US firm runs mass copyright shakedown in Canada

Gigaom

When Canada’s new copyright rules went into effect in January, critics feared that someone would use them to run settlement extortion schemes of the sort that have long plagued the American legal system. Those fears have proved to be justified. This week, a second U.S. company has come into Canada, apparently using an automated process to blast thousands of settlement notices far and wide.

If you’re unfamiliar with the scheme, it works like this: under Canada’s new rules, a copyright owner who detects an unauthorized download can send a notice to the subscriber’s ISP, which is then obliged to notify the subscriber. The problem is that copyright owners can abuse the system by sending out notices that are actually threats, based on false information, and scare people into paying a settlement.

This has already happened once when a company called Rightscorp began making outlandish claims based on American law (for instance telling notice recipients that they faced $150,000 fines for…

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