OTCQB: RIHT July 27, 2017

Snapshot

Summary

Rightscorp is an Intellectual Property (IP) monetization company that focuses on copyrighted IP. The Company has a patent-pending, proprietary method for solving online copyright infringement by collecting payments from infringing downloaders via notifications sent to their Internet Service providers (ISP).

The Problem: Copyright Violations Cost Billions

The music and motion picture industries are losing billions of dollars every year as a result of an estimated non-authorized 132 billion music and 11 billion motion picture downloads annually. Cisco estimates that this number could double by 2016. Rightscorp aims to remedy this situation, and the Company is currently sending out millions of infringement notices each month to copyright violators.

The Market: An Immediate Opportunity

24% of all Internet traffic infringes on copyrighted movies, music, software and video games. In the U.S. in 2011 there were 143B illegal downloads of music and movies. Cisco forecasts that peer-to- peer traffic will double by 2016.Data indicates that the U.S. recorded music and home video industries have experienced an accumulated loss of $39B since peer-to-peer piracy arrived. 

The Solution: A Unique, Proprietary Technology 

As an IP company focused on protecting copyright holders’ rights to get paid for their content, Rightscorp serves copyright owners by collecting settlement payments from Internet users who have infringed on copyrights. Rightscorp’s proprietary technology identifies infringers and works with their ISPs to deliver a settlement offer to remedy their legal liability.

The Company’s patent-pending technology can legally trigger major ISPs to suspend customers who do not pay the Company’s notices. This service costs copyright holders nothing and helps them recapture the revenues they lost when their copyrighted material was infringed. 

Contracts Representing over 650,000 Copyrights

Rightscorp already represents more than 650,000 copyrights from copyright holders including some of the biggest names in music including. The Company has alrrady succesfully collected on thousands of copyrights.

Settlements & Collections

To date, Rightscorp has received settlements from subscribers of a growing list of over 45 major ISPs including five of the top 10 providers. As the Company continues to send notices on every infringement it finds to all U.S. ISPs, more providers are being compelled to cooperate in order to comply with copyright laws. 

Barriers to Market Entry

Rightscorp has 5 patents pending and is building a growing infrastructure of copyright holders it represents, and ISPs through which it delivers settlement notices. Thousands of  lines of code were written to develop the proprietary software, a scalable, low cost settlement solution. The experienced management team includes entertainment industry insiders, and the technology is deployed and generating revenues. As a result, every day, intellectual property is being monetized for copyright holders and fewer people are likely to infringe. 

Rightscorp's proprietary patent-pending software identifies and sends settlement notices to infringers, and collects settlements. Rightscorp does not sue, the Company simply warns, educates and collects. Repeat offenders are suspended by their ISPs. Only distributors of content face enforcement, not downloaders. 

Identifying Infringers

Rightscorp identifies infringers by crawling the Internet’s Peer-to-Peer (P2P) networks. Currently, 24% of all Internet traffic is P2P file sharing. The Company's key technology is it's ability to identify repeat infringers.

Pending Notice

The technology sends automated notices of the infringing activity to ISPs and sends offers for settlement to infringers. The notice to ISPs and settlement offers, include the date, time, song/movie/book/software title, and other specific technology identifiers to confirm the infringement by the ISP’s customer.

The ISP’s Role

Per the Digital Millennium Copyright Act (DMCA), Internet Service Providers (ISPs) only have Safe Harbor from third-party liability from infringements that occur on their network if they have reasonably implemented a policy that calls for the termination of repeat infringers. As Rightscorp continues to notify ISPs of repeat infringers on their systems, liability grows unless the ISP suspends service to the infringer.

Rightscorp believes that it offers a win-win solution for ISPs to protect themselves from potential liability and to improve their bottom line by reducing the enormous bandwidth costs created by illegal traffic.

Collections

Under threat of losing Internet connectivity, infringers are motivated to settle. Rightscorp. collects a modest settlement amount (per infringement) and pays the copyright owner a percentage of these settlements. 

Competition

Some competitors monitor P2P networks and charge copyright holders to monitor infringements but do nothing to collect. Rightscorp charges copyright holders nothing. Once a settlement payment is recieved, Rightscopr then remits a percentage to the owner. 

Other competitors use aggressive litigation that drives settlement through threats of costly lawsuits--which is not a scalable model.

Rightscorp is the only company using its proprietary technology to detect repeat infringers and therefore is the only company to have legal leverage with ISPs, compelling the ISP to deliver settlement notices by leveraging the DMCA law.