.
63.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsTHtotestifytothefollowingfacts:a.
Inearly2006,THlearnedfromtheMegaupload.
comwebsitethathecouldmakemoneythroughtheUploaderRewardsprogram.
THobtainedcopyright-infringingversionsofVietnamesemotionpictures,televisionprograms,andmusicalrecordingsfromadownloadwebsiteandthenuploadedthemtohispremiumaccountonMegaupload.
com.
Afteruploadingthefiletohispremiumaccount,THwouldadvertisethecorrespondingURLlink,togetherwiththeposterforthemotionpictureortelevisionprograms,onthird-partylinkingsites.
b.
THfrequentlycheckedtheseURLlinkstodeterminewhethertheywerestillactiveontheMegaSites.
AlthoughsomeURLlinkscreatedandpublicizedbyTHweredisabled,theunderlyingfileswerenotdisabled.
Inaddition,THneverreceivednotificationfromtheMegaSitesthatanyofPage81of191hisfileshadbeenthesubjectofacopyright-infringementtakedownrequest,andTH'spremiumaccountwasneversuspended.
c.
In2006,priortoTH'sfirstUploaderRewardspayment,THreceivedane-mailfromMegaupload.
comstatingthatTHwouldnotbepaidbecauseheuploadedacopyright-infringingmusicalrecordingfromaVietnameseartist.
THwasunsurewhethertherecordingwascopyrightedornot,butherespondedtothee-mailbystatingthatVietnameseartistsdonothavecopyrights.
Hedidsobecausehethoughtitwouldhelphimgetpaid.
Shortlythereafter,THreceivedhisfirstUploaderRewardspayment.
Hecontinuedtoreceivepaymentsthrough2011.
RepeatInfringerandUnindictedConspirator"DH"64.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJulyof2007toJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"DH"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast3,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyDHthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan390,000viewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Apreliminaryreviewshowsthatthecopyright-infringingworksuploadedbyDHincludedmultipleseasonsofFamilyGuy,Futurama,SouthPark,TheSimpsons,andAmericanDad.
Despitehavingreceivedtakedownrequestsforcopyright-infringingworks,theMegaConspiracyneverterminatedDHandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthattheMegaConspiracypaid$600toDHaspartoftheUploaderRewardsprogram.
Thisevidenceshowsthatdespitereceivingmorethan3,000noticesofcopyrightinfringementassociatedwiththeconductofDH,morethan99%ofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetorewardDHforhisuploadingofcopyrightedworks.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan390,000sitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoDH.
b.
BetweenonoraboutFebruary18,2008,andAugust16,2008,DHcreatedfordistributionmorethan600URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsTheSimpsons,FamilyGuy,AmericanDad,andSouthPark,andPage82of191thecomputersoftwareprogramsCallofDuty,MajorLeagueBaseball2K8,andNeedforSpeedProStreet.
c.
BetweenonoraboutMarch4,2010,andAugust31,2010,DHcreatedfordistributionmorethana150URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthecomputersoftwareprogramsCallofDuty:ModernWarfare2,Halo3,andTigerWoodsPGATour10.
65.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsDHtotestifytothefollowingfacts:a.
DHdiscoveredtheMegaSitesinapproximately2008to2009whilevisitingonlinediscussionforums.
Usersinoneforum,forexample,discusseddownloadingcopyright-infringingXboxvideogamesonMegaupload.
com.
DHlearnedthathecouldmakemoneythroughtheMegaSites'UploaderRewardsprogram.
Inparticular,DHlearnedthathecouldearnpointsbyuploadingpopularmaterialtotheMegaSitesandhavingusersviewordownloadthematerials.
Thepointscouldberedeemedformoney.
b.
DHsignedupforapremiummembershipwiththeMegaSitesbecausethatwasarequirementforgettingpaidthroughtheUploaderRewardsprogram.
Inaddition,thepremiummembershippreventedhisuploadsfrombeingautomaticallydeletedafteraperiodoftime,andDHbelievedthathewouldearnmorepointsthelongerhiscontentwasavailablefordownloadandviewing.
DHknowinglyuploadedcopyright-infringingmotionpictures,televisionshows,andvideogamestotheMegaSites.
DHobtainedthemajorityofthesecopyright-infringingmaterialsfromotherInternetsites.
Thereasonheuploadedcopyright-infringingmaterialstotheMegaSiteswastomakemoney,becausecopyrightedmaterialsweremoreindemandthanpersonalmaterials.
Themorecopyright-infringingmaterialsDHwouldupload,themoremoneyhewouldmake.
RepeatInfringerandUnindictedConspirator"DT"66.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJuneof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"DT"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
TheMegaConspiracyreceivedmorethan500takedownrequestsforURLlinkstoinfringingmaterialcreatedbyDTthroughhisuploadsofcopyright-infringingPage83of191contenttotheMegaSites.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedDTandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthattheMegaConspiracypaidDT$100inJanuary2008aspartoftheUploaderRewardsprogram.
RecordsindicatethatDTuploadedfordistributionhundredsofcopyright-infringingfilestotheMegaSites,includingcopyrightedsoftwaresuchasWindows7UltimateEdition,AdobeDreamweaver,AutoDeskAutoCAD2009,TemplateMonster,DesignProvideoLightroom,Keosoft90,SmartsoftSmartFTPClientProfessional,andAtomixVirtualDJPro,andcopyrightedmotionpictures,suchasHarryPotterandtheHalf-BloodPrince.
Thisevidenceshowsthatdespitereceivingmorethan500noticesofcopyrightinfringementassociatedwiththeconductofDT,theMegaConspiracychosetopayDT$100forhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestcomingasaresultoffinancialincentivesmadedirectlytoDT.
b.
BetweenonoraboutFebruary18,2008,andAugust16,2008,DTcreatedfordistributionmorethan75URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthecomputersoftwareprogramsAutodeskAutoCAD2009andAdobeDreamweaver.
c.
BetweenonoraboutMarch4,2010,andAugust31,2010,DTcreatedfordistributionmorethanadozenURLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthecomputersoftwareprogramsVisualStudio2010PremiumandthebooksFoundationFlashCS5forDesignersandThinkinginC#.
RepeatInfringerandUnindictedConspirator"NS"67.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJanuaryof2008throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"NS"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
TheMegaConspiracyreceivedfourtakedownrequestsforURLlinkstoinfringingmaterialcreatedbyNSthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedatleast11,400viewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedNSandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenAprilof2009andMayof2010,theMegaConspiracymadePage84of191threeseparatepaymentstotaling$300toNSaspartoftheUploaderRewardsprogram.
RecordsindicatethatNSuploadedfordistributionmorethan12copyright-infringingfilestoMegavideo.
com,whichresultedinmorethan27,000viewsofinfringingfiles.
Theseinfringingworksconsistedofcopyrightedtelevisionprograms,includingFamilyGuyandTheSimpsons,andthemotionpicturesJonahHexandEyesWideShut,thelatterofwhichwasviewedatleast15,000timesonMegavideo.
com.
ThisevidenceshowsthatdespitereceivingmultiplenoticesofcopyrightinfringementassociatedwiththeconductofNS,theMegaConspiracychosetopayNSonatleastthreeseparateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan27,000sitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoNS.
68.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsNStotestifytothefollowingfacts:a.
NSlearnedoftheMegaSitesinapproximately2006to2007,whennoticingfriendswatchingon-linecontent,includingcopyright-infringingtelevisionprograms.
NSlearnedin2007thatMegaupload.
comandMegavideo.
comwouldgivehimpointswhenheuploadedcontentorwhenothersviewedhisuploadedcontent.
Thepointscouldlaterberedeemedformoney.
b.
NSsignedupforapremiummembershipwiththeMegaSitesinoraround2007,sothathecouldobtainunlimitedaccesstocontentontheMegaSites.
Premiummembershipwasalsorequiredtoredeempointsformoney.
NSknowinglyuploadedcopyright-infringingJapanesetelevisionprogramstotheMegaSites.
NSobtainedthemajorityofthesecopyright-infringingmaterialsfromotherInternetsites.
NSuploadedanime,astyleofanimationoriginatinginJapan,becauseitwaspopularandwouldassistinaccruingmorepointsmorequickly.
NSdistributedthelinkstohisuploadedcontentonpopularthird-partylinkingwebsites,suchasYoku.
comandAllyousee.
org.
RepeatInfringerandUnindictedConspirator"TT"69.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromAugustof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspiratorlocatedintheEasternDistrictofVirginia(hereinreferredtoas"TT")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivednearly3,000takedownrequestsforURLlinkstoinfringingmaterialcreatedbyTTPage85of191throughhisuploadsofcopyright-infringingcontenttoMegavideo.
com,andtheselinksgeneratedmorethan7millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedTTandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenJulyof2009andFebruaryof2010,theMegaConspiracymade15separatepaymentstotaling$2,700toTTaspartoftheUploaderRewardsprogram.
Forexample,onoraboutSeptember18,2009,theMegaConspiracypaid$200toTTaspartoftheUploaderRewardsprogram.
BetweenSeptember18andOctober8,2009,TTuploadedmorethan300URLlinkstocopyright-infringingmaterialstotheMegaSites.
TheMegaConspiracythenpaidTTanadditional$200onOctober8,2009,andcontinuedtopayhimthroughFebruaryof2010.
Apreliminaryreviewindicatesthatmorethan98%ofthefilesuploadedfordistributionbyTTwerecopyright-infringingworks.
Theseinfringingworksincludedvoluminouscollectionsofepisodesofpopularcopyrightedtelevisionprograms,suchas24,30Rock,AmericanDad,TheBigBangTheory,Bones,Chuck,DesperateHousewives,Entourage,FamilyGuy,Fringe,Glee,GossipGirl,Grey'sAnatomy,HouseM.
D.
,HowIMetYourMother,Lost,TheOffice,OneTreeHill,TheSimpsons,Smallville,Supernatural,TrueBlood,TwoandaHalfMen,andTheVampireDiaries.
Thisevidenceshowsthatdespitereceivingnearly3,000noticesofcopyrightinfringementassociatedwiththeconductofTT,nearlyhalfofwhichwerereceivedandprocessedmanuallybydefendantVANDERKOLKhimself,theMegaConspiracychosetopayTTonatleast15separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan7millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoTT.
b.
OnoraboutSeptember17,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerTTwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
c.
OnoraboutNovember24,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentforthelast2weeks+.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerTTwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$300each.
d.
BetweenonoraboutMarch4,2010,andAugust31,2010,TTcreatedfordistributionmorethan1,900URLlinkstocopyright-infringingworksthatPage86of191weresubjecttocopyright-takedownnotices,includingepisodesofthefollowingtelevisionprograms:24,PrisonBreak,Nip/Tuck,LietoMe,InPlainSight,Heroes,GossipGirl,HumanTarget,HowIMetYourMother,GilmoreGirls,Entourage,WhiteCollar,DesperateHousewives,VeronicaMars,TheVampireDiaries,TrueBlood,Supernatural,SonsofAnarchy,SavingGrace,OneTreeHill,Lost,Justified,Hung,Glee,Fringe,Dexter,TheCloser,TheClevelandShow,Chuck,BurnNotice,Bones,BigLove,30Rock,andBetterOffTed.
RepeatInfringerandUnindictedConspirator"CB"70.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromSeptemberof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,whowasalsoaresidentoftheEasternDistrictofVirginia(hereinreferredtoas"CB"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Intotal,theMegaConspiracyreceivedatleast361takedownrequestsforURLlinkstoinfringingmaterialscreatedbyCBthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan3.
1millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedCBandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromSeptemberof2007throughJanuary26,2008,CBuploadedfordistributioninfringingcopiesofcopyrightedmusicalworks,includingalbumsandsongsfromrecordingartistsBuckcherry,BustaRhymes,CeliaCruz,D12,Destiny'sChild,Eminem,Fergie,GnarlsBarkley,Jay-Z,JillScott,JohnLegend,JordanSparks,Kelis,KeyshiaCole,KidRock,KillerMike,LeadersoftheNewSchool,Lil'Wayne,LimpBizkit,LinkinPark,Ludacris,LupeFiasco,Maxwell,MichaelJackson,MissyElliot,Murs,Nelly,NorahJones,theRedHotChiliPeppers,RickyMartin,theRoots,andSystemofaDown.
RatherthanterminatingCBuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthatonoraboutJanuary27,2008,theMegaConspiracydirectlyrewardedCB'sconductwith$100.
OnJanuary28,2008,CBcontinuedhisuploadingofinfringingcopyrightedworks,andtheMegaConspiracycontinuedtoreceivetakedownrequestsregardingCB'suploads.
AmongrecordingartistswhoseworkswereinfringedbyCBafterJanuary27,2008wereBobMarley,LedZeppelin,andMichaelJackson.
Inaddition,CBuploadedinfringingcopiesofcopyrightedtelevisionprograms,includingAfroSamurai(5episodes),AirGear(25episodes),BakitheGrappler(23episodes),Boondocks(2episodes),DragonBallZ(74episodes),FullMetalAlchemist(51episodes),FullMetalPanic!
(22episodes),GhostintheShell:StandPage87of191AloneComplex(34episodes),MobileSuitGundamSEEDDestiny(9episodes),RoninWarriors(17episodes),andSamuraiChamploo(25episodes).
OnOctober8,2009,theMegaConspiracymadeapaymentof$300toCBaspartofitsUploaderRewardsprogram.
OnFebruary1,2010,CBreceivedapaymentof$100fromtheMegaConspiracy.
Morethan99%ofthetotalviewsofcontentpostedonMegavideo.
combyCBweregeneratedbycopyright-infringingcontent.
OtheruploadsbyCBthatwerenotdetectedbycopyrightholdersandyetwereuploadedtoCB'saccountwiththeMegaConspiracyincludedepisodesofAlias(28episodes),Area88(11episodes),BoogiepopPhantom(12episodes),DeathNote(37episodes),GetBackers(48episodes),GhostHound(23episodes),GunxSword(26episodes),Pokémon(10episodes),SamuraiX(89episodes),Xena(22episodes),X-Men:TheAnimatedSeries(24episodes),andadditionalepisodesofthecopyrightedtelevisionprogramsthatwereactuallydetected.
Thisevidenceshowsthatdespitereceivingmorethan350noticesofcopyrightinfringementassociatedwiththeconductofCB,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetorewardCBonmultipleoccasionsforhisuploadingofcopyrightedworks.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan3.
1millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoCB.
RepeatinfringerCBcontinuedtouploadinfringingcopiesofcopyrightedmotionpictures(which,infact,hadthenameofalinkingsiteinthetitle)untilearlyDecemberof2011,includingTheAssault,Battle:LosAngeles,BlackSwan,Bridesmaids,Columbiana,TheDebt,TheGreenLantern,TheHangoverPartII,Hanna,TheKing'sSpeech,KungFuPanda2,TheLionKing,Madea'sBigHappyFamily,RepoMen,Thor,TheTown,Transformers:DarkoftheMoon,TrueGrit,WinniethePooh,andX-Men:FirstClass.
b.
BetweenonoraboutFebruary18,2008,andAugust16,2008,CBcreatedfordistributionmorethan250URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingFullMetalAlchemist,RoninWarriors,SamuraiChamploo,AfroSamurai,GundamSeedDestiny,DragonBallZ,AirGear,GhostintheShell:StandAloneComplex,FullMetalPanic!
,andBakitheGrappleri.
71.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsCBtotestifytothefollowingfacts:a.
CBdiscoveredtheMegaSitesinapproximately2005,whilevisitingonlinehiphopmusicforums.
CBlearnedthathecoulddownloadsongsfromtheMegaSitesandthathecouldmakemoneybyuploadingcontent.
Inparticular,CBlearnedthathecouldgetpointswhenothersdownloadedcontentorviewedfilesthatheuploaded.
Page88of191b.
CBsignedupforapremiummembershipwiththeMegaSitessothathecouldredeemhispointsformoney,andsothathecouldovercomestoragelimitations.
CBknowinglyuploadedcopyright-infringingmusicalrecordingsandvideostotheMegaSites.
CBpostedURLlinkstothecopyright-infringingcontentthathehaduploadedonvariousforums,includingthird-partylinkingsites.
CBobtainedthemajorityofthesecopyright-infringingmaterialsfromotherInternetsites.
CBstarteduploadinganimebecausehediscoveredthatanimewaspopularandinhighdemandforviewing.
CBequatedanincreaseinviewingstomakingmoremoney.
Copyright-InfringingWorksAvailableontheMegaSites72.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AsstatedinParagraph24(c),apreliminaryanalysisofthedatabasesshowsthattheMegaConspiracyandothersmeasuredthethroughput,orbandwidth,thatfilesontheMegaSiteswereconsuming.
Filesthatdemandedhigherthroughput,whichmeantthatmoreuserswereaccessingthosefilessimultaneously,werestoredonfasterserverslocatedinWashington,D.
C.
Thepreliminaryanalysisofthedatabasesshowsthatthevastmajorityoffilesonthesecomputersareinfringingcopiesofcopyrightedworks,andtheMegaConspiracyhavepurposefullymadetheirrapidandrepeateddistributionaprimaryfocusoftheirinfrastructure.
Thesefasterserversthusfacilitatedthemassdistributionofpopularcopyright-infringingworks,whichisincompatiblewiththenotionthatMegaupload.
comwasmerelyacyberlocker,orthatuserswereprimarilyinterestedinsharingpersonal,non-infringingmaterials.
TheestablishmentofthesefasterserversdemonstratesthattheMegaConspiracymonitoredthecontentsoftheMegaSites,analyzeduserdemand,andrespondedsoastomaximizetheirfinancialprofit.
b.
DOTCOMpersonallynegotiatedthetermsofthecontractualagreementwithCogentCommunications("Cogent"),theInternethostingproviderthatownedthecomputerserverslocatedinWashington,D.
C.
BetweenatleastOctoberof2008andJanuaryof2012,theMegaConspiracyleasedbandwidthand,beginninginDecemberof2010,theseservers,maintainingexclusivepossessionandaccess,exceptformaintenanceandsupportworkperformedbyCogent.
DOTCOMalsopersonallynegotiatedthetermsofthecontractualagreementswithCarpathiaHosting,Inc.
("Carpathia"),andLeaseweb.
BetweenatleastSeptemberof2005andJanuaryof2012,theMegaConspiracyleasedserversfromCarpathia,maintainingexclusivepossessionandaccess,exceptformaintenanceandsupportworkperformedbyCarpathia.
BetweenatleastAprilof2007andJanuaryof2012,theMegaConspiracyleasedandalsopurchasedserversPage89of191fromLeaseweb,maintainingexclusivepossessionandaccess,exceptformaintenanceandsupportworkperformedbyLeaseweb.
c.
RepresentativesoftheFBIhaveconductedapreliminaryanalysisoftwoofthecomputerserverslocatedinWashington,D.
C.
,whichwereownedbyCogentandleasedexclusivelytotheMegaConspiracy.
AsofJanuary19,2012,approximately2,444fileswerestoredonthesetwoserversandwereavailabletothepublicthroughtheMegaSites.
Thepreliminaryanalysisdemonstratesthatofthese2,444files,morethan2,200fileshadmultipleURLlinkspointingtothesamefile;morethan550fileshadover100URLlinkspointingtothesamefile;morethan100fileshadover500URLlinkspointingtothesamefile;andapproximately30fileshadover1,000URLlinkspointingtothesamefile.
d.
Thepreliminaryanalysisfurtherdemonstratesthatofthe2,444files,morethan1,000ofthefiles(roughly43%)alreadyhadatleastonecopyrightinfringementtakedownrequestsubmittedtotheMegaConspiracyindicatingthatthecopyofthecopyrightedworkwasinfringing.
BecausethevastmajorityoffileshadmultipleURLlinkspointingtothesamefile,morethan800fileshadbeenthesubjectofmultipletakedownrequests,yetremainedaccessiblethroughadditionalURLlinks.
Inaddition,morethan100fileshadover50takedownrequestssubmittedforeachfile;andmorethan30fileshadover200takedownrequestssubmittedforeachfile.
e.
Intotal,thepreliminaryanalysisofthe2,444files,includingcontentandfilename,indicatesthatatleast90%ofthefilesareinfringingcopiesofnon-pornographiccopyrightedworks;7%arepornographicvideos(manyofwhicharecopyrighted);and3%areunknownduetoencryptionorbecausethefilehasbeensplitintomultipleparts.
73.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
TheMegaConspiracyandotherscreatedasoftwareprogramknownas"MegaManager"tofacilitatefiletransferstotheMegaSites.
MegaManagerenabledusers,forexample,touploadfilesmorequickly,toqueuemultipleuploadsanddownloads,topauseandrestartuploadsanddownloads,andtocheckwhetheraparticularURLlinkwasstillactive.
Byprovidingthesefeatures,theMegaManagerfacilitatedthewidespreadreproductionanddistributionofcopyright-infringingmaterials.
b.
TheabilitytocheckwhetheraparticularURLlinkwasstillactivealloweduserstodistributecopyright-infringinglinksonline,particularlyonthird-partylinkingsites,andtoquicklyrecreateandredistributelinksthathadbeendisabledduetocopyrightinfringementtakedownnotices.
Page90of191AffirmativeRelianceonThird-Party"Linking"Sites74.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AsstatedinParagraph33(a),Megaupload.
comdoesnotprovideasearchfunction,andalthoughMegavideo.
comdoesprovideasearchfunction,anysearchforafull-lengthcopyrightedvideobythepublicwouldnotproduceanyrelevantresults.
Instead,theMegaConspiracybusinessmodelreliesonthousandsofthird-party"linking"sites,whichcontainuser-generatedpostingsoflinkscreatedbyMegaupload.
com(aswellasURLlinkscreatedbyotherMegaSites,suchasMegavideo.
comandMegaporn.
com).
Thisthird-partylinkingmodelallowedmillionsofuploadersanduserstoadvertise,throughouttheInternet,URLlinkstoinfringingcontentavailableontheMegaSites,hamperedtheidentificationandremovaloftheseinfringingworks,and—byprovidingtheinfrastructurethatdecentralizedthelinkingprocess—concealedtheMegaConspiracy'sroleintheunlawfulbehavior.
Suchpostingsonthird-partylinkingsiteswerefinanciallyencouragedbytheUploaderRewardsprogram.
URLlinkspostedonthesethird-partylinkingsitesarepubliclyavailableandareinconsistentwiththeconceptofstorageofprivatedata.
Inaddition,thepurposeofpostingURLlinksonthird-partylinkingsitesistoadvertisetheunderlyingfilestothegeneralpublic;therefore,suchfilescannotbelegitimateback-upcopiesofcopyrightedworks.
b.
OnoraboutSeptember25,2007,VANDERKOLKsentane-mailentitled"RE:Auditing"toanunindictedconspiratorandemployeeoftheMegaSites.
Attachedtothee-mailwasatextfile"AuditorGuidelines,"whichcontainedthefollowinginstructionstoemployeesresponsibleforauditingfilesontheMegaSites:MegaroticVideo:Videosthathavetobesettoprivate:-Longlengthhighqualityvideosthatareobvious----Videowithknownlogos/websiteURL'sinitofcopyrightholdersMegavideo:-Marksexy/softerotic(nonnude)videosasprivate-Deletesofteroticwithnudity-Deletepornographic/extremenudity(visibleorgans/penetration/etc.
)andblocktheuser-Deletehateful/violentcontent(obviousracism/realkilling/torture,etc.
)AuditingforMegavideoisrathersimple,justmakesurethattheabovedescribedstuffwillbedeletedandtherestofthevideoscanbeapproved.
Page91of191Videosthatweresetto"private"werenotpubliclydisplayedonthefrontpagesoftheMegaSites,butusersstillhadtheabilitytodistributetheseURLlinksinthesamemannerasnon-privatelinks(forexample,onthird-partylinkingsites).
c.
OnoraboutMarch20,2011,VANDERKOLKforwardedane-mailfromanunindictedconspiratortoaseparateunindictedconspirator,bothofwhomwerethenemployeesoftheMegaSites.
Intheoriginale-mail,entitled"DownloadingMoviesIssue(Megavideo),"theemployeestated:Pleasenotethatwehavebeenreceivinginquiriesregardingissuesindownloadmovies/videosfromMegavideo.
PremiumcustomerswouldstatethattheywouldberedirectedtothePurchasePremiumpageatMegavideo(http://wwwmegavideo.
com/c=premium)oncetheyclickon"DownloadOriginal"evenifthewerealreadyloggedintotheirpremiumaccount.
Wewereabletorecreatetheproblemtheothernightandhereiswhatwefoundout.
DownloadingthemoviedirectlyfromMegavideodoesnotredirecttheusertothePremiumPurchasepage.
However,iftheyaccessedthemovie/videofromthird-partysites(testedsites:Quicksilverscreen,Watchnewfilms,Surfthechannel)andclickedon"DownloadOriginal"theywouldberedirectedtothesaidpage.
WeproposethatweadvisethecustomerstoaccessthemthroughtheMegavideowebsitefirstbeforeattemptingtodownloadaspecificmovieorvideotopreventthisfromhappening.
ThewebsitesQuicksilverscreen.
com,Watchnewfilms.
com,andSurfthechannel.
comarethird-partylinkingsites.
d.
OnoraboutSeptember16,2011,co-defendantNOMMsentananalysisofMegavideo.
comtoORTMANNbye-mail.
TheanalysisincludescommentsfromusersoftheMegaSites,includingthefollowing:"Thesearchfunctionforthesiteshouldalsolistfulllengthvideos.
Currently,moviesthatdonothavecopyrightinfringementsarealsonotbeinglistedinthesearch.
"Theanalysisfurtherindicates:"MoviesshouldalsobeavailableinMegavideoandnotfromthirdpartywebsitesonly[.
]"Thephrase"thirdpartywebsites"appearstorefertothird-partylinkingsites.
e.
Accordingtointernale-mailsanddocumentsobtainedfromGoogle,membersoftheMegaConspiracy,includingDOTCOMandVANDERKOLK,beganaccessingGoogleAnalyticsreportsforMegavideo.
com,Megaupload.
com,andMegaporn.
com.
TheGoogleAnalyticsaccountwasopenedatleastasearlyasNovemberof2008underthename"TIMPage92of191VESTOR,"whichisanaliasforDOTCOM.
GoogleAnalyticsprovideswebsitemeasurementtools,suchasthenumberofvisitsduringaspecifiedtimeperiod.
i.
AparticularGoogleAnalyticsreportshowsthatbetweenNovember19,2010,andFebruary18,2011,Megavideo.
comhadroughly1billionvisits.
Lessthan13%ofthesevisitswere"directtraffic"—meaningvisitsthatwerelikelygeneratedbytheuserhavingdirectlytypedtheURLlinkintothewebbrowserorhavingbookmarkedtheURLlink.
Morethan85%ofthevisitstoMegavideo.
comwerefrom"referringsites,"meaningtheuserappearstohaveclickedaURLlinkonthereferringsitethatdirectedtheusertoMegavideo.
com.
Thetopreferringwebsitesduringthattimeperiodwerethird-partylinkingsites,suchasseriesyonkis.
com(morethan110millionreferrals)andsidereel.
com(morethan60millionreferrals).
ThereportsfromGoogleAnalyticsforthefollowingtimeperiodsreflectsimilardata:February19,2011—May18,2011;May19,2011—August18,2011;August19,2011—October27,2011.
ii.
AparticularGoogleAnalyticsreportshowsthatbetweenNovember19,2010,andFebruary18,2011,Megaupload.
comhadroughly1billionvisits.
Lessthan20%ofthesevisitswere"directtraffic,"androughly80%werefrom"referringsites.
"Thetopreferringwebsitesduringthattimeperiodwerethird-partylinkingsites,suchastaringa.
net(morethan50millionreferrals),seriesyonkis.
com(morethan25millionreferrals),andmultiupload.
com(morethan20millionreferrals).
ThereportsfromGoogleAnalyticsforthefollowingtimeperiodsreflectsimilardata:February19,2011—May18,2011;May19,2011—August18,2011;August19,2011—October27,2011.
f.
Government-operatedweblogshavebeencountingthenumberofvisitstoMegaupload.
comsinceJanuary19,2012.
ThelogsrecordwhetherauserdirectlytypedtheMegaupload.
comaddressintothewebbrowseroraccessedMegaupload.
comthroughabookmarkorsearchengine.
Thelogsalsorecord"referralwebsites,"meaningwebsitesthatcontainedalinktoMegaupload.
com,whichauserclickedtoaccessMegaupload.
com.
Thelogscontainmorethan480millionreferralentriesspanning19non-consecutivedaysinJanuary,February,andMarchof2012.
Apreliminaryanalysisofthelogs,inparticularthereferralwebsites,showsthatnineofthetop20referralwebsiteswereknownthird-partylinkingsites,whichfeaturedcopyright-infringingmaterials.
Thesewebsiteswereresponsibleforapproximately31millionreferralstoMegaupload.
com.
Inaddition,tenofthetop20referralwebsites,whichwereresponsibleforapproximately69millionreferralstoMegaupload.
com,featuredpornographicmaterials(someofwhichappearstobecopyrighted).
ThePage93of191remainingwebsiteinthetop20wasMegavideo.
com,whichwasresponsibleforapproximately20millionreferralstoMegaupload.
com.
WillfulFailuretoRemoveCopyright-InfringingFiles75.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AsstatedinParagraph32(g),apreliminaryanalysisofthedatabasesandassociatedsoftwarecodeshowsthattheMegaSitesmaintaineda"blacklist"of221uniquefiles,whichwereidentifiedbyMD5hash.
URLlinkstofilesontheblacklistweresupposedlyautomaticallydisabledbythesystem.
b.
Thepreliminaryanalysisindicatesthat219ofthe221MD5hasheswereaddedtotheblacklistbetweenAugust14,2007,andOctober10,2007.
Inaddition,oftheknownfilenamesintheblacklist,66areindicativeofexplicitpornographicmaterial;72areindicativeofcopyrightedtelevisionprogramsormotionpictures;and83hadanunknownfiletitleornotitlewhatsoever.
c.
Inadditiontotheblacklistoffiles,theMegaSitesalsomaintainedablacklistofkeywords.
All146ofthekeywordsareindicativeofexplicitpornographicmaterial.
76.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
WithrespecttoParagraph38(j),therepresentativeofvariouscopyrightownersistheAsociaciónProtectoradeCineyMúsica("APCM")Mexico.
Accordingtopubliclyavailableinformation,APCMisanonprofitassociationestablishedinMexicoandBrazil(whereitisknownastheAssociaoAntipiratariadeCinemaeMúsica),whosemissionistodefendtheintellectualpropertyrightsofitsmembers.
Thetwoe-mailssentbyAPCMtolegal@megaupload.
com,datedFebruary4andApril23,2009,identifytwodifferentsetsofURLlinkstocopyright-infringingmaterialsavailableontheMegaSites.
