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October 19th, 2003, 06:54 PM
http://www.jacksonville.com/tu-online/stories/101903/met_13818421.shtml
Last modified Sun., October 19, 2003 - 02:23 AM
Originally created Sunday, October 19, 2003
DirecTV goes after North Florida signal 'pirates'
Settlements, lawsuits can cost thousands for those accused
By Paul Pinkham
Times-Union staff writer
It's David vs. Goliath in reverse.
Since last summer, more than 80 Northeast Florida residents have been sued by DirecTV, the California-based satellite television provider, which is accusing them of pirating programming.
They are among nearly 12,000 targets of federal lawsuits filed across the nation against people who mail-ordered a technology DirecTV says can be used only to steal its signals. Hundreds of thousands more have received collection letters demanding settlements of $3,000 to $3,500.
"It's kind of like a reverse class-action suit. You have one individual basically shotgunning lawsuits all over the United States," said Jacksonville attorney Andy Frashuer, who has settled four cases with DirecTV. "They're almost ensured of getting some kind of monetary settlement because nobody wants to litigate this stuff."
DirecTV makes no apologies.
"We're taking a very aggressive stance toward piracy. This is part of a comprehensive national campaign," company spokesman Robert Mercer said. "It's theft. It's no different than shoplifting or any other criminal activity."
Although satellite TV providers historically have targeted distributors of illegal technology, DirecTV is suing end users, people it calls "satellite pirates," Mercer said. If you use or even possess the technology, he said, "you're going to expect a demand letter from us, and if you don't comply with our demands, we'll sue you in federal court."
The first Jacksonville case was filed 14 months ago and is set for trial in June.
According to the lawsuits, pirates use computer technology to modify computerized access cards that are needed to watch satellite programming. In response, DirecTV says it periodically updates its cards and administers "electronic countermeasures" to disable modified cards. A particularly successful countermeasure in 2001 -- called "Black Sunday" by the pirates -- rendered most altered cards useless, DirecTV said in its lawsuits.
But the pirates fought back with devices called bootloaders, glitchers, emulators and unloopers that restored the cards' ability to circumvent DirecTV's security measures, the company says.
The current legal offensive was born in May 2001, when, as part of a federal lawsuit in California, DirecTV raided a mail shipping facility used by providers of the pirating devices. Aided by police, DirecTV seized shipping and sales records, e-mails and credit card receipts and used those records to track down customers who purchased the technology. The company sent out demand letters, and if recipients don't comply, they're sued, in most cases for $10,000.
Defense lawyers call it a scare tactic.
"All they have is a list of people who bought that device," said Jacksonville attorney Curtis Fallgatter, a former federal prosecutor. "They haven't investigated."
Fallgatter is countersuing on behalf of a paying DirecTV customer who says he purchased an unlooper as part of his computer security business. The countersuit alleges deceptive and unfair trade practices.
Numerous other defendants have complained that they, too, purchased the card devices for legitimate reasons and never stole satellite TV signals. But many, unlike Fallgatter's client, have settled with DirecTV because it cost less than hiring a lawyer.
"Even if I win, I lose money," said Emmett Mankin of Mandarin, who settled for $2,500 after looking at attorney's fees of up to $10,000.
DirecTV is counting on that, Frashuer said.
"They just sit back and watch the money roll in," he said.
Mankin said he purchased a $50 device online to program security cards with the intention of going into business.
"I told them that, but they sued anyway," he said.
Some consumers have fought back successfully. In August, a South Carolina judge dismissed a case against a Charleston computer enthusiast who purchased several computerized cards from a distributor raided by DirecTV. The man didn't own DirecTV equipment and couldn't have been using the cards to steal satellite signals, the judge found.
"DirecTV is contending that the mere possession of these cards is a criminal offense," Frashuer said. "All of it has legitimate purposes. ... There would not be any reason to print [an altered] card if they already had an account."
But Mercer disagreed. He said if the technology had legitimate uses, it would be available for purchase at retail stores, not just over the Internet.
