Nov 22, 2007 • 1 min read

Media Defender admits email leak cost over $800,000

Anti-piracy firm Media Defender says the leak of its internal emails cost parent company ArtistDirect over $800,000 in compensation and legal fees.

Anti-piracy firm Media Defender, who are hired by numerous music and entertainment companies to combat the illegal sharing of content via P2P networks, normally by flooding P2P networks with fake content, have admitted that previously reported leak of the company's internal emails cost them more than $800,000.

Over 6000 internal emails were posted online in September after hackers - presumably fans of P2P file sharing - hacked into the company's email system. The emails revealed much about the firm's tactics and pricing, and also showed they were involved in a 'digital sting operation' they had previously denied operating.

In an SEC filing by parent company ArtistDirect it has been revealed that the revelations contained in the published emails cost the company $800,000. They were forced to give clients affected by the leak $600,000 in service credits as compensation, and another $225,000 was spent on legal advice needed because of the leak.

The company adds that federal and state law enforcement agencies are investigating the leak. Meanwhile, as also previously reported, in Sweden rogue BitTorrent tracker The Pirate Bay have reported Media Defender to the authorities claiming that the published emails show that the company engages in activities in the country that violate Swedish laws.

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