Rightscorp is one of the world's most prolific letter senders when it comes to chasing after pirates. Over the past few years it's sent out thousands of demands for money to alleged illegal downloaders, but that model may no longer be viable, as the organisation has reported a quarterly loss of close to $800,000.
Traditionally Rightscorp and its contemporaries will take a list of IP addresses to internet service providers (ISPs) with claims that their clients were involved in pirating copyright protected content. If the ISP gives them up, Rightscorp then sends threatening letters demanding compensation be paid for the download, or it may take the accused to court.
While it has followed through with those legal threats in a few cases, for the most part it's hoping that people simply pay to make it go away. When payments can be as little as $30 (£21), a lot of people have opted for that, while others merely ignore the threat.
It seems that that latter group may be growing though, as Rightscorp revenue has tumbled by a full 78 per cent for the last quarter year on year. That's lead to it losing as much as $784,000 (£545,000) throughout the last three months. That's not something it can afford to keep doing.
That said, as Torrentfreak points out, Rightscorp has never made a profit. Despite its attempts to wring money from pirates to recoup something from the ‘lost' revenue of them downloading the film or show illegally, Rightscorp is not a profitable venture.
Considering its major pitch to copyright holders is that it is able to make money from lost sales, Rightscorp is going to have a hard time convincing anyone that it is worth allowing it to represent them.
It would take a big change in the industry to turn around Rightscorps fortunes.
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KitGuru Says: Have any of you received a threatening letter from an ISP or organisation like Rightscorp? If so, how did you respond?
Good, I hope that company dies…anyone who actually works for that company is a scumbag as well…
What a surprise, telling people not to download a video game because its the equivalent of stealing a car is not working, what a surprise.
What idiot came up with that idea? How are the 2 even comparable, a car, £15000 at least, a video game, 39.99, and even if the video game was £15000, it still not the same as stealing a physical object, downloading a digital copy of something will never be the same as physically stealing it, for one, physically stealing the game would get you access to all the games features, like online multiplayer and such, downloading a digital copy, which is probably going to be “cracked” is not going to have all the fuctions and will act more like a “demo” of the product for the person downloading it, if they like the game, they will probably go and buy it, i remember when any new game was due out there was a demo you could play to get a feel for the game, now you are expected to pay up front to get the full game experience, and even after than if you wish to truly play the game fully you need the “season pass” to get all the inclusive DLC, without even getting a chance to see if it is something you will like.
Fix that problem and piracy would drop massively, i know i do not buy a game without knowing it is worth it now, i have been burnt to many times to keep wasting my cash on broken games that never get fixed. Give people back limited demos, simple way to stop piracy, also, maybe, make good games so people stop considering piracy over buying, games cost more and more, and feature less and less as standard, people don’t give 2 rats behinds if these companies are “loosing out” on profits, its not as if they are not milking the active audience for everything they have.
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I got a letter from my ISP once, I was downloading an ISO image of Far Cry 2 Which I owned, but my disk was scratched so bad the drive couldn’t read it.)
I just sent them a reply with pictures of my disk with my name on a piece of paper.
They basically said “oh that’s okay then”