Internet Law News

Cracking The Code Online IP Theft Is Not A Game

It must have seemed like the perfect scheme—buy the stolen source code of a popular online game, rent some servers to run the game as your own, and then hang a shingle on the web inviting gamers to come play at a steep discount.

A California man who followed that path must have thought he’d never get caught. He was even warned once by the game’s rightful owner, a large South Korean company, to shut down. He didn’t.

“They don’t think that a company is going to come after them at any point,” says Christopher Thompson, a special agent on a cyber squad in the FBI’s office in Austin, Texas. “He said he was going to stop doing it and he didn’t.”

So the company, which has offices in Austin, called the FBI. The suspect was apparently lining his own pockets from “donations” and ads on his site while his pirated version of the game, “Lineage II,” was siphoning $750,000 a month in potential revenues from the company.

According to Agent Thompson, here’s how the scheme evolved:

In 2003, a computer user in China obtained the “Lineage” source code from an unprotected website. The proprietary code was then placed on the underground market, where a Texas man, among others, bought it in 2004. He then passed it along to his business partner in California, who set up a website, to offer the “Lineage” game at a discount. Gamers arrived in droves—as many as 50,000 active users by 2006—which pinched the legitimate game’s bottom line.

“It’s comparable to the music-downloading and file-sharing problem in the late ‘90s—thousands of people engaging in activity that is inherently illegal,” Agent Thompson said. Read more at fbi.gov.

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	Did You Know?
	1996 Electronic Freedom of Information Act Amendments (EFOIA) The 1966 Freedom of Information Act (FOIA) permits any person to request access to federal agency records or information. Federal agencies are required to disclose records upon receipt of a written request, except for records that are protected from disclosure by nice exemptions or three exclusions in the Act. Persons are also able to request documents in an electronic format under the 1996 Electronic Freedom of Information Act Amendments (EFOIA).