DirecTV Sues Anyone Who Bought Smartcard Reader?
MImeKillEr writes "The Register is reporting that DirecTV is suing anyone known to have purchased a smartcard programmer, regardless of whether or not they're actually using the device to enable stealing their programming. They're sending out letters & when people call to clear up the confusion, DirecTV is demanding a $3500 settlement as well as the programming device. They've filed 9000 federal lawsuits against alleged pirates thus far. They're obtaining lists of who purchased the devices during raids against the sites that offer them for sale."
So... they're demanding to sue en masse like this? Using lawsuits and demanding massive settlements? Isn't this the definition of barratry---abuse of the legal system for extortion? If so, do smartcard reader owners have the basis for a class action?
--grendel drago
Laws do not persuade just because they threaten. --Seneca
Guess I better not call them.
Best Windows Freeware
This is exactly what we need to clog up out legal system! I guess the murderers and rapists can wait, someone's stealing TV!!!
Is this sensationalism or an honest mistake?
There's a Mercedes gap too. I want one and can't afford one, but it's not government's job to do anything about it.
Damn it! I knew I should have read the fine print when I applied for that Target card - but I didn't realize it was going to cost me $3500! Get a free smartcard reader
This sounds like one of those cases where paying cash for 'grey' goods is a smart move. Unless they have some other means of tracking smartcard owners? Not that I have, want or need a smartcard reader or DirecTV for that matter (there is little enough on telly to warrant much more than basic cable for the occassional sporting event). It'll be interesting to watch who pays up, who fights it in court and just whether any of this activity will dampen the desire for smartcard readers. Cheers, Toby Haynes
Anything I post is strictly my own thoughts and doesn't necessarily have anything to do with the opinions of IBM.
...if someone's name is falsely or erroneously in one of these vendor's lists...?
-- Laura
I don't know all the details, but I know that they tried to sue my uncle a couple of months ago for that, apparently he made a call to his lawyer and a couple of weeks later they had dropped the suit.
I don't know all the details but if it is the same thing as it sounds, then I don't think people have a lot to worry about.
Famous Last Words: "hmm...wikipedia says it's edible"
They are gonna have a hard time when they send a notice to the address I had my card & reader shipped to:
COD
John Smith
UPS Customer Counter - Hold for Pickup
(my local UPS counter addy)
Anyone who everr orderd a test card, set, etc., with a real addy and credit card is a moron.
Old news, this. As for suing anybody who bought a smart card reader, that's bull. They are going after the customers of sites that pretty much state that use as the purpose of the product. The only possible defense is that the chips aren't programmed (usually) out of the store to write DTV's cards, but thats been even harder to use since the hardware itself is being put together to send the right kind of signals to break into their cards.
That being said, they usually just demand money and the return of the equipment purchased. Of course the people they sue usually don't have the resources to fight the claims, so who knows if this will actually be tested in court?
That's like making it illegal to buy a knife because someone killed another person with it.
No, I think it's more like suing everyone who's ever bought a knife because somebody got stabbed.
...Kwikset is suing everyone who bought paperclips and thin blade flathead screwdrivers in the last fifty years.
Realizing that their locks can be circumvented with a modicum of patience and the above mentioned tools, Kiwkset raided sales records at local home and office supply chains to locate citizens who had purchased paperclips and screwdrivers. Citing that no one who purchased the two items in the same month could possibly be up to any good, Kwikset sent out cease and desist letters to approximately 40,000 citizens demanding that they turn over the screwdrivers and paperclips to local authorities.
These opinions guaranteed or your money back.
This works because lawyers are expensive. To the average person, the legal fees required to fight it are greater than the settlement.
So, in effect, what DirecTV is saying is "Give us $3500 or we will sue you." It doesn't matter if they have a case or not. They get $3500 or you pay more in legal fees.
Actually, this is more like Tony Soprano's business model than anything.
The bully has it their way.
Imagine, an innocent person buying a product that could be used to reprogram other equipment, such as an electronic control for art exhibits, or access control at the keyboard, is now threatened to pay thousands of dollars in damages because a corporation decided that piece of equipment can be used to violate their protection schemes (and the DMCA). The hapless individual, fearing more lawsuits in federal courts (thus costing even more than the original sum of money), decides to pay up to this bully to avoid more troubles...
Oh wait, that just happened. This is the kind of events we really should support the Electronic Frontier Foundation (EFF) for. If you happen to know anyone who are harmed by this, let them know about the EFF.
