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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..."

32 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 Anonymous Coward · · Score: 5, Funny

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

      No, but sometimes they do issue more than one death sentence. I guess they do that just in case being dead once already isn't enough.

    2. Re:too harsh by Chemical · · Score: 5, Funny

      Seriously. Do they give a Nobel prize for attempted chemistry? Do they?

    3. Re:too harsh by Anonymous Coward · · Score: 5, Informative

      There's precedent. Kevin Mitnick got incarcerated for many years (without a trial) based on the potential damages the source code he had might have been worth. Turns out those potantial damges were *greatly* inflated (by many orders of magnitude), as is probably the case here with DirecTV/Dish Networks. It didn't help Mitnick get out of jail any earlier though.

    4. 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
    5. 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.

    6. 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
    7. 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.

    8. 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.
    9. Re:too harsh by aeryn_sunn · · Score: 5, Informative

      Actually, if you knew the facts and theory surrounding the hot coffee case you would think differently...or maybe not.

      Mickey D's had the temperature of their coffee for years at over 180+ degrees...at least that is what they served it at. At that temperature, a third degree burn occurs in seconds if the coffee is spilled on someone

      The million dollars the plaintiff was awarded in that case was the amount McD's made on coffee in one day. The whole issue was that because of the temperature of McD's coffee (which is hotter that Starbucks), there were somewhere in the ballpark of 600 to 800 severe burns.

      The theory is, if punishing McD's finacially causes them to either make better spill proof lids or but coffee cups that keep the temperature hot enough for a long time without having to make the temperature so hot, then this would prevent 600 to 800 severe burns a year

      And yes, it worked, McD's improved their lids, their cups, and decreased the temperature of the coffee. I don't remember how much this cut down on severe burns a year, but its was over an 80% decrease.

      Additionally, because of this case, other fast found joints, i.e. BK lounge, also changed their coffee lids, cups, and temperature....Starbucks and Caribou coffee then implemented the policy of never giving a drink to a patron unless the top is on it...

      So, because of the McD's coffee case, which seemed completely ridiculous to me too at the time...actually had a greater impact in saving money in medical cost and other social cost from severe burns by getting those that serve coffee to implement some preventive measures.

      A lot of severe burns caused by accidents have been prevented because of that one case....Don't always think a case that sounds absurd doesn't have some other positive impact...

    10. 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.
    2. Re:punishment fitting the crime by walterbyrd · · Score: 5, Funny

      >>There is something severely wrong about financially crippling somebody for life..

      I take it you're not familiar with divorce settlements?

  3. 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.

  4. 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.
    1. Re:Land of the free? by Hogwash+McFly · · Score: 5, Funny

      Frazier will have to pay $500 a month for the next 30,000 years

      Man this dude's gonna be pissed when we discover the secret to immortality in 50 years time!

      --
      Mother, do you think they'll like this sig?
  5. Ouch by August_zero · · Score: 4, Interesting

    That is going to leave a mark. Not just on him, but it's chilling when you consider that this could set a precedent for future cases.

    Imagine if I was create a new file sharing program, and then I was to be forced to pay restitution of $1000 a month for enternity because it could be used to illegaly distribute material (movies, software etc)

    Will I create this software? Hell no. With the imaginary axe of potential damage looming over the heads of would be programers and developers, its going to become a gamble for any individual to try and develop any type of new software.

    What if you build a new OS, MS or someone claims that you stole part of their code, or claims that it poses a massive security threat or whatever, use your imagination, and proactively sues you for a few billion in damages that might be caused by your software. Now your company is gone, and the big kids keep ruling the block. Where the hell is due process?

    --
    On Wall Street they say "buy low, sell high" On the pad we say, "buy high, sell high" Isn't that somehow better?
  6. 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. 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 Dun+Malg · · Score: 5, Interesting
      " 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.

      Weasel maths, I'm guessing.

      Indeed. The $4Billion they calculate is based on what it would cost those 3 million people to subscribe to every single channel available, which is what those people are supposedly watching. At least they're not adding in what it would cost to purchase every single pay-per-view (even the ones running concurrently), like they do when asking for damages in court. Nice logical rationale: "if we don't know what they watched, we must assume they watched everything-- at the same time"

      --
      If a job's not worth doing, it's not worth doing right.
    2. 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
  8. 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?

  9. Re:Wasn't smart enough. by parliboy · · Score: 4, Funny

    Rough Translation:

    "Anyone trying to steal satellite feeds deserves to rot in jail.

    Especially if he doesn't tell me how to do it too."

    --
    "You're never ready, just less unprepared."
  10. 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.

  11. Kill Plagiarism Support Piracy by leoaugust · · Score: 4, Interesting

    I have come around to believing this bumper-sticker philosophy

    Kill Plagiarism Support Piracy

    The fact that such ridiculous court decisions are being made, with nary a chance of ever being realized (like 30,000 years, or in Jordan'case billions of dollars) means that there is a disconnect between the laws of copyright and the reality of digital distribution. Crazy models and interpretations that generally came out of the academic confines of class rooms, are now coming from the real world of the courts.

    I fully respect someone's ideas, and completely am against plagarism. But I am starting to differ about how much they should be allowed to profit from them, and am starting to see how the role of piracy is underappreciated in the wide dissemination of ideas.

