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Racketeering Suit Filed Against DirecTV

dki writes "Another attempt is being made to head off the lawsuits DirecTV has been filing against purchasers of smart-card programmers. This time, lawyers have filed suit under the mob-busting Racketeer Influenced and Corrupt Organizations (RICO) federal organized crime statute, accusing DirecTV of organized extortion, money laundering and fraud. Background on the ongoing saga can be found here and here."

18 of 237 comments (clear)

  1. About time! by Brahmastra · · Score: 3, Interesting

    I'm glad someone has had the balls to do this. DirecTV is yet another extortion corporation like SCO. Demanding money to not file a lawsuit seems to be in style these days. Before you realise it, the US government will make it legal for these scumbag corporations to do an anal probe on you and you will have to pay up if you want to avoid being anal probed.

    1. Re:About time! by Popsikle · · Score: 2, Interesting

      I agree, this may set a precedance. If this gets ruled in favor of consumers, where shall the RIAA stand?

  2. DirecTV Subscriber here, this looks bad by whoppers · · Score: 2, Interesting

    Wait a second, can this be good? If this goes bad for DirecTV, I may be forced to watch more of their damned commercials! They already time them on all channels so you can't escape their commercials. On the good side, their menu system beats em all hands down.

  3. Background information links by Anonymous Coward · · Score: 1, Interesting

    Please dont call previous slashdot articles "background information". This is not a news site, the articles are biased and often partially wrong or misleading, sometimes outright frauds.

    Either A) have /. ed's show some actual journalistic skill and integrity, or B) don't cite yourselves as a source for information.

  4. SCO was more careful (so far) by siskbc · · Score: 4, Interesting
    I was just wondering why SCO hasn't been sued under RICO. It's the same type of thing, isn't it?

    So far....not quite. First, SCO hasn't actually approached any customers, though they've blustered that they might. So your first problem is, who's the plaintiff in this theoretical case? Second, they don't offer a settlement, they offer licensing - and amnesty from something (a possible suit) that hasn't even been established yet.

    Yes, it's a fine line, but SCO's dancing it pretty well.

    --

    -Looking for a job as a materials chemist or multivariat

  5. Re:Thanks for bringing up SCO by Anonymous Coward · · Score: 1, Interesting

    For example, the RIAA sent an extortion letter to a professor for having a perfectly legal file on his website, just because the filename looked suspicious

    No, they sent a cease and desist request. DirecTV is mailing out demands for settlement.

    Frankly I dont see how this case can happen legally. If you default on a loan enough, you'll get a letter from the collection agency along with a subpoena, you can either pay up or go to court. In a legal sense, this isn't much different.

  6. Re:Erm..I hate to bring it up, but this is relevan by MO! · · Score: 3, Interesting
    As someone posted above, SCO hasn't actually sent the bills they claim they're going to. Once they actually send invoices to people for something those people never purchased, intended to purchase, or agreed to purchase, then those people can persue legal action. This may include RICO, Mail Fraud, or other charges. The problem is that SCO keeps saying "We're gonna real soon now..." but still hasn't done anything other than talk the talk.

    --
    I AM, therefore I THINK!
  7. They Know They're Crooked Too.. by the_mad_poster · · Score: 5, Interesting
    The company says the number of non-pirates swept into their dragnet is minuscule...

    That's totally fucking irrelevant assuming it's even true.

    If they're hitting ANY non-pirates in their "dragnet", why the hell aren't they checking this stuff out before they send extortion letters?

    So, not only are we supposed to accept that DirecTV is trying to act as both the executive and judicial branches of government by both serving the warrants and imposing a judgement in the form of a 3500.00 "fine", we're also supposed to say it's OK that they're arbitrary shooting is hitting innocent bystanders because they get the right target MOST of the time?

    Jeezisfuckinchrist.... how long until America becomes a completely corporate-run state with a puppet government to speak for it, again?

    --
    Alito: A vote for Alito is a punch in the eye to put that bitch back in her place!
    1. Re:They Know They're Crooked Too.. by the_mad_poster · · Score: 3, Interesting

      You've obviously never been sued....

      Let me explain to you how it works (I'm not being condescending, just making a point):

      You go to court and get a lawyer. The company sends 3. You want to just go up and say "look... I didn't do anything, prove it" knowing they can't prove it.

      The company just keeps throwing out delay tactics while your bills add up. Eventually, you have no choice but to go bankrupt or settle to end the case.

      The company gets money, you get screwed, and they also get a little PR to parade around to the public. If the lawyers are real slick and they finagle a win, they also get the start of a precedent.

      The American justice system at work...

