Friday, May 15, 2015

Lose Money On Each Transaction; Make It Up In Volume

Ars Technica reports on a company following in Righthaven's footsteps, although not yet bankrupt:
Question: Can copyright trolling be profitable without suing over porn?
Answer: Probably not.
At least that's what the example of Rightscorp seems to be teaching. The company is the most recent effort to build a business being an online copyright cop, but financial data made public yesterday shows that Rightscorp, which has never been profitable, is losing money faster than ever.
The RIAA's giant lawsuit campaign lost loads of cash, and Righthaven (remember them?) dried up and blew away after legal setbacks interrupted its collections of four- and five-figure settlements from mom-and-pop bloggers.
The latest incarnation of the business model comes in the form of Rightscorp, which tries to compel Internet users to pay up to $20 per song when its clients' copyrighted works are downloaded over BitTorrent networks. The publicly traded company reported its quarterly financial results yesterday, and they're an unmitigated disaster—although company executives somehow managed to put a happy face on.

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