WASHINGTON — A founder of NinjaVideo.net, a website that provided millions of users with the ability to illegally download high-quality copies of copyright-protected movies and television programs, was sentenced today to 14 months in prison. The sentence is the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)-led National Intellectual Property Rights Coordination Center (IPR Center).
Matthew David Howard Smith, 24, of Raleigh, N.C., was sentenced today in Alexandria, Va., by U.S. District Judge Anthony J. Trenga also ordered Smith to serve two years of supervised release following his prison term, to pay $172,387 and to forfeit to the United States five financial accounts and various computer equipment involved in the crimes. Smith pleaded guilty on Sept. 23, 2011, to conspiracy and criminal copyright infringement.
Smith was one of the founders of the NinjaVideo.net website, which operated from February 2008 until it was shut down by law enforcement in June 2010. NinjaVideo.net provided millions of website visitors with the ability to illegally download infringing copies of copyright-protected movies and television programs in high-quality formats. Many of the movies offered on the website were still playing in theaters, while others had not yet been released. According to court documents, Smith designed many operational elements of the website, including an “applet” that was required to view infringing content on the NinjaVideo.net website. Smith admitted that he made agreements with online advertising entities to generate income for the website, and he and his co-conspirators collected more than $500,000 during the website’s two-and-a-half years of operation. Smith kept $172,387 of the illegal proceeds for himself.
On Sept. 9, 2011, Smith was indicted along with four of the other top administrators of NinjaVideo.net. Co-defendant Hana Amal Beshara was sentenced on Jan. 6, 2012, to 22 months in prison and ordered to repay nearly $210,000 for her role as another co-founder of NinjaVideo.net. Two additional co-defendants are awaiting sentencing. An arrest warrant remains outstanding for the fourth indicted co-defendant, Zoi Mertzanis of Greece. Another co-founder of NinjaVideo.net who was charged separately has also pleaded guilty.



So, why is the industry still throwing a fit over needing to change the law? This story clearly demonstrates that the existing laws are already perfectly capable of dealing with piracy.
This was a domestic case. (I doubt that you really care to know, but hey, just in case…) New legislation is intended to target foreign operators, particularly organizations that are otherwise criminal and/or generating large profits from hosting & distributing large quantities. The fuss over search was whether those foreign entities would be expunged from indexing.
Are you kidding? It’s one site out of the many thousands. And even this took two or three years.
What does copyright piracy have to do with Homeland Security? Just another government over-reach moving us towards the military democracy that the intelligence community craves in the age of the Patriot Act…just like SOPA.
More confused delusion from the top on down, unable to recognize the difference between terrorism and bootlegging, in the guise of inter-agency collaboration, that is being exploited for the absolute opposite of what was originally intended after 9/11.
In other words partisan politics.
Wrong. The main piracy perps are organized crime and various terrorist organizations that use the $ to fund other activities. Check out the RAND study if you actually want to learn something. But don’t let the facts get in the way of your conspiracy theories and cliches.
Hey Mark– Isn’t “bootlegging” a sort of quaint euphemism for “theft”? This “Big Brother” nonsense is simply a thinly disguised argument for protecting the continued flow of stolen intellectual property.
Stealing is wrong. Didn’t your parents teach you that?