      --
      Alito: A vote for Alito is a punch in the eye to put that bitch back in her place!
  8. new Smart Card by RocketRay · · Score: 5, Interesting

    Last week DirecTV sent me a new Smart Card, saying it was an important update or some such nonsense. But the card has a nasty EULA saying you can't reverse engineer, disassemble, etc. or look at it for too long.

    So the card is sitting next to the box waiting for the old card to stop working. Hasn't yet.

  9. Re:It'll fail... by grunteled · · Score: 5, Interesting

    Except that the basic cost is 8 to 10K to take it to Federal Court, that's if you win. Loose (or get out-motioned) and it could be astronomical. I'm sorry but individually the letters might have merrit but when you take a "threaten everyone and let god sort 'em out" stance with no reguard to the financial harm to innocent people there is something wrong with that. 10K to DTV may be easy to sneer at, but to someone who works for $60,000 a year, the cost to defend an unverified law-rape is pretty staggering.

    The comment that It's just a few innocent people here and there is outrageous to me. One or two people forced into paying $3500 with no evidence they actually stole anything is unacceptable. If that's what the legal system allows for then it does need an awfully big overhaul.

  10. Re:It'll fail... by Anonymous Coward · · Score: 2, Interesting

    Your comment shows lack of understanding. A lawsuit is often very expensive, and can be drawn out very easilier if you have deep pockets. The case may have no merits, but many people may not have the funds to see it to the end.

    Essentially, it's an imbalance of power. A company comes to you and says: pays us or we will take you to court and bankrupt you, even though you are in the right.

    Sounds like: give us money for no reason or we will cause you unjustified pain.

    Sounds like extortion to me.

  11. Those smartcard programmers are a sales hook. by t0qer · · Score: 2, Interesting

    Circa 2001...

    Roomate gets a DirectTV dish installed from her cousin (who coincidentally is an authorized dealer) He gives her a smartcard programmer, software, and everything she needs to reprogram her smartcard. Wife, seeing all the channels roomate has decides (against my judgement) that we should drop our cable for the same deal with "All the channels"

    About a month later, the reciever goes out. Call too roomates cousin, "Oh they sent out a zap signal that fried your boxes firmware, no problem I can reprogram it" He comes over, takes the reciever apart, hooks up some hokey lookin dongle from his laptop, and after a few keypresses tada! It was working again!

    Well, it wasn't just us that got it, my sister and brother in law got one too once they heard about the "free channels"

    Too make a long story short, he had gotten about 10 of our friends and family with the smartcard programmer "hook" After a year of being in this contract with DirectTV we've all dumped our dishes and gone back to cable.

  12. Re:iButton by windex82 · · Score: 2, Interesting

    http://www.ibutton.com/

    and just incase more ppl actually follow in story links then i belive ill mirror some basic info from the site:

    What is an iButton?
    The iButton(R) is a computer chip enclosed in a 16mm stainless steel can. Because of this unique and durable stainless steel can, up-to-date information can travel with a person or object anywhere they go. The steel button can be mounted virtually anywhere because it is rugged enough to withstand harsh environments, indoors or outdoors. It is durable enough to attach to a key fob, ring, watch, or other personal items and used daily for applications such as access control to buildings and computers.

    iButton Components

    The Can and Grommet
    All iButtons use their stainless steel "Can" for their electronic communications interface. Each "Can" has a data contact which is called the "Lid" and a ground contact which is called the "Base". Each of these contacts is connected to the silicon chip inside. The "Lid" is the top of the "Can" and the "Base" forms the sides and the bottom of the "Can" and includes a flange for easily attaching the button to just about anything. The two contacts are separated by a polypropylene grommet.

    The 1-Wire Interface
    By simply touching each of the two contacts you can communicate to any of the iButtons by using our 1-Wire(R) protocol. The 1-Wire interface has two communication speeds. Standard mode at 16kbps and overdrive mode at 142kbps. See App. Note 74 for all 1-Wire Interface details.

    The Address
    Each iButton has a unique and unalterable address that is laser etched onto its chip inside the can. The address can be used as a key or identifier for each iButton.
    2700000095C33108

    From these basics we have expanded the iButton product line into over 20 different products by adding different functionality to the basic button. iButtons come in the following different varieties.

  13. DCMA raids by rufey · · Score: 4, Interesting
    Disclaimer: IANAL

    For those who read the original article in the Register, DirectTV was only going after people who had purchased their SmartCard programmer "from one of the equipment vendors shut down in the DMCA raids".

    The same article (further down) appears suggest that the vendors in the DMCA raids were companies who's primary business was devoted to selling equipment to steal satellite TV programming

    Here's the relevent quote from the article that suggests this: "...how innocent is someone who goes to website that is clearly identified as a pirate website that is devoted to selling equipment to steal satellite TV programming, and orders the equipment, knowing full well what they're getting?"