Please direct all bug reports to
You know, people like Sosa make this really difficult. DirecTV is doing something unethical, I believe. People are getting wrongfully accused in my opinion. But Sosa just rolled over and paid out $3500. These people are a problem because they help a bad system to stay bad. It makes it terribly difficult for me to have sympathy for someone who has such a lack of conviction, such a failed sense of justice. They don't care. Should we?
My Greasemonkey scripts for Digg &
...it appears that abuse and extortion are what our legal system is all about. Its not about justice, its about who has the deeper pockets.
"Send lawyers, guns and money..."
There's a huge flaw in your analogy, because there's only one real use for cocaine: getting high. (Well, okay, two uses, because you can also sell cocaine to someone else, but that's beside the point.)
But a smartcard programmer could have other uses as well, both legal and illegal, and not all of them make a person financially liable to DirecTV.
Here is your list:
WWJD?
JWRTFM!
I got slapped with this recently for buying a smartcard programmer that I was using to play with Sunray terminals a few years back. I went to a lawyer (and of course had to pay him!) and sure enough the cheapest way out is to pay them the $3500 regardless of what you used the device for. The cases are filed in FEDERAL court. Federal court was described to me as "A vending machine that takes $10,000 coins...and several of them at that" to plead your case before a verdict is even reached. Worst thing about this is that I've been a Directv subscriber for years and PAY for all the channels! My lawyer contacted the EFF and they wouldn't do a damn thing. Needless to say Directv just lost my ~$100 a month which is pretty #$#& stupid considering it would only take 3 years to cover the $3500. So basically I'm out $4K including the lawyer for trying to do some neat stuff with smartcard authentication.
http://www.legal-rights.org is the best source of information if you are a target of a DTV tort letter or potentially sued by DTV.
DTV sent out thousands of letters asking for the end user to settle out of court for $3500.00. If you ignore the letter, DTV sues you for $10,000.00 and gets a default judgement if you ignore that. Your best bet is to educate yourself (legal-rights.org, excellent place to start) and consult an attorney. A list of experienced attorneys is listed at legal-rights.org who have specifically dealt with these cases.
I think we'd all enjoy a nice cold beverage. -David Letterman
Do I need something other than a PC attached smart card reader and a knowledge of how to send an APDU to the card to unloop it? What is it that makes the "programmer" special?
The term "smart card reader" often confuses those new to smart cards. All "smart card readers" are also "smart card writers" (a term which will give you away as a newbie) in that they can send information to the card and recieve information from it.
Lasers Controlled Games!
A friend of mine was targeted by this lawsuit,
I have placed scans of the 9 page pre-filing
that Directv sent him.
This is really a bad move, I'm hoping someone with some money to burn fights it since it's a DMCA issue.
http://www.chicago2600.net/directv/
Chicago2600.net more than a lifestyle, its a survival trait.
The article made a good point: the people buying this stuff wanted to get good deals. It's not illegal to own one of these (presumably), so there's no problem buying it from some crazy site if the price is right. That doesn't make them stupid, just frugal.
Selling a product for a certain use does not dictate how it will be used. Nor does it limit how it will be used. We don't need DirectTV policing our potential for crime in this way.
Crystal Meth: Would you ingest somthing made from a poisonous gas and an explosive metal? You do it every day -- Salt!
Some are fighting because DirecTV wants an admission of guilt, and some are fighting because they have ordered so much stuff, DirecTV's 'settlement' offer is still in the millions of dollars. Last, a few are fighting because they have the money (Dellionaires) and are fighting on priciple alone. However, for most people, simply paying the $3500 and walking away makes a lot more sense than fighting.
For the record, all of these lawsuits have been thrown out in California, and thrown out in such a way that they cannot be resubmitted by DirecTV. Apparently, the judge was offended by the audacity of the lack of evidence. The people who settled prior to the ruling have filed a class action lawsuit against DTV. One man has won his court case in Michigan (I think that's where) and all the other cases are still pending or have been settled out of court.
-------------------------------------------------
Isn't it "nice" to be living in the US while seeing a steadily increasing move towards arresting/detaining/suing people who "might" commit a crime, instead of actually waiting until they commit it?
And you don't even have to threaten to do so anymore. All you need to do is have the ethnicity/equipment/political affiliation that labels you as someone who "could" commit a crime.
I have an MP3 player at home and MP3's on my PC, so I *MUST* be downloading copyrighted music.
I have a CD Burner in my laptop, so I *MUST* be copying software.
