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17 Charged With Hacking Into Satellite TV; violation of the Digital Millennium Copyright Act...
Associated Press ^

Posted on 02/12/2003 12:23:33 PM PST by RCW2001

LOS ANGELES Feb. 12

A federal grand jury has indicted 17 people who authorities say hacked into satellite television transmissions, causing millions of dollars in losses to DirecTV and Dish Network, the U.S. Attorney's office said.

Six of the defendants were charged with violating the anti-encryption provisions of the Digital Millennium Copyright Act. The other charges involved conspiracy or manufacturing a device for the purpose of stealing satellite signals. All three counts carry a maximum prison sentence of five years.

The indictments were returned last month and unsealed Tuesday.

Ten defendants already have agreed to plead guilty, authorities said, including a 43-year-old West Los Angeles man who has acknowledged causing $14.8 million in losses to satellite TV companies.

The investigation was aimed at people who develop software and hardware devices that crack the scrambled signals designed to limit satellite TV services to paying customers. DirecTV, for instances, uses "smart cards" as part of their set-top boxes that descramble satellite signals.

The defendants named Tuesday are charged with thwarting that security, often meeting in secret online chat rooms to exchange data and techniques and using such nicknames as "FreeTV," authorities said.

The defendants range in age from 19 to 52. Most live in California, although some are from Kentucky, North Carolina, Texas, Indiana, Florida and Ohio.

"This case demonstrates our commitment to identifying and prosecuting sophisticated computer hackers who steal the intellectual property of others for their own economic benefit," U.S. Attorney Debra Yang said.


TOPICS: Crime/Corruption; Extended News
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To: glennaro
TV "content" is not property; it is copyright - a limited monopoly power granted and enforced by the US government for publicly useful purposes, as specified in the US Constitution. In fact, AFAIK, DirecTV does not "own" most of the copyrighted material it broadcasts (media conglomorates do); what it does "own" is the DirecTV service itself. Please don't confuse a business model, a service, or copyright/patents, etc., with real property. Copyrights are government enforced monoplies of limited duration. This is an important distinction to make, whether you think DirecTV is on the right side of this issue, or not. As to business models, the government is under no obligation to enforce or preserve anyone's business model, no matter how much money their lobbys give to politicians.
81 posted on 02/12/2003 2:06:10 PM PST by Vast Buffalo Wing Conspiracy
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To: clamper1797
Silly question, why did these fools (and I use this in the kindest sense of the word) who built the units make the JTAG pads so large that a blind and drunk man could solder to them? Then compound this security flaw by cutting an opening in the bottom of the unit, so said blind-drunk man doesn't even have to open the unit up? Isn't this akin to leaving your car running with the keys in it while you go shopping? To me, this is inviting someone to probe around.
82 posted on 02/12/2003 2:06:44 PM PST by Hodar
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To: clamper1797
IF YOU ARE A NEW DISH NETWORK CUSTOMER, YOUR ACTIVATION OF A DISH NETWORK ACCOUNT AND RECEIPT OF DISH NETWORK SERVICES SHALL CONSTITUTE YOUR ACCEPTANCE OF THIS AGREEMENT AND ITS TERMS AND CONDITIONS WILL BE LEGALLY BINDING UPON YOU.

Activation of a Dish Network account means enabling your smart card. The above is from the top of the residential agreement...

83 posted on 02/12/2003 2:07:17 PM PST by RoughDobermann
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To: Poohbah
No information was deposited onto your property. Try again.

If no information was deposited there, how can I be accused of descrambling it?

Don't you ever feel silly making silly assertions that contradict common sense?

"Salt in sea water is just an illusion; it's not really there! That's the truth!" statements carry a lot of weight with informed adults.

84 posted on 02/12/2003 2:08:30 PM PST by Publius6961
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To: clamper1797
Here's the bottomline for me. They pass THEIR signal thru MY property WITHOUT permission. I believe ... as someone else said .. that signal is like sunlight if it's on my property ... it's mine to use. Someones wallet is still in their pants (property) even in my house. If satellite companies don't want homeowners to decifer their signal I believe it is encumbant on them to make it impossible to decode. I DO NOT recognize their authority on my property
unless I agree to it ... I have agreed to nothing.
85 posted on 02/12/2003 2:09:05 PM PST by clamper1797 (Please Do not Feed the Trolls)
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To: Poohbah
OK, so you're saying that you have an absolute right to decrypt military communications transmitted over SATCOM and then do whatever you want with the resulting data.

The answer is...

...wait for it...

YES!

Why? because miltary SATCOM does not use lame security. You can, in fact, monitor those transmissions. You can count on our enemies monitoring them. If our military is so lame that their transmissions can be cracked by hobbyists, its better that we know that.

86 posted on 02/12/2003 2:10:05 PM PST by eno_
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To: clamper1797
Do you have either Dish or DirecTV?
87 posted on 02/12/2003 2:15:27 PM PST by RoughDobermann
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To: RoughDobermann
Activation of a Dish Network account means enabling your smart card. The above is from the top of the residential agreement...

And if I were a hacker, and I never bothered Dish about their card, I have neither agreed to their terms, nor forced them to activate the card. Hence, I would have never have opened a dish account. Again, it's like saying that once you buy my car; you must forever purchase my gas at whatever price I chose to sell it at; or else sell/toss the car away.

