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Paypal Bans Usenet Providers Over Piracy Concerns


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After banning several of the largest file-hosting sites, PayPal is now taking aim at Usenet services. The payment processor has just cut off several providers of Usenet services and frozen the funds in their accounts. These actions are due to growing copyright infringement concerns which have resulted in an extremely strict and in some cases privacy-violating set of requirements being laid down by the payment processing company.

PayPal is widely known for their aggressive stance towards BitTorrent sites and file-sharing services, and now this policy has also been actively applied to Usenet providers.

On Tuesday, PayPal cut off its services to five Usenet resellers including XSUsenet, EasyUsenet and Usenet4U, reports the Dutch news site Tweakers. The Usenet providers can no longer accept PayPal payments and the funds that remain in their accounts have been frozen for 180 days.

While this is the first time that we have heard about Usenet providers being banned, the actions don’t come as a complete surprise. To be accepted by PayPal, file-hosting services now have to comply with a list of far-reaching demands entirely targeted at copyright-infringing and otherwise illegal files.

These terms also apply to Newsgroups.

PayPal’s terms

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Several of the disconnected Usenet providers confirm that their accounts were suspended because they violated the above terms. However, at least one of the affected companies said it was never asked for any of the information detailed above, while it clearly indicated that it was operating a Usenet service.

PayPal’s decision is a financial blow to the companies involved. Firstly because customers who prefer to pay through PayPal will take their business elsewhere, and secondly because they lose access to a substantial amount of funds.

TorrentFreak previously reported that several major file-hosting services suffered the same fate as these Usenet providers. Although PayPal was willing to continue doing business with some, the set of demands was too extreme for many file-sharing companies to comply with.

Just how far PayPal is prepared to go was explained to us by Putlocker. The UK-based company had its PayPal account frozen three months ago after it refused to allow the payment provider to snoop on files uploaded by its users.

“They basically wanted access to the backend to monitor all the files being uploaded, and listing all files of users if they wanted, regardless of the privacy setting that the user might have selected,” Putlocker told TorrentFreak.

“This is a complete invasion of privacy on PayPal’s part, as it’s none of their business what files users keep in their account. We have a solid abuse handling policy already, and we don’t feel a 3rd party company has any business snooping on our users,” the company added.

MediaFire, another large cyberlocker, also said it stopped accepting PayPal after the company was unable to reach an agreement with the payment company.

While there are still file-hosting services and Usenet providers that accept PayPal payments, this number is expected to decline further in the months to come. It is clear that PayPal’s new policies are in part the result of the copyright lobby. The question is, where will PayPal draw the line?

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waiting for the next news to pop up.

"anonymous hit paypal"

Just like megaupload I feel sorry for these guys that have money they cant access.

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File sharing dethrones corporate tyranny. File sharing is free and it allows humanity to reach back to it's roots of sharing. Growing up as a little boy I remember how nice I was when I shared my candy. Now days I can see how evil I am for sharing entertainment. If goods can be used for free, it eliminates the need to pay for one aspect of living which actually fulfills a public service to humanity by lessening the burden of living under such harsh life constraints and other laws which suppress our freedoms.

File sharing is the long term cure that can unite people of all ethnic backgrounds and of all nationalistic ideals. Greed is powered in this case by the misunderstanding of human beings. If we have a life to live which is less bogged down by petty rules and file sharing of media of all types is legalized, they can focus on actual crime rather than demonizing entire nations.

The big fat cats have deemed intellectual crime as a major thing when in fact it is as harmful as someone glaring at you from across a crowded room. Perhaps money should not be a motivational factor for human beings if we want to thrive. Perhaps ignoring the reversed morals of sharing is what is needed to show all of those in charge that we just want to be connected and share our culture via fiction, entertainment, and even software.

On the root level of our existence, our cultural differences is what makes us stand out and unique to some degree's. Sharing that cultural idea (movies, music, software) is one major way to bridge the gap between nations and it can take down the gates built to separate humanity on purpose as a greater way of controlling each other. If we only realized that all of our similarities were greater than our differences we can join alliances as free humanity and consistently share under the stance of unity. The people must unify each other, because if the government does it...we will be in darkness and in bondage and a new form of cultural enslavement. We will live in fear of doing the wrong thing "intellectually". We simply do not need that future. This is what the future looks like if we can't unite by our own selves and by our own choosing:

[MADE IN 2007]

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paypal whats to snope its a civilian company. what it wants to do is illegal. but all your stipd fks in the usa voted for barry so you will get what you sow.the paypal tos is illegal period.

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I didn't vote for Mr. Barry Soetoro, besides....there was proof of vote fraud a lot but it was ignored by our government controlled media.

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only thing i can think of is users send a check in to the newsgroup providers. banks cant dishonor a check

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It will all end up going bitcoin soon

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