I am not a Republican, so I *MUST* be engaging in sedicious activity.
And alot of people/politicians/companies seem to be jumping on the through crime/preventive detention/suing before the fact bandwagon these days.
Scary indeed.
I was going to buy one of those smartcard programmers to steal free wash and dry in my building's laundry room. But now DirecTV is going to sue me if I do. Damn you!
One line blog. I hear that they're called Twitters now.
But since this is a common misconception:
It actually won't interfere, criminal and civil court are seperate. You can clog up the civil court system with frivilous lawsuits, but the criminal system remains seperate.
Clearly these suits are not designed to go to court; they are designed to get people to turn themselves in and get these devices off the street. US$3500 is too cheap for anybody who really is guilty by intent to take it to court. And the "guilty" probably are the majority of the people who bought from those sites.
Of course the problem is those who are innocent. Courts have shown in the past that if you buy a device like this with the intent to perform a crime, then you are guilty even if you didn't carry through on that crime. And as the sites advertised as such, showing that was your intent is much easier.
However there are very legitimate uses for these devices, just as the article shows, and innocent people will get caught up in this. Just because the site may advertise this device as being useful for cracking DirecTV, I may very well buy it for other purposes if the price was cheap. Think about someone selling hardened-steel axes for $5.00 with the advert "You can chop down your neighbor's door with this!"...but at $5.00 I would probably buy one to cut my firewood. If it's not inherently an illegal device (which smartcard programmers are not) and my intended use was not illegal then I did nothing wrong. My intented use doesn't have to match that of the advertiser.
Until this point I've actually respected DirecTV's anti-piracy approach; mainly by counter-hacking and outsmarting the illegal crackers. But now they are going to snare a lot of innocent folks in an expensive legal trap, and setting a bad example for other corporations to try. The innocent should be able to beat this without too much effort, but it will sadly cost them a lot of money and time to prove their innocence.
I don't know if there is a US law that is complimentary, but in California, there is a law against filing too many frivolous lawsuits called the "vexatious litigant" law. If you are designated a vexatious litigant, you have to get a judge's permission before filing a lawsuit. If you file a lawsuit without a judges permission you are considered in contempt of court and are sent to jail immediately. EFF?
Maybe this qualifies as 'balls'. Next time RTFA, and keep your kneejerk reactions to yourself.
Would an intelligent consumer buy white flour from a cocaine dealer? I think not.
Seems reasonable to me! On the other hand though, I wouldn't buy cocaine from a white flour dealer.
This is an interesting tactic by DirectTV. From the sounds of it, this really isn't that expensive a way for them to not only stop some no-effort hackers from stealing their signal (as we all know, there are many who just won't stop because they are sent a letter like this), and make some revenue at the same time. I mean, if one of their operators makes 1 settlement per month, they have most likely more than paid their salary. Of course, they have to pay the lawyers a bit of money to sign these letters, but most likely not all that much (my guess is that very few of these actually go to trial, that would take money on DirectTV's side of the game as well).
What I'm curious about is if there is any organization of a class action suit against DirectTV, where the class is the people who have been incorrectly identified by DirectTV as pirates? They would most likely be liable for mental anguish and defamation as well (seriouslly, blaming someone for being a pirate could be very damaging to them, especially to buisiness people).
Here's to hopin'
About a year ago our roomate bought a dish networks dish from her cousin that sells and installs the systems. He also sold her a smartcard reader that enabled "all the channels"
My wife seeing "All the channels" kept insisting that we get the same system. I reluctantly agreed to let her do it (I thought our cable was just fine though) How could one go wrong with the setup though? Every channel on direct TV (including playboy =D ) for the price of a basic subsciption.
Well about a month after we got the system we started to have problems. Dish networks sent out a signal that required us to reprogram the card. No problem, just insert the card into the programmer, attatch to computer and run a few things to update it... Cool works again. You could never tell when or where they were going to strike with the "zap signal" again. Sometimes I would come home, flip on the TV and get an error message. Nothing more irritating than having to reprogram your card every time you sit down to watch TV.
Then the zap signals got worse, they didn't just fry the smartcard, they actually fried the flash on the base unit. So we would be without TV for a week or so while we waited for our roomates cousin to come over, take the box apart, put some hokey looking things with pins across the pins of the flash chip and reflash the unit.