ThesecopyrightedmaterialswereatthetimeownedbymembersofAPCM.
TheFebruary4,2009e-mailidentifiesmorethan6,000URLlinks,andtheApril23,2009e-mailidentifiesmorethan1,000URLlinks,alltocopyright-infringingmaterialsavailableontheMegaSites.
Intotal,thecopyright-infringingfilesassociatedwiththesemorethan7,000URLlinksweredownloadedmorethan16.
5milliontimes.
b.
WithrespecttoParagraphs38(j)and38(k),thee-mailssentbyDOTCOMonApril23and24,2009,relatetothesamecourseofevents.
AlsoonApril23,2009,VANDERKOLKforwardedtoORTMANNtheAPCM'sPage94of191February4,2009e-mail,writing,"anothercandidateforundeletion.
"Minuteslater,VANDERKOLKforwardedtoORTMANNtheAPCM'sApril23,2009e-mail,writing,"alsoneedstobeundeleted.
"Basedonthesee-mails,itappearsthataccesstotheURLlinksidentifiedbyAPCMhadbeendisabled(althoughtheunderlyingcopyright-infringingmaterialsremainedaccessiblethroughotherURLlinkspointingtothesamematerials),andthatDOTCOMinstructedVANDERKOLKandORTMANNto"undelete"theURLlinks,thusmakingthemavailableagaintothegeneralpublic.
AsofJanuary19,2012,approximately4,600ofthese7,000URLlinkstocopyright-infringingmaterialswerestillactiveandavailableontheMegaSites(roughly2,400URLlinksweredisabledasaresultoflatercopyrighttakedownnotices;however,theunderlyingcopyright-infringingcontentremainedaccessibletomembersofthepublic).
c.
DespitereceivingtheFebruary4andApril23,2009takedownrequests,theMegaConspiracynotonlyfailedtocompletelyblockaccesstothecopyright-infringementcontentbutpurposefullychosetodistributethesefilesafterbeingtoldtheywereinfringingbecauseremovingthecontentwouldhavereducedtheirrevenue.
Afterthesetakedownrequestsweresubmitted,newURLlinkstothesameinfringingcontentwerecreated,andtheinfringingcontentwasdownloadedmorethan1.
7milliontimesthroughthenew,post-noticeURLlinks.
d.
Intotal,APCMMexicosubmittedatleast400takedownrequests,whichidentifiedmorethan550,000URLlinkstocopyright-infringingmaterialsavailableontheMegaSites.
APCMBrazilsubmittedatleast2,500takedownrequests,whichidentifiedmorethan1.
2millionURLlinkstocopyright-infringingmaterialsavailableontheMegaSites.
AdditionalEvidenceofDOTCOM'sKnowledgeofCopyrightInfringement77.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutApril27,2009,DOTCOMsentane-mailtoVANDERKOLK,ORTMANN,andco-defendantBENCKO.
Inthee-mail,DOTCOMwrote:"Iwantbothofyou[VANDERKOLKandBENCKO]toemailmeweeklydetailedworkreports.
Iwanttoknowwhatyouarecurrentlyworkingonandwhattaskshavebeencompleted.
IexpectthoseemailseveryFriday.
"b.
OnoraboutMay25,2009,NOMMsentane-mailtoDOTCOMentitled"statusreport.
"Inthee-mail,NOMMwrote,"Timeforstatusreportagain.
"NOMMthenprovidedadetaileddescriptionofsoftwarecodinghehadrecentlydonefortheMegaSites.
NOMMfurtherwrote,"AsPage95of191alwaysmostofmycurrenttasksinfoalsoMathias[ORTMANN]has,wescheduleandplaneverythingwithhimsoheisuptodate.
"c.
DOTCOMmaintainedanumberofactiveaccountsontheMegaSites.
OneofhisMegaupload.
comaccountscontainedaninfringingcopyofthecopyrightedmotionpictureLooseChange.
Theexactfilenamewas"911–LooseChange2ndEditionDVDRip(ConCen)XviD.
avi.
"OntheMegaSitestherewere97otherURLlinkspointingtothesameinfringingcopyofLooseChange.
Inaddition,theMD5hashforthecopyofLooseChangestoredinDOTCOM'sMegaupload.
comaccountmatchedthefilenameanduniqueMD5hashofinfringingcopiesofLooseChangeavailableonseveralthird-partylinkingsites,oneofwhichredirectedtoMegaupload.
com.
d.
E-mailssenttoanumberofaccountsassociatedwiththeMegaSiteswereforwardedtoDOTCOM.
BetweenatleastJuneof2007andFebruaryof2008,DOTCOMreceivedmorethan400,000e-mailsaddressedtopaypal@megaupload.
com,whichconsistedprimarilyofnotificationsofpaymentsreceivedbytheMegaSitesthroughPayPal.
BetweenatleastJuneof2007andAugustof2008,DOTCOMreceivedmorethan180,000e-mailsaddressedtoabusereport@megaupload.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastJuneof2007andDecemberof2011,DOTCOMreceivedmorethan280,000e-mailsaddressedtoabuse@megaupload.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastJuneof2007andAugustof2008,DOTCOMreceivedmorethan80,000e-mailsaddressedtoorsentfromsupport@megaupload.
com,whichconsistedprimarilyofrequestsforusersupport,notificationsofaccountsuspensions,andnotificationsassociatedwiththeUploaderRewardsprogram.
BetweenatleastJuneof2007andDecemberof2011,DOTCOMreceivedmorethan80,000e-mailsaddressedtolegal@megaupload.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastAugustof2007andDecemberof2011,DOTCOMreceivedmorethan79,000e-mailsaddressedtoabuse@megavideo.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastJuneof2007andDecemberof2011,DOTCOMreceivedmorethan30,000e-mailsaddressedtosales@megaupload.
com,whichconsistedprimarilyofcorrespondencefromthird-partybusinesses.
BetweenatleastJuneof2007andDecemberof2011,DOTCOMreceivedmorethan20,000e-mailsaddressedtohq@megaupload.
com,whichconsistedprimarilyofe-mailsassociatedwithDOTCOM'sroleastheChiefExecutiveOfficeroftheMegaSites.
BetweenatleastAugustof2007andAprilof2009,DOTCOMreceivedmorethan20,000e-mailsaddressedtodmca@megavideo.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastNovemberof2008andDecemberof2011,DOTCOMreceivedmorethanPage96of1918,000e-mailsaddressedtoabuse@megaporn.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
BetweenatleastFebruaryof2009andDecemberof2011,DOTCOMreceivedhundredsofe-mailsaddressedtolegal@megaporn.
com,whichconsistedprimarilyofcopyright-infringementandothertakedownnotices.
AdditionalEvidenceofORTMANN'sKnowledgeofCopyrightInfringement78.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
E-mailssenttoanumberofaccountsassociatedwiththeMegaSiteswereforwardedtoORTMANN.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan90,000e-mailsaddressedtoorsentfromsupport@megaupload.
com,andduringthesametimeperiod,morethan90,000e-mailsaddressedtoabuse@megaupload.
com.
BetweenatleastJuneof2007andNovemberof2010,ORTMANNreceivedmorethan700,000e-mailsaddressedtowebmaster@megaupload.
com,whichconsistedprimarilyofrequestsforusersupport,suchaspasswordresetsandPayPalpaymentnotifications.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan45,000e-mailsaddressedtoaccount@megaupload.
com,whichconsistedprimarilyofissuesrelatingtouseraccounts,suchaspremierstatusandpaymentinformation.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan12,000e-mailsaddressedtobug@megaupload.
com,whichconsistedofuser-reportedtechnicalproblems.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan14,000e-mailsaddressedtoorsentfromsupport@megarotic.
com,whichconsistedprimarilyofrequestsforusersupport.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan10,000e-mailsaddressedtoaccount@megarotic.
com,whichconsistedprimarilyofissuesrelatingtouseraccounts,suchaspremierstatusandpaymentinformation.
BetweenatleastAugustof2007andJanuaryof2009,ORTMANNreceivedmorethan8,000e-mailsaddressedtoaccount@megavideo.
com,whichconsistedprimarilyofissuesrelatingtouseraccounts,suchaspremierstatusandpaymentinformation.
BetweenatleastDecemberof2006andJanuaryof2009,ORTMANNreceivedmorethan5,200e-mailsaddressedtolegal@megaupload.
com.
AdditionalEvidenceofVANDERKOLK'sKnowledgeofCopyrightInfringement79.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
VANDERKOLKmaintainedanumberofactiveaccountsontheMegaSites.
OneofhisMegaupload.
comaccountscontainedinfringingcopiesPage97of191ofcopyrightedworksuploadedbyVANDERKOLK,includingavarietyofmotionpicturesandtelevisionprograms.
b.
Thesecopyright-infringingworksincludedbooksfromthegraphicnovelseriesInuyashaandShigurui;episodesfromthetelevisionprogramsEarth:ThePowerofthePlanet,UglyBetty,VenusVersusVirus,andTheLastDaysofLehmanBrothers;andthemotionpicturesBruno,Taken,OpenSeason3,Legion,andL'Italien.
OntheMegaSitesthereweremorethan2,400otherURLlinkspointingtothesameinfringingcopyofL'Italien;morethan800URLlinkspointingtothesameinfringingcopyofBruno;andmorethan150URLlinkspointingtothesameinfringingcopyofUglyBetty.
TheURLlinkscreatedbyVANDERKOLKfortheinfringingcopyofthemotionpictureBrunoreceivedapproximately97downloadsorviewsbyusersoftheMegaSites.
c.
E-mailssenttoanumberofaccountsassociatedwiththeMegaSiteswereautomaticallyforwardedtoVANDERKOLK.
BetweenatleastSeptemberof2009andSeptemberof2010,VANDERKOLKreceivedmorethan1.
7millione-mailsaddressedtowebmaster@megaupload.
com.
MisrepresentationstoCopyrightOwners80.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofMicrosoftCorporation("Microsoft")totestifytothefollowingfacts:a.
WithrespecttoParagraph34(b),theMay2,2006e-mailwasreceivedbyarepresentativeofMicrosoftCorporation.
Basedontheplainlanguageofthee-mail,MicrosoftreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
MicrosoftwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
MicrosoftreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
81.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
BetweenDecemberof2008andJanuaryof2012,Microsoftsubmittedmorethan200takedownrequestsforinfringingcopiesofcopyrightedcomputersoftwareavailableontheMegaSites,includingtakedownPage98of191requestsforsoftwaretitlessuchasWindowsVista,Windows7,WindowsSmallBusinessServer2011,Office2010,andWindowsHomeServer2011.
Someofthesecopyright-infringingworksincludedsoftwarethatwascapableofgeneratinganunauthorizedkeytocircumventcopyright-protectionmeasures.
b.
WhilesomeindividualURLlinkstotheseinfringingcopiesofMicrosoft'scopyrightedworkweredisabled,theMegaConspiracyneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent,andthereforetheinfringingcontentremainedaccessiblethroughadditionallinks.
AsofJanuaryof2012,approximately450oftheseadditionalURLlinksthatprovidedaccesstothesameinfringingcopyofthefileremainedactive.
TheseURLlinksallowedusersoftheMegaSitestodownloadthesameinfringingcopiesofMicrosoft'scopyrightedworksapproximately25,000times.
c.
AfterMicrosoftsubmittedanumberofthetakedownrequests,copiesofthesameinfringingfileswerere-uploadedbyanumberofunindictedconspirators.
ThesereestablishedURLlinksallowedusersoftheMegaSitestodownloadthesameinfringingcopiesofMicrosoft'scopyrightedworksmorethan5,000times.
82.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofSonyPicturesEntertainmentInc.
("Sony")totestifytothefollowingfacts:a.
WithrespecttoParagraph34(c),theJanuary25,2008e-mailwasreceivedbyarepresentativeofSonyPicturesEntertainmentInc.
7Basedontheplainlanguageofthee-mail,SonyreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
SonywasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
SonyhiredthecompanyAiplexSoftwarePvt.
Ltd.
("Aiplex")toidentifyinfringingcopiesofSony'scopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
AiplexwouldsubmitDMCAtakedownrequestsonbehalfofSony.
7AsexplainedinParagraph96(a),thee-mailwassentbyVANDERKOLK.
Page99of191c.
SonyreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
83.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofNBCUniversaltotestifytothefollowingfacts:a.
WithrespecttoParagraphs34(d)-(e),theMay6,2008e-mailswerereceivedbyarepresentativeofNBCUniversal.
8Basedontheplainlanguageofthee-mails,NBCUniversalreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
NBCUniversalwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
NBCUniversalreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
84.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
NBCUniversal'stakedownnotificationrecordsreflectthatforthefollowingcopyrightedmotionpictures,NBCUniversalsubmittedthelistednumberoftakedownnoticestotheMegaSitesduring2011foruniqueURLslinkingtothemotionpicture:FastFive,15,995URLlinks;DespicableMe,7,595URLlinks;TheAdjustmentBureau,6,052URLlinks;Cowboys&Aliens,3,500URLlinks;andBridesmaids,3,485URLlinks.
ManyofthesenoticesweresubmittedbeforethemotionpictureshadbeenreleasedonDVD.
Accordingtoapreliminaryreviewofthedatabases,multipleuniqueURLswerelinkedtothesamemotionpicturefile(asidentifiedbyitsuniquehashvalue).
ThereviewrevealedthefollowinginformationforjustoneoftheuniquehashvaluesforthemotionpictureFastFive:1.
NBCUniversalsubmitteditsfirstcopyright-infringementtakedownrequestforaURLlinkassociatedwithaninfringingcopyofthismotionpictureonoraboutApril28,2011,priortothemotionpicture'sreleaseintheUnitedStates.
Accesstothatparticularlinkwasdisabled,butaccesstotheinfringingcontentwasnotdisabled.
8AsexplainedinParagraph96(b),thee-mailwassentbyVANDERKOLK.
Page100of1912.
AfterNBCsubmittedtheApril28,2011takedownnotification,theuniquemotionpicturefilewasviewed66,732timesonMegavideo.
comthroughotherURLlinkspointingtothesamefile,andusersoftheMegaSitessuccessfullycreatedmorethan400newuniqueURLlinkstothesameuniquemotionpicturefile.
85.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeof20thCenturyFoxHomeEntertainmentLLC("Fox")totestifytothefollowingfacts:a.
20thCenturyFoxHomeEntertainmentLLCreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
FoxwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
FoxhiredthecompaniesDtecNetSoftwareApS("DtecNet")andIrdetoSiliconValley("Irdeto"),formerlyknownasBayTSP,toidentifyinfringingcopiesofFox'scopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
DtecNetandIrdetowouldsubmitDMCAtakedownrequestsonbehalfofFox.
c.
FoxreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
86.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofParamountPicturesCorporation("Paramount")totestifytothefollowingfacts:a.
ParamountPicturesCorporationreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
ParamountwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
ParamounthiredIrdetotoidentifyinfringingcopiesofParamount'scopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
IrdetowouldalsosubmitDMCAtakedownrequestsonbehalfofParamount.
Page101of191c.
ParamountreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
87.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofTheWaltDisneyCompany("Disney")totestifytothefollowingfacts:a.
WithrespecttoParagraph34(h),theJuly10,2008e-mailwasreceivedbyarepresentativeofTheWaltDisneyCompany.
9Basedontheplainlanguageofthee-mail,DisneyreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
DisneywasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
DisneyreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
88.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Disney'stakedownnotificationrecordsreflectthatforthefollowingcopyrightedmotionpictures,DisneysubmittedtakedownnoticestotheMegaSites:Tangled,ToyStory3,Tron:Legacy,Cars2,andPiratesoftheCaribbean:OnStrangerTides.
ManyofthesenoticesweresubmittedbeforethemotionpictureshadbeenreleasedonDVD.
Accordingtoapreliminaryreviewofthedatabases,multipleuniqueURLslinkedtothesamemotionpicturefile(asidentifiedbyitsuniquehashvalue).
Thereviewfurtherrevealedthefollowing:1.
AfterDisneysubmittedthefirsttakedownnotificationsforURLslinkingtotheuniquemotionpicturefilesassociatedwithToyStory3(asidentifiedbyuniquehashvalues),userscontinuedtodownloadthefiles57,147timesthroughotherlinkspointingtothesamefiles.
Someofthesefilesincludedthecompletemotionpicture;otherswerepartsofamotionpicturebrokenupintomultiplefiles.
2.
Forallfivemotionpictureslistedabove,afterDisneysubmitteditsfirsttakedownnotificationsfortheURLslinkingtothoseunique9AsexplainedinParagraph96(d),thee-mailwassentbyORTMANN.
Page102of191motionpicturefiles,userssuccessfullycreatedmorethan5,000newuniqueURLlinkstotheuniquemotionpicturefiles,andthesefileswereviewedmorethan400,000timesonMegavideo.
com.
89.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofHomeBoxOffice,Inc.
("HBO")totestifytothefollowingfacts:a.
HomeBoxOffice,Inc.
reasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
HBOwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
HBOreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
90.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofZuffa,LLC("Zuffa"),totestifytothefollowingfacts:a.
ZuffaistheparentcompanyofUltimateFightingChampionship.
AnumberofinfringingcopiesofZuffa'scopyrightedworkswerereproducedanddistributedontheMegaSites.
b.
ZuffareasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
ZuffawasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
c.
ZuffareliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
91.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofAiplextotestifytothefollowingfacts:a.
AnumberofcopyrightownershiredAiplextoidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
Thecopyrightownersincluded,butPage103of191werenotlimitedto,Sony.
AiplexsubmittedtakedownrequeststotheMegaSitesonbehalfofSony.
b.
WithrespecttoParagraph34(m),theMay13,2011e-mailwasreceivedbyarepresentativeofAiplex.
Basedontheplainlanguageofthee-mail,AiplexreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
AiplexwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
c.
AiplexreliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
92.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofPeerMediaTechnologies,Inc.
("PeerMedia')totestifytothefollowingfacts:a.
AnumberofcopyrightownershiredPeerMediaTechnologies,Inc.
toidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
PeerMediasubmittedDMCAtakedownrequeststotheMegaSitesonbehalfofcopyrightowners.
b.
PeerMediareasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
PeerMediawasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
c.
PeerMediareliedonmisrepresentationsmadebytheMegaConspiracyandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
93.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofDtecNettotestifytothefollowingfacts:a.
AnumberofcopyrightownershiredDtecNet,alsoknownasMarkMonitor,toidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
Thecopyrightownersincluded,butwerenotlimitedto,FoxandWarnerPage104of191BrothersEntertainment.
DtecNetsubmittedDMCAtakedownrequeststotheMegaSitesonbehalfofthesecopyrightowners.
b.
DtecNetreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
DtecNetwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
c.
DtecNetreliedonthesemisrepresentationsandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
94.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofIrdetototestifytothefollowingfacts:a.
AnumberofcopyrightownershiredIrdetotoidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
Thecopyrightownersincluded,butwerenotlimitedto,Paramount,Fox,andNBCUniversal.
IrdetosubmittedDMCAtakedownrequeststotheMegaSitesonbehalfofthesecopyrightowners.
b.
WithrespecttoParagraph34(f),theMay12,2008e-mailwasreceivedbyarepresentativeofIrdeto,knownatthattimeasBayTSP.
10Basedontheplainlanguageofthee-mails,IrdetoreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
IrdetowasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
c.
IrdetoreliedonthesemisrepresentationsandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
10AsexplainedinParagraph96(c),thee-mailwassentbyORTMANN.
Page105of19195.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofWarnerBrothersEntertainment("Warner")totestifytothefollowingfacts:a.
WarnerBrothersEntertainmentreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
WarnerwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
b.
WarnerreliedonthesemisrepresentationsandcontinuedtosubmittakedownnotificationsratherthanpursueadditionalactionagainsttheMegaSites.
96.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
WithrespecttoParagraph34(c),accordingtointernale-mailsobtainedthroughtheinvestigation,theJanuary25,2008e-mailwassentbydefendantVANDERKOLKthroughthee-mailaddressmegavideo.
support@gmail.
com.
Inthee-mail,VANDERKOLKfalselyclaimed,"Simplycopyandpasteoneormultiplelinksintothetextarea[oftheAbuseTool]andthevideosand/orfileswillberemovedfromoursystemimmediately.
"b.
WithrespecttoParagraphs34(d)-(e),theMay6,2008e-mailsweresignedonbehalfofthe"MegavideoAbuseDesk,"ratherthanthe"MegauploadAbuseDesk.
"Accordingtointernale-mailsobtainedthroughtheinvestigation,thesee-mailsweresentbydefendantVANDERKOLKthroughthee-mailaddressmegavideo.
support@gmail.
com.
Inthefirste-mailsentonMay6,2008,VANDERKOLKfalselyclaimedthatMegavideo.
comis"oneofthefewonlinevideocommunitiesthatma[de]itimpossibletofraudulentlyhostfull-lengthfeaturemoviesduetoahuman-assistedautomaticdetection/deletionmechanism.
"Intheseconde-mailsentonMay6,2008,VANDERKOLKfalselyclaimedthattheAbuseToolwouldprovide"directdeletionrights,whichwillcompletelybypassourabuseteamandtakefilesandfilmsofflineimmediately.
"c.
WithrespecttoParagraph34(f),accordingtointernale-mailsobtainedthroughtheinvestigation,theMay12,2008e-mailwassentbydefendantORTMANNthroughthee-mailaddressmegsupp@googlemail.
com.
Inthee-mail,ORTMANNfalselyclaimedthattheMegaSites"aretakinggreatcareinexpeditiouslydeletinganymaterialreportedtousthroughDMCAtakedownnotices.
"Page106of191d.
WithrespecttoParagraph34(h),accordingtointernale-mailsobtainedthroughtheinvestigation,theJuly10,2008e-mailwassentbydefendantORTMANNthroughthee-mailaddressmegsupp@googlemail.
com.
Inthee-mail,ORTMANNfalselyclaimedthat"enablingyou[Disney]totakedownillegalcontentinrealtimehelpsbothyouandus.
"e.
WithrespecttoParagraphs34(i),theNovember23,2010communicationwasanautomatedonlineresponse,generatedpursuanttosoftwarecodingwrittenbyamember(s)oftheMegaConspiracy,inresponsetoatakedownrequestthatincludedalinktothe2010versionofthecopyrightedfilm"ANightmareonElmStreet.
"Warneristhecopyrightowner.
f.
WithrespecttoParagraphs34(j),theMarch9,2011communicationwasanautomatedonlineresponse,generatedpursuanttosoftwarecodingwrittenbyamember(s)oftheMegaConspiracy,inresponsetoatakedownrequestthatincludedlinkstothe2009versionofthecopyrightedfilm"Fridaythe13th"(intwoparts).
Warneristhecopyrightowner.
g.
WithrespecttoParagraphs34(k),theMarch11,2011communicationwasanautomatedonlineresponse,generatedpursuanttosoftwarecodingwrittenbyamember(s)oftheMegaConspiracy,inresponsetoatakedownrequestthatincludedlinkstocopiesofepisodesofthecopyrightedtelevisionshow"ModernFamily.
"Foxisthecopyrightowner.
h.
WithrespecttoParagraphs34(l),theApril30,2011communicationwasanautomatedonlineresponse,generatedpursuanttosoftwarecodingwrittenbyamember(s)oftheMegaConspiracy,inresponsetoatakedownrequestthatincludedalinktothecopyrightedmotionpicture"FastFive.
"NBCUniversalisthecopyrightowner.
i.
WithrespecttoParagraphs34(n),theAugust10,2011communicationwasanautomatedonlineresponse,generatedpursuanttosoftwarecodingwrittenbyamember(s)oftheMegaConspiracy,inresponsetoatakedownrequestthatincludedlinkstothe2010versionofthecopyrightedmotionpicture"ANightmareonElmStreet.
"Warneristhecopyrightowner.
Page107of191AdditionalVictimTestimony97.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsavictimreferredtohereas"JM"totestifytothefollowingfacts:a.
JMwastheownerandsoleemployeeofacomputersoftwarecompanyoperatedfromJM'shomeinNewZealand.
Thesoftwareallowedcustomerstocreateaudioeffectsthroughagraphicalsynthesizerprogram.
JMadvertizedandsoldthesoftwarefor$69throughanInternetwebsite.
CustomerslocatedintheUnitedStatespurchasedJM'ssoftware.
b.
JM'ssoftwarerequireduserstoregistertheproductpriortoactivation,andJMwasabletoidentifyinfringingcopiesofthesoftwarebycomparingregistrationinformationwithpaymentrecords.
SalesofJM'ssoftwareincreaseduntiltheendof2009,afterwhichtheybegantodrop.
JMbelievedthatthedropwasduetocopyrightinfringement.
Duringa5-dayperiodinSeptemberof2009,JMestimatedthatmorethan65%ofthesoftwareregistrationswereunpaid,copyright-infringingactivations.
c.
Inanattempttocombatcopyrightinfringement,JMregularlydistributedupdatesofthesoftwarewithmodifiedsecurityprovisions.
EachtimeJMdistributedanupdatedversionofthesoftware,saleswouldincreaseslowlyandthendrop.
JMinvestedsignificanttimeintocombatingcopyrightinfringement,whichhadadirectimpactonhisprofits.
d.
JMidentifiedapproximately10to20URLlinkstocopyright-infringingversionsofthesoftwareavailableonMegaupload.
com,andJMsubmittedtakedownrequestsforthoselinks.
JMstatedthatiftheunderlyingfilesremainedactiveonMegaupload.
com,eveniftheindividualURLlinksweredisabled,thentheprocesswashopelessbecauseJMcouldnotaffordlegalrepresentationtobringacopyright-infringementlawsuit.
98.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsavictimreferredtohereas"TH-DS"totestifytothefollowingfacts:a.
TH-DSwastheco-owner,piracymanager,andoneoftwoemployeesofadigitalscrapbookcompanyoperatedfromTH-DS'shomeintheUnitedStates.
TH-DShasbeeninbusinessforapproximatelythreeyears.
Thescrapbookkitsconsistedofartisticdesignsandbackgroundsfororganizingdigitalpictures.
TH-DSandcompanyadvertizedandsoldthekitsfor$16throughanInternetwebsite.
CustomerslocatedintheUnitedStatespurchasedTH-DS'skits.
b.
EachscrapbookkitwassoldwithaspecificTermsofUsedocumentinthecontract,whichlimitedfurtherdistributionofthekits.
TH-DSfoundstolenscrapbookkitsbysearchingfortemplatesandadvertisementsthroughonlinesearchengines.
TH-DSalsoreceivednotificationofstolenPage108of191itemsfrompreviouscustomerswhofoundthekitsadvertisedontheInternet.
TH-DSsentseverale-mailtakedownnoticestoMegaupload.
comforTH-DS'sdesignsfoundontheMegaSites.
BasedonTH-DS'sinteractionwithotherdesignersinthedigitalscrapbookcommunity,mostother"webkit"designersdidnothavethetimetosearchtheInternetfortheirdesignsortheresourcestofightthelossesincurredfromthestolensales,andmanyotherdigitalscrapbookdesignershavelefttheindustrybecauseofpiracy.
99.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeofFriendMediaTechnologySystemsLimited("FriendMTS")totestifytothefollowingfacts:a.
AnumberofcopyrightownershiredFriendMediaTechnologySystemsLimitedtoidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
FriendMTSsubmittedDMCAtakedownrequeststotheMegaSitesonbehalfofthesecopyrightowners.
b.
FriendMTSreasonablyunderstoodthatsubmittingtakedownnotificationsthatidentifiedinfringingcopiesofcopyrightedworksavailableontheMegaSiteswouldresultintheremovalofthefileordisablingofallaccesstotheinfringingfile.
FriendMTSwasnotawarethatonlytheidentifiedURLlink(s)wouldbedisabled,andthatinfringingcopiesofthecopyrightedworkwouldremainonserverscontrolledbytheMegaConspiracyandaccessibletomembersofthepublic(aslongasatleastonelinkremained),whichwouldalsoallownewlinkstotheinfringingcopytobecreated.
Pre-IndictmentCopyrightLitigationAgainstMembersoftheMegaConspiracy100.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnJanuary31,2011,intheUnitedStatesDistrictCourtfortheDistrictofSouthernCalifornia,Perfect10Inc.
,aCaliforniacorporation,filedacivillawsuitagainstMEGAUPLOADLIMITEDand"KimSchmitz,"alsoknownasDOTCOM.
Theplaintiff'sallegationsincluded,amongotherclaims,thatMEGAUPLOADLIMITEDandDOTCOMcommittedcopyrightinfringementthroughtheMegaSites.
b.
OnMarch28,2011,MEGAUPLOADLIMITEDfiledamotiontodismissthelawsuit.
OnJuly27,2011,thedistrictcourtdeniedthemotionastothecopyrightinfringementclaims.
ThecourtconcludedthatMEGAUPLOADLIMITEDservedasmorethanamerefilestoragecompany,forthefollowingreasons:MEGAUPLOADLIMITEDstreamlinedusers'accesstodifferenttypesofmedia;MEGAUPLOADPage109of191LIMITEDencouragedandpaiduserstouploadlargeamountsofpopularmediathroughitsRewardsPrograms;MEGAUPLOADLIMITEDdisseminatedURLlinksforfilesthroughouttheInternet;MEGAUPLOADLIMITEDprovidedpayoutstoaffiliatewebsiteswhomaintainedacatalogueofallavailablefiles;andfinally,ataminimum,MEGAUPLOADLIMITEDwasplausiblyawareoftheongoingrampantinfringementtakingplaceonitswebsites.
Thecourtconcludedthattakenalltogether,theplaintiffhadadequatelyallegedthatMEGAUPLOADLIMITEDhadengagedinvolitionalconductsufficienttoholditliablefordirectinfringement.
ThecourtalsodeniedMEGAUPLOADLIMITED'smotiontodismisstheplaintiff'sclaimofcontributorycopyrightinfringement.
Thecourtbeganbystatingthataclaimofcontributoryinfringementmustallegethatadefendanthasknowledgeofathirdparty'sinfringingactivity,andinduces,causes,ormateriallycontributestotheinfringingconduct.
Thecourtfoundthattheplaintiff,byclaimingthatithadprovidedMEGAUPLOADLIMITEDwithtakedownnoticespursuanttotheDMCA,sufficientlyallegeddirectinfringementbyathirdparty.
Indiscussingthecontributoryinfringement,thecourtstated:Tellingly,initsmotiontodismiss,MegauploaddoesnotdisputePerfect10'sallegationthatitinduces,causes,ormateriallycontributestoinfringingconduct.
Norcouldit,giventheallegationsthatMegauploadencourages,andinsomecasespays,itsuserstouploadvastamountsofpopularmediathroughitsRewardsPrograms,disseminatesURLsthatprovideaccesstosuchmedia,andhasprovidedpayoutstoaffiliateswhocataloguetheURLsforallavailablemedia.
