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$180 Million for Piracy Conspiracy

theCoder writes "According to an AP story printed in the Orlando Sentinel, Steven R. Frazier has been ordered to pay $180 million restitution for attempting to sell a device that would decrypt the satellite signals sent into everyone's homes. In addition to spending the next 5 years in Federal prison, Frazier will have to pay $500 a month for the next 30,000 years, though no one really expects him to live long enough to make all the payments. That value is based on estimated loses DirectTV and Echostar may have incurred had Frazier been able to sell his devices. Being ordered to pay restitution for actual damages is one thing, but paying for some made up number of future damages? Maybe if I catch someone trying to break into my car, I can sue him for the damage he would have caused if he succeeded..."

29 of 734 comments (clear)

  1. too harsh by LBArrettAnderson · · Score: 5, Insightful

    That value is based on estimated loses DirectTV and Echostar may have incurred had Frazier been able to sell his devices.

    they don't put people to death for attempted murder, do they? that seems a little harsh to me.

    1. Re:too harsh by coyote1 · · Score: 3, Insightful

      Can you spell cruel and unusual punishment?
      This will be reduced, at least, on appeal. It's like many of the multi-million dollar judgements (ie, the MacDonald's too hot coffee) that make the headlines, but they end up being awarded a fraction of the original amount.

      --
      Eat Lamb, 1 million coyotes can't be wrong
    2. Re:too harsh by brianosaurus · · Score: 5, Insightful

      I don't know if that's a fair comparison. My understanding was that those who incarcerated Mitnick were ignorant of his capabilities and were afraid he could launch nuclear missles (or some ridiculous load of crap) if they gave him access to a touch-tone phone. They were used to murderers and stuff, but hackers were an unknown, and they feared the unknown.

      In this case, there was a trial, and the guy was planning to sell a device. Maybe what he was doing was illegal, and maybe he deserves a jail sentence.

      But the court stopped him before any damages were incurred. The actual damages to the satellite companies is zero. Being ordered to pay $180 million in "potential damages" is absurd.

      --
      blog
    3. Re:too harsh by Anonymous Coward · · Score: 4, Insightful

      I'm sorry. Read the article.

      A man who schemed to steal satellite television signals now has something much bigger than a cable bill to pay -- a whopping $180 million restitution order on which he is to make $500 monthly payments.

      He's not being charged the full $180 million (which is probably excessive, but it really doesn't matter) he's being charged $500 a month for life. That charge really isn't inflated.

      It costs Dish Networks around $500 to aquire a single new customer. That $500 represents the cost of advertising, instalation (which is done for free), discounts on equipment, and other incentives. Since most Dish and DirecTV plans involve your ownership of the equipment once you're on the plan the companies have no way to recoup that cost if you can pirate the signal.

      This guy is being charged the rather reasonable amount of $500. If that means his device ends up being used by one new Dish or DirecTV customer every month, they will break even.

      He got off easy.

      As a disclaimer, I am currently an employee of Echostar Dish Networks. As my views are not necessarily those of my employer I am posting this anonymously.

    4. Re:too harsh by brianosaurus · · Score: 5, Insightful

      They caught the guy before the devices were delivered. There will be ZERO people using his device every month. There will be ZERO dollars lost because of people using his device instead of buying legitimately.

      And a common theory is that the people who would have used that device will find alternatives and wouldn't have signed up with Dish/DirectTV anyway. Granted, that's just speculation, but then again so is their $900million number.

      And while he won't ever actually pay out $180 million at $500/month, its still on the books. It still sets a ridiculous precedent, and might encourage other industries to use this sort of business model.

      --
      blog
    5. Re:too harsh by Azureflare · · Score: 4, Insightful
      Welcome to the world of Pre-Crime!

      Where you get punished for doing things you MIGHT have done, if the superior police force hadn't nabbed you before your little malicious ideas came to fruition!

      100% Accurate!

      Gah, it's always scary when a movie plot comes true in real life....

      OK So maybe the guy "deserved" to get punished, because he was "intentionally" building a device that was designed to "hack" into signals, but the fact is he's being held accountable for things that never happened, except in The Magical Fairyland of DirectTV's wild imagination.

    6. Re:too harsh by Qzukk · · Score: 5, Insightful

      Oh wow, planning on selling devices. Thats surely worth $180million.