    Is DirectTV going after people who purchased their SmartCard programmer from other places, or is it still just those consumers who were unfortunate enough to purchase their SmartCard programmer from the wrong company?

    I'm not at all for a company going out and suing people for something in which the person is not guilty, at least without giving the person the benefit of the doubt.

    As I see it, the problem is that DirectTV shut down some companies that, at least in DirectTV opinion, were advertising that their SmartCard programmers, if purchased, could be used to program a SmartCard in such a way as to enable the person to watch free DirectTV. DirectTV then took the customer list from the shut down companies and assumed that everyone who purchased a SmartCard programmer did it for the purpose of stealing satellite TV.

    Now, if you were one of the customers of one of these companies, and you did purchase your SmartCard programmer to steal satellite TV, what are you going to do when DirectTV comes knocking? Are you going to fess up, or are you going to invent a cover story?

    But assuming that everyone obtained their SmartCard reader for illegal purposes (and, hence, creates a cover story when DirectTV comes knocking) is assuming that everyone is guilty, and in DirectTV's case, without the possibility of being proven innocent.

    It really gets me that DirectTV can do this - assume guilt without the possibility of being proven innocent. I thought the US justice system was based on the principle of innocent until proven guilty. Isn't the burden of proof on DirectTV to prove guilt of the defendant?

    1. Re:DCMA raids by JayBlalock · · Score: 2, Interesting
      Is DirectTV going after people who purchased their SmartCard programmer from other places, or is it still just those consumers who were unfortunate enough to purchase their SmartCard programmer from the wrong company?

      Doesn't matter. The simplest defense would be if that pirate vendor had lower prices - the free market in action. (which they often do) If someone's going to sell me a piece of equipment for half of what I'd pay for it in a retail store, as long as I'm reasonably sure the product itself isn't tainted, I'm not going to give much of a damn how he markets the product.

      And beyond that, there's still nothing resembling proof there. I wouldn't even say there's REALISTICALLY probable cause. Now, DirecTV is probably gambling that they can convince the 12 sloped-foreheads in the jury box (selected by the lawyers primarily for their glassy stare) that these Smartcard programmers are ONLY for use stealing their signal. (probably using the bong\"tobacco water pipe" analogy) But to any halfway educated person, it's quite clear the products have many MORE legit purposes than non-legit.

      (for that matter, a good analogy would be this: the government forces High Times magazine to give up their subscriber list, compares that to monitors credit card transaction records, and then arrests every High Time subscriber who has purchased rolling papers. Without bothering to produce actual drugs, since they can likely con a jury into convicting anyway)

      For these suits to proceed, DirecTV needs to prove through perponderance of the evidence that the people in question stole their service. Know what the problem is? They can't. By its very nature, this sort of digital signal piracy is untracable. And whose fault is that? *Theirs.*

      If someone comes up with a business model in which the product can be stolen anonymously, in such quantity that their basic profitability is threatened, then that company has a LOUSY BUSINESS MODEL and deserves to go out of business. Period.

      --
      Bush: He's Liberal in all the wrong ways.
  14. Restricted blanks by El · · Score: 5, Interesting

    I'm amazed that they feel the need to resort to legal tactics to fix what is inherently a technical problem. In fact, it appears analogous to a technical problem solved by lock makers over 100 years ago. Problem: people can easily obtain blank "keys" to fit my device, and modify these keys to use for theft. Solution: go to the makers of the blanks (in this case smart card manufacturers) and have them design a non-standard form factor key for you, and promise not to sell said key to anyone else. Bingo! You've suddenly increased the cost of entry for bootlegging cards from $3500 for an off-the-shelf programmer to several hundred thosand dollars for equipment to design and manufacture custom smart cards. Added benefit: you no longer have to associate with all those lawyers!

    --

    "Freedom means freedom for everybody" -- Dick Cheney

  15. Lawyer fees are the real problem by geekee · · Score: 2, Interesting

    Everyone's blaming DirectTV because it's cheaper to settle the case for $3500 plus your smart card reader, than to hire a lawyer to defend yourself if you're innocent. Shouldn't we be instead placing the blame on the lawyers. There's nothing illegal about offering someone a settlement to avoid litigation, particularly when the evidence is compelling. You don't need to prove someone is guilty beyond a reasonable doubt to file a complaint, only have some reasonable evidence. I don't consider suing someone who bought equipment advertized primarily for reprogramming DirctTV smart cards inherently wrong, because they're more than likely guilty. If they're not, they have the option to defend themselves in court. If they settle instead, that doesn't make it extortion. It's unfortunate that a reasonable settlement fee for a guilty party is less than the cost of defending yourself if you're innocent, but the lawyers are to blame for that, not DirectTV.

    --
    Vote for Pedro