Underthecircumstancesofthiscase,ifMegauploadlacksknowledgeofinfringingactivity,Plaintiff'sallegationssuggestsuchalackofknowledgeiswillful.
c.
OnOctober14,2011,thepartiesfiledajointmotionrequestingadismissalofthecasewithprejudice,whichstatedthatthepartieshadsettledthelawsuitpursuanttoaconfidentialsettlementagreement.
OnOctober18,2011,thecourtenteredanorderdismissingthelawsuitwithprejudice.
InfringementoftheCopyrightedMotionPicture"Taken"101.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
WithrespecttoParagraphs35(b)and40(g)(iii),theinfringingcopyofthecopyrightedmotionpicture"Taken"viewedanddownloadedbyAgentPostononoraboutNovember27,2011,wasthesamecopyuploadedbyVANDERKOLKanddescribedinParagraph35(a).
Page110of191b.
WithrespecttoParagraph35(a),onOctober25,2008,VANDERKOLKsentane-mailtoanunindictedindividualcontainingtheURLlinktotheinfringingcopyof"Taken"uploadedbyVANDERKOLK.
Theinfringingcopyof"Taken"uploadedbyVANDERKOLKwasviewedatleast9timesthroughMegavideo.
com.
LifeCycleofaFileUploadedtotheMegaSites102.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
WhenauserinitiallysignedupforanaccountontheMegaSites,softwarewrittenbytheMegaConspiracyaddedanentrytotheinternaldatabase,whichincludedthefollowinginformationabouttheuser(notacomprehensivelist):identificationnumber,whichwasassignedbythedatabaseanduniquetoeachuser;nickname(alsocalleda"username"),whichwasselectedbytheuser;contactinformation(includingfirstandlastname,e-mailaddress,streetaddress,andcity);password;InternetProtocoladdressoftheuseratsign-up;andpremiumuserstatus.
The"users"tablealsorecordedthelasttimetheuserloggedontotheMegaSites.
b.
WhenauseruploadedafiletoMegaupload.
com,softwarewrittenbytheMegaConspiracyaddedanentrytotheinternaldatabase,whichincludedthefollowinginformationaboutthefile(notacomprehensivelist):uniqueMD5hash;filename;filetype(withextension,suchasAVI);filesize;uploaddate;InternetProtocoladdressoftheuser;thenumberoftimesthefilehadbeendownloaded;theidentificationnumberoftheuserwhouploadedthefile;the8-characterdownloadidentifierforusewiththeURLlinkassociatedwiththefile;andwhethertheURLlinkhadbeenthesubjectofacopyright-infringementtakedownrequest.
c.
WhenauseruploadedavideofiletoMegavideo.
com,softwarewrittenbytheMegaConspiracyaddedanentrytotheinternaldatabase,whichincludethefollowinginformationaboutthevideo(notacomprehensivelist):uniqueMD5hash;videoname;videodescription;uploaddate;thenumberoftimesthevideohadbeenviewed;theidentificationnumberoftheuserwhouploadedthevideo;the8-characterdownloadidentifierforusewiththeURLlinkassociatedwiththevideo;whethertheURLlinkhadbeenthesubjectofacopyright-infringementtakedownrequest;andwhetherthevideowas"private.
"SoftwarewrittenbyORTMANNandVANDERKOLKmarkedallvideoslongerthan10minutesas"private.
"AsdiscussedinParagraph74(b),"private"videoswerenotpubliclydisplayedonthefrontpagesoftheMegavideowebsite,butusersstillhadtheabilitytodistributetheseURLlinksinthesamemannerasnon-privatelinks(forexample,onthird-partylinkingsites).
Page111of191d.
WhenauseruploadedavideofiletoMegavideo.
com,softwarewrittenbytheMegaConspiracyconvertedthevideofile—includingthosetaggedas"private"—toaparticularvideoformatknownasFlashVideoor"FLV.
"Aflash-versionofthevideoallowedquickerandbroaderdistributionoffilesbytheMegaConspiracybecauseFlashvideoscouldbestreamedthroughmostInternetbrowserswithahighlevelofcompressionatfastdownloadspeeds.
e.
WhenauseruploadedafiletotheMegaSites,softwarewrittenbytheMegaConspiracydeterminedwheretheuserwasgeographicallylocatedbasedontheuser'sInternetProtocoladdress.
ThefilewouldbereproducedontooneormoreMega-controlledservers,whichwerelocatedintheUnitedStates,Canada,France,andtheNetherlands.
f.
AsdescribedinParagraph72,softwarewrittenbytheMegaConspiracyreproducedthemostpopularfilesontofasterMega-controlledserversownedbyCogentCommunications.
Thesoftwareexecutedevery60secondsonaninfiniteloop,checkingwhethertheCogentservershadenoughfreespacetohostadditionalpopularfiles.
Iftherewasfreespaceavailable,thesoftwarewoulddownloadandreproducethepopularfilefromtheMega-controlledserverwhereitwasoriginallystoredontothefasterCogentserver;thefilealsoremainedontheoriginalserver,resultinginmultiplecopies.
Thesoftwaremeasuredpopularitybasedonhowmuchthroughput,orbandwidth,wasconsumedbythefileatthattime.
ThesoftwarealsoremovedfilesfromtheCogentserverswhenthesoftwaredeterminedthatthosefileswerenotbeingdistributedasfrequently.
KnowledgeofCopyright-InfringingWorksAvailableontheMegaSites103.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutNovember14,2006,viaSkype,VANDERKOLKsaidtoORTMANN,"IamdownloadingthelatestLOSTepisodesinHDTVformatforKim:-)".
ORTMANNresponded,"fantastic:)".
"Lost"isacopyrightedtelevisionseries.
b.
OnoraboutFebruary2,2007,viaSkype,VANDERKOLKsentORTMANNaURLlinktothecopyrightedsong"KissMe"bySixpenceNonetheRicher,whichhadbeenuploadedtoMegaupload.
combyananonymoususer.
ORTMANNthenforwardedtheURLlinktoDOTCOM.
c.
OnoraboutFebruary7,2007,viaSkype,ORTMANNsentDOTCOMaURLlinktothecopyrightedcomputersoftwareMicrosoftWindowsXP,whichhadbeenuploadedbyaregisteredMegaupload.
comuser.
Page112of191d.
OnoraboutMarch9,2007,viaSkype,NOMMsentORTMANNaURLlinktothecopyrightedmotionpicture"DeadLenny,"whichhadbeenuploadedtoMegaupload.
combyaregistereduser.
e.
OnoraboutMay21,2007,viaSkype,ORTMANNsaidtoNOMM,"butIhaveafeelingthatKim[DOTCOM]toleratesacertainamountofcopyrightviolation.
"NOMMresponded,"yepbutnottooobviousones.
"ORTMANNthensaid,"sinceithelpsinitialgrowth,""butwemustnotoverdoit.
"f.
OnoraboutJune5,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"BTW,scarrystoryaboutKimwiring50.
000dollarsfromtheMegauploadaccounttohispersonalPHaccount…"Theabbreviation"PH"appearstorefertothePhilippines.
ORTMANNresponded,"IamwonderingwhyKimistakingthissolightly,"and"somethingfishyisgoingon.
"ORTMANNcommented,"ifitwasaU.
S.
authoritiesproblemwithMegaupload,wewouldn'tbedoingbusinesswithPayPalanylonger,that'sforsure.
"VANDERKOLKresponded,"yeahindeed.
"ORTMANNthenstated,"KimshouldrefrainfromtravellingtotheU.
S.
,though.
"AndVANDERKOLKreplied,"yeahIwouldntgototheUSeitherifIwerehim.
"g.
TheMegaConspiracyredirectedallknownURLlinkspointingtopornographicfilesfromMegaupload.
comtoMegarotic.
com.
OnoraboutJuly1,2007,viaSkype,ORTMANNsaidtoVANDERKOLK,"IamthinkingabouttheMU->MRfilemove…weshoulddefinitelyputupaninformativepagewhenauserclicksonaMRlinkviatheMUdomain.
"Theacronym"MU"referstoMegaupload.
com,andtheacronym"MR"referstoMegarotic.
com.
ORTMANNthensaid,"yes…wecould,however,alsobeshootingourselvesinthefootwiththis,asitprovesthatwelookedatthefile,""andthereforearenotthedumbpipeweclaimtobe.
"ORTMANNalsosaid,"copyrightownersmayusethisagainstus.
"VANDERKOLKresponded,"dangerousmoveindeed.
"h.
OnoraboutJuly2,2007,viaSkype,ORTMANNaskedVANDERKOLK,"maybewecandoaselectivepaymenttokeepthepeoplehappy"ORTMANNclarified,"onlypaynon-copyrightedvideos:)"VANDERKOLKresponded,"that'sgonnabeaverytimeconsumingthingtomanage.
"VANDERKOLKalsostated,"Thistime,I'llbantheobviouscases.
Butwehavetothinkabouttherewardsandit'sfuture.
It'smoredangerousonMRVtopaypeopleforuploadingcopyrightedcontent.
"Theacronym"MRV"referstothevideostreamingportionofMegarotic.
com.
Despitethisconversation,membersoftheMegaConspiracycontinuedtomakerewardpaymentstorepeatinfringers,whouploadedcopyright-infringingfiles,including"obviouscases.
"Page113of191i.
OnoraboutAugust20,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"ImeanifKimwasasolidguywithagoodfinancialbackgroundandbeingsafewithhismoneyIwouldn'tmind,butthecurrentsituationisabitriskyinmyopinion.
"ORTMANNresponded,"thegoodthingis,heisoperationallydependentonus…hecannotsneakawaywiththemoney.
"VANDERKOLKthenasked,"butwhatif[EXPLETIVEREDACTED]reallyhitsthefan…wouldhegrabthelastlittlebitofmoneyandtakeoff…he'sgoodatthat.
"AndORTMANNreplied,"true…butwithhisspendingnowadays,hewillattempttogetthe[EXPLETIVEREDACTED]offthefan,andthat'swhatheneedsusfor.
"ThisSkypeconversationwascontainedinane-mailsentbyVANDERKOLKtoathird-partyonoraboutAugust21,2007.
j.
OnoraboutAugust30,2007,viaSkype,ORTMANNsaidtoVANDERKOLK,"aswe'redisplayingviewcounts,thecopyrightindustrycouldbetemptedtosendusinvoicesforlostrevenuebasedonthat.
"VANDERKOLKresponded,"thatwillhurt.
"AndORTMANNreplied,"indeed.
"k.
OnoraboutAugust30,2007,viaSkype,VANDERKOLKsentORTMANNaURLlinktoMegavideo.
com'smostviewedvideosforthatday.
VANDERKOLKstated,"mostviewedvideosareall>1hour.
"ORTMANNresponded,"that'sabaddirectionwe'regoingin.
"AndVANDERKOLKreplied,"yes.
.
"l.
OnoraboutSeptember1,2007,viaSkype,ORTMANNtoldanunindictedconspirator,"myfavouriteofrecenttimesis'Thelifeofothers'(thatGermanfilmthatwontheOscar).
"Theconspiratorasked,"isthatinmegaupload"ORTMANNresponded,"checking…"Lessthanfiveminuteslater,ORTMANNsaid,"IhavetofindThelifeofothersinoriginalversionwithEnglishsubtitles,then–stillsearching.
"Lessthaneightminuteslater,ORTMANNsaid,"IonlyfoundtheGermanversion,w/osubtitles.
""TheLivesofOthers"isacopyrightedmotionpicture.
m.
OnoraboutSeptember2,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"we'remodernpirates:-)".
ORTMANNresponded,"we'reprettyevil,unfortunately","butGoogleisalsoevil,andtheirclaimis'don'tbeevil.
'"VANDERKOLKreplied,"yes!
"ThenVANDERKOLKstated,"andtheworldischanging,thisistheinternet,peoplewillalwayssharefilesanddownloadtheirstuffforfree,""withorwithoutMegaupload.
"ORTMANNresponded,"yes…thecontentprovidersshouldjustgetaproduceraccountandsignupforrewards.
"n.
OnoraboutSeptember3,2007,viaSkype,VANDERKOLKandORTMANNdiscussedtheUploaderRewardsprogram.
VANDERKOLKsaid,"onMegauploadwe'remuchmoredependentontrafficfromothersites,thereit'smoreimportantthatwepay.
"ORTMANNreplied,"right.
"BecauseMegaupload.
comitselfwasnotpubliclysearchable,thesitewasPage114of191dependentonInternettrafficfromthird-partylinkingsites,whererepeatinfringersadvertisedlinkstocopyright-infringingmaterialsthatwerehostedonMegaupload.
com,somembersoftheMegaConspiracyfeltitwasimportanttopayrewardstothoserepeatinfringers.
o.
OnoraboutSeptember30,2007,viaSkype,ECHTERNACHaskedORTMANN,inGerman,"sendmeamegalinktoanxpinstallationcd;)"ORTMANNresponded,"needtoscreenthroughit,justasecond.
"Approximately1daylater,viaSkype,ORTMANNsentECHTERNACHaURLlink,whichhadbeenuploadedbyaMegauser,tothecopyright-protectedcomputeroperatingsystem"WindowsXPUSBEdition"onMegaupload.
com.
Approximatelythreehourslater,ECHTERNACHresponded,"USBEdition!
"ORTMANNthensentECHTERNACHanotherURLlinkuploadedbyaseparatemegausertothenon-USBeditionof"WindowsXP"onMegaupload.
com.
WindowsXPisacopyrightedsoftwareprogramownedbyMicrosoftCorporation.
The"USBEdition"referstoaversionofWindowsXPavailableonaUSBdrive.
p.
OnoraboutOctober7,2007,viaSkype,ORTMANNtoldVANDERKOLK,"backintheearlydays,Ihopedthatwewouldstayonlinefor2,3moremonths,""beforelawenforcementwouldtakeourserversdown…"VANDERKOLKasked,"seriouslyyouwerethatsceptical"AndORTMANNanswered,"everydaythatpassedwithoutsomethingserioushappeningonthatsidemademefeelhappy.
"VANDERKOLKresponded,"AmongstoursitesMegauploadisdefinitelythesafestlegallyIthink.
"ORTMANNreplied,"thereisreallynoeasywaytodistinguishbetweenanISPandus.
"Afewminuteslater,VANDERKOLKtoldORTMANNthattheyshouldhavea"backuppaymentprovider,""butwe'renotsuperattrectivetopotentialbuyersorinvestors,andthat'sunfortunate.
"ORTMANNresponded,"yes,althoughthenewVCstillseemstobeinterested.
"VANDERKOLKasked,"that'sgood,butdoyouthinkitwillreallygettoaninvestment"ORTMANNresponded,"ifwewerea100%cleansitewiththatgrowthandprofit,wewouldhavesoldforanine-figuresumalready.
"VANDERKOLKreplied,"yes,unfortunately:-("andthen:"ButwhatwouldmakeusattractivetoVC'sisiftheycouldputinabitofmoneysothatwecangrowandbesoldtoabigplayerinthefutureformuchmoremoney.
Wedon'tneedmoneytogrow(atleastnotwiththecurrentbusinessmodel),anditwillbehardtogetsoldtoabigplayerbecausewe'renot100%legit.
.
"ORTMANNresponded,"Thisisexactlythepointwherethehigher-levelsuitsalwayscanceltheinvestment""andthey'vegotapointthere…"VANDERKOLKreplied,"yeahthat'sveryunfortunate,wehavetothinkofaworkaroundforthatotherwisewe'llnevercashinandwe'lljustendupwithlegalproblemsinafewyearsorotherproblems.
"Healsostated,"thiscannotlastforeverIthink.
"ORTMANNresponded,"wehavetocreatePage115of191spinoffs,legitones,andfuelthose.
"Theacronym"VC"referstoaventurecapitalist.
q.
OnoraboutNovember14,2007,viaSkype,DOTCOMsaidtoORTMANN,inGerman,"willyoueventuallysolvetheconversionproblemthecomplaintsdon'tstop.
whatdoyouthinkyoucando"ORTMANNresponded,"wehavealongqueueofdvd-rips""andsomeDRMprotected,thatcannotbeconverted.
"DOTCOMreplied,"thenweneedmoreconversionservers","pleaseorder.
"Theacronym"DRM"refersto"DigitalRightsManagement"andiscommonlyunderstoodtomeancopyright-protectionbasedineithersoftware,suchasencryption,orsomewhatlesscommonly,hardware.
Duringthattimeperiod,theMegaConspiracywasconvertinguser-uploadedvideos,includingcopyrightedvideos,intoaparticularvideoformatknownasFlashVideoor"FLV,"whichfacilitatedthevideo'sdistribution.
r.
OnoraboutNovember18,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"Iamdoingtherewardsnow,andthosesplitfilesarereallycostly.
IoftenseeVietnamesefileportfolio'swithDVDiso'ssplitinto100+pieces.
"An"iso"isatypeoffilecontainingallthedatafromadisc.
VANDERKOLKthensaid,"Butfornowwe'llpaythoseVietnamesefileportfolio'sright"And,"thiswillbeexpensiveagain:("ORTMANNresponded,"itwillnotbecheap,butweneedtofill20moregigsintwoweeks.
"VANDERKOLKreplied,"Yeahthat'strue,butmakingsomechangessothattheymakealittlelessmoneywouldn'thurt.
"And,"theywillnotstopuploadingiftheygetpaidlessIthink.
"Theterm"gigs"referstoGigabytes,aunitofmeasuringdata-storageandfile-sizecapacity.
s.
OnoraboutNovember22,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"damnthetopfavoritesonMVreallyneedsomecleaningindeed"andORTMANNresponded,"weseemtohavetwomaintypesofcontentonMV:softcorenudityandsimpsons:)"ORTMANNalsosaid,"ifFoxTVsendsusatakedownrequest,ourGmailaccountswilloverflow,"and"ifsomeonestartsexploringoursitesandexperimentingabit,we'llbedowninnotime.
"TheSimpsonsisacopyrightedtelevisionprogram.
t.
OnoraboutNovember26,2007,viaSkype,ORTMANNtoldanunindictedconspirator,"peoplediganime,though–lookattheamountofanimeonmegavideo:)"Theterm"anime"referstoJapaneseanimatedmaterials,bothcopyrightedtelevisionseriesandmotionpictures.
u.
OnoraboutDecember3,2007,viaSkype,VANDERKOLKtoldORTMANN,"BTW,IdownloadedsomeTVseriesfor[NAMEREDACTED]afewdaysagoandgotsomeproblemswiththeMegaManageragain,Ihadtopause,stop,andrestart/resumethedownloawhilethedownloadwasalreadycompletedinordertogetthemultipartstogetherasaPage116of191completedfile.
"AsdiscussedinParagraph73,membersoftheMegaConspiracycreatedMegaManagertofacilitatefiletransferstotheMegaSites.
TheMegaManagerenabledusers,forexample,touploadfilesmorequickly,toqueuemultipleuploadsanddownloads,topauseandrestartuploadsanddownloads,andtocheckwhetheraparticularURLlinkwasstillactive.
Byprovidingthesefeatures,theMegaManagerfacilitatedthewidespreadreproductionanddistributionofcopyright-infringingmaterials.
v.
OnoraboutJanuary4,2008,viaSkype,VANDERKOLKandORTMANNdiscussedane-mailalertingtheMegaConspiracytoapotentiallyfraudulentwebsitewithanamesimilartoMegarotic.
com.
VANDERKOLKcommented,"hahapeopleworieingaboutournamebeingpirated:)"ORTMANNresponded,"wehaveatonofparasiticdomains.
"VANDERKOLKreplied,"yeahIknow,butthetermpiracyisfunnyinthiscontext:)"because"wearethepirateshere.
"ORTMANNresponded,"youcanseeitthisway:)"but"no,we'rejustaserviceprovider.
"VANDERKOLKreplied,"yeahlegally,butweknowbetter:)"w.
OnoraboutMarch14,2008,viaSkype,ORTMANNtoldVANDERKOLK,"weareinastrangebusiness.
"VANDERKOLKresponded,"yesindeed,""moderndaypirates:)"x.
OnoraboutMarch24,2008,viaSkype,VANDERKOLKandORTMANNdiscussedane-mailaskingforthenameandcontactinformationofthedesignatedagentforreceivingnoticesofinfringementforMegarotic.
comandthatfailuretodosowasaviolationofthesafeharborprovisionsoftheDMCAORTMANNasked,"whoiswritingthis"VANDERKOLKansweredwiththesender'snameandthephrase,"agaypornwebsite.
"ORTMANNresponded,"ah,okay,""aslongasit'snotPayPal…"ORTMANNalsosaid,"weshoulddefinitelyhavesuchanagentregistered,[NAMEREDACTED]wasalsosuggestingit.
"VANDERKOLKreplied,"yesifthatisreallysarequirementfortheDMCAlawwebetterdoitindeed:)"because"ourentirebusinessisbasedonthat.
"y.
OnoraboutJune15,2008,viaSkype,DOTCOMtoldORTMANN,inGerman,"weshouldreallyfocusmassivelystrongeronanimethere"because"theyreallyripeverything.
"Headded,"wehavearealchanceheretobuildasuperadvertisementmachine.
"Inthiscontext,theterm"rip"meanttoreproducethematerialinamannerthatinfringedcopyright.
z.
OnoraboutAugust18,2008,viaSkype,ORTMANNandVANDERKOLKdiscussedtheembeddedplayerfeature.
ORTMANNsaid,"okay!
basically,we'llabortthevideodatastreamwhentheplaytimelimitisexceeded,theplayerrecontactstheserverandreceivesaspecialmessagethattriggersthemessagetotheuserwiththelinktotheMVpremiumpage.
"VANDERKOLKresponded,"Ahathat'sanewconcept,Page117of191butsoundslikeagoodplantome,thatwayuserswillreallybeforcedtobuy,""theywillwanttoseetheendofthemovie:)"ORTMANNadded,"wealsowanttoforcethird-partydownloadtools(whichstillwork)tobuypremium:)"Bymakingitmoredifficultfornon-premiumuserstoviewlengthyfiles,suchasfull-lengthcopyrightedmotionpictures,theMegaConspiracyencourageditsuserstopaysignificantfeestobecome"premium"members.
aa.
OnoraboutSeptember5,2008,viaSkype,ORTMANNtoldathird-partyindividualatanInternethostingprovider,"Switzerlandfeaturessomeinterestinglocationsforserverhosting"because"deepinsidesomemountain,thedatawillsurvivenearlyallnaturalandman-madedisasters.
"Thethird-partyindividualresponded,"yea-idontthinkmegauploadneedstobeupafteraworldendingnuclearwar.
"AndORTMANNreplied,"it[Megaupload.
com]couldserveasaprettycompletearchiveoftheworld'sintellectualpropertyforacominggeneration.
"bb.
OnoraboutDecember23,2008,viaSkype,ORTMANNsaidtoVANDERKOLK,"Ithinkthereisagoodchancethatthetop100willbringinsignificantadditionalrevenuemid-term.
"AndVANDERKOLKresponded,"yeah,anditmakesourwholesitelookmuchmorelegit&attrectiveaswell,"towhichORTMANNreplied,"exactly.
"AsdiscussedinParagraph30,theTop100wasalistdisplayedontheMegaSites,purportedlyofthemostdownloadedfiles,butwas,infact,carefullycuratedbymembersoftheMegaConspiracytoexcludepopularcopyright-infringingmaterials.
cc.
OnoraboutJanuary16,2009,viaSkype,VANDERKOLKsaidtoORTMANN,"goodthingIhaveimplementedthename'Megavideo'tobedisplayedforwatchingvideofilesfromaMUuseronMV:)"followedby,"Iwasthinkingthere,weshouldnotdiscloseMUusernamesanywhere.
"ORTMANNresponded,"verygood!
:)"andVANDERKOLKreplied,"alsoforcopyrightissuesetc.
"dd.
OnoraboutMarch2,2009,viaSkype,NOMMtoldORTMANN,"seemstherearecertainconditionstohaveotHDencoded,"andORTMANNresponded,"BDrips:)"Theterm"HD"referstohighdefinition,andtheterm"BDrips"referstoinfringingcopiesofBlu-rayDiscs.
NOMMthensaid,"Idoubtyoutubehasanyopenripshehe,""wehaveONLYmovies/etc,theyhaveverylesssuchthings;)"ee.
OnoraboutMarch3,2009,viaSkype,VANDERKOLKsentORTMANNtheresultsofasearchfortheterm"1080p"intheMegadatabase.
Theterm"1080p"referstohigh-definitionvideo,whichtypicallycontains1080linesofprogressivelyverticalresolution.
Thesearchshowedthatthetermappearedinmorethan41,000separatefiles.
VANDERKOLKsentORTMANNsomeoftheresults,whichincludedPage118of191thecopyrightedmotionpictures"Transporter2,""TheForbiddenKingdom,"and"GhostintheShell:StandAloneComplex—TheLaughingMan.
"ORTMANNcommented,"yes:)butwithHDvideo,we'lleasilyneed50gigsmorealready,""butwe'llalsobeMUCHmorepopular/valuable.
"VANDERKOLKasked,"KimlikestheideaaswellIsuppose"andORTMANNresponded,"helovesit.
"ThenORTMANNasked,"Ijustwonderwhatwarnerbros.
willsaywhentheyseecrystalclearBDripsinsteadoftheusualblurryvideo:)"andVANDERKOLKresponded,"yeahwillbeevenmorepissedoff:)"ff.
OnoraboutMarch4,2009,viaSkype,VANDERKOLKtoldORTMANN,"IdownloadedsomeblurayripswithMegaManagerovernight,downloadedawhopping50GB+inabout14hours:)"andORTMANNresponded,"damn:)"Inthiscontext,thephrase"blurayrips"appearstorefertoinfringingcopiesofcopyrightedblu-raydiscs.
gg.
OnoraboutMarch5,2009,viaSkype,ORTMANNtoldVANDERKOLK,"MVhasthepotentialtorock2009(and2010).
"VANDERKOLKresponded,"yes,""whatstartedasayoutubeclone…"ORTMANNthensaid,"yep:)theMUbusinessmodelworksverywellforonlinevideo(privatelinks)""nowwe'redoingexactlywhatIforesawinthebeginning–innocentfrontend,privatebackend:)"hh.
OnoraboutMarch7,2009,viaSkype,VANDERKOLKsaidtoORTMANN,"Ifcopyrightholderswouldreallyknowhowbigourbusinessistheywouldsurelytrytodosomethingagainstit,""theyhavenoideathatwe'remakingmillionsinprofiteverymonth.
"ORTMANNresponded,"indeed.
"ii.
OnoraboutMarch7,2009,viaSkype,VANDERKOLKsentORTMANNane-mailfromtheDutchorganizationBREIN(BeschermingRechtenEntertainmentIndustrieNederland),"theDutchanti-piracyprogram,"notifyingMegaofaparticularcopyright-infringingfileonMegaupload.
com.
Thee-mailwassentbyaparticularBREINrepresentative(hereinafter"PH").
VANDERKOLKthensaid,"Ihadalotoftroublewiththis[PH]guy:)""withthismp3siteIhad.
"Hecontinued,"Theywantedtosueme,andonlyifIwouldsignacontracttheywouldnot,"but"thenIlefttoManila:)"and"neverheardanythingfromthem.
"ORTMANNcommented,"untilnow!
"VANDERKOLKadded,"Ihadthetop40withdirectdownloads,"andORTMANNresponded,"that'snotsolegal,ofcourse:)"VANDERKOLKthensaid,"alwayslivedfrompiracy:)"jj.
OnoraboutMarch8,2009,viaSkype,DOTCOMaskedORTMANN,inGerman,"HaveyougotaminuteLet'stalkabouthowweshouldprepareforlawsuits,shouldtheyeverhappen.
"ORTMANNresponded,"WeneedtotakealookathowYouTubehasdealtwiththatsofar.
Page119of191Promisesomekindoftechnicalfilteringcrapandthenneverimplementit.
"DOTCOMadded,"Weshouldalreadybehiringanattorneynow,perhapsanin-houseone,togetuspreparedforanything.
"kk.
OnoraboutMarch8,2009,viaSkype,ORTMANNandVANDERKOLKdiscussedane-mailfromauserseekingtechnicalsupportabouttheMegasites.
ORTMANNsaid,"uhm,theguydoeshaveanIMDBentry:)"andthen,"haven'tseenanyofhisworks,butyes,heseemstobeveryactive,""wedohavelegitusers.
"VANDERKOLKresponded,"yes,butthat'snotwhatwemake$with:)"Theacronym"IMDB"referstotheInternetMovieDatabase,availableatIMDB.
com,anonlinedatabaseofinformationrelatingtomotionpictures,televisionprograms,andvideogames.
ll.
OnoraboutMarch9,2009,viaSkype,NOMMtoldORTMANN,"onemyfriendsaidme:""megavideoismajorserials/etcsupplier…butwhydonttheysupplysubtitlestodownload"NOMMadded,"seemspeoplethinkwearesomemoviesdownloadcenterlol.
"Theacronym"lol"generallymeans"laughoutloud.
"mm.
OnoraboutMarch16,2009,viaSkype,ORTMANNandVANDERKOLKdiscussedthepossibilityofestablishinganewMegawebsiteformusicwithoutanycopyright-infringingmaterials.
ORTMANNsaid,"can'twaittoapproachthemusicindustrywithrequeststoselltheirproductslegally…'what!
yoooou'"VANDERKOLKresponded,"haha""Iftheyatallwanttodobusinesswithus.
"Headded,"IfIwereinthatindustryIwouldbananyMega*company:)"ORTMANNcommented,"yep:)"nn.
OnoraboutMarch16,2009,viaSkype,NOMMsentORTMANNaMegaURLlinktoacopyrightedepisodeoftheanimatedtelevisionprogram"MobileSuitGundam00,"commenting,"cartoonslookbettertoo.
"ORTMANNresponded,"beautiful:)"andadded,"lookfor5+GB.
mkvfiles,""BDripsofcurrentanimatedmovies.
"Theterm"mkv"referstoaparticularvideoformat.
Inthiscontext,thephrase"BDrips"appearstorefertoinfringingcopiesofcopyrightedblu-raydiscs.
oo.
OnoraboutMarch20,2009,viaSkype,DOTCOMandORTMANNdiscussedprovidinghighdefinitioncontentonMegavideo.
com.
DOTCOMsaid,inGerman,"I'mlookingforwardtoMV[HD,]""itwillbecool.
"ORTMANNresponded,"Thequalityisgoingtobeamazing…theWarnerBrothersopeningcreditsforTerminator3onAndrus'[NOMM]unoptimizeddemovideoisalreadyafeastfortheeyes.
""Terminator3:RiseoftheMachines"isacopyrightedmotionpicture.
Page120of191pp.
OnoraboutMay6,2009,viaSkype,ORTMANNaskedVANDERKOLK,"hasanyoneevertestedthefilesizelimitofFlashuploading2GB"andVANDERKOLKanswered,"nevertriedthis,""butIthinkit's2GBindeed.
