OTCQB: RIHT April 25, 2017

Technology

Our Service & How it Works

We have developed a technology that we sell as a service to copyright owners to collect settlement payments from consumers who have illegally downloaded copyrighted content. We are selling our services into the untapped market for monetizing billions of copyright violations worldwide. 

Our technology system monitors the global Peer-to-Peer (P2P) file sharing networks and sends emails to Internet Service Providers (ISP’s) that are notices of actual copyright infringement with the date, time, copyright title and other specific technology identifiers to confirm the infringement by the ISP’s subscriber. The system also simultaneously delivers a settlement offer. We help infringers avoid lawsuits by collecting settlement payments from those infringers who accept our settlement offers.  We subsequently pay the copyright owner a percentage of these settlements.  Additionally, we help ISPs reduce their third-party liability by providing them with a no-cost tool for reducing repeat infringement on their network. 

1.       Under our business model, the owner of the copyright signs a simple agreement authorizing us to monitor the P2P networks and collect settlement payments on their behalf. With music, every mp3 file that is downloaded has at least two copyrights, a sound recording copyright and a publishing copyright. The publishing copyright is the right to use the song and is separate from the sound recording copyright, which can include licensing the placement of the song in a movie, re-recording the song, or printing the lyrics and melody on sheet music. Under U.S. copyright law, each copyright owner has the exclusive right to copy and distribute their respective copyrights.  If someone uses “file sharing” software to “share” a specific song, they are violating the copyright owner’s exclusive right of copying and distribution, and they have incurred a potential civil liability.   

chart-infringement-diagram.jpg

2.      Our technology constantly monitors the Internet at all times looking for infringements (24/7/365).

3.      When an infringement is identified, we receive the following data:

  • Date and Time of infringement;
  • Filename;
  • ISP Name;
  • IP Address; and
  • Additional information related to our trade secrets.

4.    We send this data to the ISP in an automated computer format and the ISP sends our communication onwards to their subscriber.  The notice come to the customer from their service provider, so it is not considered as “spam." 

Rightscorp has written, designed and owns the technology for:
  • Crawling the P2P networks and finding infringements;
  • sending the DMCA notices; and
  • receiving payments.

Our current technology can send tens of millions of notices per month, but can be quickly scaled to send hundreds of millions notices per month. 

5.      Since 2010, more than 200,000 people have been sued in the United States for peer-to-peer copyright infringement. Under our system an infringer receives a notice, which informs them that they could be liable for $150,000 in damages, but if they click on the supplied link, they can enter a credit card and we will settle the matter between them and the copyright owner for $20 per music infringement.  Additionally, repeat infringers are put on a list sent weekly to ISPs demanding that their service be terminated pursuant to 17 USC 512 (i).  Once the user makes the settlement payment, they are removed from this list.  If subscribers have had their service terminated, then once the matter is settled, their ISP is notified immediately so service can be restored.

ppt-sample-settlement-offer.jpg

6.       Once we receive the settlement amount, we split the payment 50/50 with the copyright owner, less credit card processing fees. Most infringers receive and settle multiple infringement notices.

7.       We provide a free solution to ISPs as a means to reduce their third-party liability for repeat copyright infringements occurring on their network.  Every U.S. ISP receives a Rightscorp web page “dashboard” that provides access to real-time subscriber data, which reveals each and every individual copyright infringement occurrence on their system. The dashboard also displays the history of the repeat infringers on their network and gives the ISP immediate feedback on subscribers who have cleared their status with the copyright holder as well as those subscribers that continue to infringe even after their ISP has received notice.

WHY OUR PROCESS IS EFFECTIVE
  1. We don’t sue...we warn, educate and collect.
  2. Repeat offender’s service can be suspended by ISP.
  3. We focus on distributors not downloaders.