The Pirates Can't Be Stopped!

[Dawggie]

by Daniel Roth February 2008 Issue
A teenager hacked into the outfit charged with protecting companies like Sony, Universal, and Activision from online piracy—the most daring exploit yet in the escalating war between fans and corporate giants. Guess which side is winning.

From: Ty Heath
Sent: Wednesday, June 6, 2007 7:02 p.m.
To: it <[email protected]>
Subject: pm webserver

The 65.120.42.146 pm webserver has been compromised <…>
As a side note, please do not ever use the old passwords on anything.

The first time Ethan broke into MediaDefender, he had no idea what he had found. It was his Christmas break, and the high schooler was hunkered down in the basement office of his family's suburban home. The place was, as usual, a mess. Papers and electrical cords covered the floor and crowded the desk near his father's Macs and his own five-year-old Hewlett-Packard desktop. While his family slept, Ethan would take over the office, and soon enough he'd start taking over the computer networks of companies around the world. Exploiting a weakness in MediaDefender's firewall, he started poking around on the company's servers. He found folder after folder labeled with the names of some of the largest media companies on the planet: News Corp., Time Warner, Universal.

Since 2000, MediaDefender has served as the online guard dog of the entertainment world, protecting it against internet piracy. When Transformers was about to hit theaters in summer 2007, Paramount turned to the company to stop the film's spread online. Island Records counted on MediaDefender to protect Amy Winehouse's Back to Black album, as did NBC with 30 Rock. Activision asked MediaDefender to safeguard games like Guitar Hero; Sony, its music and films; and World Wrestling Entertainment, its pay-per-view steel-cage championships and pudding-wrestling matches.

MediaDefender's main stalking grounds are the destinations that help people find and download movies and music for free. Sites such as the Pirate Bay and networks like Lime Wire rely on peer-to-peer, or P2P, software, which allows users to connect with one another and easily share files. (See what movies, television shows, and music are most downloaded.) MediaDefender monitors this traffic and employs a handful of tricks to sabotage it, including planting booby-trapped versions of songs and films to frustrate downloaders. When the company's tactics work, someone trying to download a pirated copy of Spider-Man 3 might find the process interminable, or someone grabbing Knocked Up might discover it's nothing but static. Other MediaDefender programs interfere with the process pirates use to upload authentic copies. When Ethan hacked into the company, at the end of 2006, MediaDefender was finishing an exceptional year: Its revenue had more than doubled, to $15.8 million, and profit margins were hovering at about 50 percent.

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"This is not Napster," says Harvey Weinstein, the movie mogul who heads the Weinstein Co., a MediaDefender client. "Online piracy has got to be stopped. The biggest spear in the neck of the pirates will be (a) being vigilant, (b) prosecuting, and (c) in a way, making fun of them, finding a way to say, 'That's not cool—that's anything but cool.' If you had people who the young people respect in this industry—Brad Pitt, George Clooney, Shia LaBeouf—if these guys did public service announcements that said, 'Don't steal, stealing's not cool,' I think you can go a long way toward stopping this." Weinstein says that if Democrats maintain control of Congress and gain the White House, he'll flex whatever political muscle he has acquired by being a major donor to achieve one thing: "Tougher, more stringent piracy laws." Does he see any use for P2P systems? "No."

<snip>

Read the entire piece here: http://www.portfolio.com/news-markets/national-news/portfolio/2008/01/14/Media-Defenders-Profile?TID=st092007ab#page7