"VANDERKOLKcontinued,"IcantrytouploadablurayripbeforeIgotobed:)"andORTMANNresponded,"yes,pleasetry:)"The"filesizelimitofFlashuploading"appearstorefertofile-sizelimitationsimposedonvideosuploadedtobestreamedasFlashvideoswiththeFLVfiletype.
qq.
OnoraboutMay25,2009,viaSkype,ORTMANNtoldNOMM,"H.
264willkillthemovieindustrythewaythatMP3haskilledthemusicindustry,""pureeyecandy.
"Afewminuteslater,VANDERKOLKaskedORTMANN,"WhatwillbetheHDlaunchpage"andORTMANNreplied,"alandingpageadvertising'MegavideogoesHighDefinition,'"VANDERKOLKresponded,"Hollywoodwillcurseus:)"andORTMANNreplied,"thisisindeedthepointwherestreamingwebvideoisstartingtorivaltheatrequality.
"Theterm"H.
264"referstoaparticularstandardforvideocompressionthatiscommonlyusedinthecompressionanddistributionofhighdefinitionvideos.
rr.
OnoraboutOctober10,2009,viaSkype,VANDERKOLKtoldORTMANN,"TheoraticallywecouldmakeMVjustlikeMU,""removeallthevideolistingstuff.
"ORTMANNresponded,"yep,butevenbetterthanthat,welistonlyreallyharmlessstuff,"andVANDERKOLKreplied,"yes,butproblemisalmostnoharmlessstuffisbeinguploadedtoMV:)"ThenVANDERKOLKsuggested,"Weshouldactivelyaddyoutubevideosagainperhaps,"andORTMANNresponded,"yes,wecoulddothatindeed.
"ORTMANNsuggested,"Kim'sideaofleavingthesemi-harmfulstuffonlinefor23hoursisalsoprettygood,"andVANDERKOLKresponded,"yesalsonotbad,""butthentherewillalwaysstillbeharmfulcontentonthesitealways,"and"Iwouldsayweshouldnotevenmakeitpublicatall,"because"wemakemoneyfromdirectlinks&embedded,noneedtoriskanything.
"ORTMANNresponded,"harmfulcontentisn'tbadperseaslongasweprocesstakedownsanddon'tuploaditourselves.
"VANDERKOLKreplied,"thatwealreadydonoweven:)"andORTMANNresponded,"ithasapositiveeffectinthatitallowscontentownerstosearchoursiteandsendtakedownrequests.
"ThenVANDERKOLKsaid,"butit'sgoodtostayofftheradarbymakingthefrontendlooklikecrapwhileallthepiracyisgoingthroughdirectlinks&embedded.
"AndORTMANNadded,"theimportantthingisthatnobodymustknowthatwehaveauditorslettingthisstuffthrough.
"VANDERKOLKresponded,"yesthat'sverytruealso.
"ORTMANNreplied,"ifwehadnoauditors–fullDMCAprotection,butwithtolerantauditors,thatwouldgoaway.
"AndVANDERKOLKreplied,"yestrue.
"Page121of191ss.
OnoraboutNovember19,2009,viaSkype,DOTCOMsentORTMANNaSkypeconversationbetweenDOTCOMandVANDERKOLK,duringwhichDOTCOMsaid:MVisfullofproblematiccontentonthe[publiclyviewable]videopages.
Itoldyouhowimportantthisis.
Everydaycounts,especiallysincewehavearticlesouttherecomparinguswithnapsterandputtingusinabadlight.
WHYTHE[EXPLETIVEREDACTED]didyounottakecareofthisYoutoldmeyouwilldothisWHILEyouareinHK.
Ijustspokewithmathias[ORTMANN]andhetoldmeheinformedyoulongtimeagoaboutfixingthis.
WHYdoyouriskourgoodrunningbusinesswithnotfollowinguponimportantmatterslikethis.
IfyoulookatthelatestvideopagesnowitisFULLwiththelatestcommercialstuff.
[EXPLETIVEREDACTED]THISBRAM!
VANDERKOLKresponded,"IalreadyspoketoMathias,andwillimplementsomenewmeasuresnow.
Ialsohaveameetingwiththeauditorstomorrowevening,Ialwayspointedouttothemhowimportantitwasthatallbighollywoodstuffneedstogo,butapperantlythey'renotdoingagoodjob.
"DOTCOMreplied:ITSyourjob,whenatasklikethisisgiventoyou,thatyoumakesureitisproperlydone.
ThisisYOURfaultandnottheauditors.
AndMathiasbroughtthistoyourattentionmonthsagowhenItoldMathiasaboutitandaskedthistobefixedwithfilters,etc.
YouareresponsibleBramifthisbackfiresbecauseithasntbeendone.
BettermakesurethatbyMondayIwillneversee[EXPLETIVEREDACTED]likethisagainonthepublicvideopagesorelsewewillhaveamajorproblemagain,understoodLaterthatday,VANDERKOLKtoldORTMANN,"WealsooftengetDMCAnoticesforthemanga,""funimation,aUScompanyisoftensendingushugebatches.
"ORTMANNresponded,"ItoldKim[DOTCOM]thatMangaiscommercialstuff,too,andhesaidthattheMangacompaniesaretinyandwillneversue(!
).
"VANDERKOLKreplied,"Idon'tthinkso,that'squiteabigbusinessalso,"andORTMANNsaid,"Ithinksoaswell.
"Napsterwasafile-sharingservicethatfacilitatedwidespreadcopyrightinfringementuntilitwasshutdowninJuly2001tocomplywithacourt-orderedinjunction.
tt.
OnoraboutNovember21,2009,viaSkype,ORTMANNtoldVANDERKOLK,"MV'spublicvideoscouldnotpossiblyhavegeneratedsignificantpayments.
"Page122of191uu.
OnoraboutNovember30,2009,viaSkype,ORTMANNsentVANDERKOLKthefollowinge-mailsubmittedbyaMegauser:Ivisitthewebsitehttp://www.
watch-movies-online.
tvtowatchsomemovies.
Themoviesicanwatchthroughsomanymediumsmadeavailable.
Howeverfrommyassessment,Megavideogivesbetterpicturequalitywithminimalbufferings.
VANDERKOLKresponded,"nice:)""notmanycompetitorswithsuchmassivebandwidthandsuchaconversioninfrastructure.
"ORTMANNreplied,"yes,andsuchapersistentgroupofnerdyTurksperfectionizingtheconversionprocess:)"VANDERKOLKalsosaid,"okay,soweshoulddefinitelynotpissoffouruploadersnow:)"andORTMANNresponded,"let'spaythemtokeepthemhappy.
"VANDERKOLKreplied,"yesindeed.
"vv.
AsdescribedinParagraph38(n),onoraboutJuly8,2010,DOTCOMsentane-mailtoORTMANNandECHTERNACHentitled"attention.
"Inthee-mail,DOTCOMcopiedalinktoanewsarticleentitled"PirateBayandMegauploadEscapeDomainSeizurebyUS,"whichdiscussedhow,"[a]spartofaninitiativetocrackdownonInternetpiracyandcounterfeiting,theUSGovernmentrecentlytookactionagainstsitesmakingavailablemoviesandTVshows.
"DOTCOMwrote,"thisisaseriousthreattoourbusiness.
Pleaselookintothisandseehowwecanprotectourselfs.
"Healsoasked,"Shouldwemoveourdomaintoanothercountry(canadaorevenHK).
"ORTMANNresponded,"Wejusthavetocontinuetocomplywiththelaw,thennothingcanhappen–propertakedownprocessingisourlifeblood–doingcountry-specifictakedownswouldhavejeopardizedthat.
"ECHTERNACHthenresponded,"Incasedomainsarebeingseizedfromtheregistrar,itwouldbesafertochooseanon-USregistrar[.
]"AndORTMANNreplied,"TheywereapparentlyseizedattheICANNlevel,whichwouldn'tevenprotectforeigndomains.
ButthereisagoodreasonwhythedidNOTactuallyseizethepiratebay.
comandmegaupload.
com:Wehaveproperregistrationcredentials.
Sven[ECHTERNACH],canyoucompilealistofpre-seizureregistrationdetailsofallthedomainsthatweretakenoverLet'sfindoutifallofthemweremisregisteredoranonymized(rememberthatmegaporn.
comiscurrentlyanonymized).
"Page123of191ForcingPremiumMembershipandPrivateFinancialGainbyLimitingViewingDuration104.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
InSeptemberof2008,theMegaconspiratorsbeganlimitinghowlonguserscouldwatchvideosonMegavideo.
com.
Thetimelimitationwaschangedfrombetween60to90minutes,sometimesonadailybasis.
Ifuserswantedtocontinuewatchingvideos,theywererequiredtopayforpremiummembership.
Theselimitationswereimposedinpartthroughanewvideoplayer.
b.
OnoraboutSeptember7,2008,viaSkype,ORTMANNtoldVANDERKOLK,regardingthenewMegavideoplayer,"allithastodoislimitingthebandwidthusedbyMV.
"Headded,"wecanlimitithardifneeded.
"Afewminuteslater,VANDERKOLKsaid,"Iamlookingforwardtothefirst1M$profit/month:)"andORTMANNresponded,"youarelookingatDecemberorJanuary,providedthatthenewplayerperformswell:)"VANDERKOLKadded,"ButespeciallythefactthatthevideowillstopafterXXminutesandthenshowamessagewilltriggersalesIthink"because"theuserswanttoseetherest.
"ORTMANNreplied,"yes,theconceptisabsolutelyingenious,""muchmoreincentivetopaythanMU.
"c.
OnoraboutSeptember11,2008,viaSkype,ORTMANNtoldVANDERKOLK,"manypeoplejustwatchone2-hourmovie,"andthenheasked,"howmanymoviescanyouwatchinarowwithoutgettingbored:)"VANDERKOLKreplied,"that'strueindeed,okayletsseewhattheneworcurrentplayerwithvideoviewlimitationswilldothen.
"d.
OnoraboutSeptember14,2008,viaSkype,ORTMANNtoldVANDERKOLK,"imaginepeoplebeinginterruptedshortlybeforeamovieends,"and"theinclinationtopaywillbehigherthanonMU.
"VANDERKOLKresponded,"prettygoodpoint,"and"thiscanbethenewwayofmakingrevenueforHollywoodonedayagain:)"e.
OnoraboutSeptember26,2008,viaSkype,ORTMANNtoldVANDERKOLK,"ifyouwanttosometesting,[particularMegavideo.
comURL]isalongermovie.
parameters:3minutesquota,then10minuteswaitingtime.
"VANDERKOLKasked,"whenwillthemoviestop"because"It'salreadyplayingmorethan3minutes.
"ORTMANNsaid,"now:)"andVANDERKOLKresponded,"ahyes,""wow,""VeryNICE:)"ORTMANNthensaid,"yep,andwecanalsostartofferinghigher-qualityencodingasanoptionandreallybecometheRapidshareofthemoviescene.
"InMarch2012,aGermanappellatecourtuphelddecisionsfindingthatRapidshare.
com,aSwissfile-hostingwebsite,couldbeheldliableforpublicationofcopyright-protectedmaterialbythird-partyusers.
Page124of191f.
OnoraboutSeptember27,2008,viaSkype,ORTMANNtoldVANDERKOLK,"wehaveabout120,000IPsthatwatchedmorethan120minutesinthepast12hours,""that'sourbasesqueezingpotential,""if1%pays…""everyday…"VANDERKOLKresponded,"that'salotofmoneyindeed.
"ORTMANNalsocommented,"Ithink120minutesiswaytoogenerous…"Theacronym"IP"referstoInternetProtocoladdress.
g.
OnoraboutSeptember27,2008,viaSkype,ORTMANNsaidtoVANDERKOLK,"althoughthesitedesignisNEVERadecisivefactorhere–contentisking,"andVANDERKOLKresponded,"yes.
"The"content"availableontheMegaSiteswasoverwhelminglycopyright-infringingmaterial.
h.
OnoraboutSeptember27,2008,viaSkype,ORTMANNtoldVANDERKOLK,"wedidsomethingsright,""weallowedfraudforalongtime,fuelingourgrowth,""thenweforcedourownplayer,makingusexplode,""andnowwecancapitalizeonit.
"VANDERKOLKresponded,"yes.
"ORTMANNthensaid,"andagain,it'snicelynon-searchable…reallynice,"andhealsosaid,"let'sbecometheRapidshareofvideo:)"Inaddition,ORTMANNsaid,"ourstrongestcountry(USA)isn'tevenfullyawakeyet:)"andVANDERKOLKresponded,"indeed.
"i.
OnoraboutSeptember27,2008,viaSkype,ORTMANNsentVANDERKOLKthefollowinge-mail,whichwassubmittedbyaMegauser:"IloveMegavideo,butIreceivedastrangemessageandwasnotallowedtofinishwatchingamovie.
ThemessageIreceivedsaid"Youhavewatched77minutesofvideotoday.
Pleasewait120minutes,orclickheretoenjoyunlimiteduseofMegavideo.
"AndIdid,causeofcourseIwantedtofinishthemovieI'dstarted.
Let'sseeitwasroutedthroughwww.
watch-movies.
net,maybethat'sgotsomethingtodowithitAnyway,whenIclickedonthethatnothinghappened.
"j.
OnoraboutSeptember28,2008,viaSkype,VANDERKOLKaskedORTMANN,"Don'tyouthinkcopyrightholderswillnowgetextrapissed"ORTMANNresponded,"theywouldn'tknow,"because"theyprobablydon'twatchtheirownstufffor60+minutes:)"k.
OnoraboutOctober28,2008,viaSkype,ORTMANNtoldVANDERKOLK,"limitingMVtolessthan90minutesreallytriggerstheflow,""movielength.
"VANDERKOLKresponded,"yesindeed,""butthemorewelimitthemorewehurtourgrowth.
"l.
OnoraboutNovember20,2008,viaSkype,VANDERKOLKtoldORTMANN,"AlsorecentMVpaymentsonPayPallookgoodnow,"andPage125of191thenheasked,"limitationwasunchanged"ORTMANNresponded,"limitationisnowat70minutes.
"m.
OnoraboutNovember21,2008,viaSkype,VANDERKOLKandORTMANNdiscussedhowmanyusersdecidedtopayforpremiummembershipduetothetimelimitationsonwatchingvideos.
VANDERKOLKsaid,"interesting:MVhad389,350uniquesredirectedto"/c=premium&l=1""vs29,933forMP.
"Theacronym"MV"referstoMegavideo.
com,andtheacronym"MP"referstoMegaporn.
com.
ORTMANNresponded,"thatreflectstheratiobetweenredirectssentquiteaccurately,""roughly1:10.
"ORTMANNthencommented,"nowifMPalsogeneratedthesameamountofsales…""wewouldhave300newsubscriptionsaday.
"VANDERKOLKsaid,"Idon'tgetit,"andORTMANNresponded,"perhapspeoplejustgoelsewhere,"because"pornisgeneric,""moviesarenot.
"VANDERKOLKadded,"yeahthatstrue.
"n.
OnoraboutNovember21,2008,viaSkype,VANDERKOLKandORTMANNdiscussedtheidealtimelimitationstomaximizethenumberofuserswhodecidetopayforpremiummembership.
VANDERKOLKsaid,"wehavetoreachthatcriticalpointtocashin,"and"yes,butwithMVpeoplewatch90-120minutes.
"ORTMANNresponded,"limtisbeyond3hours–noconversion,2hours–someconversion,90minutes–moreconversion,70minutes-majorconversion,"and"thereisahugedifferencebetween90and70minutesthere.
"VANDERKOLKthensaid,"letsseehowmany%clicksonthebuynowbuttonfromtheMVpremiumlimitationmessage,"and"(thisisverygoodbtw,googleanalytics).
"ORTMANNadded,"yes,seemsso:)"o.
OnoraboutNovember23,2008,viaSkype,ORTMANNandDOTCOMdiscussedwhetherthetimelimitationshouldbe60or72minutestomaximizethenumberofuserswhodecidetopayforpremiummembership.
TheconversationwasoriginallyinGerman.
DOTCOMsaid,"MViscontinuingtogrow,""evenwithlimits,"andORTMANNresponded,"right.
"Later,DOTCOMsaid,"WhatIdon'tunderstandiswhywedon'tdowhatweagreedon.
60minutesplaytime/60[minutes]waiting.
Idon'tunderstandthat.
Isn'tthatwhatweagreedon"ORTMANNresponded,"Psychologically,Ithinkit'sbetterifpeoplehavetowaitalittlelessthantheyareallowedtoseeinonego.
We'vemorethanreachedthetarget-paymentlevel.
We'vecontinuetogrowwithreal72Minutes.
Withreal60Minutes,weareheadedintonewterritory.
"ORTMANNalsosaid,"Movieslast90minutes.
They'reinterestinginthelast20minutes.
"Later,DOTCOMsaid,"Okay.
Itwouldjustbeniceifsomethinglikethatgotexplainedtomeonceinawhile.
Justdon'tleavemeinthedark.
Ihadassumed60[minutes]here.
YesterdaywesaidwewouldtryitoutforfourdaysnowWITHOUTscrewingaround.
Instead,it's72[minutes]now.
Andyesterday,youhadraisedthelimitsforanhourPage126of191again.
Thatisn'twhatwasagreedon.
Butit'snobigdeal.
Itwouldjustbefairandproperifyouwouldkeeptoagreementsoratleastclarifyinadvanceanychangestoagreements.
Ireallywantedtoseewherethejourneywouldleadwith60/60.
Andfourdayswon'thurtanybody.
MVwillkeepgrowing.
"ORMANNresponded,"Noproblem.
Wehadidentified60inexactMinutesasasweet-spot.
Thatit's72Minutesinreality-somuchthebetterfortheuser.
Thesweet-spotattributemightcompletelyhavetodowiththefactthatmoviesheightenthesuspensetowardtheend.
"DOTCOMasked,"Butyouyourselfsaidthatmostofthemovieswithusarebeinguploadedinhighbitrate"andORTMANNresponded,"Lowbitratemovieswerereallytwiceaslongsometimesbeforetheusergotthemessage,""butlong,lowbit-ratemoviesarerare(DVDripsarehighquality).
"Inthiscontext,thephrase"DVDrips"appearstorefertoinfringingcopiesofcopyrightedDVDs.
p.
OnoraboutDecember30,2008,viaSkype,ORTMANNtoldDOTCOM,inGerman,"WhatledtothemiraculousMUturnaroundattheendofJuly,wedon'tknow.
ButtheintroductionofMVlimitationswasourmostimportant,deterministicchangein2008.
"CopyingVideosfromYouTube.
com105.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AsdiscussedinParagraphs26through29,theMegaConspiracyreproducedvideosdirectlyfromYoutube.
comtodistributethemthroughtheMegaSites.
b.
OnoraboutMay17,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"he[DOTCOM]wastellingagainyesterdayhowimportant'allyoutubefiles'areandthatIneedtoaskyouformorediskspacesowecanleech.
"VANDERKOLKalsosaid,"I'lljuststicktoourstrategyandleechmostpopularfilesonly.
"ORTMANNresponded,"right,verygood.
"c.
OnoraboutJune4,2007,viaSkype,VANDERKOLKaskedORTMANN,"Andrus[NOMM]toldmeeverythingisdonetoimporttheYoutubevideo's"ORTMANNresponded,"Andrus[NOMM]hasfinishedtheflvindexer…hisapproachisprettyingenious,we'llbeabletoimporteverythingwithinafewdays.
"VANDERKOLKresponded,"Cool!
:-)".
Theacronym"flv"referstotheFlashVideofiletype.
d.
OnoraboutJune14,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"Youtubewillbepissed:-)".
ORTMANNresponded,"heh:)indeed…Ithinkwe'lljustdotheimportingbydirectfetchingfromoneofourserversinitiallyuntiltheyblockus.
"Page127of191e.
OnoraboutJune19,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"tohavethetopXXXthousandvideosforthelaunchofMVisnice","buthavingALLyoutubefilesisovertheedge.
"VANDERKOLKthensaid,"butitwasalwaysveryhardtosayanythingaboutit.
"Theacronym"MV"referstoMegavideo.
com.
ORTMANNresponded,"yeah,it'sKim'spetproject:)"AndVANDERKOLKreplied,"kimwasextremelypersistant".
f.
OnoraboutJune27,2007,viaSkype,VANDERKOLKaskedORTMANN,"DoyouthinkitwillbepossibletostartimportingtheyoutubevideotoMegavideotodayortomorrow"ORTMANNresponded,"today,definitely.
nomoredelays.
"VANDERKOLKreplied,"okaythatsoundsgood:-)"and,"Ifthere'sanythingIcanhelpyouwith,pleaseletmeknow!
"g.
OnoraboutAugust5,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"Hopefullyyoutubewillnotblockusandwillnotdoanythingevil,""butifwegetlettersfromtheirlawyersandwelet[unindictedconspirator]readthenwe'lldefinitelygetbiginstantlyhaha.
"ORTMANNresponded,"Iamsurewe'llgetaletterfromtheirlawyerssoonerorlaterandthatourleechIPwillbeblocked.
"h.
OnoraboutSeptember3,2007,viaSkype,VANDERKOLKandORTMANNdiscussedcopying,withoutauthorization,videosfromwebsitessuchasYouTube.
com,Break.
com,andGoogleVideos.
ORTMANNstated,"Ihave152589successfulimportsinthedb,thisseemsquitealot.
"Theacronym"db"referstodatabase.
i.
OnoraboutOctober4,2007,viaSkype,VANDERKOLKsenttoORTMANNaconversationbetweenVANDERKOLKandDOTCOM,whereDOTCOMstated,"thedayhas1440minutesandIwanttoseeoneVideouploadonmegavideoeveryminute.
Ifnecessaryusetheyoutubevideoswestillhaveunpublishedandpublishonebyonefromdirrentaccountseveryminute,"and"otherwisewelooklikesmallfish[EXPLETIVEREDACTED].
"VANDERKOLKcommentedtoORTMANN,"Iwasthinkingtoautomaticallyimport1000youtubevideoseverydaytofulfillKim'swish(anditwouldmakeMVlookbetter).
"ORTMANNresponded,"goodideaindeed!
"j.
OnoraboutOctober8,2007,viaSkype,ORTMANNaskedVANDERKOLK,"so,howcanwehaveanewyoutubeimportonlineeveryminutewithout24hauditorsurveillance"VANDERKOLKresponded,"youtubevideosarealreadyaudited,somevideosthatwereimportedbyuserswere'sexy'butthere'sneverrealnudityonyoutube.
"ORTMANNreplied,"okay,sowetrustthem…"VANDERKOLKthensaid,"sofaryoutubeimportsdidn'trequireapprovalaswell""and,Ionlyimportpopularvideosfromyoutubeeveryminute.
"ORTMANNresponded,"buttherePage128of191shouldbeayoutubeimportcompletingeveryminuteanyway…theimporterisworkingheavilyallthetime.
"k.
OnoraboutOctober9,2007,viaSkype,ORTMANNaskedVANDERKOLK,"isyoutubeimportingstillworking,btw"VANDERKOLKresponded,"yesit'sworkingperfectnow!
"and"therecentvideosonMegavideolooksomuchbetter.
"Healsosaid,"andI'mautomaticallyleechingthefeaturedbreakvideostofeatureonMegavideo,soMegavideolooksmuchmorealivenow.
"ORMANNresponded,"perfect,""(andnasty:)).
"Thephrase"breakvideos"appearstorefertovideoscopiedfromthewebsiteBreak.
com.
VANDERKOLKthensaid,"NowKimcantrytogetsomeadvertisersorinvestorsorbuyersforit:-)""andsemiscamthen:-)"ORTMANNresponded,"yeah:)"l.
OnoraboutApril14,2008,viaSkype,VANDERKOLKaskedORTMANN,"Whatwastheproxyserveragainthatwassetupforyoutubeimportingabouttwomonthsago"ORTMANNrespondedwiththeserver'sInternetProtocoladdress,androughlythirtyminuteslaterVANDERKOLKsaid,"nowlet'sactivatetheonevideoperminutescriptagainsothatMVlooksniceagain.
"ORTMANNcommented,"yeah,thatwouldbecool.
"m.
OnoraboutApril18,2008,viaSkype,ORTMANNtoldDOTCOM,inGerman,"let'ssee,ifTF1willsueusfor10sofmillionsasidefromDailymotionandYoutube:)"TF1isaprivatenationalFrenchtelevisionchannel.
ThewebsiteDailymotion.
comisaFrenchvideo-sharingwebsite,similartoYouTube,onwhichuserscanupload,share,andviewvideos.
InadditiontoYouTube,theMegaConspiracycopiedwithoutauthorizationvideosfromDailymotion.
com.
n.
OnoraboutApril18,2009,viaSkype,ORTMANNandVANDERKOLKdiscussedvideosappearinginGooglesearches.
VANDERKOLKsaid,"maybeweshouldslowlydothatagain,itreallymakesthesitelookmorelegit,"andORTMANNresponded,"yes.
"VANDERKOLKasked,"Howdidwedoitlasttime,Idownloadedthefilesdirectlytoafileserverright"andORTMANNanswered,"yes.
"VANDERKOLKthensaid,"I'lltrytoquicklyimplementsomethingwiththeYoutubeAPIsothatwecanuploadnewlegitvideostoMVcontinueslytomakethesitelookmorelegit.
"VANDERKOLKcommented,"Megavideohasquiteapiracyimagealready,"andORTMANNadded,"yes.
"Page129of191Relianceon—andFailuretoTerminate—RepeatInfringers106.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutNovember4,2006,theMegaConspiracydistributedadescriptionoftheUploaderRewardsprogram.
Althoughthedescriptioncautionedusersto"respectcopyrights,"membersoftheMegaConspiracyroutinelypaidusersdespiteflagrantcopyrightviolations,asdescribedintheparagraphs,below.
Thedescriptionreadasfollows:Foreverydownloadofyourfiles,youearn1rewardpoint.
*Youcanredeemyourrewardpointsforpremiumservicesandcash:5000rewardpoints:Onedaypremium50000rewardpoints:Onemonthpremium100000rewardpoints:Oneyearpremium500000rewardpoints:Lifetimepremium+$300USD1000000rewardpoints:$1000USD5000000rewardpoints:$10000USDYouneedapremiummembershiptoqualifyforapayment.
Youmustbeloggedinwhileuploading.
Youruploadsmusthonorourtermsofservice&respectcopyrights.
Youaredisqualified&bannedifyoutrytomanipulateyourresults.
Fileslargerthan100MBdonotqualifyforourRewardsProgramOnlydownloadsfromthesecountriesarebeingcounted.
b.
MembersoftheMegaConspiracyregularlydiscussedandpaidrepeatinfringersandunindictedconspiratorswhowereregisteredusersoftheMegaSites.
c.
AsstatedinParagraph25(f),onoraboutFebruary22,2007,VANDERKOLKsentane-mailtoORTMANNentitled"2rewardpaymentfiles.
"Attachedtothee-mailwasatextfilelistingproposedrewardamounts,whichrangedfromUSD$100toUSD$500,theMegaupload.
comusername,andadescriptionoftheuploadedcontent.
Foraparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"AR"),VANDERKOLKwrotethefollowing:"OuroldfamousnumberoneonMU,stillsomeillegalfilesbutIthinkhedeservesapayment.
"OnoraboutApril6,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"[AR]uploadedavideo!
:-)".
ORTMANNresponded,"YEAH:)"andthenstated,"thatisthebreakthrough.
"VANDERKOLKreplied,"our[old]famousrewardparticipant.
"ORTMANNcommented,"hewilluploadtonsfromnowon.
"Page130of191d.
OnoraboutApril10,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"weshoulddefinitelypayalloftheuploadersinthebeginning,"and,"theywillmakeusbig.
"ORTMANNthenasked,"arenewuploadscurrentlyauditedforcopyrightviolation"VANDERKOLKresponded,"notyet,IamsendingspecstoAndrus[NOMM]shortly.
"e.
TheMegaConspiracy'sUploaderRewardsprogrampaidusersforeverydownloadoftheirfiles.
Manyrepeatinfringersrespondedbysplittingcopyright-infringingvideosintomultiplepartsandforcinguserswhowantedtowatchtheentirevideotodownloadeachpart.
Thisincreasedtheirrewardpoints.
f.
OnoraboutNovember18,2007,viaSkype,VANDERKOLKsaidtoORTMANNthataparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"VF"),"createdasecondaccount[NAMEREDACTED]andwithin19daysa1500USDredemption.
"ORTMANNresponded,"amazing""wearevery,veryluckytohavehimasanuploader.
"ORTMANNthensaid,"those1500USDaremultipliedbyafactorof10atleast""andnoDMCAnoticesyetfromVietnam.
"VANDERKOLKresponded,"thosearewellworthit,howevermajorsplitfilesintheportfolio.
"VANDERKOLKthensearchedVF'saccountbasedonfilesizeandORTMANNcommented,"damn!
!
""1000046MBfiles!
"VANDERKOLKresponded,"yeahtotallyamazing.
"AndORTMANNreplied,"thisguyisamazinglyvaluable.
"VANDERKOLKsuggested,"Itwouldbeinterestingifwecancreatestatisticshowmanyuniquepremiumusersdownloadedauser'sfilesorhowmany'premiumrewardpoints'auserhasforthedecissionifausershouldgetpaidornot…"Hethensaid,"butyeahthatwouldbetoomuchworkfornow:)"ORTMANNresponded,"Ididmakesuchstatisticsayearagoforsomeofourtopuploaders"and"itturnedoutthatoneofthevietnameseguysgeneratedseveral10kofpremiumrevenuepermonth.
"VANDERKOLKcommented,"that'sextremelyvaluableinformationtodecidewetherarewardsparticipantshouldgetpaidornot.
"ORTMANNreplied,"basically,alltheVietnameseguysaregems"and"if[VF]knewhowmuchmoneyhebringsus,hewouldprobablynotbecontentwithafew$1500redemptionspermonth:)"ORTMANNalsosaid,"aslongasthetotalamountwepayouttohimisreasonable,it'sfine"and"wemustkeephimmotivated.
"Inaddition,ORTMANNsaid,"well,Icanonlysay–theVietnameseguysdeserveit,andshortlybeforexmas,it'sagreatmotivationboost.
"g.
OnoraboutDecember2,2007,viaSkype,VANDERKOLKtoldORTMANN,"theideabehindtherewardsshouldbethatweattractnewusers/traffictooursites,notpayforexistingtraffic/usersIMHO.
"Theacronym"IMHO"generallymeans"inmyhumbleopinion.
"ORTMANNresponded,"hugeuploadersshouldprofit,eveniftheyhavebeenwithusforalongtime.
"Page131of191h.
OnoraboutDecember17,2007,viaSkype,VANDERKOLKaskedORTMANN,"WhatwouldyouexpectasanacceptableamountforpayoutthistimeORTMANNresponded,"15K,"andVANDERKOLKreplied,"okayI'lladjuststrictnessaccordingly:)"ORTMANNcommented,"good.
