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Man Gets 6 Years for Software Piracy

smooth wombat writes "In what prosecutors are calling 'the ultimate case', a Florida man has been sentenced to six years in prison for selling illegal copies of computer programs. From the article: 'Danny Ferrer, of Lakeland, Fla., pleaded guilty in June to conspiracy and copyright infringement charges after an FBI investigation of his Web site, BuysUSA.com. Ferrer also was ordered to pay more than $4.1 million in restitution to software makers Adobe Systems Inc., Autodesk, and Macromedia Inc.' The judge ordered that items he bought with the money, including airplanes, a Lamborghini and other cars, be sold off to pay for the restitution."

32 of 321 comments (clear)

  1. easy way out by JackBuckley · · Score: 5, Funny

    He should've just wiped his hard drive, and presto! no evidence. Oh, wait...

    1. Re:easy way out by whois_drek · · Score: 5, Funny

      You know, I'm going to invent a formula for getting modded higher. It'll be something along the lines of:

      1. Read popular story
      2. Read new story
      3. Make some humorously ironic comment on the current story based on newly-gained group knowledge from previous story.
      4. Add optional Soviet Russia joke, Overlord welcome, or "Oh, wait..." sentence fragment at end.
      5. Profit!!!

      So that formula is my invention. Please sign the following NDA with prior-invention clause below...

    2. Re:easy way out by Anonymous Coward · · Score: 4, Funny

      1. Read popular story
      2. Read new story
      3. Read humorously ironic comment on the current story based on newly-gained group knowledge from previous story with added optional Soviet Russia joke, Overlord welcome, or "Oh, wait..." sentence fragment at end.
      4. Respond with underpant gnomes formula list with optional "???" step.
      5. ???
      6. Profit!!!

      Patent infringed! You'll never catch me! I'm anonymous! HAHAH!

    3. Re:easy way out by Harker · · Score: 4, Funny
      1. Read popular story
      2. Read new story
      3. Make some humorously ironic comment on the current story based on newly-gained group knowledge from previous story.
      4. Add optional Soviet Russia joke, Overlord welcome, or "Oh, wait..." sentence fragment at end.
      5. Profit!!!


      You left a step out, if you plan to profit.

      5. Patent the idea
      6. Sue anybody who tries to use it.
      7. Profit!!!

      H.
      --
      When VCR's are outlawed, only outlaws will have VCR's.
  2. Wow... by Anonymous Coward · · Score: 4, Interesting

    I can understand the steep financial penalty, but 6 years seems awfully harsh for a crime where no one was physically harmed.

    1. Re:Wow... by Burlap · · Score: 4, Insightful

      I dissagree. In the VAST majority of fraud cases the fine is peanuts compaired to what was actually taken, he can serve his 6 years and still come out a rich man.

    2. Re:Wow... by ackthpt · · Score: 5, Insightful

      I can understand the steep financial penalty, but 6 years seems awfully harsh for a crime where no one was physically harmed.

      I'm certain the victims of Michael Milken and the Enron brass see things differently.

      dear, we've got alpo or ken-l-ration for dinner tonight

      --

      A feeling of having made the same mistake before: Deja Foobar
    3. Re:Wow... by legoburner · · Score: 4, Informative
      Ferrer bought numerous airplanes, a fighter-jet simulator, a Lamborghini, a Hummer and other luxury vehicles with his profits.


      Judging by the amount he got from this, he was not exactly small fry. Who knows what lengths he went to protecting an illicit business of that size. Certainly a sizeable chunk of change was diverted from normal streams and a fine and a slap on the wrist for him would probably not be too much discouragement for other people in similar situations who are watching his case.
    4. Re:Wow... by 955301 · · Score: 3, Funny


      I don't know, seeing a fat balding italian guy in a Lamborghini hurts my eyes...

      --
      You are checking your backups, aren't you?
    5. Re:Wow... by rolfwind · · Score: 4, Funny

      The damage must be severe, that's a Hummer, not a Lamborghini!

