Showing posts with label Customers. Show all posts
Showing posts with label Customers. Show all posts

12/15/10

Warner Bros. Finally Realizes That 'Pirates' Are Underserved Customers

1611901/how-warner-bros-should-have-responded-to-harry-potter-leak.shtml">backwards Warner Bros. has been at times in responding to "piracy." So it's a bit amusing that many, many, many years after plenty of us have been pointing this out (and have been told directly by folks at Warner Bros. that we're "full of it") that the company is finally recognizing that those who infringe are really just underserved customers, whom they didn't give a good reason to buy:
Pirates Make Purchases: Few subsist on copyright infringement alone; typical pirates steal in addition to making legitimate entertainment purchases like boxoffice, DVD and even online transactions. Even the most diehard pirates spend some money, though less than more casual infringers. "One of the main things we're doing is looking at why they do things legitimately on certain products and not on others," said [WB's director of business intelligence, Ben] Karakunnel.
Apparently, they just started looking at this data only 18 months ago. Frankly, the fact that they weren't looking at that data seven or eight years ago suggests a dysfunctional management team. What's really silly, of course, is that plenty of folks have made this exact point to people at Warner Bros. and elsewhere for years, and were told that we were just "defending pirates."

Another thing they realized was that in foreign markets, a lot of unauthorized copies are because WB didn't make translated/subtitled versions available quickly enough -- another point that sites like ours have been making for years and which WB just figured out:

In the international markets, illegal WB content in which pirates dub or subtitle themselves is increasingly popular. For one unspecified program Karakunnel used as an example, it wasn't until the third day after its initial airdate that one such pirate-created translated version accounted for 23% of pirated files of that particular program. By day 10, it accounted for 74%.

Said Karakunnel, "If we can get dubbed or subtitled language versions in the first two days, we can beat them to the punch."

Kudos to Warner Bros. for finally figuring this out, but it's pretty amusing that the company thinks this is new, when just a couple years ago it was denying that any of this was possible.

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12/13/10

U.S. Arrests Online Seller Who Scared Customers

The merchant, Vitaly Borker, 34, who operates a Web site called decormyeyes.com, was charged with one count each of mail fraud, wire fraud, making interstate threats and cyberstalking. The mail fraud and wire fraud charges each carry a maximum sentence of 20 years in prison. The stalking and interstate threats charges carry a maximum sentence of five years.

He was arrested early Monday by agents of the United States Postal Inspection Service. In an arraignment in the late afternoon in United States District Court in Lower Manhattan, Judge Michael H. Dolinger denied Mr. Borker’s request for bail, stating that the defendant was either “verging on psychotic” or had “an explosive personality.” Mr. Borker will be detained until a preliminary hearing, scheduled for Dec. 20.

The arrest came eight days after The New York Times published a lengthy account of Mr. Borker’s campaign of intimidation against a woman named Clarabelle Rodriguez who had bought a pair of glasses from DecorMyEyes over the summer.

When she tried to return the glasses, which she believed were fakes, he threatened to sexually assault her and later sent her a photograph of the front of her apartment building. He also sent menacing e-mails, one of which stated that she had put her “hand in fire. Now it’s time to get burned.”

In an interview with a reporter from The New York Times in October, Mr. Borker maintained that scaring Ms. Rodriguez — and dozens of other customers in the last three years — enhanced the standing of DecorMyEyes in Internet searches on Google. That was because Google’s algorithm, he claimed, was unable to distinguish between praise and complaints. All of the negative postings translated into buzz, he said, which helped push DecorMyEyes higher in search results and increased his sales.

It is unclear if Mr. Borker was right about the cause of DecorMyEyes’ surprisingly strong showing in online searches. But last week, Google published a post on its official blog stating that it had changed its search formula so that companies were penalized if they provided customers with what it called “an extremely poor user experience.”

For months, Ms. Rodriguez was unable to get much traction with any of the law enforcement entities she had called as she coped with Mr. Borker’s verbal and written attacks. Now, there seems to be a competition to punish him.

He has already been charged with aggravated harassment and stalking by local authorities and is scheduled to be arraigned on those charges on Dec. 22. The state attorney general’s office is conducting its own investigation and could bring additional state charges.

But federal law enforcement seemed eager to partake as well. In a statement released Monday, Preet Bharara, United States attorney for the Southern District of New York, said, “Vitaly Borker, an alleged cyberbully and fraudster, cheated his customers, and when they complained, tried to intimidate them with obscenity and threats of serious violence.”

At the arraignment, an assistant United States attorney, E. Danya Perry, argued against bail by claiming that Mr. Borker was both a flight risk and a risk to the community. She said that postal inspectors had carted off boxes of apparently counterfeit eyeglasses after searching Mr. Borker’s home and had also found a handful of guns, including a semiautomatic machine gun.

Mr. Borker’s lawyer, Bruce Kaye, said the weapons were stage props capable of firing only blanks, not live ammunition.

Mr. Kaye argued that Mr. Borker should be released on bail because no one had ever accused him of committing any violent acts. He added that Mr. Borker was family man — he has a wife and a 2-year-old child — and was willing to surrender his passport and post a bond worth $500,000.

Judge Dolinger said that even if Mr. Borker had not physically harmed anyone, he could still be a threat to society given his habit of terrifying his customers.

The complaint against Mr. Borker describes the accusations in detail. A DecorMyEyes customer identified as Victim 4 stated that Mr. Borker’s threats included a phone call in which he said, “I can hurt you,” and, “I know where you work.”

Mr. Borker apparently sent e-mail to the company where Victim 4 worked, stating that the customer sold drugs and was gay. Another customer, identified as Victim 3, said that Mr. Borker had sent her an e-mail that included this warning: “PS: don’t forget that I know where you live as well,” after she mentioned her intent to contact the New York Department of Consumer Affairs. He reportedly later called Victim 3 at all hours of the night, threatening sexual assault.

A far more subdued version of Mr. Borker appeared in court on Monday afternoon. Dressed in jeans and a button-down shirt, he said little. When he was led away by court officers, he turned to look at his wife, who was sitting in the courtroom. He appeared grief stricken and on the verge of tears.

“Sorry,” he whispered to her, as he was escorted through a side door.


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