"i.
OnoraboutJanuary18,2008,viaSkype,DOTCOMaskedORTMANN,inGerman,"andIneedtoknowexactlyhowmuchwepaymonthlytouploaderrewards.
"ORTMANNresponded,"thefirstrewardspaymentafterChristmaswas76K.
"DOTCOMreplied,"maaadddnnneeess!
"andthenhesaid,"nowonderwe'regrowinglikethatnow.
"Inaddition,DOTCOMsaid,"havegrowth""notbecauseofgigs"but"becauseofPAYMENT!
"ORTMANNcommented,"thepaymentcameafterthegrowth:)"andDOTCOMresponded,"sincethespecialpeopleuploadedandpromotedmore.
"ORTMANNagreed,"yes,thatissurelyrelevant.
"DOTCOMthensaid,"growthhaslesstodowiththemanygigsthanwiththerewards.
inmyopinion.
"Theterm"gigs"referstoGigabytes,aunitofmeasuringdata-storageandfile-sizecapacity.
j.
OnoraboutJanuary25,2008,viaSkype,VANDERKOLKandORTMANNdiscussedaparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"JH").
VANDERKOLKsaid,"his500and1500USDredemptionsweredisqualified"and"hehas6$100redemptionspending.
"ORTMANNsaid,"heprobablyhas100%fraudulentfilesinhisaccount.
"VANDERKOLKresponded,"mostlikely,""that'sthebigflawintherewardsprogram"—"wearemakingprofitofmorethan90%infringingfiles,""soeitherweshouldjustlowerthepointsabitandpayeverybody,orstoppayingrewards.
"VANDERKOLKthensaid,"IasumewiththisrewardspaymentKimwantstobeverygenerous"ORTMANNresponded,"yes,butonlyforthoseusersthatbroughtpremiumsales:)"k.
OnoraboutJanuary26,2008,viaSkype,VANDERKOLKsentORTMANNaconversationbetweenVANDERKOLKandDOTCOM.
Duringthatconversation,VANDERKOLKsentDOTCOMtherewardspaymentsfora2.
5-weekperiod.
DOTCOMresponded,"cool!
"let's[EXPLETIVEREDACTED]pay.
"VANDERKOLKreplied,"okayIbelessrestrictive,finewithme:)"andDOTCOMresponded,"good.
"DOTCOMalsosaid,"thisisourgrowthmotor,""youwillsee.
"l.
OnoraboutFebruary17,2008,viaSkype,DOTCOMaskedORTMANN,inGerman,"doweknowfromtherewardstatsnowwhoreallybringsusthesales"ORTMANNresponded,"bramissupposedtobuildastatstoolforthat…thenwewillhaveaslidertoo.
"m.
Accordingtoe-mailsandSkypeconversations,inoraboutFebruaryof2008,theMegaConspiracyalteredtheUploaderRewardsprogrambyPage132of191limitingrewardpointstoasinglepointperdownloadorview,forasingleInternetProtocoladdress,perday.
Theyalsoimplemented"sliders,"whichallowedtheMegaConspiracytochangethenumberofdownloadsorviewscreditedtouserstowardrewardpoints—inotherwords,10downloadsorviewsmightresultinasinglerewardpoint.
Thesechangesreducedrewardpointsandeliminatedtheobjectivenessoftherewardssystem,thatis,itinvolvedmembersoftheMegaConspiracysubjectivelyvaluingthecontributions(whichwereoftenillegal)ofindividualusers.
1.
OnoraboutMarch14,2008,viaSkype,ORTMANNaskedVANDERKOLK,"Itrustyousetthesliderspredominantlyonpeoplewhouploadlamecontent.
"VANDERKOLKresponded,"yeahorusersthatjustuploadtoMRVanddon'thaveawebsitedrivingtraffictous.
"Theacronym"MRV"referstoMegaroticVideo.
ORTMANNthenasked,"andyouwouldn'tmindlosingsomeoftheslidereduploadersaltogether"VANDERKOLKresponded,"rewardingMUusersismuchmoreimportant.
"Theacronym"MU"referstoMegaupload.
ORTMANNreplied,"yep.
"VANDERKOLKthensaid,"itwillnotbethatharmful,butIthinktheywillcontinuetouploadanyway"because"we'restilltheonlyadulttubesitethatpays.
"Healsosaid,"sincewehavetheslidersandthenewcountinglogicourgrowthhasbeenunchanged.
"ORTMANNcommented,"Iamgladtohearthat.
"ThenVANDERKOLKsaid,"andnowwecanbeabitmorerelaxedwiththepayments,wedon'talwayshavetofindareasontodisqualifyinordertoreducethetotalamountwe'repaying.
"2.
OnoraboutApril16,2008,viaSkype,VANDERKOLKsentORTMANNane-mailfromaregistereduserthankingthemforanUploaderRewardpayment.
VANDERKOLKcommented,"Whathedoesn'tknowisthathehasasliderandthathispointsgo5timesslowerfromnowon,it'sreallygoodthiswaynow.
"Headded,"noneedtodisqualifyanyoneanymore.
"ORTMANNagreed,"perfect.
"n.
OnoraboutApril15,2008,viaSkype,VANDERKOLKsentORTMANNaportionofane-mailsentbyarepresentativeofWarnerBrothersEntertainmentInc.
totheMegaConspiracyatdmca@megavideo.
com.
Theportionofthee-mailstated:Thefollowinguser[USERNAMEREDACTED]appearstohavecircumventedMegavideo.
Whenyoulookathisprofileheshowsthathehasuploadedonly7videostoMegavideo.
However,thisisnotaccurate.
ThisuseriscircumventingMegavideobylinkingtoinfringingvideosdirectlyandnotsearchableviaMegavideo.
Page133of191Sincethesetelevisionepisodesbelowprovethatuser[USERNAMEREDACTED]hashiddenandmarkedhisvideoshasprivate,contentownerssuchasWarnerBros.
areunabletosearchandfindallinfringingcontent.
Iwouldliketorequestthathisaccountbesuspended.
Belowisanexampleofinfringingcontentfoundfromthelinkingsiteforuser[USERNAMEREDACTED].
Thefulle-mailalsoincludedmultipleURLlinkstocopyright-infringingmaterials,includingthecopyrightedtelevisionprogramsSmallvilleandTerminator:SarahConnorChronicles.
Attachedtothee-mailweretwophotographs,thefirstdepictingtheuser'sprofileonMegavideo.
com,andtheseconddepictingacopyright-infringingvideoofSmallvilleuploadedbytheuser.
VANDERKOLKcommentedviaSkypetoORTMANN,"thecopyrightholdersarealsogettingsmarter,withscreenshotsandeverything:)"ORTMANNresponded,"wow:)"AsofJanuary20,2012,[USERNAMEREDACTED]'saccountwasactive.
o.
OnoraboutJuly15,2008,viaSkype,ORTMANNandVANDERKOLKdiscussedarecentrewardpaymentof"41.
1K.
"VANDERKOLKcommentedthattheamountwas,"alotofmoney,thatsforsure,"butORTMANNresponded,"yeah,butweneedthegrowthnow.
"VANDERKOLKadded,"nextonewillbeless,newvideorewardparticipantswillslowlygetslideredmore&more.
"p.
OnoraboutAugust29,2008,viaSkype,VANDERKOLKsentORTMANNane-mailfromaparticularrepeatinfringerandunindictedconspirator.
Thee-mailread:TodayImonitorbothviewandrewardpointsandInoticeIwasaveraging20,000viewsanhourbutonlyreceiving900rewardpointsandhour.
AmIreallysurposetoget9,000rewardpointsanhoutandyouguysshortingmeadigit,likethelastzerochanging9000to900IworkingveryhardandIknowwhenIstarted,myrewardpointswereincrediblelybetterandIwasuploadingalotlessvids.
Pleasegivemeabetterratio,at1800-2000rewardpointsanhourwouldbegreatlyapprecitedandIguaranteeyouIwillstopaskingquestionsandsendingemail.
Comeonweareallprofessional!
VANDERKOLKcommentedtoORTMANN,"hahathisguyisexactlyright,hehasa0.
1factorintheslidertable:)"Hethensaid,"Yeahbutitsalright,mostusersareuploadinglikecrazyinordertogetmorepointsnow:)"Page134of191q.
OnoraboutNovember22,2008,viaSkype,ORTMANNandVANDERKOLKdiscussedatechnicalissuethatrequiredplayingavideo.
ORTMANNsaid,"Ihadtotrythreevideos.
downloadidofthatfile,onlythethirdonewasn'tremovedyet:)"andVANDERKOLKresponded,"haha.
"ORTMANNthensaid,"thegoodthingisthatreuploadedvideosconvertinstantly,""niceforrepeatinfringers.
"VANDERKOLKreplied,"yes,""especiallynicewiththeMegaManager,"andORTMANNresponded,"yes!
:)"Duringthistimeperiod,theMegaConspiracywasconvertinguser-uploadedvideosintotheFlashvideoformatandreproducingthemtofacilitatedistribution.
r.
OnoraboutMarch13,2009,viaSkype,ORTMANNsentVANDERKOLKamessagesubmittedbyaMegauser,whichread:"hi.
ummm…seemslikewhenIuploadvideosinMUandusethemonmegavideo,thevideosgototheusernamed'Anonymous'notmine.
.
pleasehelpme.
"VANDERKOLKresponded,"yesIdidthatonpurpose""BecauseotherwisewediscloseMUusernames.
"ORTMANNreplied,"TRUE.
"AndVANDERKOLKadded,"Alsonotgoodforrepeatinfringementoffenders.
"s.
OnoraboutApril1,2009,viaSkype,anunindictedconspiratoraskedORTMANN,"Therewardpayout-isitthebonusthemembersgotfromothersdownloadfromtheirupload"ORTMANNanswered,"correct.
"Theunindictedconspiratorthenasked,"howcantheygetUS$10000!
whatdidtheyupload"andORTMANNresponded,"wehadsomecrazyuploadersthatuploadedthousandsofpopularfiles.
"t.
OnoraboutMay25,2009,viaSkype,VANDERKOLKtoldORTMANN,"Rewardspaymentfile&Translatorpaymentfilesent!
"ThenVANDERKOLKsaid,"317differentpaypaladdressesbeingpaid,""nicelyspread.
"ORTMANNresponded,"good,lookslikemostare$100:)"andVANDERKOLKreplied,"yes,theslidersdotheirjobverywell"ThenVANDERKOLKsaid,"Thisshouldreallyboostourpopularity,""unlikepayingjustafewuserstensofthousands.
"ThenORTMANNsaid,"good,payingnow…""86.
3k.
"Afewminuteslater,VANDERKOLKsaid,"it'sfineI'dsaywithourprofit,""givingawaylessthan10%isveryacceptable.
"ORTANNresponded,"yes,""especiallyinagrowthphase,"andVANDERKOLKreplied,"Andwereallyhardlydisqualifyanyone,wejustblockfraudthat'sit.
"Theterm"fraud"appearstorefertotheusers'attemptstodefraudtheMegaSites.
u.
OnoraboutJuly31,2009,viaSkype,VANDERKOLKandORTMANNdiscussedarewardspayment.
VANDERKOLKasked,"Howmuchwasitintotalbtw"andORTMANNanswered,"179300.
"VANDERKOLKcommented,"ohnoteven_that_bad""fortwomonths""withouramountofuploads/revenue.
"ORTMANNresponded,"yep,it'sreallycheapoverall,"andVANDERKOLKreplied,"andthisisnotwithanyPage135of191disqualificationsofbadportfolio's.
"ORTMANNresponded,"yep!
"andVANDERKOLKreplied,"shouldreallyboostgrowth,let'ssee.
"v.
OnoraboutNovember8,2009,viaSkype,VANDERKOLKandORTMANNdiscussedarewardspaymentof$175,600.
VANDERKOLKsaid,"it'sstillveryfineinrelationtoourcosts/income/profitifyouthinkaboutit,"because"theseusersaremakingithappen.
"ORTMANNaskedVANDERKOLKaboutaparticularrepeatinfringerandunindictedconspirator,referredtoasLRinParagraph53,"isthatabigcontributor,"andVANDERKOLKresponded,"morethan70Mvideoviews.
"ORTMANNreplied,"notbad:)"VANDERKOLKoffered,"butwecanskiphimifyouwant:)"andORTMANNreplied,"nono:)""70Mvideoviewsareworthupto150K.
"Copyright-InfringementThroughEmbeddedPlayers107.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoe-mailandSkypeconversations,membersoftheMegaConspiracypermittedusersoftheMegaSitesto"embed"videosonthird-partywebsites.
Embeddedvideoswerehostedon,thatis,reproducedanddistributedby,theMegaSitesbutcouldbeviewedandaccessedfromthird-partylinkingsites.
Inotherwords,userscouldviewMega-hostedvideosonthird-partylinkingsites,buttheMegaConspiracymaintaineddirectcontroloverthedistributionoftheunderlyingvideofile.
b.
OnoraboutMay20,2007,viaSkype,VANDERKOLKtoldORTMANN,"Wehavealreadyoveramillionviewsonembededplayersnoweveryday.
"TheMegaConspiracythereforehadtheabilitytomeasureInternettrafficgeneratedthroughtheembeddedplayers.
c.
OnoraboutMay23,2007,viaSkype,VANDERKOLKaskedORTMANN,"Ifweidentifyavideoascopyright,shouldweremoveitonlyfromthesiteoralsomakeitunavailableintheembededplayer"ORTMANNresponded,"that'saverygoodquestion.
"VANDERKOLKreplied,"Ithinkitmakesensetokeepitavailableintheembededplayers(atleastfornow).
"ORTMANNresponded,"Iguessso,too,"andVANDERKOLKreplied,"okay.
"AlthoughVANDERKOLKreferredto"remov[ing]"copyright-infringingvideosfromtheMegaSites,thesevideoswerenotactuallyremoved.
Instead,thesevideosweresimplymarked"private.
"d.
OnoraboutAugust30,2007,viaSkype,ORTMANNaskedVANDERKOLK,"howcleanaretheexistingvideosonMRVnow,whatdoyouthink"Theacronym"MRV"appearstorefertothestreamingsectionofMegarotic.
com.
VANDERKOLKresponded,"it'sprettycleanfromthePage136of191perspectiveofchildporn/disgustingstuff,""butstilllot'sofcopyrightinfringements.
"Headded,"ifwewanttocleanthingsupwehavetoagreeonwhathastogoandwhatnot,""otherwiseIcandelete90%ofthecontent:-)"ThenVANDERKOLKsaid,"rightokay,""sovideoslongerthan10minutesonMRVshouldbesettoprivateorsomething…"andORTMANNresponded,"yes,"but"directlinking/embeddingisfine.
"VANDERKOLKadded,"embeddedplayersarenotsoharmful.
"ORTMANNcommented,"searchabilityisdangerousandwillkillus,"andVANDERKOLKreplied,"yeah.
"e.
OnoraboutOctober4,2007,viaSkype,VANDERKOLKsuggestedtoORTMANN,"WeshouldbeabitmorecarefulwithdeletingpopularvideosfromMRVinmyopinion,""sincethatisprofitable.
"ORTMANNresponded,"sofar,allcaseIhaveseenwereMV,""butyou'reright,apopularMRVvideoshouldbemirroredtootherserversratherthandeleted:)"VANDERKOLKreplied,"yeahthosearethelongfulldvdripsinembededplayers,wereallyneededthisfeature,"andORTMANNagreed,"yes,itwasoverdue.
"f.
OnoraboutOctober7,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"MaybeweshouldautomaticallydeletevideosonMegavideothatarelongerthan30minutesandhavemorethanXXXviewsorsomethingbecauseIstillseesomuchpiracythatisbeingembedded.
"VANDERKOLKthenasked,"Whatkindofvideosarelegitandlongerthan30minutesandviewsmorethanXXXtimes…"ORTMANNresponded,"whatwecanindeeddoisputtheminto'temporarilynotavailable'stateandpriority-auditthem"and"anythingthat'slegitwillthenbeunblockedpermanently,therestwillgotodeleted.
"VANDERKOLKresponded,"yeah,but99.
999%willbedeletedthen.
"BasedonapreliminaryreviewoftheMegadatabasesandsourcecode,asofJanuary19,2012,itdoesnotappearthattheMegaConspiracyimplementedacopyrightscreeningfeatureforvideoslongerthan30minutesbasedonthenumberofviews.
g.
OnoraboutApril15,2008,viaSkype,VANDERKOLKtoldORTMANN,"almost18.
000.
000videoviewsonMRVperday,""andalsoawopping6.
000.
000onMVnow.
"ORTMANNresponded,"amazing"and"wow.
"VANDERKOLKadded,"MVhadnicegrowthduringthepast2months,""probablypiracyinembeddedplayers"—"50.
000dailyclickstopartypokerfromtheadsintheembeddedplayersofMV.
"ORTMANNresponded,"that'samassiveasset,"andVANDERKOLKreplied,"yes,""piracyornot:)"ThewebsitePartyPoker.
comprovidedonlinegamblingservices.
h.
OnoraboutMay27,2008,viaSkype,VANDERKOLKtoldORTMANN,"thoseembeddedplayersareresponsableforalmost10.
000.
000videoviewsperdaysotheymustbeloadedmanymanyPage137of191times…"ORTMANNadded,"andtheyareloadedbytonsofdifferentusers.
"i.
OnoraboutJuly12,2008,viaSkype,ORTMANNtoldVANDERKOLK,"Iamplaying'SexandtheCity'onkino.
toinourregularplayerandhavetoadmit–mencoderisagoodtool:)"VANDERKOLKresponded,"okayverygood:)""SexandtheCity"isacopyrightedtelevisionseriesthatairedonthepremiumchannelHomeBoxOffice.
Thewebsitekino.
towasathird-partylinkingsite.
AndMEncoderisathird-partyvideoencodinganddecodingsoftware.
j.
OnoraboutOctober29,2008,viaSkype,VANDERKOLKtoldORTMANN,"theusersthatarevaluabletoMRVaretheonesthatdrivetraffictous,""theonesthathavebigsitesanduseourembeddedplayers.
"ORTMANNresponded,"right.
"Theacronym"MRV"referstothevideostreamingportionofMegarotic.
com.
k.
ByNovemberof2008,premiummembershadtheabilitytodownload—notjustview—copyright-infringingvideosthroughembeddedplayers.
OnoraboutNovember9,2008,viaSkype,VANDERKOLKtoldORTMANN,"sopremiumuserscanalsodownloadfromembeddedplayers,"whichisan"importantfeaturetobecometheRSofonlinevideoI'dsay:)"Inthiscontext,theacronym"RS"appearstorefertoRapidshare.
com.
l.
OnoraboutNovember15,2008,viaSkype,ORTMANNaskedVANDERKOLK,"doyouhaveapubliclinkwithMRVembeddedvideos"VANDERKOLKrespondedbysendingalinktothethird-partylinkingsitehttp://megaroticvideo.
blogspot.
com,whichincludedembeddedvideosthatwerehostedontheMegaSitesbutwereavailableforuserstowatchonthethird-partylinkingsite.
m.
OnoraboutJuly17,2009,viaSkype,ORTMANNsentVANDERKOLKthefollowinge-mailfromaMegauser:westillhavethisonceinawhile(butveryrarely):FromBuyer:[NAMEREDACTED]on16/07/200907:18PDTYes,however,Iwaswatchinganepisodeofanoldtvshow,whenamessagepoppedupsayingihadwatched74minutesandhadtowait54minutesbeforewatchingmoreoftheepisode.
ThemessagesaidIcouldbuyamembershiptowatchunlimitedvideowithoutatimelimit;however,buyingthemembershipdidnotallowmetowatchthevideowithoutatimelimit.
VANDERKOLKrespondedtoORTMANNwiththefollowing:Page138of191Ihavethistemplatereplyforthesecases:Dearuser,WereyouwatchingintheembeddedplayerthroughathirdpartywebsiteYourpremiummembershipshouldalsoworkonthirdpartysites,howeversharedobjectsinflashisarequirement.
Pleaseusethefollowingsitetoverifyifyouhavesharedobjectsenabled:[URLLINKREDACTED].
ThankyouforusingMegavideo!
Sincerely,MegavideoSupportRepeatInfringerandUnindictedConspirator"TH"108.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
MembersoftheMegaConspiracydiscussed,viaSkype,repeatinfringerandunindictedconspiratorTH,whoisidentifiedinParagraphs62and63.
b.
OnoraboutMarch10,2007,viaSkype,VANDERKOLKtoldORTMANN,"Allredemptionsare100dollar,exceptforourfamous[TH]whichhasanother1500dollarredemption.
"ORTMANNresponded,"okay,that'swhatIexpected…howabouttheirportfolios"VANDERKOLKthensaid,"I'llgothroughtheirportfolio'snow.
"AndORTMANNreplied,"okay!
"Lessthanfiveminutelater,VANDERKOLKsaid,"sofarnotreallyanyharmfulstuff,andlotsofoldaccountsredeemed,like[USERNAMEREDACTED],[USERNAMEREDACTED],[USERNAMEREDACTED].
"Oneoftheseuserswasarepeatinfringerwhouploadednumerouscopyright-infringingmaterials,includingcopyrightedtelevisionprogramssuchasLostandPrisonBreak,over500ofwhichweresubjecttocopyrightinfringementtakedownnotices,andwhowasstillactiveonJanuary19,2012.
c.
OnoraboutMarch11,2007,viaSkype,DOTCOMaskedORTMANN,inGerman,"dude,canyougivemethestatsinconnectionofwhichuseraccountshavethemostpremiumsales"DOTCOMclarified,"Imeanrewardsusers.
"DOTCOMthensaid,"whichuploadershavecausedthemostpremiumsaleswiththeirfiles.
"ThenDOTCOMstated,"Iwouldliketoknowhowmuchpremiumour[TH]hasbrought!
"d.
OnoraboutMarch15,2007,viaSkype,DOTCOMaskedORTMANN,inGerman,"canyoutellmehowmanypremiumaccountsdear[TH]broughtusORTMANNresponded,"theanalysiswilltakeapproximately2hours,I'llworkonthatrightaway.
"Thefollowingday,viaSkype,Page139of191ORTMANNsaidtoDOTCOM,"morning…sofar[TH]hasprovidedus:-18MillionDownload-Pageviews-112257USDPremium-Salestouserswhohavedownloadedatleast15ofhisfiles.
"DOTCOMresponded,"112257"ORTMANNthensaid,"yep,thosearetheglobalnguyens.
""Nguyen"isacommonVietnamesesurname.
e.
OnaboutJune17,2007,viaSkype,ORTMANNsaidtoVANDERKOLK,"[TH]iscurrentlyoccupying2.
5terabytesofdiskspace,btw–10timeshisallowance:)".
VANDERKOLKresponded,"amazing,""andhe'smakinggoodmoneywiththat:-)".
ORTMANNthencommented,"heisoneofourmostimportantuploaders.
.
.
Idon'tregretanyofthedollarswesendhimeverymonth.
"VANDERKOLKreplied,"yeah.
"f.
OnoraboutJune18,2007,viaSkype,ORTMANNsaidtoVANDERKOLK,"…the3000dollarsfor[TH]and[VF]arereallymoneywellspent.
"VANDERKOLKreplied,"yeahthatIdobelieve.
"g.
OnoraboutAugust31,2007,viaSkype,ORTMANNsaidtoVANDERKOLK,"wecouldmake50K/monthwith[TH's]uploadsalone:)".
ORTMANNthensaid,"goodthatIconvincedKim[DOTCOM]nottodeletehimbackwhenhecomplainedaboutnothavingbeenpaid:)".
VANDERKOLKresponded,"yeahIbet,"and"yesdefinitely.
"h.
OnoraboutJanuary25,2008,viaSkype,VANDERKOLKtoldORTMANN,"therewardssystemwillonlyreallycontributetoourgrowthifwestoppissingoffusers"and"soaslongaswedisqualifyusersforinfringingfilesitisonlycounterproductiveandverycostyinmyopinion""becausegrowthismainlybasedoninfringementanyway:)"ThenORTMANNasked,"whatifwemodulateourtoleranceaccordingtosalestriggered:)"followedby,"(notaveryhonestthingtodo,buteconomicallyviable).
"VANDERKOLKreplied,"yes,thatwayweatleatsdon'tdisqualifyanyvaluableusers.
"ThenVANDERKOLKasked,"butisn'ttheamountofsales&amountofrewardpointsperaccountpermonthprettyliniar"andORTMANNanswered,"no,""somepeoplegeneratesales,somedon't.
"ThenORTMANNsaid,"[TH]ise.
g.
justranked12bysales.
"i.
OnoraboutMarch20,2008,viaSkype,VANDERKOLKsentORTMANNaSkypeconversationbetweenVANDERKOLKandDOTCOM,inwhichDOTCOMsaid,"ijustsentamailto[TH].
Checkifhewillmakeanymajorchangestohisaccountsorifhisstatsaredroppingsignificantlyinthenextfewdays.
"VANDERKOLKresponded,"alrightclear.
"LateronMarch20,2008,viaSkype,VANDERKOLKaskedORTMANN,"Doyouknowwhathappenedwith[TH]"because"Hedidn'tseemtohaveuploadedanyfilesinthepastthreeweeksanyway.
"VANDERKOLKthensuggested,"Hedidn'tgetthat10.
000USDpaymentperhaps"ORTMANNresponded,"hegotatleastonethathePage140of191acknowledged.
"AndVANDERKOLKreplied,"damnwhatwasteofmoneythen:)"ThenORTMANNsaid,"well,hedidbringusgoodsalesinthepast,butwedon'tsay'thankyou,'wemotivateforthefuture:)"VANDERKOLKagreed,"exactly.
"j.
OnoraboutMarch28,2008,viaSkype,VANDERKOLKaskedORTMANN,"so[TH]stoppeduploadingbecauseofthechangeofrewardpoints"ORTMANNresponded,"yep,""that'stheonlyrealcasualty.
"VANDERKOLKreplied,"ohwell,hewillsooncreateanotheraccountunderadifferentnameandcontinuetouseMegaupload"because"we'restilltheonlyonethatreallypaysIthink"—"Ihaveseenthatoften.
"ORTMANNthencommented,"atleasthedidn'tdeleteallofhisfilesyet.
"k.
OnoraboutNovember21,2008,viaSkype,ORTMANNsentVANDERKOLKane-mailwrittenbyTH,inwhichhewrote,"Ihavenotbeenreceivingmoneyfor9monthswhileIstillworkhardforMegaupload.
Ireallyneedmoneynow.
Pleasereplythisemailassoonaspossibletomakemecomfortable.
Sothat,IcontinueworkingforMegauploadatthistime.
"ORTMANNaskedVANDERKOLK,"ishereallystilluploading/redeeming!
"because"Ithoughthewasgone.
"VANDERKOLKresponded,"letmecheck,"andORTMANNreplied,"okay,willsendhimareply.
"RepeatInfringerandUnindictedConspirator"VK"109.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AccordingtoapreliminaryreviewoftheMegadatabases,fromDecemberof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"VK")maintainedaregisteredaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
OnoraboutSeptember13,2007,viaSkype,VANDERKOLKsenttheURLlinkwww.
ftp2share.
comtoORTMANNandasked,"everheardofthatYoucanuploadorfetchafilethereandthenitgetsuploadedto5bigoneclickhostersatthesametime(includingus).
"VANDERKOLKalsosaid,"testeditandtheuploadgotattachedtoapremiumaccount.
"VANDERKOLKthensentORTMANNthepremiumaccountnumberforrepeatinfringerVK,togetherwiththenumberofuploadsassociatedwiththataccount.
BasedonVANDERKOLK'sstatements,repeatinfringerVKcreatedanonlineservicethatenableduserstouploadafiletothewebsiteftp2share.
com,whichwouldthenuploadthefiletomultiple"hosters,"includingtheMegaSites.
Thistypeofservicewouldhavefacilitatedthewidespreaddistributionofcopyright-infringingworks.
Page141of191c.
ApreliminaryreviewoffilesuploadedbyVKindicatesthat,priortoSeptember13,2007,VKuploadedfordistributioncopyright-protectedtelevisionprograms(suchasScrubsandHowIMetYourMother),copyright-protectedmotionpictures(suchasRatatouille,AlphaDog,andGhostRider),andcopyright-protectedcomputersoftware(suchastheoperatingsystemMicrosoftWindowsVistaUltimateandthegameFinalFantasy9).
d.
OnoraboutSeptember13,2007,viaSkype,ORTMANNaskedVANDERKOLK,"does[VK]everredeemhispoints:)"VANDERKOLKresponded,"yeshedoes.
"ORTMANNasked,"howmuchtotalsofar"VANDERKOLKresponded,"600USD""duringthepast2months.
"ORTMANNthencommented,"theremustbeatonofillegalstuffinthataccount.
"VANDERKOLKresponded,"with97.
000filesforsureindeed,butIamnotthatstrictwithsingle100USDredemptions,especiallynotfromsuchhugeaccounts.
"e.
Intotal,theMegaConspiracyreceivedatleast1,100takedownrequestsforURLlinkstoinfringingmaterialscreatedbyVKthroughuploadsofcopyright-infringingcontenttotheMegaSites.
f.
Despitehavingreceivedhundredsoftakedownrequests,theMegaConspiracyneverpurposefullyandcompletelyblockedaccesstotheinfringingcontentuploadedbyVK.
RatherthanpermanentlyterminatingVK'saccesstotheMegaSitesuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoVK.
AsofJanuary19,2012,VK'saccountwasstillactiveontheMegaSites.
RepeatInfringerandUnindictedConspirator"TE"110.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromAugustof2006throughDecember2010,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"TE")maintainedseveralregisteredaccounts,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast275takedownrequestsforURLlinkstoinfringingmaterialscreatedbyTEthroughuploadsofcopyright-infringingcontenttotheMegaSites.
Theselinksgeneratedmorethan8millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthemorethan275takedownrequests,theMegaConspiracyneverpurposefullyandcompletelyblockedaccesstotheinfringingcontentPage142of191uploadedbyTE.
ApreliminaryreviewoffilesuploadedbyTEindicatesthatthisuseruploadedfordistributioncopyright-protectedwrittenworkswithtitlessuchasBeginningProgrammingforDummies,3rdEdition,andWirelessHomeNetworkingforDummies;andcopyright-protectedtitlessuchasSportsIllustratedSwimsuit2007:AnaBeatrizBarro,SportsIllustratedSwimsuit2008:BarRafaeli,HotDanicaPatrickSISwimsuitPhotoshoot,andHootersInternationalSwimsuitPageant.
RatherthanpermanentlyterminatingTE'saccesstotheMegaSitesuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoTE.
Forexample,onoraboutJuly30,2008,theMegaConspiracypaid$1,500toTEaspartoftheUploaderRewardsprogram.
