Cybercrimes are a constant problem; just look at the hack this week that sent state-owned companies, multi-national giants, banks, stores, etc. reeling on Tuesday as hackers sent ransomware coursing through networks worldwide.
In that lane, media piracy is an ongoing problem, barely slowed (if at all) by ineffective solutions over the past two decades. Rightscorp (OTCQB:RIHT) stands firm on copyright infringement protection and leaning on Internet Service Providers (ISPs) to help crackdown on users illegally downloading music, movies and other protected material via portals such as bittorrent sites.
For years now, Rightscorp has been advocating for rightholders in a bid to turn copyright infringement into a profitable business. The company praised the much-hyped "Six Strikes" efforts of the Motion Picture Association of America and Recording Industry Association of America in 2013, a penalty system that failed because it really didn't carry any repercussions and certainly none heavy enough even remotely to deter hardcore illegal downloaders.
Rightscorp was even working with some ISPs to issue those alleged to illegally be downloading material to pay a fee of $20 per infringement to be released of their violation. Critics have called these notices nothing more than shake-down tactics. Despite these efforts and more - such as organizations fighting to make certain types of sites illegal - pirating is as alive and well as ever, in part because it is so hard to enforce and prove criminal action.
Furthermore, the U.S. Supreme Court has ruled that no one, not even criminals, can be prevented from accessing the internet.
Rightscorp isn't done fighting the fight, applauding Judge Liam O'Grady's decision in the Eastern District of Virginia in February to slap Cox Communications on the wrist with $33 million in penalties for not making much effort to thwart illegal music downloading.
Wednesday morning, Rightscorp said that it has been issued Israeli patent 229661, titled, "System to Identify Multiple Copyright Infringements and Collecting Royalties". Outside of Europe, Israeli has one of the highest rights of online media piracy, with estimates showing only 2% of the 66% of citizens that watch movie and TV shows online actually do so legally.
Investors still seem somewhat skeptical about Rightscorp's ability to generate a viable revenue stream from the business model, regardless of how prominent online piracy is. Shares are up 9.8% to 3.8 cents each in early trading on Wednesday following the patent news, albeit on only 8,610 in volume.
