II. THE BITTORRENT COPYRIGHT TROLL BUSINESS MODELLaw firms that specialize in BitTorrent copyright litigation40 areoften referred to as “settlement factories” or “copyright trolls,” and
use a “payup or we’ll getcha” method designed to induce allegedinfringers to settle outside of court.41 Once a defendant is identified,the plaintiff will offer to settle the matter outside of court for a
relatively small fee (usually a few thousand dollars),42 with the threatof litigation and its associated stress and expenses hanging over thedefendant’s head.43 Many alleged infringers—even the factually
innocent—settle the claim since fighting the allegation in court could greater than the settlement demand.44 Although settlement rates areusually a closely-guarded secret, one copyright troll “bragged” thatforty-five percent of alleged infringers accepted offers of settlement,45while another estimated he has made “[m]ore than a few million[dollars]” settling these suits.46