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Illegal "warez" organisations and Internet piracy

(Operation Buccaneer) ! (http://www.cybercrime.gov/ob/OBorg&pr.htm)

In the early 1990's, groups of individuals working in underground networks organized themselves into competitive gangs that obtained software, "cracked," or "ripped" it (i.e. removed various forms of copy protections) and posted it on the Internet for other members of the group. This network of individuals and groups, numbering in the thousands, evolved into what is today loosely called the "warez scene" or community.
At the top of the warez scene are a handful of "release" groups that specialize in being the first to obtain, crack (i.e., remove or circumvent copyright protections), and distribute or release the latest software, games, movies, or music to the warez scene. Frequently, these new "releases" reach the Internet days or weeks before the product is commercially available. Release groups compete against each other to attain a reputation as the fastest providers of the highest quality, free pirated software, including utility and application software, computer and console games, and movies.
As technology has advanced, the top warez groups have become more technologically sophisticated and security conscious to avoid detection by law enforcement. Many of the elite groups communicate about warez business only through private e-mail servers, sometimes using encryption, and in closed, invitation-only IRC channels. Additionally, most members disguise their true IP addresses (and thus their true locations) when communicating in IRC by routing their communications through "virtual hosts" or bounce boxes. Finally, many warez groups protect their large FTP archive sites — which can contain tens of thousands of copies of software, games, music, and music for free downloading — through a combination of security measures that include bounce sites, automated programs for IP address and user password verification, and the use of non- standard ports for FTP traffic.
The specific reasons that an individual becomes and remains involved in the top warez "release" or "courier" organizations may vary. However, it is almost always the case that a primary motivator is the desire to gain access to a virtually unlimited amount of free software, game, movie, and/or music titles available on the huge file storage and transfer sites (FTP sites) maintained by, or offering user privileges to, these elite warez groups. These computer sites not only offer a tremendous variety of quality copyrighted works, but they also generally have extremely fast Internet connections for rapid, efficient downloading and uploading. Other possible motivators or enticements for warez group members may include: (1) the thrill and social camaraderie they obtain through clandestine participation in illegal activity; (2) the improved personal reputation or fame in the warez scene that comes with membership in the "top" groups, and in helping to keep those groups on top; and (3) financial profit, as some involved in the larger warez organizations take the pirated products and sell them for commercial gain.
Today it is estimated that approximately 8-10 of the largest warez "release" groups in the world are responsible for the majority of the pirated software, games, and movies available on the Internet. These highly organized "release" groups specialize in being the first to release new pirated software, games, and movies to the warez community for unauthorized reproduction and further distribution worldwide. Individual groups generally specialize in "releasing" only certain types of copyrighted works; for instance, two of the oldest groups, DrinkOrDie and Razor1911, specialize in releasing application software and PC or console games, respectively. In addition to their release work, these warez groups also maintain large FTP archive (or "leech") sites for the benefit of their members and others engaged in Internet software piracy. An average FTP archive site may contain between 10,000 to 25,000 individual titles of software, games, movies, and music, all of which is made available for free downloading ("leeching") by group members and valued warez associates or contributors to the site.
The top-level release groups are highly structured organizations with defined roles and leadership hierarchy. These organizations generally have a Leader, who oversees and directs all aspects of the group; three Council members or Senior Staff, who direct and manage the day-to-day operations of the group; 10 to 15 Staff, who frequently are the most active and skilled contributors to the group’s day to day "release" work; and finally, the general membership, whose functions and involvement in the group vary. Members generally only interact via the Internet and know each other only by their screen nicknames, such as "bandido," "hackrat," "erupt," or "doodad."
A pirated version of a software application, game, or movie is frequently available worldwide even before it is made commercially available to the public. In many instances, warez groups illegally obtain advanced copies of copyrighted products from company or industry insiders, then crack the copyright protections before distributing the pirated versions on the Internet to an ever-expanding web of FTP sites worldwide. Within hours of first being posted on the Internet, a pirated version of a copyrighted product can be found on thousands of Internet sites worldwide. Eventually, these pirated versions find their way onto pay-for-access websites from China to the U.S., where users are charged monthly or per-purchase fees for downloading the unauthorized copies.
Additionally, these warez "releases" provide an unending supply of new product to counterfeit hard goods criminal organizations. For instance, almost every new PC and console game is "cracked" and available on warez sites either before or within 24 hours of their commercial release ("0-Day" releases). Hard good pirate syndicates in Asia and Russia (for example) will download a "warez" 0-Day game release and mass produce it at optical disc manufacturing facilities. These counterfeit hard goods are then illegally sold in foreign markets often weeks before the manufacturer ships the authentic goods for the official release date in those particular markets. This can cripple the market for the legitimate products.

The "Release" Process:

Speed and efficiency are essential to the process for preparing and packaging new pirated software for release and distribution to the warez community. The process generally has four stages and can occur within a matter of hours:

SUPPLY: First, a group member known as a supplier will post an original digital copy of new computer software to the group's Internet drop site, which is a computer where software is posted for retrieval by members of the group. Frequently, warez suppliers are company insiders who have access to final versions of the company's new software products before their public release date.
CRACK: Once the new supply is posted to the drop site, another group member, known as a cracker, retrieves the software and removes or circumvents all embedded copyright protection controls (e.g., serial numbers, tags, duplication controls, dongle protections, security locks).
TESTING and PACKING: Following a successful crack, the software must be tested to ensure that it is still fully operational. Following testing, the software is then "packed," or broken into file packets that are more easily distributed by other group members.
PRE[-Release] / Courier): After the software has been cracked, tested and packed, it is returned to the drop site, where individuals who will transfer or distribute the pirated copy across the Internet are waiting for new arrivals. Once picked up by the "preers," the illegal product is distributed to warez locations around the world in a matter of minutes. In each instance, the new "release" will include an information file (aka ".nfo file") which, among other things, proclaims and attributes credit for the release to the originating warez group. These messages allow groups and their members to get the credit they crave and develop not only their own reputations within the scene, but also that of the group.

source: (http://www.cybercrime.gov/ob/OBorg&pr.htm)