    The decision whether piracy is good or bad must be made based on two factors:

    • what is the cost to society when the idea is to be commercially exploited for the gain for a few.
    • What are the impediments that are being created to the development of technologies, products, and services by the quest for profit by the few.
    • is there a significant number of people who when exposed to the ideas might eventually add to humanity's body of knowledge building upon digital content that they were exposed to - and would a significant number of these be denied access to ideas unless the costs are reduced to the bare minimum by piracy.

    We are in a new world, unimaginable even 10 years ago. We can make infinite and perfect copies of a product, something which we could never could earlier.

    And here we are being trapped into artificial market segmentations by middlemen who, thanks to the FCC and Powell, are becoming bigger and bigger and bigger ... This is just pathetic .... (maybe I am a little harsh, but after hearing about the RIAA decision to sue thousands of file-sharers I am not in a very generous mood).

    The providers of content that can be digitized, just have to forge a stronger relationship with the audience ... they have to use their static and digitized content as a "marketing and business card" towards the development of a dynamic relationship between the audience and the engines of creation.

    I will reverse myself in any court of law, but right now I say Kill Plagiarism Support Piracy ...

    --
    To see a world in a grain of sand, and then to step back and see the beach where the sand lies ...
  12. Legal in Canada? by Quixote · · Score: 4, Informative
    IIRC, Canadians aren't allowed to watch DTH (direct to home) TV. If the satellite companies are beaming DTH programming to Canadian homes, and Canadians aren't given the option of buying the programming, what are their options?

    Note: I'm not taking any sides here, just bringing up a fact.

  13. 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?

  14. 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.

  15. Attempting to commit a crime is not a crime... by benjamindees · · Score: 4, Informative
    There is an entire menagerie of bullshit 'crimes' defined by democratic legislatures these days. 'Attempted _______' is just one example of them. The only semblance they have to actual crime is the fact that said governments label them as such. But for the terminology, they are more alike in every respect to mere illegal acts, not crimes, and as such would not be subject to punitive damages (jail time, extra fines above actual damages, etc...)

    Read this explanation from a political science professor, for instance, and try not to be confused. The author, in attempting to reconcile the absurd acts of modern legislatures with actual legal theory, has even managed to confuse himself:

    It's useful to think of Criminal Law as a set of both Proscriptive (prohibited) AND Prescriptive (preferred) rules for conduct. This is best understood by the oxymoron "crimes of omission"...

    What? He admits that a crime of omission cannot exist because it is an oxymoron. This conclusion is dependent upon the basic definition of crime that has existed since time immemorial: crime requires injury. An injury is an act committed against someone that results in harm to them.

    Not doing something is not a crime; it isn't even an act. Yet, implicit also in the acceptance of "prescribed" rules of conduct being punishable as "crimes" is the acceptance of "crimes of omission," which he himself states is an oxymoron.

    Thinking about doing something isn't an act, either. It would be more properly termed a thought crime, regardless of what Mr. Gates says.

    It should be obvious that even the intellectual charlatans who affix themselves to the coattails of oppressive governments and attempt to explain logically it's actions cannot, in the process, help but become confused themselves.

    --
    "I assumed blithely that there were no elves out there in the darkness"
  16. The Lawnmower Man by leonbrooks · · Score: 4, Interesting
    Do you even know what all of the enforceable laws on you that are applicable in just your city?

    The Shire of Kalamunda (satellite city in Perth, Western Australia) has (or had) a bizarre law on its books that specified a fine for operating a two or four stroke motor between midnight and midnight on Sundays. Why so specific? Why only Sundays?

    It turns out that this particular law is due to a single councilor who lived in sunny Bickley, in Kalamunda's East Ward. Said Councillor was in the habit of going out and "raging" (nightclubbing, partying etc) every Saturday night, coming home at silly- o'clock on Saturday morning (or sometimes holding the party at his house and keeping his neighbours up to silly o'clock), and expecting to sleep in until the sun was over the crow's-nest.

    The sand in this particular vaseline was his many Seventh-day Adventist neighbours, who after enjoying a refreshingly restful Sabbath day between sunset Friday and sunset Saturday would get up early on Sunday morning, full of beans, vim vigour and vitality, and start doing stuff. Like mowing their lawns not before 07:00 as per the excessive noise laws.

    Three or more neighbours running two-stroke mowers was not exactly what Mr I-went-to-bed-at-04:23 wanted to hear at 07:00, so he acted. He went out and talked to his neighbours about it - not. Instead, he talked the Shire into enacting a "Blue Law" prohibiting the operation of two-stroke motors throughout the Shire between midnight and midnight on Sundays.

    Not to be outdone in the lets-resolve-this stakes, and of course turning their collective backs on 1Thessalonians5:14-15, the dawn chorus in Bickley the following Sunday included a four-stroke-mowers section from all of his neighbours. Taking care not to abuse his position as Councillor, Mr I-went-to-bed-at-04:23 then had the law amended to include four-stroke motors.

    The consequences included that as he was driving his car home at 04:07 on Sunday morning, he broke his own law. Any propellor-driven aircraft flying over the Shire were in violation, and so on. I don't think he realised how lucky he was that turbine-driven mowers are still hard to buy. (-:

    --
    Got time? Spend some of it coding or testing