      I know, lets send the cops out, and just give out speeding and parking tickets at random. 'cause, everyone was planning on speeding that day, and everyone will at some time park illegally.

      You'll be first in line to pay your thoughtcrime fines right?

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    7. Re:too harsh by brianosaurus · · Score: 3, Insightful

      on 1 &2: the award is $180 million. He is only required to pay $500/month because that is what the judge decided he was able to pay. If he were able to pay $180 million, the judge would make him pay that amount.

      also, its not a fine, but a "retribution payment", payed to the satellite networks. But since they didn't lose anything, they aren't owed anything. any amount is excessive in this case.

      --
      blog
    8. Re:too harsh by AntiTuX · · Score: 4, Insightful

      I don't agree. I work my ass off now as a cable guy, and with my bills, I *KNOW* I couldn't afford 500 bucks a month. On top of that, being as he'll officially be a FELON, he'll never be able to get a tech job again at a large company, especially if they do any business with the government.

      It's *REALLY* fucking difficult to pay 500 bucks a month on top of rent, bills, etc., when all you have is a job at mcdonalds.

      I find that cruel, and excessive.

  2. punishment fitting the crime by pytheron · · Score: 5, Insightful

    There is something severely wrong about financially crippling somebody for life.. it is just totally out of proportion. Someone needs to pass round the smelling salts to the judges.

    --
    "I am not bound to please thee with my answers" [William Shakespeare]
    1. Re:punishment fitting the crime by aronc · · Score: 4, Insightful

      Crippling? It's $500 a month. Chump change.

      Maybe for you in your nice cushy job, but some of us barely make that at all much less being able to pay bills/buy food/etc after that. Think before you speak asswipe, there are people a lot worse off than you and if 500 a month is change for you there's a lot of us.

      Maybe this'll make people think before they steal IP in future.

      Except he didn't steal any IP, nor did he even plan to. He had plans to potentially release a device that potentially allowed others to steal access to satellite TV. Maybe we should just go ahead and declare marshal law since everyone could potentially be a murderer.

      --

      jello.
      aka aron.
  3. How? by captainclever · · Score: 3, Insightful

    If he'll be in jail for years how can he pay that much money per month?

    --
    Last.fm - join the social music revolution
  4. remember... by bman08 · · Score: 5, Insightful

    When I was a kid you actually had to commit a crime before arrest, trial and conviction.

    1. Re:remember... by Zebbers · · Score: 4, Insightful

      attempted _____ is in itself a crime but almost ALWAYS have a lot less strigent sentencing requirements. This shit is crazy.

      Corporations are getting out of fucking hand.

  5. Land of the free? by incom · · Score: 5, Insightful

    IMHO having to pay that money indefinately is essentially slavery, and any sane person would flee to another country to regain thier freedom.

    --
    True genius is grasping a situation like a peice of fruit, and peircing it just right so that it drains dry.
  6. To a Certain Extent It Makes Sense by Anonymous Coward · · Score: 3, Insightful

    In this case the key element was information. Had this information got free the satallite providers could have lost a *lot* of money. There would be no way to stop the spread of the information.

    Murder or robbery is a bad example. Everyone knows how to do it, there isn't much special knowledge involved.

    It's very, very apples to oranges.

    1. Re:To a Certain Extent It Makes Sense by no+reason+to+be+here · · Score: 4, Insightful

      Had this information got free the satallite providers could have lost a *lot* of money.

      Did the information get free? Did the [sarcasm]poor corporations[/sarcasm] lose a lot of money? You don't put people to death if they don't actually kill someone. similarly, you ought not be fined for money that could have been lost, but wasn't.

      food for thought: cable descramblers aren't that hard to come by, yet cable companies, cable networks, etc. seem to be doing just fine. I doubt that had this information gotten out that it would have spelled the end of DirecTV, or even cost them that much.

  7. Does this make anyone else sick? by nuclearsnake · · Score: 3, Insightful

    It says that "The companies estimate they could have lost $900 million" (Firstly this number is overinflated.)
    Many of the people that were part of this scheme dont have the money to pay for satellite legally. They chose the illegal option because it was what they can afford. Thus it is not lost revenue to the companies since these people would never have paid full price.

    The same goes with things like.... ohh.. say mp3's. I would not go out and buy a cd. I have a perfecty good radio and am happy to listen to that.