ThenbetweenJuly30,2008,andSeptember9,2008,TEuploadedmorethan222URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan156takedownrequestsforURLlinkstoinfringingcontentcreatedusingtheseaccounts.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidTEanadditional$1,700onSeptember9,2008,andcontinuedtopayTEanother$1,600throughOctoberof2008.
Intotal,betweenAugustof2007andOctoberof2008,theMegaConspiracymade28separatepaymentstoTEtotalingover$49,900.
Thisevidenceshowsthatdespitereceivingmorethan275noticesofcopyrightinfringementassociatedwiththeconductofTE,theMegaConspiracychosetopayTEonatleast28separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan8millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoTE.
c.
PriortoTE'sfirstrewardspayment($100onoraboutAugust8,2007),hecreatedfordistributionatleast36URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
d.
BetweenTE'sfirstandsecondrewardpayments($100onoraboutAugust8,2007and$500onoraboutSeptember3,2007),hecreatedatleast6URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
e.
BetweenTE'ssecondandthirdrewardpayments($500onoraboutSeptember3,2007and$100onoraboutSeptember18,2007),hecreatedatleast12URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
f.
BetweenTE'sthirdandfourthrewardpayments($100onoraboutSeptember18,2007and$100onoraboutOctober10,2007),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
Page143of191g.
AccountsbelongingtoTEwererepeatedlysuspendedforviolatingMegaupload'sTermsofServiceregardingcopyrightinfringement.
Despitethesesuspensions,TE'saccountswerereactivatedbymembersoftheMegaConspiracy.
Forexample,onoraboutSeptember9,2007,VANDERKOLKe-mailedTEandstated,"we'renotpayingoutanyrewardstousersthatuploadcopyrightinfringingmaterial.
"OnoraboutSeptember18,2007,VANDERKOLKinformedTEbye-mailthathisaccountwassuspendedagainonSeptember17,2007,becauseMegarotic'srewardsdesk"identifiedanumberofuploadsthatmayinfringeontheintellectualpropertyrightsofthirdparties.
"OnoraboutOctober6,2007,however,DOTCOMforwardedORTMANNane-mailfromTEindicatingthatTE'saccounthadbeenreinstated.
Thefollowingday,October7,2007,ORTMANNe-mailedTE,"WejustgotoffthephonewithMegaroticSupport,andtheyadvisedusofyourlongstandinghistoryofviolatingtheirtermsofservice.
Theyadvisedustokeepyouraccountclosed.
PleaseconfirmthatyouarewillingtorespectMegarotic'srulesfromnowon,andwe'lltalktothemagainandtrytoconvincethem.
"Thatsameday,TErespondedthathewas"morethanwillingtorespecttherulesandTOSofeveryoneinvolved!
"ORTMANNrespondedthefollowingday,"WejustconvincedMegaroticSupporttoactuallyunblockyouraccount.
However,they'llbehavinganeyeonyoufromnowon,andanyfurtherviolationwillresultinpermanentsuspensionofyouraccount.
"Despitethatwarning,afterOctober7,2007,TEuploadedmorethan200URLlinkstofilesthatwerethesubjectofcopyright-infringementtakedownrequests.
h.
OnoraboutOctober7,2007,viaSkype,ORTMANNaskedVANDERKOLK,regardingTE,"hasheuploadedvery,verybadstuff,orshouldIwritehimamercifule-mailandunblockhim"VANDERKOLKresponded,"yeahthat'saknowninfringer,hewasjustuploadingadultstuffonMVandlotsofcopyrightedstufftoMRVandalsoinappropriatestuff.
.
Butyeahhecanbereactivatedagain.
"Theacronym"MV"referstoMegavideo.
comand"MRV"referstoMegarotic.
com.
ORTMANNthensaid,"hehasbeenbeggingforafewweeksalready,"and,"let'sgivehimonemorechanceandthenkillhimoffforgood.
"i.
BetweenTE'sfourthandfifthrewardpayments($100onoraboutOctober10,2007and$700onoraboutOctober24,2007),hecreatedatleast4URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
j.
BetweenTE'sfifthandsixthrewardpayments($700onoraboutOctober24,2007and$1,500onoraboutNovember1,2007),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
k.
BetweenTE'ssixthandseventhrewardpayments($1,500onoraboutNovember1,2007and$1,500onoraboutNovember8,2007),hecreatedPage144of191atleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
l.
OnoraboutNovember16,2007,viaSkype,VANDERKOLKsaidtoORTMANN,"ten1500redemptions,"towhichORTMANNresponded,"damn.
"VANDERKOLKthensaid,"twofromthedisabled[TE]guy,"andORTMANNcommented,"timeforsomerestrictions.
"VANDERKOLKresponded,"yes,""wecannotaffordthis,""wastingniceprofit,"andORTMANNreplied,"yep.
"m.
OnoraboutNovember16,2007,viaSkype,VANDERKOLKaskedORTMANN,"Arewereallygoingtopaythis[TE]guyforexample"ORTMANNasked,"hehadillegalstuffinthepast,right"VANDERKOLKreplied,"yeshedid.
"ORTMANNstated,"Iwouldsaythatwepayhim$1500…hiscontent_is_valuablecontribution…tellhimthattheotherredemptionwasstillvoidedbyhisshadypastorsomething.
"ORTMANNthencommented,"hewillbehappywith$1500.
"VANDERKOLKreplied,"alrightfinewithme!
"n.
BetweenTE'sseventhandeighthrewardpayments($1,500onoraboutNovember8,2007and$1,500onoraboutNovember18,2007),hecreatedatleast3URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
o.
OnoraboutNovember28,2007,viaSkype,VANDERKOLKaskedORTMANN,"Didyouseeallthosee-mailsfrom[TE]btw"ORTMANNresponded,"yes…sendhimanicereplythattheauditingteamdeterminedthatofthefirst$1500redemption,$178werelegitimate.
"VANDERKOLKresponded,"it'sgonnabeanightmareforsupportifwe'rereallygonnabeverystrict…"p.
OnoraboutDecember1,2007,viaSkype,VANDERKOLKtoldORTMANN,"damn[TE]alreadyhasnewbigredemptionsoutstanding,thisisgonnabeheadache:("Healsosaid,"2000$,plusthe178$wepromisedhim.
"ORTMANNresponded,"okay…"q.
OnoraboutDecember2,2007,TEreceivedhisninthrewardpaymentof$2,178.
r.
BetweenTE'sninthandtenthrewardpayments($2,178onoraboutDecember2,2007and$3,000onoraboutDecember19,2007),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
s.
BetweenTE'stenthandeleventhrewardpayments($3,000onoraboutDecember19,2007and$4,500onoraboutJanuary8,2008),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
Page145of191t.
BetweenTE'seleventhandtwelfthrewardpayments($4,500onoraboutJanuary8,2008and$3,000onoraboutJanuary27,2008),hecreatedatleast2URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
u.
OnoraboutJanuary27,2008,VANDERKOLKsentane-mailtoORTMANNentitled"Salesstats.
"Intheattachedrewardpaymentfile,repeatinfringerTEwasamongthoselistedasbeingentitledtoapaymentof$1,500.
v.
BetweenTE'stwelfthandthirteenthrewardpayments($3,000onoraboutJanuary27,2008and$3,000onoraboutFebruary11,2008),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
w.
OnoraboutFebruary22,2008,viaSkype,VANDERKOLKsaidtoORTMANN,"Damnwejusthada10.
000dollarredemptionfromourfriend[TE]…"ORTMANNresponded,"damn….
"AndVANDERKOLKreplied,"Weshouldjustcomeupwithsomestoryandpayhimhalforsomething,it'snotthathehasabigsiteandissendingushugetraffic.
"ORTMANNthencommented,"hmm–notthateasy,sincehewasbasicallyundersupervisionallthetime,"andVANDERKOLKresponded,"Yepthat'strue.
"x.
OnoraboutMarch3,2008,TEreceivedhisfourteenthrewardpaymentof$10,000.
y.
OnoraboutMarch15,2008,TEreceivedhisfifteenthrewardpaymentof$1,500.
z.
BetweenTE'sfifteenthandsixteenthrewardpayments($1,500onoraboutMarch15,2008and$1,500onoraboutMarch31,2008),hecreatedatleast4URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
aa.
BetweenTE'ssixteenthandseventeenthrewardpayments($1,500onoraboutMarch31,2008and$1,500onoraboutApril15,2008),hecreatedatleast1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
bb.
BetweenTE'sseventeenthandeighteenthrewardpayments($1,500onoraboutApril15,2008and$1,500onoraboutApril27,2008),hecreatedatleast2URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
cc.
BetweenTE'seighteenthandnineteenthrewardpayments($1,500onoraboutApril27,2008and$1,500onoraboutMay20,2008),hecreatedatPage146of191least1URLlinktocopyright-infringingmaterialthatwassubjecttoacopyrighttakedownnotice.
dd.
Forroughlytwoyears,betweenMayof2008andMayof2010,theMegaConspiracymaintaineda"whitelist"ofusers.
TheMegaConspiracypermittedusersonthewhitelisttouploadfileswithoutsubjectingthosefilestosizelimitationsorreviewbytheauditingteam.
OnoraboutMay21,2008,viaSkype,VANDERKOLKsaidtoORTMANN,"tomorrowIwillalsoimplementawhite-listfortrusteduserssothattheiruploadsbecomeavailableinstantly.
"TEwasaddedtothe"whitelist.
"ee.
BetweenTE'snineteenthandtwentiethrewardpayments($1,500onoraboutMay20,2008and$3,000onoraboutJune9,2008),hecreatedatleast5URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
ff.
OnoraboutJune9,2008,viaSkype,ORTMANNandVANDERKOLKdiscussedUploaderRewardspayments,andORTMANNsaid,"but[TE]stillgot3ik:)"VANDERKOLKcommented,"yeahIknow,buthe'salsouploadingfulltime,"andORTMANNsaid,"yeah,that'sfine.
"VANDERKOLKadded,"hehas5489videosnow,"andORTMANNcommented,"wow.
"gg.
OnoraboutJune12,2008,VANDERKOLKe-mailedTEandasked,"WhyareyoustillcuttingyourvideosinpartswhilewehavefinallyimplementedawhitelistforyousothatyoucanpostfullvideosYouhavetostopthisimmediatelyorwewillremoveyoufromthewhitelist.
"Userswere"cutting"videosintopartstogainadditionalpointsthroughtheUploaderRewardsprogram.
AlsoonoraboutJune12,2008,TEsentane-mailentitled"whitelist"toaccount@megarotic.
com.
Inthee-mail,TEwrote:Iknowyoudon'twantmetosplitupvideo's,butwhataboutvideo'sthatare110mb.
Iknow,justuploadthem,youdon'tmind,doyou!
WellIdo,becauseI'mdoingthisfortheincomeandyouknowit.
Porndoesn'tdoadamnthingformeatmyage.
I'mtryingtoco-operate,butIdidn'tappreciatewithbeingthreatenedwithbeingremovedfromthewhitelistifIsplitupvideo'sanymore.
Ifyouwanttotakemeoffthewhitelist,sobeit.
WebothknowthatIamthelargestuploaderyouhave,andhaveproducedthehighestviewcountforyou.
Ifyouwantmetoquit,justsayso!
MywifewouldwantsmetoPage147of191also.
Itmighttakemeforevertodeleteall"my"video's,butIwould.
hh.
BetweenTE'stwentiethandtwenty-firstrewardpayments($3,000onoraboutJune9,2008and$1,500onoraboutJune26,2008),hecreatedatleast10URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
ii.
OnoraboutJune24,2008,viaSkype,VANDERKOLKsentORTMANNane-mailfromTE,inwhichTEalertedtheMegaConspiracythathehadmorethan100millionvideoviews.
VANDERKOLKcommented,"whataguy:)"andORTMANN,"wow:)"jj.
OnoraboutJune25,2008,viaSkype,ORTMANNaskedVANDERKOLK,"is[TE]usingMegaManagertoupload"VANDERKOLKresponded,"checking,"then"[TE]isindeedusingMegaManagertouploadandhastheauditorbypass.
"kk.
BetweenTE'stwenty-firstandtwenty-secondrewardpayments($1,500onoraboutJune26,2008and$1,500onoraboutJuly14,2008),hecreatedatleast11URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
ll.
BetweenTE'stwenty-secondandtwenty-thirdrewardpayments($1,500onoraboutJuly14,2008and$1,500onoraboutJuly30,2008),hecreatedatleast4URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
mm.
OnoraboutJuly30,2008,viaSkype,ORTMANNtoldVANDERKOLK,"damn,[TE]isgoingcrazywithhisuploads:)"Headded,"good:)Ihopetobeabletosendtherewardsbatchtomorrowmorning.
"VANDERKOLKadded,"Allvideorewardpointsarenowalwaysbeingslidered,justsomeoldMRVparticipantshavefactors0.
3/0.
2configuredbydefault,otheruserseventuallygetfactor0.
1.
"ORTMANNcommented,"goodconcept!
"andVANDERKOLKadded,"moneysaver:)""andalmostnocomplaints.
"ThenORTMANNsaid,"excellentindeed.
"nn.
BetweenTE'stwenty-thirdandtwenty-fourthrewardpayments($1,500onoraboutJuly14,2008and$100onoraboutSeptember9,2008),hecreatedatleast156URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
oo.
ItappearsthatTEcontinuedtouploadcopyright-infringingcontentwhileonthe"whitelist.
"OnoraboutAugust28,2008,forexample,anotheruseroftheMegaSitese-mailedsupport@megavideo.
comandstated,"Ihaveseenawhitelistmemberonyoursitepostingcopy-rightmaterials.
"ThisuserstatedthatanaccountnamebelongingtoTEhadpostedavideothatappearedtobecopyrightinfringing.
TheMegadatabasesindicatethatPage148of191asofJanuary19,2012,thevideomentionedbytheuserascopyright-infringingwasneverflaggedfordeletionbyanyofthemembersoftheMegaConspiracy,andthatthevideoremainedaccessibleontheMegaSites.
pp.
OnoraboutAugust23,2008,viaSkype,ORTMANNsentVANDERKOLKane-mailsentfromTE'swife.
Inthee-mail,TE'swifesaid,"IsignedupsothatIcouldhelpmyhusband,andtrytorelievesomeofthestressthathasbeenonhimsincehisheartsurgery2weeksago.
ORTMANNaskedVANDERKOLK,"canyousliderherandgiveherwhiteliststatus:)"VANDERKOLKresponded,"yes,shewillbeslideredautomaticallythemorepointsshemakes,yeswillgiveherthewhiteliststatus.
"Headded,"amazingfamily.
"qq.
BetweenTE'stwenty-sixthandtwenty-seventhrewardpayments($100onoraboutSeptember9,2008and$1,500onoraboutOctober14,2008),hecreatedatleast15URLlinkstocopyright-infringingmaterialsthatweresubjecttocopyrighttakedownnotices.
rr.
OnoraboutSeptember16,2008,viaSkype,ORTMANNcommentedtoVANDERKOLK,"eek,[TE]isnowputtingalogointohisvids,andaprettybigblackbar.
"VANDERKOLKresponded,"ahthatslame.
"ss.
OnoraboutSeptember22,2008,TEsentane-mailentitled"DeleteButtons"tosupport@megarotic.
com.
Inthee-mail,TEstated:IwouldliketoknowwhyonmyvideopagesthebuttonsundereachvideoislabeledundefinedIwouldliketogothrumyvideo'sanddeletetheoldervideo'sthatarenotproducingrewardpoints.
AsstatedintheTOSIcandeleteanythingIuploaded.
Duetotheextremelypoorreturnonvideoviews(last7days1RPfor15views)whenIhaveover9000video'suploaded,Iamseriouslyconsideringquiting.
I'amputtinginonaverage8to10solidhoursadaydownloading,editingandpreparingvideo'sforuploading.
Withthecurrentandnonreliablepointssystem,itsnotviablenowforasteadyincome.
AndyesIdidmakeagoodbitofmoney,butIearneditundertheprogramyousetup.
Theacronym"RP"refersto"RewardPoint.
"Onoraboutthefollowingday,VANDERKOLKwrotethefollowingresponse:"That'sastrangephenomenon,andwe'llinvestigatethat.
Itcertainlyhasnothingtodowithrestrictingyoufromdeletingyourvideos.
"tt.
OnoraboutOctober14,2008,viaSkype,VANDERKOLKsentORTMANNane-mailsentbyTE,whichstated,inpart:"WifeandIneedPage149of191togouptoWestVirginiaimmediately,butwiththecostofthetripIneedtoknowifIamgettingpaidtoday.
"Healsowroteinthee-mail,"IfIknowthatitwillbeinpaypalIcanaccessitwithmypaypaldebitcard.
"VANDERKOLKaskedORTMANN,"Didwealreadypaytherewards"andORTMANNresponded,"willpayrightnow(sorryforthedelay).
"Lessthanthirtyminuteslater,VANDERKOLKsentORTMANNafollow-upe-mailfromTE,whichstated:"Thankyou!
Iappreciatethisandhopefullywillbebackhomeanduploadingfriorsat.
"uu.
TheMegadatabasesindicatethatTE'saccountwasdeactivatedin2008fornon-copyrighted-relatedreasons.
OnoraboutOctober28,2008,viaSkype,VANDERKOLKsaidtoORTMANNthatTE"hasdeclaredthewaronMRValready:)"becauseTEhad"openedhisowntubesite,andstarteddeletinghisvideos.
"ItappearsthatTEwasdeletinghisvideosthathadbeenuploadedtotheMegaSites.
VANDERKOLKthensaid,"soIbannedhim.
"Despitethedeactivation,filesthathadbeenuploadedbyTEcontinuedtobedistributedbymembersoftheMegaConspiracyforprofit,withoutTE'sconsent.
OnoraboutAugust14,2008,DOTCOMforwardedane-mailtoVANDERKOLKthathadoriginallybeensentbyTE.
InTE'soriginale-mail,TEstatedthatheplannedtodiscontinueuploadingtotheMegaSites,andthathewantedtohavetherighttodeleteallofthevideosthathehadstoredonMega'sservers.
Inanothere-mailsentonoraboutAugust14,2008,entitled"Iwantaccesstomyvideos!
",TEstatedthataccordingtoMegaupload'sTermsofService,uploadedvideosbelongtowhoeveruploadedthem,nottoMegaupload.
DOTCOMforwardedthee-mailtoVANDERKOLKandstated,"Donotturnthisidiotsaccountbackon.
Anddon'tgivehimaccesstohisvideos.
"OnoraboutDecember13,2008,TEe-mailedaccount@megaporn.
com,statingthatavideohehaduploadedtotheMegaSitesonNovember7,2007,wasstillavailabletothepublic,despitethefactthatTE'saccountwasdeactivated.
vv.
OnoraboutOctober29,2008,viaSkype,ORTMANNaskedVANDERKOLK,"whatisagallerydump:)"VANDERKOLKresponded,"gallerydumpisaforumwherealotofMRVusersareposting,""[TE]ismakingwaronMRVthereforexample.
"ORTMANNreplied,"ah,Isee,"andasked,"isthereducednumberofnewMRVsubscriptionsrelatedto[TE]'swar"towhichVANDERKOLKanswered,"Ihavenoidea,Idoubtit.
"RepeatInfringerandUnindictedConspirator"AJ"111.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromDecemberof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedPage150of191conspirator(hereinreferredtoas"AJ")maintainedaregisteredaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast890takedownrequestsforURLlinkstoinfringingmaterialscreatedbyAJthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan6millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesehundredsoftakedownrequests,theMegaConspiracyneverterminatedAJandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromJanuaryof2009throughAugustof2011,apreliminaryreviewindicatesthatAJuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedmotionpictures,suchasAvatar,IronMan2,ClashoftheTitans,2Fast2Furious,and3Idiots.
RatherthanterminatingAJuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoAJ.
Forexample,onoraboutOctober8,2009,theMegaConspiracypaid$500toAJaspartoftheUploaderRewardsprogram.
BetweenOctober8,2009,andApril26,2010,AJuploadedmorethan940URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan340takedownrequestsforURLlinkstoinfringingcontentcreatedbyAJ.
Evenafterreceivingthesehundredsofadditionaltakedownrequests,theMegaConspiracypaidAJanadditional$1,500onApril26,2010.
BetweenSeptemberof2009andAprilof2011,theMegaConspiracymadeatleast9rewardpaymentstoAJforatotalof$2,700.
Thisevidenceshowsthatdespitereceivingmorethan890noticesofcopyrightinfringementassociatedwiththeconductofAJ,includingrequeststhatwerereceivedandprocessedmanuallybyVANDERKOLK,theMegaConspiracychosetopayAJonatleast9separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan6millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoAJ.
c.
OnoraboutSeptember17,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
d.
OnoraboutOctober7,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspayment:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$500payment.
Page151of191e.
BetweenapproximatelyMarch4,2010,andAugust31,2010,AJcreatedfordistributionatleast30URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices,includingthecopyrightedmotionpicturesAvatar,ClashoftheTitans,TheTrain,andTereBinLaden.
f.
OnoraboutApril25,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$1,500payment.
g.
OnoraboutAugust8,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
h.
OnoraboutAugust30,2010,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspaymentfile.
Shouldbearound50–60k.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
i.
OnoraboutOctober5,2010,VANDERKOLKsentane-mailentitled"rewardspayment+translatorspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Findattachedtherewardbatchfile+translatorbatchfiles.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
j.
OnoraboutNovember5,2010,VANDERKOLKsentane-mailentitled"Rewards+Translators"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Pleaseseefilesattached.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
k.
OnoraboutDecember7,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
l.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerAJwasamongthoselistedasbeingentitledtoa$100payment.
Page152of191RepeatInfringerandUnindictedConspirator"JC"112.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromNovemberof2007throughJanuaryof2012,aparticularinfringerandunindictedconspirator(hereinreferredtoas"JC")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
ApreliminaryreviewofthefilesuploadedbyJCindicatesthatheuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedanimatedtelevisionprogramssuchasFullMetalAlchemistandDragonBallZ,andcopyrightedmotionpictures,suchasTheFastAndTheFuriousTokyoDriftandLordofWar.
Intotal,theMegaConspiracyreceivedtakedownrequestsforover5,000URLlinkstoinfringingmaterialscreatedbyJCthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan8.
2millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedJCandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Instead,financialrecordsshowthatbetweenJulyof2009andAprilof2011,theMegaConspiracymade15separatepaymentstotalingover$4,700toJC.
Forexample,onoraboutSeptember2,2009theMegaConspiracymadea$1,500paymenttoJCaspartoftheUploaderRewardsprogram.
BetweenSeptember2,2009andSeptember18,2009,JCuploadedfordistributionmorethan18URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan19takedownrequestsforURLlinkstoinfringingcontentcreatedbyJC.
Evenafterprocessingthesetakedownrequests,theMegaConspiracypaidJCanadditional$100onSeptember18,2009,andcontinuedtopayJCthroughAprilof2011.
Thisevidenceshowsthatdespitereceivingmorethan5,000noticesofcopyrightinfringementassociatedwiththeconductofJC,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayJConatleast15separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan8.
2millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoJC.
c.
BetweenapproximatelyFebruary18,2008,andAugust16,2008,JCcreatedfordistributionatleast690URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthePage153of191animatedtelevisionprogramsDragonBallZ,OnePiece,andSamuraiChamploo.
d.
OnoraboutJuly31,2009,VANDERKOLKsentane-mailentitled"FW:rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
e.
OnoraboutSeptember2,2009,VANDERKOLKsentane-mailentitled"FW:Paypalaccount"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtheupdatedrewardsbatchpaymentfile.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$1,500.
f.
OnoraboutSeptember18,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
g.
OnoraboutOctober8,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspayment:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$100each.
h.
OnoraboutNovember9,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Herebytherewardspaymentfileforatleastthelast30days.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$500andapaymentof$100.
i.
OnoraboutNovember24,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentforthelast2weeks+.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
j.
OnoraboutDecember24,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Herebytherewardspayment.
Bestregards,BramvanderKolk[.
]"Page154of191Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtothreeseparatepaymentsof$100each.
k.
OnoraboutMarch10,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Thisincludes3translatorpayments(slightlyroundedthemupforinconveniencebecauseofthedelay),andthose1400USDforthatcrazyIndianguythatwasloudlycomplaining(theonesthatKimforwarded).
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
l.
BetweenapproximatelyMarch4,2010,andAugust31,2010,JCcreatedfordistributionatleast17URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingtheanimatedtelevisionprogramsCaseClosedandBlackCat.
m.
OnoraboutAugust30,2010,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Herebyanotherrewardspaymentfile.
Shouldbearound50-60K.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
n.
OnoraboutNovember5,2010,VANDERKOLKsentane-mailentitled"Rewards+Translators"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Pleaseseefilesattached.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
o.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerJCwasamongthoselistedasbeingentitledtoapaymentof$100.
RepeatInfringerandUnindictedConspirator"BD"113.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromAugustof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"BD"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast380takedownrequestsforURLlinkstoinfringingmaterialscreatedbyBDthroughhisuploadsofcopyright-infringingcontenttotheMegaSites.
DespitehavingreceivedPage155of191thesetakedownrequests,theMegaConspiracyneverterminatedBDandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromNovemberof2007throughJanuaryof2010,apreliminaryreviewindicatesthatBDuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedmotionpictures,suchasLakePlacid2,BallsofFury,Ocean'sThirteen,andTheWarlords.
RatherthanterminatingBDuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracymade3rewardpaymentstoBDforatotalof$5,000.
Thisevidenceshowsthatdespitereceivingmorethan388noticesofcopyrightinfringementassociatedwiththeconductofBD,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayBDonatleast3separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan7millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoBD.
c.
OnoraboutJanuary8,2008,VANDERKOLKsentane-mailentitled"Batchpaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerBDwasamongthoselistedasbeingentitledtoapaymentof$1,500.
d.
OnoraboutJanuary27,2008,VANDERKOLKsentane-mailentitled"RE:Salesstats"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Goodmorning,Herebythebatchpaymentfile.
Ireallythinkweshouldfocusonthesalesrewardpointsinthenewrewardsscheme,andintroducetheonedownloadperIPperdaytogetherwiththatifwereallywanttomaketherewardsprogramwork.
Bram[.
]""Intheattachedrewardpaymentfile,repeatinfringerBDwasamongthoselistedasbeingentitledtotwoseparatepaymentsof$1,500each.
e.
OnoraboutMarch15,2008,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerBDwasamongthoselistedasbeingentitledtoapaymentof$500.
RepeatInfringerandUnindictedConspirator"MW"114.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJulyof2009throughJanuaryof2012,aparticularinfringerandunindictedconspirator(hereinreferredtoas"MW")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
Page156of191b.
Intotal,theMegaConspiracyreceivedtakedownrequestsforatleast1,000URLlinkstoinfringingmaterialscreatedbyMWthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan4millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedMWandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromAugust7,2009toJuly14,2011,apreliminaryreviewofthefilesuploadedbyMWindicatesthatheuploadedfordistributionanumberofcopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includinginfringingcopiesofcopyrightedtelevisionseriesFuturama,MyNameisEarl,andBandofBrothers,andcopyrightedmotionpicturesTheGoodShepherd,TropicThunder,Gamer,andEventHorizon.
RatherthanterminatingMWuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoMW.
Forexample,onoraboutNovember24,2009,theMegaConspiracymadea$500paymenttoMWaspartoftheUploaderRewardsprogram.
BetweenNovember24,2009andApril8,2011,MWuploadedfordistributionmorethan240URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsametimeperiod,theMegaConspiracyprocessedmorethan400takedownrequestsforURLlinkstoinfringingcontentcreatedbyMW.
Evenafterprocessingthesetakedownrequests,theMegaConspiracypaidhimanadditional$1,500onApril8,2011.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan4millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoMW.
c.
BetweenapproximatelyMarch4,2010,andAugust31,2010,useraccountslinkedtoMWcreatedfordistributionatleast240URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsIt'sAlwaysSunnyinPhiladelphia,ModernFamily,andArrestedDevelopment;andthemotionpicturesMichaelClaytonandSlumdogMillionaire.
d.
AnaccountcontrolledbyMWwastemporarilysuspendedonlyafterMW'saccountwasfoundtobeaccessingtoomanylinkstofilesonserverscontrolledbytheMegaconspiracyatonetime.
OnoraboutApril19,2010,VANDERKOLKsentane-mailtoMW.
Inthise-mail,VANDERKOLKwrote:Dear[NAMEREDACTED],YourpersonalMegaupload/Megavideoaccountwasfoundtobeaccessing7files/videosfrom5differentIPaddressesatthesametime.
Thisindicatesthat:Page157of191-youareusingIPanonymizingor"hiding"tools-yourISPisredirectingyouthroughmultipleproxies,-youareperformingconcurrentremotefilefetchingtoseveralhosts,-youusedalink-sharingdownloadtoolsuchas"XunLei"or"QQXuanfeng",or-youraccountleaked,e.
g.
throughphishing,sniffingorpasswordguessingattacks.
Despitehavingprocessedover700takedownrequestsbyApril19,2010,forURLlinkstoinfringingcontentcreatedbyMW,onoraboutApril20,2010,membersoftheMegaConspiracyreactivatedMW'saccountfromitssuspendedstatus.
RepeatInfringerandUnindictedConspirator"JI"115.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromMarchof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"JI"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast1,300takedownrequestsforURLlinkstoinfringingmaterialscreatedbyJIthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan9millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedJIandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromDecemberof2008throughDecemberof2011,apreliminaryreviewindicatesthatJIuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedmotionpictures,suchasTheSmurfs,Transformers3,CaptainAmerica,andTheChange-Up.
RatherthanterminatingJIuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoJI.
Forexample,onoraboutApril29,2009,theMegaConspiracypaid$100toJIaspartoftheUploaderRewardsprogram.
BetweenApril29,2009andJuly31,2009,JIuploadedmorethan590URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan158takedownrequestsforURLlinkstoinfringingcontentcreatedbyJI.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidJIanadditional$600onJuly31,2009.
BetweenAprilof2009andJulyof2009,theMegaConspiracymade3rewardpaymentstoJIforatotalofPage158of191$700.
Thisevidenceshowsthatdespitereceivingmorethan1,300noticesofcopyrightinfringementassociatedwiththeconductofJI,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayJIonatleast3separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan9millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoJI.
c.
BetweenapproximatelyMarch4,2010,andAugust31,2010,JIcreatedfordistributionatleast6URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthemotionpicturesIronMan2,AliceinWonderland,andSalt.
d.
BetweenapproximatelyJuly23,2011,andJanuary19,2012,JIcreatedfordistributionatleast40URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthemotionpicturesTwilight:BreakingDawn,FinalDestination5,Bridesmaids,andKillerElite.