    6. Re:Wow... by lixee · · Score: 4, Funny

      Correction: Rich analy-raped man!

      --
      Res publica non dominetur
    7. Re:Wow... by j-turkey · · Score: 5, Insightful
      I also disagree. 6 years is nothing. He should've gotten more. All jail terms in this country are too piddly. Murders and Rapists should instantly get life, instead of these crappy plea deals, and early parroll.

      It sounds like you've never worked in corrections. Ever stepped foot inside of an American correctional facility? 6 years in a Florida prison is decidedly not 'nothing'. My company contracts with the FL DOC and a day in one of those facilities would be too much for me.

      Also remember that once a felon, always a felon. A convicted felon has major obstacles in housing, employment, etc for the rest of their life. I'm not saying that I have a better way, but lock 'em up and throw away the keys isn't any kind of solution. After spending 6 years in the pokey, this gentleman will have a very difficult time re-entering society.

      Finally, the law is simply not black-and-white. Dealing in absolutes is a frightening thing, and most judges tend to understand this (fortunately). Prosecutors tend to go for the maximum available sentence. Imagine getting into a bar fight and by way of a freak accident, you kill a man with a single punch. Do you think that you deserve to get locked up for life? What about for a consentual sex act and your partner changes their mind about it after the fact and presses charges? Does that justify rotting away in prison for the rest of your life?

      While I think that our justice system is flawed, I can't think of a better way. However, the absolute and totalitarian justice system that you envision is pretty frightening to me. I'm sure glad that's not the country that we live in.

      --

      -Turkey

    8. Re:Wow... by jahudabudy · · Score: 5, Interesting

      j-turkey: Imagine getting into a bar fight and by way of a freak accident, you kill a man with a single punch. Do you think that you deserve to get locked up for life? What about for a consentual sex act and your partner changes their mind about it after the fact and presses charges?

      neonprimetime: What if, what if, what if. Don't put yourself in those positions and you wouldn't have to worry about it.

      Let's see, your advice is to NOT get into the position where you are drinking at bars and having sex with women. j-turkey is worried about "accidentally" killing a man with a single punch when shit goes down. Yeah, I think I'm gonna go hang out with j-turkey.

      --
      ...sometimes, in order to hurt someone very badly, you have to tell that person terrible lies. - PA
    9. Re:Wow... by slackmaster2000 · · Score: 4, Insightful

      Or imagine that you accidentally illegally sold enough software to buy yourself an airplane and a Lamborghini, do you really deserve to be locked up for six years?

      This was a deliberate, willful act, showing complete disregard for personal responsibility within our society. Not only did he take advantage of corporations, but no doubt thousands of people who didn't know that the software they purchased was not legitimate. I know it sounds strange to those of us "in the know", but many of my collegues and friends have asked me over the years about these amazing deals they've found on software. I would also imagine that this person was a heavy spammer, in which case he played a role in the ongoing destruction of a communication system that was at one time simple, cheap, and beneficial to all.

      While the rest of us scratch it out at real jobs or run our own legitimate businesses, driving around in Honda Civics and trying to stay ahead of the bills, this guy was essentially living it up.

      I agree that our justice system is extremely flawed, but it's the only one we've got. Until it is fixed, we still have to maintain a system in which people are punished for their crimes. Six years sounds pretty hard, even considering the actual amount of time he'll problably spend is much less. I'm not sure what a better solution would be though. Six years of hardcore community service? Well, if I was the type of person with low enough ethics to consider making millions of dollars illegally, I might feel a little better about pursuing the action if I knew that I probably wouldn't serve any time behind bars. Sure it would suck to sell off my Hummer, my Lamborghini, my personal airplanes, and my fighter-jet simulator to pay restitution, but somehow I don't see that stopping me.

      If he had stopped at paying off his wife's medical bills, I would feel more compassion, and the legal system probably would have too. The one shining bright spot of our system is that it is designed to consider each case individually. I'm very much against three strike systems and ridiculously high minimum sentences.

