U.S. TARGETS WORLDWIDE INTERNET PIRACY SYNDICATES

Operations targeted all aspects of “warez scene,” including illegal movie, games and software trade, and culminated in execution of nearly 40 search warrants Tues., DoJ said. U.S. Customs Service worked with the DoJ’s Computer Crime & Intellectual Property Section (CCIPS) in investigation, which also included help from U.K., Australia, Norway and Finland.

“Many of these individuals and groups believed the Digital Age and the Internet allowed them to operate without fear of detection or criminal sanction,” Ashcroft said, but law enforcement proved them wrong. “These actions mark a significant milestone in the efforts of U.S. law enforcement to work internationally to combat what is a truly global problem.”

“Operation Buccaneer,” one of 3 operations, was described as most significant law enforcement penetration of international organizations engaged in illegal distribution of copyrighted software, games and movies over Internet. Operations were “highly structured and security-conscious criminal groups” that obtained latest software, games and movies, stripped copyright protections and released product to hundreds of Internet sites worldwide, DoJ said. Retail value of items covered is expected to total in millions of dollars, it said.

Year-long investigation included 58 simultaneous search warrants against high-level “warez” leadership in U.S. and abroad, DoJ said. It’s also first operation ever to reach across international borders “and strike at the most highly placed and skilled members of these international criminal enterprises,” it said. U.K. piracy watchdog Federation Against Copyright Theft (FACT) cooperated with DoJ, following Oct. busts for satellite signal piracy in Britain.

Primary target of U.S. investigation was “DrinkOrDie” warez group and its 40 members, DoJ said, but information from investigation has led to cases against other top groups as well. Suppliers to those groups often are company insiders, which leads to products’ being circulated before, or within hours, of release of legitimate products, Justice said. Groups, which often compete against each other to be first to release pirated software, are structured specifically to avoid detection, it said.

Two-year investigation called “Operation Bandwidth” created undercover “warez” site to monitor software pirating, DoJ said. FBI, Defense Criminal Investigative Service (DCIS) and Environmental Protection Agency Office of Inspector Gen. (EPA- OIG) created site, which transferred more than 100,000 files, including more than 12,000 separate software programs, movies and games. More than 200 people participated in software pirating efforts, Justice said, and were able to obtain first-run movies, latest PC games and versions of notable software products before they were introduced publically. Sting operation included seizure of computer hardware and servers used to facilitate sharing. Investigators executed 30 search warrants related to investigation Tues., Justice said.

“Operation Digital Piratez,” year-long undercover investigation by FBI’s Boston Field Office, targeted “cracking groups” specifically created for purpose of pirating software so it could be distributed over Internet, DoJ said. During investigation, FBI agents infiltrated several warez distribution organizations, it said. Agents executed 9 search warrants Tues. as part of investigation, DoJ said.

Each investigation included assistance from intellectual property trade associations, such as Interactive Digital Software Assn. (IDSA), Business Software Alliance, MPAA and individual companies, including Microsoft and Sega. IDSA lauded govt. effort Wed.

“The various U.S. government agencies involved have carried out a complex, far-reaching multinational enforcement initiative that has struck a major blow against Internet piracy rings which are responsible for a major slice of the pirate game product available on the Internet,” IDA Pres. Douglas Lowenstein said: “Internet piracy remains one of the most serious threats to the interactive game industry and can only be completed rooted out it with the kind of leadership and support shown by the U.S. law enforcement agencies in this case. We are especially thankful that our government continues to make actions of this kind a priority.”