March 20, 2019
Four British men have been sentenced a combined 4.5 years jail time for operating a website that afforded users illegal access to Hollywood movies, including Lionsgate U.K.’s The Expendables 3, before they were available in theatres.
Prosecutors say the group – which included Steven Pegram (40), Mark Rollin (37), Paul Taylor (54), and Alan Stephenson (42) — defrauded Lionsgate, Warner Bros., 20th Century Fox and other studios of more than $11 million in combined box office revenue, according to the Motion Picture Association of America.
Specifically, the group hacked Lionsgate’s U.K. server in 2014 through a third-party cloud-based content management service, accessing The Expendables 3 DVD screener and other content and then posting the title on their file-sharing website, TheFoundry.name.
Lionsgate estimates it lost about $2 million on the scheme. Other hacked titles included Warner Bros.’ Godzilla and 20th Century Fox’s X-Men: Days of Future Past — the two movies suffering more than $5 million in lost revenue.
“These defendants set up and ran a site which allowed users to download films for free via BitTorrent, including the Expendables 3 before its release in the cinema,”Leigh Webber, with the specialist fraud division of the U.K.’s Crown Prosecution Service, said in a statement.“All of them had a clear knowledge of what the site was used for and were well aware they were breaching the copyright of the production companies.”
The Expendables 3, the last installment in Sylvester Stallone’s ensemble action franchise, resulted in numerous litigation settlements between Lionsgate and pirate sites, including Hulkfile, Played.to, LimeTorrents, Dotsemper and Swankshare.