    Just my $0.02

    --
    See the forbiden post Here
  8. From the article by guidemaker · · Score: 4, Insightful

    " An estimated 3 million people illegally watch satellite television using devices that unscramble satellite TV signals. The industry estimates it loses $4 billion a year in revenue."

    Is that right? Satellite TV costs well over $1000 a year? No wonder people don't want to pay for it.

    They can't possibly be worried about lost ad revenue, because those people are all watching the ads.

    Weasel maths, I'm guessing.

    1. Re:From the article by DragonPup · · Score: 5, Insightful

      Actually, it does cause some financial damage reguardless. See, illegal hookups, especially from the tap(where the drop starts from at the pole, or sometimes inside a large building) tends to be very shoddy. Then it starts leaking signal. That's bad cause leaked cable signal can interfere with a lot of very important things. Things like police radio, or in very severe cases, it could cause some interference with air traffic control systems if it is near an airport. So the cable company must actual spend time and money checking for leakage and correcting it. There'd be a lot less leakage without cable theft.

      Another way it can cause damage is black box descramblers. They got a nasty habit of backfeeding signal up the drop. That can cause reception problems for everything feeding out of the tap(taps in boston tend to serve roughly 8 residences/tap. Though larger taps do exist). Once people start to complain of reception problems(ghosting and humbars are common), cable company rolls out a tech to fix it. Sending techs out is not free. :p

      -Henry

      --
      "Useless organic meatbag" -HK-47
  9. Re:Wasn't smart enough. by Jeffrey+Baker · · Score: 4, Insightful

    And why shouldn't he? DirectTV is beaming their signal into your brain at this very moment. Why should it be illegal to perform a mathematical transform on the EM passing through your own head?

  10. Re:Wasn't smart enough. by necrognome · · Score: 3, Insightful

    Because his findings and products only allow you to play with signals (i.e. light) coming into your house! Would you be breaking into Hughes and stealing receivers? No. Would you be sneaking next door and tapping your neighbor's cable line? No. You would not be interfering in any way with the property of Hughes or anyone else, for that matter. I tend to feel that any signal that I can receive from my property is fair game (yes, this includes cellphone users, who should have modern phones anyway). If Hughes wants only authorized users to view its content, perhaps it should stop broadcasting said content, encrypted or not.

    --


    Let's get drunk and delete production data!
  11. Wrong priorities by pchown · · Score: 4, Insightful

    Obviously Frazier has been given a sentence which is outrageously out of proportion to his crimes. But let's think about things from a different point of view...

    I live in an area which has its share of crime. Not crime like Frazier's, ordinary crime like vandalism, graffiti, burglaries and so on. The police are always hugely overstretched in trying to respond to these things. Now house burglaries cause far more distress than anything that Frazier did. Vandalism and the like take far more out of a neighbourhood than anything Frazier did.

    Yet, Frazier is worthy of some massive surveillance operation. We are entitled to ask why limited police resources were used in this way.

  12. Re:attempt to decrypt? by tomstdenis · · Score: 3, Insightful

    "It isn't technologically feasible for them to beam solely to subscribers and non-subscribers"

    Is exactly my point. The technology is flawed. I mean if I mailed a book to everyone in the US just because sorting addresses is too hard can I sue you for reading the book?

    *They* beam data into *my* house. Tough cookies if I examine it.

    Tom

    --
    Someday, I'll have a real sig.
  13. The punishment is valid by dlevitan · · Score: 3, Insightful

    I have no sympathy for this guy. It is one thing to casually trade music. It's another to be selling pirated music to people. He wasn't simply giving away the decryption devices to people - he was trying to make money off a crime.
    True, he hasn't actually caused all this damage yet, but the article says that he already had 5000 orders for these decryption devices and he was trying to crack the latest DTV cards. Furthermore, this isn't the first time he's been arrested. The article says that he had been arrested in 2000 for the same crime and was let go.
    This is not a guy who was just doing this casually. He was trying to make money and already had a warning. Maybe $180 million is too much, but it's not like they expect him to pay it. It's more to make a statement to other pirates who are doing this for profit. Remember that DirecTV is a company that needs to make money. There aren't even moral arguments here like with the RIAA and artists.

    1. Re:The punishment is valid by fliplap · · Score: 3, Insightful

      It's more to make a statement to other pirates who are doing this for profit.

