New York, NY / ACCESSWIRE / June 16, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on Rightscorp, Inc. (OTCQB: RIHT), a leading provider of monetization services for artists and holders of copyrighted intellectual property.
“We are intrigued by the company’s patent-pending, proprietary technology for solving copyright infringement by collecting payments from illegal distributors via notifications sent to their Internet Service Providers,” commented Ajay Tandon, CEO of SeeThruEquity. “The company has closed over 75,000 cases of copyright infringement and is poised to become a game changer in the space. We look forward to following the company’s progress and are initiating coverage with a price target of $0.89 per share.”
Additional investment highlights are as follows:
- Technological Advantage. Rightscorp’s technology focuses on detection of illegal repeated copyright infringement activity rather than protection of the copyrighted material itself, which can be easily circumvented. The company’s software monitors file sharing activity on various peer-to-peer networks, identifies repeat infringers, records their specific infringements and sends them notices with settlement offers via their respective ISPs. This process is automated and scalable. Rightscorp is also planning to roll out its next generation technology called Scalable Copyright, which would display notices directly on the browsers of infringers. We believe this software, if adopted by the ISPs, has the potential to significantly increase the number of infringers willing to settle, and hence, revenue per copyright.
- Favorable Legal Framework. The Digital Millennium Copyright Act (DMCA) states that ISPs must have implemented a policy for terminating repeat copyright infringers in order to have a safe harbor shield from their liability to copyright owners who rights are violated on their networks. Rightscorp simultaneously provides visibility to the ISPs potential liability and provides a solution to manage and mitigate that liability. Rightscorp has found that there is 364% less repeat infringement on ISPs that participate in Rightscorp’s system versus ISPs that do not. By implementing Rightscorp’s solution, the ISP has less repeat infringers and has a “paper trail” of repeat infringers who have been terminated to prove that they are eligible for their safe harbor. When someone receives the notice and makes the payment, they are removed from the list of repeat infringers that Rightscorp send to ISPs demanding termination. This creates the impetus to pay the notice and helps the ISP comply with the law.
- Huge Revenue Opportunity. Illegal downloading of copyrighted material is a rapidly growing industry, accounting for 22% of all Internet traffic. Relative to its 2013 revenue base of $324,016, Rightscorp’s opportunity could be $345 million if it can represent 27 million copyrights and receives payments from subscribers of the 70 ISPs it currently works with. If the participating ISPs expand to all 3,000 operating in the U.S., the potential revenue would rise to $2.3 billion.
The report is available here: RIHT Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at http://www.seethruequity.com/.
About Rightscorp, Inc.
Rightscorp (RIHT) is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property (IP). The Company's patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet Service Providers (ISPs). The Company's technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com/
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit http://www.seethruequity.com/.
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