IBCAP wins $41.85 million ruling against hosting provider Vi...

IBCAP wins $41.85 million ruling against hosting provider Virtual Systems

MUMBAI: IBCAP has scored a thumping legal victory after a US federal court ordered hosting provider Virtual Systems and its chief executive Vyacheslav Smyrnov to pay $41.85 million and comply with a permanent injunction for wilful copyright infringement. The lawsuit, filed in October 2024, accused Virtual Systems of running a “DMCA ignored” policy and openly marketing that it would not act on takedown notices. IBCAP said the company brushed aside more than 500 infringement notices and let pirate services run freely on its servers. In its ruling, the US District Court for the Western District of Washington found that the defendants received at least 512 DMCA-compliant notices and multiple US court orders but failed to take any action to halt the infringement. The court held that Virtual Systems and Smyrnov willfully infringed copyrights and demonstrated reckless disregard for the rights of content owners. IBCAP's executive director Chris Kuelling said the judgment is a clear warning to hosting providers that ignore enforcement: permanent injunctions and multi-million-dollar damages await those who disregard the law. The ruling follows a recent $3 million settlement paid by Datacamp in another IBCAP-coordinated case, with a separate action against hosting provider Innetra still pending. The case was brought by IBCAP member Dish Network, with evidence from the IBCAP lab and prosecution led by Hagan Noll & Boyle. Another pirate operation stopped in its tracks. The message from IBCAP is unmistakable: ignore the law and the bill will be brutal.

The lawsuit, filed in October 2024, accused Virtual Systems of running a “DMCA ignored” policy and openly marketing that it would not act on takedown notices. IBCAP said the company brushed aside more than 500 infringement notices and let pirate services run freely on its servers.

In its ruling, the US District Court for the Western District of Washington found that the defendants received at least 512 DMCA-compliant notices and multiple US court orders but failed to take any action to halt the infringement. The court held that Virtual Systems and Smyrnov willfully infringed copyrights and demonstrated reckless disregard for the rights of content owners.

IBCAP's executive director Chris Kuelling said the judgment is a clear warning to hosting providers that ignore enforcement: permanent injunctions and multi-million-dollar damages await those who disregard the law.

The ruling follows a recent $3 million settlement paid by Datacamp in another IBCAP-coordinated case, with a separate action against hosting provider Innetra still pending. The case was brought by IBCAP member Dish Network, with evidence from the IBCAP lab and prosecution led by Hagan Noll & Boyle.

Another pirate operation stopped in its tracks. The message from IBCAP is unmistakable: ignore the law and the bill will be brutal.