      Uh. Huh. And you for some reason think that if he was just giving it away for free Direct TV wouldn't have a problem with it? If you tried cracking it and they found out, they would come after you just as hard. They don't care how much money you would have made, they care how much they would have lost. The $180 million wasn't based on the profits this guy was expecting, it was based on how much Direct TV thought they would have lost.

    2. Re:The punishment is valid by blakestah · · Score: 5, Insightful

      Really? I think there is a valid bit of constitutional law here.

      Who owns the electro-magnetic fields in my house? Does DirectTV own them, or may I sample them freely?

      Now, I respect the rights of DirecTV to make money by selling cable through the airwaves, but I have a real problem with the government telling me what I can and cannot do with EMFs someone else is beaming into my house.

  14. Another step towards a bright future... by Hadriven · · Score: 3, Insightful

    The fact this case looks like the principle behind Minority Report - arrest people BEFORE they commit crimes - is undeniable, however, there's something a bit more frightening. I didn't see nor read Minority Report, but correct me if I'm wrong, in that movie/novel, people are imprisoned because the Law is sure you're going to do some bad out there - and for the majority of cases they're right because that's what would have happened. (then there's the problem about a minority...)

    But here, we aren't talking about predicted crimes. We're talking about POTENTIAL breakings of the law.
    Should the corporates have caught the guy actually selling the thing, they would effectively had reasons to sue him like hell, but as it seems, he hadn't even begun to do so.

    I know, the same guy had already been having quite a lot of problems with that the previous years, but, hey, it seems to me you are free to do whatever pleases you as long as it doesn't breaks the law, right ? Here, the DoJ's anticipation got a bit too far. What's the problem with carrying around some-electronics-stuff-that-could-potentially-be-u sed-for-massive-copyright-infringement ?

    There's a context, a record behind the man. But it once stood somewhere into the brains of at least SOME policemen/inspectors/lawyers/judges that a suspect is innocent until proven guilty. Where's the guilt here ? They could have permanently glued someone on his tail, tapped into any communication line the POTENTIAL "criminal" used, and caught him the moment he was "officially" - that means, to the eye of the public, and to the eye of the law - causing "financial harm" to the companies.

    That's not what they did, it seems. Judging he was going to get dangerous again, they ensured he'd be punished before he could do any real harm.
    In some ways it resembles what happened to people who looked "suspect" to the authorities, a few days and weeks after some madman decided to scare the hell out of any proud American out there - and achieved his goal the best way possible. Remember 9/11, right ? Since then, as it seems, you can be arrested for the seemingly arbitrary reason of suspected terrorism.

    In the case I'm talking about, it's (heavily) suspected copyright/rights infringement. In the first case, at best you save lives. Here, at best, you save money. Quite a proof that in the mind of way too much people out there, human lives and money have become quite the same in terms of value...

    Simply put : the rights of those who've got the money, therefore the power, are enforced, and this, now is possible even before said rights are violated.

    That's widening the subject to a wider debate, but I do not call that justice, knowing that your rights won't be as efficiently defended should you not have enough zeros on your accounts. I do not call that Justice.

    Anyway, what's the most scary is that the US calls that vision of things justice. And are pretending it is fair. Come on...

    Besides, you just can't demand $180M from a physical person. This is even beyond our good ol' friend Gates' reach. Not to mention the fact this amount was "evaluated". How ?

    - Hadriven

  15. Seriously People by drwav · · Score: 5, Insightful

    OK, let's forget about the $500/month payment and just focus on the FIVE YEARS in prison for a crime he never actually committed. To top it all off, this wasn't even a serious crime; it was IP infringement, which is already a sketchy area to begin with.

    Every time something like this happens, I always see a few people that say "good, they broke the law, they got their punishment", well I have a little something called "empathy".

    Put yourself in their shoes, would you like it if you were sent to federal prison for five years just because you might have cut into the profits of an already greedy and overpaid corporation? You need to put this in perspective, people charged with assault and other various violent crimes get off easier than this. This is complete and total bullshit and you people are just going to sit there and not only take it, but praise the government for brining another "dangerous criminal" to justice. Let me make it absolutely clear that the he didn't actually do anything, he was charged with conspiracy to do something.

    Doesn't the amount of power that corporations are demonstrating they have SCARE YOU at all? Or are you just to completely oblivious to the world around you?