US Seeks 70-Month Prison Sentence For YouTube Content ID Scammer

An anonymous reader quotes a report from TorrentFreak: By pretending to be legitimate music rightsholders, two men managed to extract over $23 million in revenue from YouTube's content-ID system. Both were arrested, pleaded guilty (PDF), and now face multi-year prison terms. This week, the U.S. requested a 70-month sentence against the 'number two' of the operation, in part to deter future fraud. [...] Last year, one of the defendants confessed to his part in the copyright swindle by pleading guilty. Webster Batista admitted it was a simple scheme: find Latin American music that wasn't yet monetized on YouTube and claim the content as their own. In February of this year, the second defendant pleaded guilty. Jose Teran signed a plea agreement admitting that he was part of the conspiracy, engaging in wire fraud and money laundering. The Content ID scam was straightforward, Teran's plea agreement revealed. The defendants simply identified unmonetized music and uploaded those songs to YouTube. [W]e discovered there were recorded songs of musicians and bands on the internet that were not being monetized. We began searching and downloading these songs. Once songs were downloaded, Batista would then upload them to Y.T. as mp3 files." "We falsely claimed legal ownership over these songs to receive royalty payments," Teran adds, noting that the scheme brought in millions. To collect these payments Batista launched the company MediaMuv, which became a trusted YouTube Content ID member through a third-party company referred to by the initials A.R. As the scheme grew, more employees were hired and tasked with finding more unmonetized tracks. Despite pleading guilty, both defendants face a multi-year stint in prison. Teran will be the first to be sentenced and this week, the defendant and the prosecution announced their respective positions. According to the defense, Teran wasn't the lead of the operation. As an aspiring musician he looked up to his co-defendant, who is portrayed as the brains behind the operation. [...] Teran and Batista at one point had between five and eight people working for them. These employees used special software to find unmonetized music which they would then add to their catalog, to exploit YouTube's Content ID system. "Defendant, Jose Teran, engaged in a concerted effort -- over nearly five years -- to steal royalty proceeds from approximately 50,000 song titles, causing a loss of more than $23,000,000.00," the prosecution writes (PDF). "A 70-month sentence is undoubtedly substantial but given Mr. Teran's conduct and the need to deter future fraud, it is entirely warranted," the Government's sentencing memorandum concludes.

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