"These devices don't have any other purpose but to steal satellite programming," Mercer said. "It's very clear what these devices are for."
Last modified Sun., October 19, 2003 - 02:23 AM
Originally created Sunday, October 19, 2003
DirecTV goes after North Florida signal 'pirates'
Settlements, lawsuits can cost thousands for those accused
By Paul Pinkham
Times-Union staff writer
It's David vs. Goliath in reverse.
Since last summer, more than 80 Northeast Florida residents have been sued by DirecTV, the California-based satellite television provider, which is accusing them of pirating programming.
They are among nearly 12,000 targets of federal lawsuits filed across the nation against people who mail-ordered a technology DirecTV says can be used only to steal its signals. Hundreds of thousands more have received collection letters demanding settlements of $3,000 to $3,500.
"It's kind of like a reverse class-action suit. You have one individual basically shotgunning lawsuits all over the United States," said Jacksonville attorney Andy Frashuer, who has settled four cases with DirecTV. "They're almost ensured of getting some kind of monetary settlement because nobody wants to litigate this stuff."
DirecTV makes no apologies.
"We're taking a very aggressive stance toward piracy. This is part of a comprehensive national campaign," company spokesman Robert Mercer said. "It's theft. It's no different than shoplifting or any other criminal activity."
Although satellite TV providers historically have targeted distributors of illegal technology, DirecTV is suing end users, people it calls "satellite pirates," Mercer said. If you use or even possess the technology, he said, "you're going to expect a demand letter from us, and if you don't comply with our demands, we'll sue you in federal court."
The first Jacksonville case was filed 14 months ago and is set for trial in June.
According to the lawsuits, pirates use computer technology to modify computerized access cards that are needed to watch satellite programming. In response, DirecTV says it periodically updates its cards and administers "electronic countermeasures" to disable modified cards. A particularly successful countermeasure in 2001 -- called "Black Sunday" by the pirates -- rendered most altered cards useless, DirecTV said in its lawsuits.
But the pirates fought back with devices called bootloaders, glitchers, emulators and unloopers that restored the cards' ability to circumvent DirecTV's security measures, the company says.
The current legal offensive was born in May 2001, when, as part of a federal lawsuit in California, DirecTV raided a mail shipping facility used by providers of the pirating devices. Aided by police, DirecTV seized shipping and sales records, e-mails and credit card receipts and used those records to track down customers who purchased the technology. The company sent out demand letters, and if recipients don't comply, they're sued, in most cases for $10,000.
Defense lawyers call it a scare tactic.
"All they have is a list of people who bought that device," said Jacksonville attorney Curtis Fallgatter, a former federal prosecutor. "They haven't investigated."
Fallgatter is countersuing on behalf of a paying DirecTV customer who says he purchased an unlooper as part of his computer security business. The countersuit alleges deceptive and unfair trade practices.
Numerous other defendants have complained that they, too, purchased the card devices for legitimate reasons and never stole satellite TV signals. But many, unlike Fallgatter's client, have settled with DirecTV because it cost less than hiring a lawyer.
"Even if I win, I lose money," said Emmett Mankin of Mandarin, who settled for $2,500 after looking at attorney's fees of up to $10,000.
DirecTV is counting on that, Frashuer said.
"They just sit back and watch the money roll in," he said.
Mankin said he purchased a $50 device online to program security cards with the intention of going into business.
"I told them that, but they sued anyway," he said.
Some consumers have fought back successfully. In August, a South Carolina judge dismissed a case against a Charleston computer enthusiast who purchased several computerized cards from a distributor raided by DirecTV. The man didn't own DirecTV equipment and couldn't have been using the cards to steal satellite signals, the judge found.
"DirecTV is contending that the mere possession of these cards is a criminal offense," Frashuer said. "All of it has legitimate purposes. ... There would not be any reason to print [an altered] card if they already had an account."
But Mercer disagreed. He said if the technology had legitimate uses, it would be available for purchase at retail stores, not just over the Internet.
"These devices don't have any other purpose but to steal satellite programming," Mercer said. "It's very clear what these devices are for."