RepeatInfringerandUnindictedConspirator"MK"116.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromMayof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"MK"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast630takedownrequestsforURLlinkstoinfringingmaterialscreatedbyMKthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan1.
7millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedMKandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromSeptemberof2009throughAugustof2011,apreliminaryreviewindicatesthatMKuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchastheLietoMe,TrueBlood,andBoardwalkEmpire,andcopyrightedmotionpicturessuchasFriendswithBenefitsandToyStory3.
RatherthanterminatingMKuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoMK.
Forexample,onoraboutFebruary1,2010,theMegaConspiracypaid$100toMKaspartoftheUploaderRewardsPage159of191program.
BetweenFebruary1,2010andMay8,2010,MKuploadedmorethan200URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan70takedownrequestsforURLlinkstoinfringingcontentcreatedbyMK.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidMKanadditional$100onMay8,2010.
BetweenDecemberof2009andDecemberof2010,theMegaConspiracymade4rewardpaymentstoMKforatotalof$400.
Thisevidenceshowsthatdespitereceivingmorethan630noticesofcopyrightinfringementassociatedwiththeconductofMK,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayMKonatleast4separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan1.
7millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoMK.
c.
OnoraboutDecember23,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerMKwasamongthoselistedasbeingentitledtoapaymentof$100.
d.
OnoraboutFebruary1,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerMKwasamongthoselistedasbeingentitledtoapaymentof$100.
e.
OnoraboutMay8,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Findattachedarewardspaymentforthelast+/-10days.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerMKwasamongthoselistedasbeingentitledtoapaymentof$100.
f.
BetweenapproximatelyMarch4,2010,andAugust31,2010,MKcreatedfordistributionatleast250URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsCovertAffairs,TrueBlood,Justified,andColdCase.
g.
OnoraboutDecember7,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerMKwasamongthoselistedasbeingentitledtoapaymentof$100.
h.
BetweenonoraboutJuly23,2011,andJanuary19,2012,MKcreatedfordistributionatleast3URLlinkstocopyright-infringingworksthatwerePage160of191subjecttocopyright-takedownnotices,includingthetelevisionprogramRizzoliandIslesandthemotionpictureFriendswithBenefits.
RepeatInfringerandUnindictedConspirator"KR"117.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromJulyof2008throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"KR"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast1,030takedownrequestsforURLlinkstoinfringingmaterialscreatedbyKRthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan5millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedKRandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromAugustof2008throughJulyof2011,apreliminaryreviewindicatesthatKRuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasSouthPark,TheBigBangTheory,TheRickyGervaisShow,andBoredtoDeath.
RatherthanterminatingKRuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoKR.
Forexample,onoraboutOctober8,2009,theMegaConspiracypaid$100toKRaspartoftheUploaderRewardsprogram.
BetweenOctober8,2009andNovember8,2009,KRuploadedmorethan70URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan50takedownrequestsforURLlinkstoinfringingcontentcreatedbyKR.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidKRanadditional$200onNovember8,2009.
BetweenSeptemberof2008andAprilof2011,theMegaConspiracymade17rewardpaymentstoKRforatotalof$2,400.
Thisevidenceshowsthatdespitereceivingmorethan1,030noticesofcopyrightinfringementassociatedwiththeconductofKR,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayKRonatleast17separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan5millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoKR.
Page161of191c.
OnoraboutSeptember26,2008,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
d.
OnoraboutOctober14,2008,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfileforthepast19days.
PleaseletmeknowthetotalamountasI'malsocurious:)Thankyou!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
e.
OnoraboutDecember15,2008,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfile.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$500.
f.
OnoraboutJanuary3,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentforthepast17-18days.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
g.
OnoraboutFebruary4,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Herebytherewardspaymentfile.
Pleaseletmeknowthetotalamountonceyou'vemadethepayment:)Thanks!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
h.
OnoraboutMarch9,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfileforthelast~40days.
Pleaseletmeknowthetotal:)Thanks!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
i.
OnoraboutApril29,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfile.
Itwillbequiteasubstantialamount,butstillunder100KIthink.
PleaseletmeknowthePage162of191total:)Thanks!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
j.
OnoraboutJuly31,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$300.
k.
OnoraboutSeptember18,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
l.
OnoraboutOctober8,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspayment:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
m.
OnoraboutNovember9,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfileforatleastthelast30days.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$200.
n.
OnoraboutDecember24,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
o.
OnoraboutFebruary1,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
p.
OnoraboutMarch10,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Thisincludes3translatorpayments(slightlyroundedthemupforinconveniencebecauseofthedelay),andthose1400USDforthatcrazyIndianguythatwasloudlycomplaining(theonesthatKimforwarded).
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,Page163of191repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
q.
OnoraboutJune21,2010,VANDERKOLKsentane-mailentitled"rewardspayment+translationpayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtwobatchfiles.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
r.
BetweenapproximatelyMarch4,2010,andAugust31,2010,KRcreatedfordistributionatleast270URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsBurnNotice,TrueBlood,BreakingBad,andNurseJackie.
s.
OnoraboutOctober5,2010,VANDERKOLKsentane-mailentitled"rewardspayment+translatorspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardbatchfile+translatorbatchfiles.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
t.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKRwasamongthoselistedasbeingentitledtoapaymentof$100.
u.
BetweenapproximatelyJuly23,2011,andJanuary19,2012,KRcreatedfordistributionatleast7URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsBurnNotice,TrueBlood,Torchwood,andEntourage.
RepeatInfringerandUnindictedConspirator"RM"118.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromNovemberof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"RM"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast1,700takedownrequestsforURLlinkstoinfringingmaterialscreatedbyRMthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan11.
4millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedPage164of191RMandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromOctoberof2008throughSeptemberof2011,apreliminaryreviewindicatesthatRMuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedanimatedtelevisionprograms,suchasFairyTail,andMnemosyneandcopyrightedtelevisionprograms,suchasTheBigBangTheory,OneTreeHill,andHowIMetYourMother.
RatherthanterminatingRMuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoRM.
Forexample,onoraboutFebruary1,2010,theMegaConspiracypaid$900toRMaspartoftheUploaderRewardsprogram.
BetweenFebruary1,2010andMarch9,2010,RMuploadedmorethan80URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan70takedownrequestsforURLlinkstoinfringingcontentcreatedbyRM.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidRManadditional$1,900onMarch9,2010.
BetweenOctoberof2009andMayof2010,theMegaConspiracymade5rewardpaymentstoRMforatotalof$3,600.
Thisevidenceshowsthatdespitereceivingmorethan1,700noticesofcopyrightinfringementassociatedwiththeconductofRM,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayRMonatleast5separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan11.
4millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoRM.
c.
OnoraboutMay27,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspayment:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerRMwasamongthoselistedasbeingentitledtoapaymentof$100.
d.
BetweenapproximatelyMarch4,2010,andAugust31,2010,RMcreatedfordistributionatleast60URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsTheNewAdventuresOfOldChristine,30Rock,andTwoandaHalfMen.
Page165of191RepeatInfringerandUnindictedConspirator"KP"119.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromSeptemberof2009throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"KP"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast6,300takedownrequestsforURLlinkstoinfringingmaterialscreatedbyKPthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan14.
3millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedKPandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromSeptemberof2009throughFebruaryof2010,apreliminaryreviewindicatesthatKPuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedmotionpictures,suchasMaxPayne,MeettheFockers,EdgeofDarkness,andRatatouille.
RatherthanterminatingKPuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoKP.
Forexample,onoraboutDecember23,2009,theMegaConspiracypaid$1,500toKPaspartoftheUploaderRewardsprogram.
BetweenDecember23,2009andFebruary1,2010,KPuploadedmorethan1,570URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan1,020takedownrequestsforURLlinkstoinfringingcontentcreatedbyKP.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidKPanadditional$1,500onFebruary1,2010.
BetweenDecemberof2009andAprilof2011,theMegaConspiracymade6rewardpaymentstoKPforatotalof$5,000.
Thisevidenceshowsthatdespitereceivingmorethan6,300noticesofcopyrightinfringementassociatedwiththeconductofKP,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayKPonatleast6separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan14.
3millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoKP.
c.
OnoraboutDecember23,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspayment.
Bestregards,BramPage166of191vanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$1,500.
d.
OnoraboutFebruary1,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$1,500.
e.
OnoraboutMarch9,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"Thisincludes3translatorpayments(slightlyroundedthemupforinconveniencebecauseofthedelay),andthose1400USDforthatcrazyIndianguythatwasloudlycomplaining(theonesthatKimforwarded).
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$1,500.
f.
OnoraboutApril25,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$100.
g.
OnoraboutAugust30,2010,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspaymentfile.
Shouldbearound50-60K.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$300.
h.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerKPwasamongthoselistedasbeingentitledtoapaymentof$100.
RepeatInfringerandUnindictedConspirator"TP"120.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromDecemberof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"TP"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast3,400takedownrequestsforURLlinkstoinfringingmaterialscreatedbyTPthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan15.
2millionviewsofcopyright-infringingvideofilesonPage167of191serversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedTPandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromFebruaryof2008throughAprilof2011,apreliminaryreviewindicatesthatTPuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasNCIS:LosAngeles,NurseJackie,TrueBlood,GossipGirl,andSouthlandandcopyrightedmotionpictures,suchasHarryPotterTheHalfBloodPrinceandTransformers2.
RatherthanterminatingTPuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoTP.
Forexample,onoraboutMay25,2009,theMegaConspiracypaid$500toTPaspartoftheUploaderRewardsprogram.
BetweenMay25,2009andJuly31,2009,TPuploadedmorethan700URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan200takedownrequestsforURLlinkstoinfringingcontentcreatedbyTP.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidTPanadditional$500onJuly31,2009andcontinuedtopayhimthroughAprilof2011.
BetweenAprilof2009andAprilof2011,theMegaConspiracymade10rewardpaymentstoTPforatotalof$5,000.
Thisevidenceshowsthatdespitereceivingmorethan3,400noticesofcopyrightinfringementassociatedwiththeconductofTP,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayTPonatleast10separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan15.
2millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoTP.
c.
BetweenapproximatelyFebruary18,2008,andAugust16,2008,TPcreatedfordistributionatleast570URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsOneTreeHill,GhostWhisperer,GossipGirl,and30Rock.
d.
BetweenapproximatelyMarch4,2010,andAugust31,2010,TPcreatedfordistributionatleast40URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsLostandPsych.
Page168of191RepeatInfringerandUnindictedConspirator"DR"121.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromFebruaryof2007throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator,(hereinreferredtoas"DR"),maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast2,500takedownrequestsforURLlinkstoinfringingmaterialscreatedbyDRthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinksgeneratedmorethan13.
7millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedDRandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromJuneof2007throughAprilof2010,apreliminaryreviewindicatesthatDRuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedmotionpictures,suchasTheChroniclesofNarnia:PrinceCaspian,TheIncredibleHulk,TheReader,andStarTrek;infringingcopiesoftheanimatedtelevisionseriesBleach,FullMetalAlchemist,andOnePiece;andthevideogameCallofDuty:WorldatWar.
RatherthanterminatingDRuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoDR.
Forexample,onoraboutMay25,2009,theMegaConspiracypaid$300toDRaspartoftheUploaderRewardsprogram.
BetweenMay25,2009andJuly31,2009,DRuploadedmorethan70URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan110takedownrequestsforURLlinkstoinfringingcontentcreatedbyDR.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidDRanadditional$700onJuly31,2009,andcontinuedtopayhimanadditional$1,400throughNovember5,2010.
BetweenAugustof2008andNovemberof2010,theMegaConspiracymade29rewardpaymentstoDRforatotalof$4,100.
Thisevidenceshowsthatdespitereceivingmorethan2,500noticesofcopyrightinfringementassociatedwiththeconductofDR,includingrequeststhatwerereceivedandprocessedmanuallybydefendantVANDERKOLK,theMegaConspiracychosetopayDRonatleast29separateoccasionsforhisinfringementofcopyrightedworksusingtheMegaSites.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan13.
7millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoDR.
Page169of191c.
OnoraboutSeptember11,2008,DRsentane-mailentitled"MySuspendedAccount"toVANDERKOLK.
Inthee-mail,DRwrote"Irecentlysawthatmyaccountwassuspenedforuploadinginappropriatefilesonthere.
IwouldliketoknowiftheresanywaythatIcangetbackmyaccountandIwillseetoitthatIdontuploadanyotherinappropriatefiles….
AlsoIrecentlycollectedanother100,000pointsandwaswonderingifIcantgetmyaccountbackifitspossiblethatyouguysconvertthepointsthatIdohaveandsendmethemoney.
"Later,onoraboutSeptember11,2008,DRsentanothere-mailtoVANDERKOLK,titled"RE:MyAccountgotSuspended"stating"Ijustforgottosa[y]thatonmylastemailthatIalsohelptogeneratealotofviewsonthesiteandImknowbyalotofpeopleandIknowthismaynotmeananythingyouguysbutJustwantedtosaythatandthanksagain.
"OnoraboutSeptember16,2008,VANDERKOLKrepliedtoDRviae-mail,stating"Wedecidedtogiveyouanotherchance.
Useit!
"Inresponse,userDRwrotebacktoVANDERKOLK.
Askingforclarificationaboutwhyhisaccountwassuspended:"Thankyousomuch,sowhatcan'tIupload.
Animeorjustcertainanimebecausemostpeoplelikemebecauseoftheanime.
AndIgetthemostattentionfromthat.
"VANDERKOLKrepliedbystating"[Youcan'tupload]AnythingviolatingMegavideo'srules,veryspecificallyadultmaterial-thatgoestoMegaroticinstead.
"Despiteprocessingover1,800takedownrequestsafterSeptember18,2008formaterialuploadedbyDR,DR'saccountremainedactivethroughJanuary2012.
d.
OnoraboutNovember5,2008,FINNBATATOsentane-mailentitled"AW:Newregistration–[USERNAMEREDACTED]"torepeatinfringerDR.
Inthee-mail,BATATOobservedthatDRhadcreatedanewaccountwithMegaclick.
com.
Later,onoraboutNovember6,2008,BATATOwroteanothere-mailtoDR,stating:"Dearcustomer,ThankyouforcreatingyourcampaignonMegaclick.
com.
AssoonaswereceivedthepaymentyourcampaignonMegaupload.
comwillgolive!
BestregardsFinn.
"Inthisreply,repeatinfringerDRappearstohavecreatedanadvertisingcampaignontheMegasites.
ThetitleofrepeatinfringerDR'sadvertisingcampaignwaslistedinBATATO'sreplyas"2008-11-05WatchMyAnime.
"e.
OnoraboutApril29,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfile.
Itwillbequiteasubstantialamount,butstillunder100KIthink.
Pleaseletmeknowthetotal:)Thanks!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$200.
f.
OnoraboutJuly31,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentPage170of191file,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$700.
g.
OnoraboutAugust10,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspaymentfile.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$100.
h.
OnoraboutSeptember5,2009,BATATOsentane-mailentitled"AW:Newcampaignhasbeencreated"torepeatinfringerDR,stating:"Dearcustomer,ThankyouforcreatingyourcampaignonMegaclick.
com.
Assoonaswereceivedthepaymentyourcampaignwillgolive!
DoyoupreferPaypalorwiretransferIfyou'vegotanyfurtherquestionspleaseletmeknow.
BestregardsFinn.
"Inthisreply,repeatinfringerDRappearstohavecreatedanadvertisingcampaignontheMegasites.
ThetitleofrepeatinfringerDR'sadvertisingcampaignwaslistedas"2009-09-04Animebayocom.
"i.
OnoraboutSeptember18,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$100.
j.
OnoraboutOctober8,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebyanotherrewardspayment:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$200.
k.
OnoraboutNovember9,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspaymentfileforatleastthelast30days.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$300.
l.
OnoraboutDecember24,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Herebytherewardspayment.
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerDRwasamongthoselistedasbeingentitledtoapaymentof$200.
Page171of191RepeatInfringerandUnindictedConspirator"JR"122.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromSeptemberof2006throughJanuaryof2012,aparticularinfringerandunindictedconspirator(hereinreferredtoas"JR")maintainedanaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedtakedownrequestsforover390URLlinkstoinfringingmaterialscreatedbyJRthroughhisuploadsofcopyright-infringingcontenttotheMegaSites,andtheselinkstoinfringingcontentgeneratedmorethan3.
8millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedJRandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
FromOctober26,2007toJanuary19,2010,apreliminaryreviewofthefilesuploadedbyJRindicatesthatheuploadedfordistributionanumberofcopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includinginfringingcopiesofcopyrightedtelevisionseriesTheSimpsons,TheOffice,andHeroes.
RatherthanterminatingJRuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoJR.
Forexample,onoraboutApril29,2009theMegaConspiracymadea$2,000paymenttoJRaspartoftheUploaderRewardsprogram,althoughevenpriortothisRewardspayment,theMegaConspiracyhadalreadyprocessedmorethan50takedownrequestsforURLlinkstoinfringingcontentcreatedbyJR.
Evenafterprocessingthesetakedownrequests,theMegaConspiracycontinuedtopayJRanadditional$1,500onMay25,2009.
TheMegaConspiracydidthistogenerateadvertisingandsubscriberinterestwithmorethan3.
8millionsitevisitsandinfringementscomingasaresultoffinancialincentivesmadedirectlytoJR.
c.
OnoraboutApril29,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Herebytherewardspaymentfile.
Itwillbequitesubstantialamount,butstillunder100KIthink.
Pleaseletmeknowthetotal:)Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJRwasamongthoselistedasbeingentitledtoa$2,000payment.
d.
OnoraboutMay25,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HiMathias,Herebytherewardspaymentfilefromthelastmonth.
Page172of191Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerJRwasamongthoselistedasbeingentitledtoa$1,500payment.
RepeatInfringerandUnindictedConspirator"AT"123.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutJanuary25,2008,viaSkype,ORTMANNtoldVANDERKOLK,"user[AT]hassold782premiumaccountssinceDec09,"commenting"notevenaVietnamese.
"VANDERKOLKresponded,"wow!
"ORTMANNthensaid,"hehas2millionrewardpoints,used1.
3million.
"ORTMANNthenlistedthetopfourregistereduserswhocausedotheruserstopurchasepremiumaccounts.
Afewminuteslater,ORTMANNtoldDOTCOM,inGerman,"[AT]in1stplacewith782Sales.
"Duringthesameconversation,DOTCOMpointedoutthatthe3rdplaceuser"has2.
3millionrewardpointsand4,000files"andthenasked,"didwenotpayhim"ORTMANNresponded,"heis#3intopsales.
"DOTCOMstatedthat"hewantshismoney"anddirectedORTMANN,"byallmeanspay[him].
"RepeatInfringerandUnindictedConspirator"CU"124.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewofthedatabases,fromDecemberof2008throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"CU")maintainedatleasteightseparateaccounts,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast60,285takedownrequestsforURLlinkstoinfringingmaterialscreatedbytheseeightaccountsthroughuploadsofcopyright-infringingcontenttotheMegaSites.
Theselinksgeneratedmorethan15.
4millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesetakedownrequests,theMegaConspiracyneverterminatedCUortheeightaccountsassociatedwithCU,andneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
Apreliminaryreviewoffilesuploadedbytheseaccountsindicatesthattheseconspiratorsuploadedfordistributionthecopyright-protectedtelevisionseriesFamilyGuy,CSI:Miami,NarutoShippuuden,LawandOrder,24,NurseJackie,Bones;thecopyright-protectedvideogameCrysis,TigerWoodsPGATour11,TomClancy'sRainbowSixVegas2:Reloaded,andcopyright-protectedmotionpicturesToyStory3,StateofPlay,andTwilight:NewMoon.
RatherthanterminatingCUoraccountsassociatedPage173of191withCUuponreceivingnoticeoftheserepeatedinfringementsfromrepresentativesofthecopyrightowners,financialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoCU.
Forexample,onoraboutFebruary1,2010,theMegaConspiracypaid$3,800toCUaspartoftheUploaderRewardsprogram.
BetweenFebruary12010andMarch9,2010,auserormultipleuserswithaccountslinkedtoCUuploadedmorethan1,920URLlinkstocopyright-infringingmaterialstotheMegaSites,andduringthatsameperiod,theMegaConspiracyprocessedmorethan1,736takedownrequestsforURLlinkstoinfringingcontentcreatedusingtheseaccounts.
Evenafterreceivingthesetakedownrequests,theMegaConspiracypaidCUanadditional$1,700onMarch9,2010,andcontinuedtopayCUanother$1,100through2011.
Intotal,betweenJulyof2009andMayof2011,theMegaConspiracymade73separatepaymentstotalingover$17,800toCU.
c.
OnoraboutJuly31,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtoapaymentof$1,000.
d.
OnoraboutSeptember2,2009,VANDERKOLKsenttwoseparatee-mailmessagestoORTMANN.
Inthedocumentsattachedtothesee-mails,repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$1,000.
e.
OnoraboutOctober7,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$2,700.
f.
OnoraboutNovember8,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$3,000.
g.
OnoraboutNovember24,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$800.
h.
OnoraboutDecember23,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$900.
i.
OnoraboutFebruary1,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,Page174of191repeatinfringerCUwasamongthoselistedasbeingentitledtopaymentstotaling$3,800.
j.
BetweenonoraboutMarch4,2010,andAugust31,2010,useraccountslinkedtoCUcreatedfordistributionatleast11,353URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingthetelevisionprogramsBones,Californication,NCIS:LosAngeles,andthevideogameSniper:GhostWarrior.
k.
OnoraboutApril6,2010,VANDERKOLKsentane-mailentitled"rewards&translatorpayments"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtoapaymentof$200.
l.
OnoraboutApril25,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledapaymentof$400.
m.
OnoraboutMay27,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledapaymentof$100.
n.
OnoraboutDecember7,2010,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledapaymentof$100.
o.
OnoraboutJanuary3,2011,VANDERKOLKsentane-mailentitled"6paymentfiles"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Pleasefindattachedsixpaymentfiles.
Thanksforpayingasap!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledtoapaymentof$100.
p.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
Intheattachedrewardpaymentfile,repeatinfringerCUwasamongthoselistedasbeingentitledapaymentof$200.
q.
OnoraboutMay10,2011,VANDERKOLKsentane-mailentitled"rewardspayment+blogtranslatorpayments"toORTMANN.
Inthee-mail,VANDERKOLKwrote,"HelloMathias,Findattachedtwopaymentfiles.
Thanks!
Bestregards,BramvanderKolk[.
]"Intheattachedrewardpaymentfiles,repeatinfringerCUwasamongthoselistedasbeingentitledapaymentof$100.
Page175of191r.
BetweenapproximatelyJuly23,2011,andJanuary19,2012,useraccountslinkedtoCUcreatedfordistributionatleast440URLlinkstocopyright-infringingworksthatweresubjecttocopyright-takedownnotices,includingtheanimatedtelevisionprogramsCriminalMinds,RoyalPains,GameofThrones,Nikita,TrueBlood,andthevideogameCallofDuty:ModernWarfare3.
RepeatInfringerandUnindictedConspirator"KX"125.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AccordingtoapreliminaryreviewoftheMegadatabases,fromDecemberof2007throughJanuaryof2011,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"KX")maintainedaregisteredaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast65takedownrequestsforURLlinkstoinfringingmaterialscreatedbyKXthroughuploadsofcopyright-infringingcontenttotheMegaSites.
Theselinksgeneratedmorethan480,000viewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesedozensoftakedownrequests,theMegaConspiracyneverterminatedKXandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
ApreliminaryreviewoffilesuploadedbyKXshowsthatfromMarchof2008throughJanuaryof2010,KXuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasSmallville,90210,Terminator:TheSarahConnorChronicles,andTheBigBangTheory.
c.
OnoraboutApril15,2008,arepresentativeofWarnerBrothersEntertainment("WarnerBrothers")sentane-mailtodmca@megavideo.
comandidentifiedKXashavingrepeatedlyuploadedtotheMegaSitescopyright-infringingmaterialsownedbyWarnerBrothers.
DespitebeingnotifiedbythecopyrightownerthatKXwasarepeatinfringer,theMegaConspiracyneverterminatedKX'saccount.
AndapreliminaryreviewoftheMegadatabasesshowsthatKXcontinuedtouploadcopyright-infringingmaterials,andthattheMegaConspiracyreceivedatleast60takedownrequestsforURLlinkstoinfringingmaterialsuploadedbyKXafterApril15,2008.
d.
BetweenapproximatelyFebruary18,2008,andAugust16,2008,KXcreatedfordistributionatleast14URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices.
Page176of191RepeatInfringerandUnindictedConspirator"ZS"126.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AccordingtoapreliminaryreviewoftheMegadatabases,fromSeptemberof2007throughDecemberof2011,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"ZS")maintainedaregisteredaccount,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast190takedownrequestsforURLlinkstoinfringingmaterialscreatedbyZSthroughuploadsofcopyright-infringingcontenttotheMegaSites.
Theselinksgeneratedmorethan950,000viewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesedozensoftakedownrequests,theMegaConspiracyneverterminatedZSandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
ApreliminaryreviewoffilesuploadedbyZSshowsthatfromMarchof2008throughFebruaryof2009,ZSuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasSmallville,Lost,TheSimpsons,PrisonBreak,andHouse.
Morethan99%ofuserviewsoffilesuploadedbyZStoMegavideo.
comwereviewsofcopyright-infringingworks.
c.
OnoraboutApril28,2008,arepresentativeofWarnerBrotherssentane-mailtodmca@megavideo.
comandidentifiedZSashavingrepeatedlyuploadedtotheMegaSitescopyright-infringingmaterialsownedbyWarnerBrothers.
DespitebeingnotifiedbythecopyrightownerthatZSwasarepeatinfringer,theMegaConspiracyneverterminatedZS'saccount.
AndapreliminaryreviewoftheMegadatabasesshowsthatZScontinuedtouploadcopyright-infringingmaterials,andthattheMegaConspiracyreceivedatleast190takedownrequestsforURLlinkstoinfringingmaterialsuploadedbyZSafterApril28,2008.
d.
BetweenapproximatelyFebruary18,2008,andAugust16,2008,ZScreatedfordistributionatleast16URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices.
RepeatInfringerandUnindictedConspirator"HO"127.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AccordingtoapreliminaryreviewoftheMegadatabases,fromSeptemberof2006throughJanuaryof2012,aparticularrepeatinfringerandunindictedconspirator(hereinreferredtoas"HO")maintainedseveralPage177of191registeredaccounts,whichattimesincludedpremiumstatus,ontheMegaSites.
b.
Intotal,theMegaConspiracyreceivedatleast3,000takedownrequestsforURLlinkstoinfringingmaterialscreatedbyHOthroughuploadsofcopyright-infringingcontenttotheMegaSites.
Theselinksgeneratedmorethan11.
5millionviewsofcopyright-infringingvideofilesonserversdirectlycontrolledbytheMegaConspiracy.
Despitehavingreceivedthesedozensoftakedownrequests,theMegaConspiracyneverterminatedHOandneverpurposefullyandcompletelyblockedaccesstotheinfringingcontent.
ApreliminaryreviewoffilesuploadedbyHOshowsthatfromMayof2007throughSeptemberof2011,HOuploadedfordistributionanumberofcopyright-infringingworks,includinginfringingcopiesofcopyrightedtelevisionprograms,suchasDexter,PrisonBreak,V,GhostWhisperer,Heroes,andTheOffice.
c.
OnoraboutApril28,2008,arepresentativeofWarnerBrotherssentane-mailtodmca@megavideo.
comandidentifiedHOashavingrepeatedlyuploadedtotheMegaSitescopyright-infringingmaterialsownedbyWarnerBrothers.
DespitebeingnotifiedbythecopyrightownerthatHOwasarepeatinfringer,theMegaConspiracyneverterminatedHO'saccount.
AndapreliminaryreviewoftheMegadatabasesshowsthatHOcontinuedtouploadcopyright-infringingmaterials,andthattheMegaConspiracyreceivedatleast2,500takedownrequestsforURLlinkstoinfringingmaterialsuploadedbyHOafterApril28,2008.
d.
FinancialrecordsshowthattheMegaConspiracycontinuedtomakerewardpaymentstoHOevenafterreceivingWarnerBrothers'April28,2008notificationthatHOwasarepeatinfringer.
Forexample,onoraboutJuly31,2009,theMegaConspiracypaidHO$1,600aspartoftheUploaderRewardsprogram.
BetweenapproximatelyAugust1,2009,andOctober8,2009,HOuploadedmorethan350URLlinkstocopyright-infringingmaterialstotheMegaSites.
Evenafterreceivingthesehundredsoftakedownrequests,theMegaConspiracypaidHOanadditional$100onOctober8,2009,andcontinuedtopayHOanother$1,400throughAprilof2011.
Intotal,betweenJanuaryof2009andAprilof2011,theMegaConspiracymade17separatepaymentstoHOtotalingover$3,600.
1.
OnoraboutJanuary3,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
2.
OnoraboutMarch9,2009,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
Page178of1913.
OnoraboutApril28,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtotwopaymentstotaling$200.
4.
OnoraboutMay25,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
5.
OnoraboutJuly31,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtopaymentstotaling$1,600.
6.
OnoraboutOctober8,2009,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
7.
OnoraboutNovember8,2009,VANDERKOLKsentane-mailentitled"Rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtotwopaymentstotaling$200.
8.
OnoraboutDecember23,2009,VANDERKOLKsentane-mailentitled"rewardspaymentfile"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtopaymentstotaling$200.
9.
OnoraboutFebruary1,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
10.
OnoraboutMarch10,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$200.
11.
OnoraboutMay27,2010,VANDERKOLKsentane-mailentitled"Rewardspayment"toORTMANN.
IntheattachedrewardpaymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
12.
OnoraboutApril8,2011,VANDERKOLKsentane-mailentitled"rewardspayment"toORTMANN.
IntheattachedrewardPage179of191paymentfilerepeatinfringerHOwasamongthoselistedasbeingentitledtoapaymentof$100.
e.
E-mailrecordsshowthattheMegaConspiracyallowedrepeatinfringerHOtocreateanadvertisingcampaignontheMegaSites,evenafterreceivingtheApril28,2008e-mailfromWarnerBrothersidentifyingHOasarepeatinfringer.
OnoraboutNovember23,2008,BATATOsentane-mailtoHO,thankingHOforregisteringanewadvertisementcampaignthroughMegaclick.
com.
f.
BetweenapproximatelyFebruary18,2008,andAugust16,2008,HOcreatedfordistributionatleast700URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices,includingthemotionpicturesBrothersGrimmandThePatriotandthetelevisionprogramsTheCloser,Eureka,andNumb3rs.
g.
BetweenapproximatelyMarch4,2010,andAugust31,2010,HOcreatedfordistributionatleast50URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices.
h.
