VPN services and hacking, the end of immunity? Film producers win a first battle

A vendor selling IP addresses to vpn-services was convicted of copyright infringement because users of said VPNs used them for the purpose of pirating cinematographic works.

Rights holders, and the movie industry in particular, are increasingly targeting VPNs in their legal battles against piracy. American justice has just ruled in their favor in a case that could set a precedent.

Provider of IP addresses for VPN platforms found guilty

A group of film producers have successfully condemned the hosting company MICFO, which sold IP addresses to certain VPN platforms, including Hide My Ass, NordVPN and Proton to name the best known.

The plaintiffs accused MICFO of turning a blind eye to hacking activities committed by subscribers of the VPN companies it counted as customers. The judge agreed with them, finding that MICFO was aware of the pirate activities perpetrated through their services, and that the company took no steps to put an end to them in order to retain its customers.

The company was found guilty of copyright infringement. The judge ordered the payment of damages of 150,000 dollars per work concerned by the complaint, the legal maximum. In total, the damages therefore amount to 4.2 million dollars for 28 films.

VPN services in danger?

This decision against a VPN platform provider opens the door to lawsuits against VPN services directly. Moreover, MICFO provided in its terms of use that its customers indemnify it if it was found responsible for illegal practices because of the activities of its customers, or the customers of its customers.

Still, it will be difficult to attack many VPN services, since their headquarters are mostly located in countries where they are much less exposed to justice than in the United States.

For its part, MICFO ceased its activity. In addition to the motion picture industry complaint, the company also pleaded guilty to a fraud case. The US government has seized nearly $17 million in funds and assets belonging to MICFO, some of which could be used to pay movie producers.

Source : Torrent Freak