88 posted on 02/12/2003 2:15:52 PM PST by Hodar
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To: RoughDobermann
Do you have either Dish or DirecTV?

Of course not.... none of us do. We are simply discussing a 'what-if' scenario. What do you expect someone to do? Say 'Hi, arrest me!"?

89 posted on 02/12/2003 2:17:13 PM PST by Hodar
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To: cinFLA
No you can't, you are correct.
90 posted on 02/12/2003 2:18:00 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: clamper1797
OK, I'll set aside the moral issues surrounding theft of the DirecTV signal and software and consider only the legal perspective in direct response to your question.

The Digital Millenium Copyright Act, in part:

Makes it a crime to circumvent anti-piracy measures built into most commercial software; and, Outlaws the manufacture, sale, or distribution of code-cracking devices used to illegally copy software.

It's simply not right -- as in "right" vs. "wrong" -- to take without compensation that which does not belong to you. How would you like to invest billions of dollars with the goal of generating a return on that investment by licensing access to your product, only to have the unscrupulous attempt to steal your work "because it's there" or because it's technically possible to do so? I know I wouldn't like it and I think it's wrong to do so.

91 posted on 02/12/2003 2:18:29 PM PST by glennaro
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To: AriOxman
whats wrong with an infopack/kit?

Because you are selling something that allows a third party to receive a service for free from some company. IOW, your “service” is to sell something that allows someone to “steal” their service. They go nuts over that sort of thing, and they’ll tend to go after the entity selling, rather than using, the info or device.

If they’d just been playing with their own equipment and kept their mouth shut, I doubt DirecTV would have acted even if they knew about it - too much time/energy/trouble. Once you start selling that info or device to everybody it will get out of hand and they have to pursue it, IMO.

That's my suspicion - that they were selling something. Otherwise I don't think anyone would care that 17 people were getting free TV. And I don't think they could pursue any theft of service type deal for 14 million with just 17 people involved. I could be wrong.

92 posted on 02/12/2003 2:19:44 PM PST by thatsnotnice
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To: Vast Buffalo Wing Conspiracy
I understand (and appreciate) your clarification. The specific property I was referring to was the access card, the proprietary software contained therein, and the signal itself.
93 posted on 02/12/2003 2:21:15 PM PST by glennaro
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To: RoughDobermann
You agree that you will not try to reverse-engineer, decompile or disassemble any software or hardware contained within your receiver or our Smart Card. Such actions are strictly prohibited and may result in the termination of your Services and/or legal action.

These are all interesting assertions, but entering into a contract without signing anything is legally dubious.

You paid to get it, it is in your house, and only by intrusive means can anyone determine if you broke that "agreement." Sounds like an invitation to rape the IVth.

94 posted on 02/12/2003 2:21:31 PM PST by eno_
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To: Hodar
Since you don't own the card, it's THEIR property. Sure you can toss the receiver and dish/LNBs whenever you want. Dish basically gives away the hardware anyway; they want the monthly programming charges and a nice long contract term...

FWIW and IIRC, no one has ever emulated Dish Network's smart card firmware (i.e., a cardless receiver), but I think it's been done with DirecTV.

95 posted on 02/12/2003 2:22:58 PM PST by RoughDobermann
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To: Hodar
Per post #12; the FCC has set aside certain bands for Police, Military, Emergency, Rescue and other uses. Using THESE frequencies is a Federal Offense.

So, in an extreme defense emergency, when the military needs some "public" bandwidth for communications, then you're saying that you have a legal right to decrypt the stuff and sell the access to the Chinese.

96 posted on 02/12/2003 2:24:07 PM PST by Poohbah (Beware the fury of a patient man -- John Dryden)
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To: Hodar
Let him speak for himself. If he has Dish or DirecTV legally, no problem. If he doesn't, I could care less.
97 posted on 02/12/2003 2:25:14 PM PST by RoughDobermann
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To: glennaro
How would you like to invest billions of dollars with the goal of generating a return on that investment by licensing access to your product, only to have the unscrupulous attempt to steal your work "because it's there" or because it's technically possible to do so? I know I wouldn't like it and I think it's wrong to do so.

I can answer that from direct experience: It is much better and more effective to design a product in such a way that theft is difficult or economically inefficient to steal, or that it contains a service element that cannot be stolen, than it is to try to get passed and enforced draconian laws that create an incentive for intrusive enforcement, that go against longstanding doctrine, and that generally rub people the wrong way.

As a disinterested party in this case, I have to ask: What causes more harm? Intellectual property theft or bad laws? If the answer is bad laws, I'd rather see the theft continue than give up my rights and the rights of other law-abiding people so that intrusive enforcement can be used to stop theft.

DirecTV could use less lame encryption techniques rather than force us all to bend over for the anal probe.

98 posted on 02/12/2003 2:30:18 PM PST by eno_
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To: Grit
It's the same way in the People's Republic of California.
99 posted on 02/12/2003 2:32:23 PM PST by Lx (So it's now, Duct tape and cover?)
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To: Hodar
Thus, it is a broadcast, and it hits your property whether you like it or not.

Not only is it on my property, it is passing through my body as I type this message. I say I have a right to do whatever I want with it.

100 posted on 02/12/2003 2:32:30 PM PST by Orbiting_Rosie's_Head
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