Operator of file-sharing sites indicted for illegal uploading

By Kim Rahn

Prosecutors have arrested the owner of two of the nation’s largest file-sharing websites for illegally circulating dramas and shows online by setting up a company to upload the files.

It is the first time that authorities have rounded up a file-sharing site operator having its own company for illegal uploading.

The Seoul Central District Prosecutors’ Office said Sunday it arrested and indicted the owner of the two popular sites, WeDisk and Filenori, on charges of violating copyright law. The operator, identified as Yang, 40, is also the owner of the uploading firm Nurijin, according to the prosecution.

Prosecutors also arrested the fake owner of Nurijin, 42-year-old Yu, on the same charges. Another two hidden operators of WeDisk and Filenori and nine heavy uploaders were indicted without being detained.

Establishing Nurijin in July 2009 and hiring Yu and five employees, Yang allegedly had them collect a large number of files from the Internet and post the files on the two sites, infringing on copyright.

Prosecutors suspect at least 50,000 files, including domestic and overseas soap operas, movies and pornography, have circulated through the sites.

WeDisk has 4.1 million members and Filenori, 7.5 million.

The group collected up-to-date video clips and other files by breaking them up into several smaller files. They then uploaded the files onto the two sites through a program they developed.

Prosecutors estimated illegal gains of the two sites at 1.1 billion won ($1 million), but presume actual earnings may be greater considering the sites’ annual sales reach to 40 billion won.

Yang also allegedly fabricated the number of downloads for files which 22 copyright holders, including broadcasters, have provided through contracts.

By reducing the number of clicks by 70-80 percent and giving them a small commission, he raked in 15.2 billion won between last December and June of this year. He also overlooked several heavy uploaders’ illegal acts.

“It is the first case where a file-sharing site operator has operated their own firm for illegal uploading. We plan to collect all of their illegal gains,” a prosecutor said.