BetweenapproximatelyJuly23,2011,andJanuary19,2012,HOcreatedfordistributionatleast2URLlinkstocopyright-infringingworksthatweresubjecttocopyrighttakedownnotices,includingthetelevisionseriesGlee.
AdditionalEvidenceofORTMANN'sKnowledgeofCopyrightInfringement128.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
Accordingtoapreliminaryreviewoftwoe-mailaccountsusedbyORTMANN,abuse@megaupload.
comandmo@megaupload.
com,betweenOctoberof2008andOctoberof2011ORTMANNandPayPalexchangede-mailsregardingcopyright-infringingmaterialsfoundontheMegaSites.
b.
Duringthe2010calendaryear,PayPalrepresentativessentORTMANNover115noticesreferencingmorethan2,000URLlinkstocopyright-infringingmaterialsontheMegaSites.
Morethan94%oftheseURLlinkswereuploadedbyonly193userswithregisteredaccountsontheMegaSites(theremainderwasuploadedbyanonymousaccounts).
Andthecopyright-infringingmaterialsassociatedwiththeseURLlinksweredownloadedmorethan700,000times.
Duringthe2011calendaryear,PayPalrepresentativessentORTMANNover30noticesreferencingmorethan1,400URLlinkstocopyright-infringingmaterialsontheMegaSites.
Morethan92%oftheseURLlinkswereuploadedbyonly140registeredusers(theremainderwasuploadedbyanonymousaccounts).
AndthePage180of191copyright-infringingmaterialsassociatedwiththeseURLlinksweredownloadedmorethan99,000times.
c.
ORTMANNrespondedtothesecopyright-infringementnoticesbyassuringPayPalthattheinfringingfilehadbeenremovedordeleted,and—forapproximately220oftheapproximately330registeredusers—thattheuserhadbeenblockedfromusingtheMegaSites(fortheremainingusers,ORTMANNeitherfailedtomentiontheuserentirely,orheindicatedthattheuserhadbeenwarned).
Forexample,onoraboutSeptember17,2011,ORTMANNwrotethefollowingtwo-sentenceresponse:"Allinfringinguploadshavebeendeletedandtheiruploaderblocked.
ThankyouforforwardingthisDMCAnotice!
"d.
ApreliminaryreviewofthedatabasesshowsthatdespiteORTMANN'sclaimsthattheuploadedfileshadbeendeleted,theMegaConspiracymerelydisabledthespecificURLlinksidentifiedinthenotices.
AnddespiteORTMANN'sclaimsthatapproximately220registeredusershadbeenblocked,asofJanuary19,2012,onlyapproximately18ofthoseuserswereblockedfromusingtheMegaSitesonthatdate.
AdditionalEvidenceofVANDERKOLK'sKnowledgeofCopyrightInfringement129.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutFebruary17,2007,VANDERKOLKsentane-mailtoanunindictedconspirator,entitled"linksformylittlemegauploadaddict!
:-)"Thee-maillistedlinksthathadbeenuploadedtoMegaupload,includingtheMegauploadURLlink,correspondingfilename,andfilesize.
VANDERKOLKorganizedthelinksaccordingtovariouscategories.
1.
The"Justintimberlakemovies"categorylisted33links,1ofwhichwasmarked"Deleted=5.
"AccordingtoapreliminaryreviewoftheMegadatabases,"Deleted=5"indicatedthatthelinkhadnotbeenaccessedwithinaspecifiedperiodoftimeandhadexpired.
JustinTimberlakeisanAmericanactor,performer,andsinger-songwriter.
2.
The"Porn"categorylisted100links,4ofwhichweremarked"Deleted=5,"and1ofwhichwasmarked"Deleted=1.
"AccordingtoapreliminaryreviewoftheMegadatabases,"Deleted=1"indicatedthatthelinkhadbeendeletedduetoanabusereport.
3.
The"weightloss"categorylisted12links,1ofwhichwasmarked"Deleted=5,"and1ofwhichwasmarked"Deleted=99.
"AccordingtoapreliminaryreviewoftheMegadatabases,"Deleted=99"indicatedthatthelinkhadbeendeletedbytheuser.
Page181of1914.
The"yoga"categorylisted100links,12ofwhichweremarked"Deleted=5.
"5.
The"oprah"categorylisted100links,3ofwhichweremarked"Deleted=5.
"OprahWinfreyisanAmericantalkshowhost,actress,producer,andphilanthropist.
6.
The"madtv"categorylisted100links,5ofwhichweremarked"Deleted=5.
"MadTVisacopyrightedtelevisionseries.
7.
The"harveybirdman"categorylisted3links,1ofwhichwasmarked"Deleted=5.
"HarveyBirdman,AttorneyatLaw,isacopyrightedtelevisionseries.
8.
The"arresteddevelopment"categorylisted100links,11ofwhichweremarked"Deleted=5.
"ArrestedDevelopmentisacopyrightedtelevisionseries.
9.
VANDERKOLK'se-maillistedatotalof508non-deletedURLlinks.
AccordingtoapreliminaryreviewoftheMegadatabases,asofJanuary19,2012,439ofthe508linkswerestillactive.
Theactivefileshadbeendownloadedmorethan119,000times.
b.
OnoraboutFebruary7,2009,viaSkype,VANDERKOLKtoldORTMANN,"Ihavemanyoldvideosinmyportfolio.
"VANDERKOLKthensaid,"Iuploadedfulldvdrips"andthensentORTMANNaMegaURLtothecopyrightedmotionpictureTakenandcommented,"thatwasa1013.
05MBupload:)"ORTMANNresponded,"looksgood:)"andVANDERKOLKreplied,"yeah.
"AffirmativeRelianceonThird-Party"Linking"Sites130.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutSeptember17,2008,viaSkype,BATATOaskedORTMANN,inGerman,"Mats,willyoupleasetakealookatthissite[http://www.
animea.
net]Ifit'sokay,I'llmakeitlive.
"ORTMANNresponded,"Thisisapiratedownload-linksiteforanimes.
It'snotlegal,butit'snotforbiddenforthemtoadvertisewithus,"thenasked,"Thiswillthenraiseyourattainedsalesnumberinthefirstfiveweeksto$500"BATATOresponded,"Morelike6,000plus7,000plus5,000,whichwillbecominginthenextfewdays,"and"6kworthofpaymentsarealreadyintheaccount.
"ORTMANNreplied,"Ifeelbetterthen.
"b.
OnoraboutSeptember27,2008,viaSkype,ORTMANNsaidtoVANDERKOLK,"truveoisfindingawhopping40,000Animevideoshostedbyusandloadingtheminanicelyupsizedembeddedplayer.
"VANDERPage182of191KOLKresponded,"wow:)"andORTMANNthencommented,"intotal,theyhaveindexed1084273Megavideovideos.
"Atthattime,Truveo.
comwasavideosearchengine.
c.
OnoraboutSeptember28,2008,viaSkype,VANDERKOLKsentORTMANNalinktothethird-partylinkingsitewww.
surfthechannel.
com,commenting,"theyhaveanalexarank669andarefullwithMVlinks.
"VANDERKOLKthensaid,"ahyeahthereareplentyofsiteslikethat,andtherewillbe10newones.
"d.
InearlyFebruaryof2009,membersoftheMegaConspiracydiscussedthethird-partylinkingsitewatch-movies.
net:1.
OnoraboutFebruary1,2009,viaSkype,ORTMANNtoldVANDERKOLK,"watch-movies.
netseemstobeoffline,"thenlater,"itseemsthattheirDNSproviderisdown.
"VANDERKOLKresponded,"okay,probablynotbeingtakendownthen,"andORTMANNreplied,"no,"andVANDERKOLKreplied"good:)"Thenextday,ORTMANNtoldVANDERKOLK,"watch-movies.
net'sproblemsarecausingquiteafewsupportrequests:'Pleasecancelandcreditbacktothesamecard.
Thesiteisnotresponddinganymone.
'"VANDERKOLKresponded,"that'snotsocool…"2.
OnoraboutFebruary2,2009,viaSkype,VANDERKOLKtoldORTMANN,"sothecopyrightholderstargetthespreadersaswellnow,notuswhichisgood:)"ORTMANNresponded,"theyalwaysdo,""it'sthesitesprovidingsearchresultsthataretargeted.
"VANDERKOLKreplied,"we'llbefine,""whereonesitecloses,100newoneswillcomeup,""aslongastheydon'tfilealawsuitagainstuseverythingwillbejustfine.
"3.
OnoraboutFebruary3,2009,viaSkype,DOTCOMtoldORTMANN,inGerman,"MVhas1millionlessusersonExtremeTrackingsincetheremovalofwatch-movies[.
net].
Butstrangely,thishasnoeffectonpayments.
Reallyfunny.
"4.
OnoraboutFebruary8,2009,viaSkype,ORTMANNtoldVANDERKOLK,"yeah,warnerbros.
seemstobeemailingmanyhostersthesedays,butatleastwatch-movies.
netisbackaswatch-movies-links.
net:)"VANDERKOLKresponded,"ahreally,amazing:)""letthecat&mousegamecontinue!
"Hethensaid,"aslongasthereisInternettherewillbepiracy.
"5.
OnoraboutFebruary9,2009,viaSkype,VANDERKOLKtoldORTMANN,"MVisgrowingagain:)"andORTMANNresponded,"ah,thankstowatch-movies[.
net]:)"Page183of191e.
OnoraboutMay7,2009,viaSkype,ORTMANNtoldVANDERKOLK,"interestinganalysisresults…outofour15topreferrers,10areinSpanish…andcombined,theygenerateroughly15%ofourgrossrevenue.
"VANDERKOLKresponded,"Quitesignificant,""AndinlinewithwhatIsawintheGoogleAnalyticsreferers.
"ThenVANDERKOLKasked,"Arewegoingtocreatesomestatspageorsomethingwiththis"andORTMANNresponded,"WhatIwillautomateisrevenueperdownloadidstatssothatyoucancheckthemonetaryvalueofatakedownrequest.
"Afewminuteslater,ORTMANNsentVANDERKOLKthefollowinglistofthe15topthird-partylinkingsitesthathadgeneratedpremiumaccountsontheMegasites:seriesyonkis.
com13697(spanish)surfthechannel.
com12574(english)vagos.
wamba.
com10117(spanish)taringa.
net8493(spanish)peliculasyonkis.
com6468(spanish)mcanime.
net4335(spanish)wawa-mania.
eu4126(spanish)alloshowtv.
com3890(french)cinetube.
es2795(spanish)monblog.
ch2791(french)sdd-fanatico.
blogspot.
com2733(spanish)sharebee.
com2705(generic)pordescargadirecta.
com2561(spanish)dospuntocerovision.
com2487(spanish)seriesgringas.
us2451(spanish)ORTMANNexplained,"thenumberisthenumberofactivepremiumaccountsinthepast5days…lotswillvisitmultiplesites,butstillmajorrevenue($7permonthperaccountonaverage).
"VANDERKOLKresponded,"yes,thesesitesarequitesignificantvaluetousthenindeed.
"f.
OnoraboutMay25,2009,viaSkype,ORMANNsenttoVANDERKOLKthefollowinge-mailexchangebetweenORTMANNandaMegauser:mostlywomenopenthiskindofdisputesonPayPal:FromBuyer:[NAMEREDACTED]on24/05/200918:25PDT"IwaswatchingadownloadofDexter,theTVShow,whichIthoughtwasonMegavideo,anditstoppedplaying,andsaidtojointoseetheentireshow.
Ijoinedandpaid$9.
99foramonththruPayPal,butIcannotfindthatepisode(oranyothers)onMegavideo.
"Page184of191(Iresponded:"YourpremiummembershipisvalidnotonlyforMegavideo.
comitself,butalsoforourstreamingserviceonthirdpartysites.
Gobacktotheoriginalsiteandcontinuewatching.
")"Thankyou,IfinallyfiguredthatoutwhenIreceivedtheconfirmationemail.
.
.
sorryforthetrouble!
THANKS!
"VANDERKOLKresponded,"Hahadamn:)""butgood.
"AndORTMANNreplied,"yeah,it'snoteasytofigureout:)"The"streamingserviceonthirdpartysites"referstotheembeddedvideoplayersoperatedbytheMegaConspiracyavailableonthird-partylinkingsites.
g.
OnoraboutJuly19,2009,viaSkype,ORTMANNtoldVANDERKOLK,"IjustfearthedaywhenthosetenSpanishsitesthatmakeupfor20%ofourpaymentsgetbusted:("VANDERKOLKresponded,"nahsiteswillcomeandgoallthetime,"andORTMANNreplied,"true:)"131.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
AccordingtoapreliminaryreviewoftheMegaSites'sourcecode,theMegaConspiracysearchedthird-partylinkingsitesforURLslinkingtotheMegaSites.
Forexample,sourcecodeinthefile"cuevana.
php"wasdesignedtosearchforURLlinksreferringto"Megaupload"and"serie"(theSpanishwordfor"series")onthethird-partylinkingsitecuevana.
tv.
Thesearchresultswerestoredinlogfiles,whichwerecreatedonoraboutDecember14and15,2011.
b.
AsofJanuary19,2012,theMegaConspiracyhadcreatedatleast36logfilesforvariousthird-partylinkingsites,includingcuevana.
tvandicefilms.
info.
Theselogfileslistedmorethan5millionMegaupload.
comURLlinks,roughly85,000ofwhichwereuniqueURLlinks—inotherwords,manyoftheURLlinksappearedinmorethanonelogandappearedmorethanonceonthethird-partylinkingsites.
AccordingtoapreliminaryreviewoftheMegadatabases,themostpopularURLlinksweretocopyright-infringingmaterials,suchasthecopyrightedtelevisionprogramsTheSimpsons,Dexter,FamilyGuy,TheNewGirl,and2BrokeGirls,andcopyrightedmotionpicturessuchasTheChange-UpandContagion.
Morethan95%oftheseURLlinkswereuploadedbyuserswithregisteredaccountsontheMegaSites,andmanyoftheseregisteredusersuploadedmultipleURLlinksfoundinthelogs.
Ofthe10registereduserswhouploadedthemostURLlinksfoundinthelogs,all10alsohadatleast500copyrighttakedownnoticesassociatedwiththeiraccount.
AndasofJanuary19,2012,eachofthese10registereduserswerestillactiveontheMegaSites.
Page185of191132.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
eXTReMedigitalV.
O.
F.
("ExtremeTracking"),aDutchcompany,provideswebsitemeasurementtools,suchasthenumberofvisitsduringaspecifiedtimeperiod.
ThesetoolsareavailableatthewebsiteExtremeTracking.
com.
AccordingtorecordsprovidedbyExtremeTracking,asearlyasMayof2005,theMegaConspiracyopened4separateanalyticsaccountsunderthename"KIMBLE,"whichisanaliasforDOTCOM.
TheseanalyticsaccountstrackedthewebsitesMegavideo.
com,Megaupload.
com,Megaporn.
com,andSexuploader.
com.
b.
RecordsobtainedfromExtremeTrackingshowthatvisitorssearchingfortermsspecifictocopyrightedworkswerereferredtotheMegaSitesonadailybasis.
Forexample:1.
BetweenapproximatelyDecember1,2010,andJanuary31,2012:i.
Over43,000uniquevisitorssearchingfortheterm"pokemon"wereredirectedtothesiteMegaupload.
com.
PokémonisamediafranchiseownedbyNintendofeaturingcopyrightedvideogames,cartoons,tradingcards,toys,andbooks.
ii.
Over32,000uniquevisitorssearchingfortheterm"psp"wereredirectedtoMegaupload.
com.
Theacronym"psp"referstoPlayStationPortable,ahandheldvideogameconsolesoldbySony.
iii.
Over74,000uniquevisitorssearchingfortheterm"keygen"werereferredtoMegaupload.
com.
Akeygeneratorreferstoasoftwareprogramthatbypassesthedigitalrightsmanagementofcopyrightedsoftware.
iv.
Over12,000uniquevisitorssearchingfortheterm"twilight"werereferredtoMegavideo.
com.
TheTwilightSagaisaseriesofcopyrightedmotionspicturesbasedoncopyrightednovelswrittenbyAmericanauthorStephenieMeyer.
2.
OnoraboutDecember13,2010,over650uniquevisitorssearchingfortheterm"dexter"werereferredtoMegaupload.
com.
DexterisacopyrightedtelevisionseriesonthepremiumcablechannelShowtime.
AnewepisodeofDexter,entitled"TheBigOne,"airedonoraboutDecember12,2010.
3.
OnoraboutDecember25,2010,over1,300uniquevisitorssearchingfortheterm"Gorillaz"wereredirectedtoPage186of191Megaupload.
com.
TheGorillazareaBritishmusicalband.
Theircopyrightedalbum"TheFall"wasreleasedonDecember20,2010,asadigitaldownloadexclusivetomembersoftheband'sfanclub,andtheninAprilof2011asaphysicalrelease.
A12-monthsubscriptiontotheband'sfanclubcurrentlycosts$45.
00.
4.
OnoraboutJanuary2,2011,over700uniquevisitorssearchingfortheterms"harry"and"potter"werereferredtoMegaupload.
com.
Thecopyrightedmotionpicture"HarryPotterandtheDeathlyHallows:Part1"wasreleasedinU.
S.
theatersonoraboutNovember19,2010.
5.
OnoraboutJanuary11,2011,over200uniquevisitorssearchingfortheterm"photoshop"werereferredtoMegaupload.
com.
PhotoshopisacopyrightedgraphicseditingprogramdevelopedandsoldbyAdobeSystems.
6.
OnoraboutMay8,2011,over350uniquevisitorssearchingfortheterm"thor"werereferredtoMegavideo.
com.
Thecopyrightedmotionpicture"Thor"wasreleasedinU.
S.
theatersonlytwodaysearlier,onoraboutMay6,2011.
c.
RecordsobtainedfromExtremeTrackingshowthatahandfulofthird-partylinkingsitesprovidedasubstantialportionofInternettraffictotheMegaSites.
Forexample:1.
BetweenapproximatelyDecember1,2010,andJanuary19,2012,10third-partylinkingsitesreferredover700millionuniquevisitorstoMegavideo.
com,accountingforover78%ofthetotalreferredvisitors.
Referredvisitorsareincontrasttothosewhovisitdirectlybytypinginthewebsiteaddress.
The10third-partylinkingsitesare:seriesyonkis.
com,allourl.
com,surfthechannel.
com,taringa.
net,watch-movies.
net,peliculasyonkis.
com,tv-links.
eu,italia-film.
com,streamiz.
com,andserialeonline.
pl.
2.
BetweenapproximatelyDecember1,2010,andJanuary19,2012,over1billionuniquevisitorswerereferredtoMegaupload.
combythird-partylinkingsites.
Ofthose,56%werereferredby7third-partylinkingsites:cuevana.
tv,allourl.
com,taringa.
net,watchmovies.
net,icefilms.
info,forum.
downparadise.
ws,andstreamiz.
com.
3.
OnoraboutMarch13,2011,over3.
3millionuniquevisitorsweredirectedtoMegavideo.
combyallreferringsites.
Ofthesevisitors,over1.
3millionweredirectedfromseriesyonkis.
com,overPage187of191600,000werereferredbyallourl.
com,andover350,000frompeliculasyonkis.
com.
4.
OnoraboutSeptember25,2011,over1.
4millionuniquevisitorswerereferredtoMegavideo.
comfromthird-partylinkingsitessuchasseriesyonkis.
comandtv-links.
eu,andover3.
8millionuniquevisitorswerereferredtoMegaupload.
comfromthird-partylinkingsitessuchascuevana.
tvoricefilms.
info.
5.
OnoraboutNovember6,2011,over4.
4millionuniquevisitorswerereferredtoMegaupload.
combythird-partyinkingsites.
Ofthesevisitors,54%werereferredbyjust2sites,cuevana.
tvandicefilms.
info.
d.
RecordsobtainedfromExtremeTrackingshowthatcopyrightinfringementwasevidentinthenamesoftheURLlinksfoundonthird-partylinkingsites.
Forexample:1.
OnoraboutFebruary16,2011,over23,000uniquevisitorswerereferredtoMegavideo.
comfromthefollowingURLlink:italia-film.
com/telefilm/5292-the-vampire-diaries-il-diario-del-vampiro.
html,andanother26,000uniquevisitorswerereferredtoMegavideo.
comfromthefollowingURLlink:stream.
myblog.
it/archive/2010/05/20/the-vampire-diaries-streaming.
html.
TheVampireDiariesisacopyrightedtelevisionseriesonTheCWchannel.
NewepisodesofTheVampireDiariesairedonFebruary10,2011,andonFebruary17,2011.
2.
OnoraboutApril2,2011,over45,000uniquevisitorswerereferredtoMegavideo.
comfromthefollowingURLlink:italia-film.
com/telefilm/2451-greys-anatomy.
html,andanother11,000uniquevisitorswerereferredtoMegavideo.
comfromthefollowingURLlink:megastreaming.
biz/2009/09/28.
streaming-serie-tv-greys-anatomy-stagione-6.
Grey'sAnatomyisacopyrightedtelevisionseriesonABC.
AnewepisodeofGrey'sAnatomy,entitled"SongBeneaththeSong,"originallyairedonoraboutMarch31,2011,onlytwodayspriortotheExtremeTrackingdata.
WillfulFailuretoRemoveCopyright-InfringingFiles133.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutDecember26,2008,viaSkype,ORTMANNsaidtoVANDERKOLK,"wow,anIndiansubpoenarequestingMVuploadercredentials…"VANDERKOLKresponded,"wow,""ahthatonefromthePage188of191police,""IthinkIsawthatone.
"Later,VANDERKOLKsaid,"it'sjustIndianpolice,"andORTMANNresponded,"yes,wecanprobablyignorethisone.
"VANDERKOLKsuggested,"wecanalwayssaythatweneverreceivedtheire-mail,"andORTMANNresponded,"yep,""buttheyprobablyalsosentapostalletter(scannedattachments).
"VANDERKOLKreplied,"ahyesthenit'sadifferentstory,"andthenheasked,"dowegetmanyphysicalmailthesedaysforcopyrightissues"ORTMANNresponded,"veryfew,"andVANDERKOLKcommented,"good.
"b.
OnoraboutFebruary15,2009,viaSkype,VANDERKOLKandORTMANNdiscussedmultipleMegaURLspointtothesamefile.
VANDERKOLKtoldORTMANN,"Kim[DOTCOM]wassuggestingtomaybelimititupto10ofthesamefilesperuser,hejustthoughtthatitcouldbeusefulforsomeuserstouploadthesamefileseveraltimesiftheywanttohaveeasybackupsagainstdeletions,orspreaddifferentlinksondifferentforums.
"ORTMANNresponded,"yeah,couldbeusefulthen.
"AndVANDERKOLKreplied,"Wewouldprovideafeaturethatwouldmakeithardertocontrolforcopyrightholders:)"c.
AsdiscussedinParagraphs38(j)and76,inFebruaryandAprilof2009,theAsociaciónProtectoradeCineyMúsica("APCM")Mexico,whichrepresentsvariouscopyrightowners,submittedmultipletakedownrequestsforcopyright-infringingmaterialsavailableontheMegaSites.
DOTCOMblamedasubsequentdropinrevenueonVANDERKOLK'sdecisiontodisablethelinks(butnottheunderlyingfiles)pursuanttothetakedowns.
TheMegaconspiratorsdiscussedthesituationviaSkype:1.
OnoraboutApril23,2009,ORTMANNtoldVANDERKOLK,"maybetryundeletingthem:)"andVANDERKOLKasked,"youwanttoriskthat"ThenVANDERKOLKsaid,"ImeanMXisjustMX,wecouldignorethem,"andORTMANNadded,"it'snotlikeMexicoisgoingtosueusinHongKong.
"ORTMANNcontinued,"justfortesting,weshouldundeletethosefiles,""foroneday,""wecanexcuseitasatechglitch.
"VANDERKOLKadded,"Ioftenignorereportsfromcertaincountries,suchasVN.
"Inthiscontext,theabbreviations"MX"and"VN"appeartorefertoMexicoandVietnam,respectively.
2.
Laterthatday,DOTCOMinstructedORTMANN,inGerman,"andpleasedowhatIwrotebram.
undeleteeverythingthatwasinthelast4weeksreportedfromnonfirstworldcountries.
SIMPLYeverything.
Andyouwillseewehavedailyrecordagain.
"3.
Laterthatday,ORTMANNsentDOTCOMaportionoftheAPCMe-mail,whichstatedthatAPCMMexicoistheauthorizedrepresentativeof,amongstothers,ColumbiaPicturesIndustries,Inc.
,DisneyEnterprises,Inc.
,ParamountPicturesCorporation,andPage189of191WarnerBros.
EntertainmentInc.
ORTMANNtoldDOTCOM,inGerman,"iftrue,Bramhasnotdoneanythingwrong.
"Afewminuteslater,DOTCOMblamedthetakedownsforcausing"50krevenuegone.
"4.
Laterthatday,ORTMANNtoldBENCKO,"thetakedownnoticeswerelegitimateforsure,""however,calculatedriskcouldworkhere.
"5.
Laterthatday,DOTCOMtoldVANDERKOLKandORTMANN:makealistofalllinksthatwerereportedfrommexico,brazil,andothernonfirstworldcountriesinthelast4weeks.
andundeleteallofthem.
Theyhavenotsentuslegitimatetakedownnoticeswithsufficientproofthattheyrepresenttherightholdersforeverysinglelink.
andfromnowonyouwillonlydeletelinksfromtheUSA,France,Germany,UKandSPAINinstatntly.
6.
Thefollowingday,April24,VANDERKOLKtoldORTMANN,"medeletingthemisnormalprocedure,especiallysincewe'resoonbeingsued.
ThiswasnotsentfromaGmailorYahooaddress,thisistheMexicanMPAA.
"7.
OnoraboutApril27,2009,VANDERKOLKaskedORTMANN,"Peoplearealreadyre-sendingtheirDMCAnoticesnow,canIresumeprocessingthemagain"ORTMANNanswered,"yes,first-worldonly.
"d.
OnoraboutMay20,2009,viaSkype,ORTMANNtoldVANDERKOLK,"DtecNetisgettingmoreannoying.
Kim[DOTCOM]requeststoignoretheirnoticesuntilSundayevening.
"VANDERKOLKreplied,"okay.
"AsdiscussedinParagraph93,anumberofcopyrightownershiredDtecNet,alsoknownasMarkMonitor,toidentifyinfringingcopiesofcopyrightedworksthatwerepubliclyavailableontheInternet,includingthroughtheMegaSites.
e.
OnoraboutJune2,2009,viaSkype,ORTMANNtoldVANDERKOLK,"IwillgiveyoutheHDshowcasevideosshortly,andwedon'twantDtecNetoranybodyelsetointerferewiththat.
"VANDERKOLKresponded,"ahright,wecanintroduceawhite-listtableeasily.
"Page190of191GeneralOperationoftheMegaSites134.
TheU.
S.
Attorney'sOfficefortheEasternDistrictofVirginiaexpectsarepresentativeoftheFBItotestifytothefollowingfacts:a.
OnoraboutFebruary25,2009,viaSkype,anunindictedconspiratoraskedORTMANN,"Anotherissue:doyouhaveanyend-userreport,ie.
howmanypeoplesignupeachday,loginname,countryoforigin,whatplantheybuy,etc.
"ORTMANNresponded,"Wehaveallofthatinformationandcanextractreportsfromit,andsomeoftheaspectsarealreadycoveredbyreportingtoolsthatweusetoassessourgrowth.
"Theconspiratorasked,"canyoucreateasimpleclientreporteachmonthfromyourdatabasedformefortheaccountingpurpose"andORTMANNreplied,"IcanextractthatinformationtogetherwiththeupcomingmonthlyPayPaletc.
reporting.
"Theconspiratorthenasked,"Canwedoitautomatically,soIdon'tneedtoaskyoueverymonth"andORTMANNresponded,"Noproblem.
Thatwouldbe150,000purchasespermonth,canyouhandlethat""probably200,000soon…"b.
OnoraboutMarch6,2009,viaSkype,VANDERKOLKaskedORTMANN,"Howmuchprofitarewemakingpermonthnowapproximately"ORTMANNresponded,"ourcostbaseis1.
7m(willgoupto1.
8millioninAprilforMay)…wehaveapprox.
3.
2Mofprevmiumrevenueand600Kofadrevenue.
"Inotherwords,accordingtoORTMANN,Mega'sprofitsduringthattimeperiodwereroughly$2millionpermonth.
c.
OnoraboutMarch9,2009,viaSkype,VANDERKOLKaskedORTMANN,"KimdoesmostofourbusinessthroughtheTimVestornameright"andORTMANNresponded,"mixed""50/50.
"ORTMANNadded,"CogentI'mnotsure,""Carpathia:Kim,""Conceiva:Tim,""Ialwayshavetobecarefulinphoneconfs:)"d.
OnoraboutApril2,2009,viaSkype,VANDERKOLKtoldORTMANN,"Franceacceptedthecontroversialantipiracylawwheretheywilldisconnectusers.
Butthat'sonlygoodforusasitwillmainlyaffectp2ppiracy.
"ORTMANNresponded,"unlesstheyassumethat_all_trafficfromusispiracyorsniffpeoples'downloadURLs,it'skindahardtocatchsomeoneusingMU/MVforpiracyformapurelytechnicalperspective.
"TowhichVANDERKOLKreplied,"yes.
"e.
OnoraboutMay2,2009,viaSkype,ORTMANNtoldVANDERKOLK,"theworkloadincurredbytheaccountblockingisconsumingexcessiveresources.
Iamnowimplementingadifferentapproach:Autoblocking,autounblocking,withinitially4hoursofsuspension,doubleduponeveryreoccurrence…"VANDERKOLKresponded,"thatsaverysmartPage191of191approach!
"Afewhourslater,ORTMANNsaid,"nowunblockingall11000blockedusers:)"andVANDERKOLKresponded,"wow!
!
"f.
OnoraboutMay6,2009,viaSkype,ORTMANNtoldVANDERKOLK,"Ponzischeme,"andVANDERKOLKresponded,"yesthat'sKimstyleindeed.
"ORTMANNreplied,"workedwellsofar,""luckily,"andVANDERKOLKresponded,"MostPonzischemespaymuchmorefrequentlythough:)"ThenVANDERKOLKsaid,"yeahbutthelikelynessthatwe'lltripleourprofitagainin2010isquitesmall,""whileatthesametimethelikelinessofusgettingintroubleforsomereasonisgettingbigger.
"ORTMANNresponded,"verytrue,"andVANDERKOLKreplied,"andthefactiswhenthere'snowayout,Kim[DOTCOM]willalsograbthelastcoupleofmillionsandgoonhidingmodeagainwhenthathappens.
"ORTMANNresponded,"yes,""orhe'llspendthemandthenaskMEtosavehim.
"VANDERKOLKreplied,"HAHA""howironic,"andORTMANNresponded,"Ialreadyseethatcoming.
"