She would start the most ill logic fights with me "DON'T WATCH TV WHEN YOU GET HOME OR WE'LL GET ZAPPED!" she would tell me. WTF is it for then if not to watch it? (I don't think it really mattered if I was watching or not, the unit seems to be in a constant on state)
After 4 months of this shit, I finally gave up on the card reader. I set all our cards back to thier defaults and tossed them in my junk pile. I told my wife I better not catch her using it again or I would just rip the entire dishTV system out and there would be NO TV.
Now she won't get rid of the damn thing for the sake of argument. I told her from the get go I didn't really think it was a keen idea, and I think the only reason we're keeping it past the 1 year contract is because she doesn't want to admit it was a stupid purchase.
Well anyways, our roomates cousin sold a lot of these 1 year subscriptions this way. Despite knowing the problems with it, he still continues to use this as a sales device to this day. We've had a number of friends that went for "all the channels" only to come home to a black screen or an error message.
I just think it's irony that they're suing people for buying into their #1 sales hook. Hook line and sinker.
What about anyone who downloaded MAME or one of it's equivalents? Could Nintendo/Sony/Sega/Atari/etc. assume it was intended for piracy and sue under the same grounds?
A goal is a dream with a deadline
The whole premise is wrong in my opinion, I think I should be able to do what I want with things people give to me or leave on my property.
If you are beaming your signals into my property, my house, my body, my kids, etc, I will damn well do what I please with them!
I almost have a duty to intercept them and decode them and make sure they are not harmful in anyway.
If they arrived unsolicited in the physical mail they would be mine to keep by federal law no questions asked.
You don't want me to do anything with them?? Then keep them off my land and out of my body, problem solved.
These are physical radio waves, you are dumping them on my property and I can't do what I want with them?
I dont think so....
Wax on, wax off baby!
according to dictionary.com barratry is defined as:
The offense of persistently instigating lawsuits, typically groundless ones.
has nothing to do wiht the follow-through, just the instigation of groundless lawsuits
I reject your reality
I have the unfortunate distinction of being one of these people that is being sued for purchasing an ISO compliant smart card reader/writer. I'd be more than happy to share any information I have with anyone else being sued, as well as accept any information from anyone else being sued.
No, YOU jackass. The limb you went off on broke. You don't know what you're talking about.
The products sold on those sites are quite superior to regular smart card programmers and are CHEAPER!
Your usual smart card writer suppliers know that most people buying these are buying them using their companies budget so they make the markup higher.
It makes sense (well did until DTV started this crap) to buy from those pirate websites.
Hell some DTV sites (advancedlearningsystems.com) sell actual professional smartcard programmers cheaper than the manufacturer. They buy in bulk and sell individually at cost for their members.
Just FYI, the sites that sell hacking equipment for DirecTV sell "glitchers" and "unloopers". They are devices that work as standard ISO smartcard readers, as well as standard ISO programmers. Nothing wrong there. In fact, many of the sites sell standard programmers for those that want to tinker with it. But to hack a DirecTV card, you need the "glitching" function. Basically, the glitcher will initiate communication with the DirecTV card. It then tells the card it wants to write to the card's memory. At this point, the card goes through a security algorithm. Since no one has found the right keys to hack the DirecTV cards, the glitcher simply cuts it's own power and throws the clock out of phase. It then supplies the normal 5V again. This all happens very quickly, so the security steps are simply skipped. It's obvious that this device is used to circumvent the card's secuirty, hence it's illegal to purchase, own, and use. Convenient for DirecTV, since they don't even have to prove you're stealing their signal. Simply buying one is a crime.
Federal rules of civil procedure, Rule 11
(b) Representations to Court.
By presenting to the court (whether by signing, filing, submitting, or later advocating) a pleading, written motion, or other paper, an attorney or unrepresented party is certifying that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances,--
(1) it is not being presented for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation;
(2) the claims, defenses, and other legal contentions therein are warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law;
(3) the allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery; and
(4) the denials of factual contentions are warranted on the evidence or, if specifically so identified, are reasonably based on a lack of information or belief.
People are too intimidated by lawsuits, and it's a crime that they let companies like DirectTV bully them into forking over a few grand. Of course, it's also pretty awful that to defend themselves against this kind of thing would probably cost $10k+...
In that particular case, the article also notes, the judge ruled that because the letters were sent in connection with litigation, they were subject to legal privilege. The case is currently being appealed. With one exception, the article doesn't note whether the people concerned did anything like writing to DirecTV before taking them to court in the class action suit.
