In a recent legal development, a federal court in Virginia has issued a temporary restraining order mandating PayPal and Alipay to freeze the assets associated with VPN provider “VeePN.” This order comes at the request of several filmmakers, who allege that the VPN has been actively promoting the piracy app Porcom Time and advertising on the notorious torrent site YTS.mx.
The move underscores the ongoing battle against online piracy, with filmmakers and content creators increasingly taking legal action against entities facilitating copyright infringement. VPN services like VeePN, often utilized for legitimate privacy and security reasons, have come under scrutiny for their alleged role in enabling access to pirated content.
The decision to freeze VeePN’s assets marks a significant step in combating piracy and holding accountable those who profit from it. It also highlights the collaborative efforts between content creators and legal authorities to uphold intellectual property rights in the digital age.
As the legal proceedings unfold, this case serves as a reminder of the importance of respecting copyright laws and supporting the legitimate distribution of creative works.
VPN services are typically viewed as neutral intermediaries, merely providing a secure pathway for internet traffic. However, some VPN providers have extended their reach by directly targeting online pirates. This appears to be the case with the Panamanian company “VeePN,” according to allegations made by a group of filmmakers.
In a recent legal action, several movie companies, including Voltage Holdings and Screen Media Ventures, filed a complaint against VeePN in a Virginia federal court. Joining them was Hawaiian company 42 Ventures, owned by anti-piracy lawyer Kerry Culpepper, who holds trademarks for terms like Popcorn Time, YTS, and RARBG.
The plaintiffs argue that VeePN actively promotes the use of pirate sites and Popcorn Time, while advertising its services on popular torrent site YTS.mx. Such actions, they claim, constitute both copyright and trademark infringement.
VeePN has yet to respond in court, but the company is already facing its first significant setback. To halt the infringing activity and safeguard VeePN’s assets, the filmmakers sought and obtained a temporary restraining order (TRO) last week.
The court order mandates various companies to freeze VeePN-related funds while the lawsuit is ongoing. This includes payment processors like PayPal and Alipay, both used by the VPN.
Moreover, VeePN is compelled to cease using the term “Popcorn Time VPN” immediately. The VPN provider is prohibited from referencing the piracy app in its promotional materials as well. Additionally, the rightsholders must post a bond of $25,000.
District Court Judge Anthony Trenga, in his order, determined that the rightsholders met all four necessary factors to issue the restraining order. This includes the likelihood that their initial claims could prevail at trial if the case proceeds.
Judge Trenga highlighted several passages from the complaint to support the trademark and copyright infringement allegations. These focused not on VPN technology but on how the service promoted itself.
The order was issued ex parte, meaning VeePN wasn’t given a chance to respond in court. The court justified this, citing the rightsholders’ fear that VeePN might attempt to relocate its funds if notified in advance. Allegations that VeePN and its affiliates took steps to conceal their identities influenced this decision.
While VeePN has yet to officially respond, the company removed the “Popcorn Time VPN” blog post from its website recently. However, PayPal and Alipay are still listed as payment options at present.