  3. Good! by boatofcar · · Score: 5, Insightful

    It's one thing downloading software illegally online, but charging others for it brings things down to a whole new level, whether it be Office or the NES famiclone knockoffs.

    1. Re:Good! by grammar+fascist · · Score: 4, Funny

      I especially don't feel sorry for him if he's the type that sends out those !!!DISCOUNT SOFFTWARE!!! spams. Those alone ought to be worth a couple of years.

      --
      I got my Linux laptop at System76.
  4. The worst part of his dastardly deed by Anonymous Coward · · Score: 5, Funny

    He was charging suckers for this pirate software and not even providing the courtesy of an nfo.

    Good riddance.

  5. I don't understand by Durrill · · Score: 3, Interesting

    Why couldn't he just operate his business outside the country? If he was making millions, he could have easily ran his business from any corner of the planet.

    --
    If i wanted to hear bullshit, i'd go to church.
  6. archve.org link by yahyamf · · Score: 5, Interesting
    Archve.org link before the site was taken over by the FBI

  7. Good by jhembruff · · Score: 5, Insightful

    This is the kind of thing that we should be cracking down on, the commercial pirates, not teenagers and old ladies who download a song or two.

    This guy is driving exotic cars and ripping off people at both sides, the companies who actually create the stuff, and the unsuspecting comsumer (read: idiot) who paid for this stuff thinking he was getting a good deal, and winds up getting screwed (not that you can really sympathize with anyone dumb enough to fall for this, but I guess greed overcomes common sense).

    1. Re:Good by nine-times · · Score: 5, Insightful

      This is the kind of thing that we should be cracking down on, the commercial pirates, not teenagers and old ladies who download a song or two.

      Well, yeah. This is what copyright law was actually intended to do-- stop publishers from making money by undercutting the people who invested their own time and money to bring something to market. The other stuff is just an abuse of the law.

    2. Re:Good by patrixmyth · · Score: 3, Insightful

      First, this is not a claim as to the legality of file sharing. It's illegal. No doubt about it, and there are real penalties if you are prosecuted. That debate is over. My comment is that a reasonable and sane approach would be that we prosecute people who profit by SELLING other people intellectual property (You down with OPIP?), but that we treat unauthorized USE of OPIP as a civil affair, where the owner is free to pursue compensation from the courts for their products that were inappropriately acquired, and we treat the SHARING of OPIP as an infraction, where the perpetrator is fined on an escalating scale as they are cited for the action, but are not given a bill equal to the price of the IP owner's retirement dream home. This would make sharing OPIP akin to speeding, where we discourage it, but recognize that it will continue to happen at some scale and may actually serve some useful function in society. This principally applies to IP that functions as a tool. When it comes to movies or music, then I think that's a more complicated (and less important) issue. I advocate this approach whenever possible and try to put it out there so that people who agree with it can talk it up, as well. Consumers will never have the lobbying power that corporations have, but we do have the numbers on our side.

      --
      "Don't you know you're going to shock the monkey?"- Peter Gabriel
  8. Now there's one business model... by MarkusQ · · Score: 5, Funny

    Now there's one business model that certainly could have benefited from picking FOSS.

    Hey, here's an idea: maybe we should push this as counter-FUD:

    Man sentenced to six years for picking proprietary software
    Intrinsic risks of "poison pill" licenses overlooked by many

    It's just a thought.

    --MarkusQ

  9. Are Financial Crimes Victimless? by nick_davison · · Score: 5, Insightful

    I can understand the steep financial penalty, but 6 years seems awfully harsh for a crime where no one was physically harmed.

    By that definition, the Enron board, the WorldCom board and all others who cause purely financial damages should be given light sentences.

    Noble ideals aside, in a monetized society, money does become essential: Without it, you don't get to eat, don't get health insurance, lose your home, etc.

