Internet copyright enforcer Rightscorp has told investors some revelatory details about its strategy in its second-quarter earnings call, as reported by TorrentFreak.
Rightscorp was founded to be a kind of RIAA-lite, getting online pirates to pay record companies and other rights-holders without the need to resort to high-stakes litigation. Instead, it creates e-mail notices demanding $20 per song from users it deems "repeat infringers" and insists that ISPs forward those notices.
The company is growing fast, but is still way, way in the red. Last year it earned $324,000 in revenue, while spending more than $2.1 million to run its operations. This year it's earning more revenue: $440,414 in the first six months of the year. However, operating costs during the same period have already hit $1.8 million.
Rightscorp's two marquee clients are BMG and Warner Music. Together, those two clients account for around one-third of Rightscorp's income.
The company is now working with more than 140 Internet service providers, although they provide differing levels of cooperation. Rightscorp's pitch to these ISPs is that since it has ironclad evidence of which users are "repeat infringers," they're obligated under copyright law to forward the notices; otherwise the ISPs become liable to a high-stakes copyright suit."
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