Incidentally, for anyone else who didn't RTFA, there are also mentions of several innocent users who have successfully fought this, amusingly including a guy whom the judge decided was an unlikely culprit, given that he didn't even own a satellite dish.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
Ok, how about this analogy. Duffel bags are a popular item for bank robbers to stash the stolen money in. I'm interested in purchasing a duffel bag for my own non-bank-robbing purposes (and what I use it for is none of your business or anyone else's but my own). So, I go online to look for a good deal and the site I find advertises the duffel bags as "GREAT ASSETS FOR BANK ROBBERY!!!". I buy the bag, I get sued by a bank?
How the site advertises the duffel backs doesn't have a damn thing to do with the legitimacy of my purchase. As long as I stay within the law what I do with my duffel bag is my own business and I'll be damned if I'll let some stupid bank pry their way into my affairs after making assumptions about my purpose. If I rob a bank, then prosecute me. But, until someone breaks the law corporations should have no right to sue, threaten, or otherwise harass consumers.
They are accusing 8700 people and settling for $3500 a piece, which rounds out to $30,450,000 if they get everybody to fold. So people get out of it, but some people end up paying more. Their business model is working. From the article:
...Hughes Electronics reported strong second quarter results, with $2.4 million in revenue, driven by DirecTV's subscriber growth.
Now consider this. If they only get half of the amount they are seeking, $15,225,000, that's still more than five times that quarters reported earnings of $2.4 million.
Just some food for squat.
The cancel button is your friend. Do not hesitate to use it.
DirecTV is even shutting down companies that are not adverstising these devices as piracy devices. The company I purchased a smart card programmer and emulator board from did not advertise in any way shape or form the theft of satellite television. They were shut down after DTV sent in FBI agents undercover to their brick and mortar location and asked them if they could reprogram a smart card for them. The clerk behind the counter said yes and BAMMO..I have recieved both letters and am awaiting a summons.
I have contacted two attorneys who both feel I have a strong case. In fact the emulator board is still sealed in its original plastic, never been opened. I have never stolen DTV or attempted too.
I have been lied to every step of the way by agents of their "End User Development Group" who repeatedly told me that just owning these devices was completely illegal and that federal judges had already ruled that mere possession was illegal. When I explained my legitimate use for these devices I was told that ignorance (i am not makeing this up) is not legal defense in the US. Anyone still feeling sympathetic towards DTV?
Yes, I have been served with papers, and trust me. . . this whole thing sucks.
I was served at work, where i am a unofficial IT guy, with my fellow co-workers looking on as if i were a dangerous criminal. (Embarassing does not even begin to explain the feeling.) My first reaction was, WTF is this? I have never been sued before, i have never been in any kind of trouble before, hell, i have not had a speeding ticket in over 10 years. . . . but low and behold, here was a document stating that i am being sued for $120,000 by a company that i have been a long standing customer with for many years. As i read on, i found out that it was for a Smart Card Programmer. Once again that WTF feeling came back. . . . I purchased this equipment over 2 years ago for a security project that never got off of the ground. A company that i worked for wanted a better way to keep control over who used the company network, i found some info on smart cards, did a search for "smart card programmer" and purchased the cheapest unit i could find. (about $160 if memory serves me correctly), Only to find out that it would not work for what i wanted to do. And now im being sued! And as i said earlier, i am a DTV customer, have been for 6 years. If i were going to hack TV cards, you would think that i would do mine first!
Just to make one thing clear, I am a poor guy, And as a poor guy, there are not many options for me to take. Anyway, i dont want to rant about this, however i believe that it is a great injustice. This is just extortion, plain and simple. I was told that i could settle for $4,500 before i went to court, or $10,000 after the court process had began. Alternatively, i could fight it, and the cheapest lawyer would be on the average of $15,000 by the time it is all over. Obviously, not a "poor boy" option. And since it is a civil case, i am not entitled to a court appointed lawyer. So the only option left for me is to fight it myself. Which, if any of you have ever looked into the paperwork involved in a Federal Civil Case, looks like i have just over a snowball's chance in hell.
So if i go to court and loose, by law, they can take what little i have, and then some. One option that they could take is garnishment, and being that this is a Lawsuit for damages, they could take a chunk of my pay check for the next 25 years! I only make $12 an hour now, and have a wife and 2 kids, so this is not a good thing for a person who is just barely making it. This Lawsuit is designed to crush people like me so that people who have the money to pay the ransom, will do so.
> No question these are pirate devices.
I bought a reader and a number of crypto cards directly from a manufacturer, as part of a Linux SDK kit.
