Following a successful $3M settlement paid by Datacamp, this case marks another legal action coordinated by IBCAP against a non-U.S.-based content delivery network or hosting provider
DENVER — October 16, 2024 — The International Broadcaster Coalition Against Piracy (IBCAP) today announced a complaint filed in the Western District of Washington against Virtual Systems, LLC, a Ukraine-based company providing hosting services from data centers on multiple continents. The complaint asserts claims against Virtual Systems and Vyacheslav Smyrnov, the owner and CEO of Virtual Systems, for contributory and vicarious copyright infringement.
The filing alleges that Virtual Systems implemented a “DMCA Ignored” policy under which it advertised that “we ignore DMCA takedown notices,” that Virtual Systems ignored more than 500 separate notices of infringement from IBCAP and allowed the continued use of Virtual Systems’ servers and network by numerous pirate services. The pirate services directly infringe IBCAP member copyrights by transmitting more than 20 television channels and the programs that air on those channels over the internet to users in the United States. The complaint also alleges that Virtual Systems was notified about but did not comply with orders from United States courts — entered in separate lawsuits involving three pirate services — that permanently enjoined Virtual Systems from providing its servers and network to those pirate services.
Smyrnov was sued in his personal capacity because he authorized, directed and participated in Virtual Systems’ infringement and failed to exercise his ability to stop that infringement.
The complaint seeks statutory damages of up to $150,000 each for the willful infringement of 279 registered works — up to $41,850,000 total; Virtual Systems’ profits attributable to the infringement of thousands of unregistered works; an injunction prohibiting Virtual Systems from providing access to copyrighted works owned by IBCAP members; attorneys’ fees and costs; and pre-and post-judgment interest.
This is the second lawsuit coordinated by IBCAP against a non-U.S.-based CDN or hosting provider. The first, the Datacamp lawsuit, resulted in Datacamp paying $3 million and agreeing to implement takedown and repeat infringer policies.
“This case against Virtual Systems represents the culmination of IBCAP’s strategy to identify non-compliant CDNs and hosting providers and make them not only cease their illicit activities, but also pay for ignoring IBCAP takedown notices,” said Chris Kuelling, executive director of IBCAP. “As we have made clear through other legal actions, CDNs and hosting providers who support pirate services by delivering infringing content over their networks will be held accountable. The Datacamp case’s favorable outcome and the filing of this lawsuit should send a clear message to non-compliant CDNs and hosting providers that supporting pirate services is not worth the risk.”
The lawsuit was coordinated by IBCAP and filed by IBCAP member DISH Network. Evidence for the case was obtained and provided by the IBCAP lab. A copy of the complaint and links to each of the three exhibits to the complaint are listed below.
For more information about IBCAP membership, visit https://www.ibcap.org/membership.
About IBCAP
International Broadcaster Coalition Against Piracy, Inc. (IBCAP) is a coalition of leading international and U.S. content owners, broadcasters, and distributors representing more than 200 television channels from the U.S. and around the world. As the largest anti-piracy organization focused on illicit services offering multicultural content, the nonprofit organization proactively monitors and identifies unauthorized video services, collects evidence, and assists with legal actions and criminal investigations against organizations and individuals engaging in pirate activities. IBCAP coordinates with government agencies and law enforcement both in the U.S. and abroad, reports suspected infringers to the appropriate authorities, initiates investigations, and promotes the prosecution of persons or companies that participate in the illegal distribution of its members’ video content. More information is available at www.IBCAP.org. Follow us on LinkedIn.
Contact:
Kendra Westerkamp
C4Spark for IBCAP
Kendra@C4Spark.com
+1-720-261-2300