I have never owned a dish system. I have continuously had a cable TV connection in my current resident (close to 10 years), a townhouse oriented in a manner that would make it difficult to set up a dish.
I have been involved in Unix/Linux security systems for a number of years.
I have discussed X.509 certificate authorities countless times in the past, and suggested that crypto cards would be good root certificates for small CAs. (The private key never leaves the cards, when you don't need them you toss them into a safe or safety deposit box, etc.)
Now tell me again where there is any probable cause in my case. I haven't gotten that letter yet, but if I do I'll demand the court award them to compensate me for any and all defense costs because there isn't a shred of probable cause in my case.
To be honest, I was surprised to learn that the dish systems use the same cards I had already purchased for use in experimenting with setting up a PAM module to recognize smart cards - I want something a lot like Solaris where you have to insert the card and enter your passphrase, and when you yank your card out you're automatically logged out. In the long run, it would also be nice to be able to store SSH RSA/DSA keys on the card, etc.
For every complex problem there is an answer that is clear, simple, and wrong. -- H L Mencken
On one hand, I despise litigation like this.
On the other hand, I wish all the people who take broadcast decoding for granted would go to hell.
You see, I would never go to the trouble of using a device to decode scrambled broadcast signals. It's just not the sort of contraption that interests me. I tend to do without entertainment rather than meet such a barrier to its consumption. It's in the same category of "not going to the theatre because the parking lot is too full."
But this DTV thing goes much further than that.
You see, I know PLENTY of people who use a clandestine tv receiver. I've watched them gloat over their cards as if they had found a Willie Mays rookie card in an attic or something. I've seen them setup all kinds of PC contraptions to fake the receiver. Sure, I run in a circle of nerds, students, blacksmiths, musicians, and accountants, so my experience is somewhat skewed -- but still, I've never met ANYBODY who actually pays retail for DTV, yet I know all kinds of people who do the whole card-hacking trick.
From my limited sample, I've deduced that a large number of people get their signals for free.
Because I know this, I would never, ever, buy the service. Wouldn't even consider it. I don't care what it costs. Knowing that a large number of people get it free, and take getting it free for granted, is enough to stop me from any consideration of buying it. As far as doing the card thing, I could care less. If I were going to put that much effort into anything, it would be toward my music gear, not my TV. I'd do without TV first.
So in a way, part of me hopes the plaintiff prevails. I'd be a lot happier if they could come up with a technical solution that works -- because I know the legal solution never will.
Seriously. If I didn't have knowledge that the service was commonly gotten for free, I might take notice of the product. Might even consider buying it. But not in the current situation.
Even if it's worth the price, I'd not voluntarily enter into something that makes me feel like a chump.
-fb Everything not expressly forbidden is now mandatory.
... a gun cannot be qualified as a circumvention device.
:-/
So, you cant be sued for having a gun (and possibly killing a person in the future) -- but you can be sued for having bought a card reader?!?
Oops, almost forgot! Were talking about profits here, not lives!
My bad...
I received a letter. I ignored it. I received the second letter and a form lawsuit complaint with my name filled in. I wrote a response letter. Now we will see what they do, but I can tell you their verbal position was "Pay or we will sue you."
I did quite a bit of reading and luckily, there are quite a few victories against DTV now. I learned the following points which are very important.
1) DTV is suing based only on the purchase of a smart card programmer.
2) DTV never does any additional research to determine whether the named defendant could or is stealing the satellite signal.
3) DTV verbally assures you that purchase and/or possession is enough proof.
4) Every judge so far has disagreed and ruled in favor of the defendant who fights the lawsuit.
5) DTV wins a lot of default judgments because defendants ignore the lawsuit.
6) DTV includes a claim that it can sue you under a federal criminal law. Judges have ruled every time that this is not true and dismiss this claim.
The fact is, DTV is losing in every single case where someone fights it. Why? Because they only have the purchase records for a smart card programmer. This is not enough legally.
As everyone has already said, DTV is setting the settlement amount so that people will settle instead of pay more to an attorney. I personally dispute this conclusion, as many experienced attorneys can now make this go away for a lot less than $3,500.
And lest you think I am just one of those guilty people who wants to fight, I will add a little fact to the details. I live in Europe. That's right. If DTV sues me, they have a little problem proving that I stole their signal because it is completely IMPOSSIBLE! But they have another little problem. Rule 11 of the Federal Rules of Civil Procedure will let me get quite some money if they sue me with such a frivolous lawsuit. Ya see, DTV doesn't know something else about me. I'm a pissed off attorney right now.