    This guy made enough he could buy sportscars, planes, the works. Even if you just look at the $4.1m restitution, that's a lot of salaries Adobe, Macromedia and Autodesk could have paid. It's easy to dismiss it as "Oh well, they're big companies, no harm, no foul." but it becomes much more of an issue when they cut the job of a guy whose health insurance got his daughter treatment for cancer.

    So, yes, there's no easy direct link to physical harm caused. But the trickle down effect, just like the Enron and Worldcom guys wiping out people's retirements, may well be far more dramatic overall than a single assault. Given that you can't track down every indirect result, all you can do is look at the quantity of money, get a feel for the effects the fraudulent reappropriation of that likely had, and then accept that increasing dollar amounts can be translated in to just as increasing "likelihood" of physical harm.

    Is say physical assualt bad? Absolutely. And whilst worse for one person, I'm not convinced the overall suffering is actually worse than say ten guys facing the gnawing fear of layoffs, ten wives dealing with losing their homes they poured their souls in to, ten kids having to deal with daddy suddenly being unemployed and having to move away from friends and ten families living with the risk of no medical insurance.

    1. Re:Are Financial Crimes Victimless? by shark72 · · Score: 4, Interesting

      "This guy made enough he could buy sportscars, planes, the works. Even if you just look at the $4.1m restitution, that's a lot of salaries Adobe, Macromedia and Autodesk could have paid. It's easy to dismiss it as "Oh well, they're big companies, no harm, no foul." but it becomes much more of an issue when they cut the job of a guy whose health insurance got his daughter treatment for cancer."

      Very well put.

      A common Slashdot response to the piracy issue is "the person wouldn't have bought the legitimate copy anyway." In this case, the guy was selling copies of $649 software for $99. This is roughly comparable to the discount that allofmp3.com offers on music, and many people defend their allofmp3.com use because they cannot afford to pay $1 / track. Just like allofmp3.com, this fellow was able to sell $649 software for $99 because he did not need to worry about paying the rightsholders. Unfortunately, lots of people would disagree with you about actual harm to Adobe, et al.

      I suspect that if this were a story about music piracy, the guys writing "They're big companies, no harm, no foul" would be the ones with the 5, Insightful ratings, where you'd be marked down as a troll and likely accused of astroturfing.

      --
      Sitting in my day care, the art is decopainted.
    2. Re:Are Financial Crimes Victimless? by shark72 · · Score: 3, Insightful

      "Well, allofmp3.com is not breaking any law. They are compliant with all US laws and all Russian laws."

      Another poster addressed this claim; however, whether something is illegal or not does not necessarily make it right. The fellow in Florida would be no more or less right or wrong in what he did if it were illegal to, say, sell pirated software in Florida.

      "Just because you think allofmp3 should be illegal does not mean it is."

      ...I said no such thing...

      "Your lies about the $1 a track not being affordable is not a correct statement."

      Oh, by all means, I can certainly afford a buck a song. Stick around Slashdot long enough and you'll find plenty of people who claim that they cannot. High prices are a common justification around here for using P2P or the Russian sites. Sad, but true.

      "allofmp3.com is the only place I know where you can legally download (legal if you are in Russia, questionable legality if you are in the US, though that has never been decided in court) non-DRM files in a variety of formats, including lossless."

      Above, you said that allofmp3.com is compliant with all US laws; here you are saying it is of questionable legality. Can you clarify? At any rate, if you want some good, cheap DRM-free music available in more formats than iTMS offers you, check out emusic.com and Magnatune. And unlike allofmp3, they pay the artists and there's no "questionable legality" to fret over.

      "Since you can't see the difference between that and someone that knowingly breaks copyright, fraud and other laws (wait until the IRS gets a hold of him) with the intent to profit at the expense of the company he is imitating and the people he lies to while selling his fraudulent product, then you are a nutjob no more logical than people that illegally copy music and clam it is legal or a moral imperative or such."

      I think you've nailed it, Einstein. Any other words you want to put into my mouth? Any more straw men you want to build today?

      --
      Sitting in my day care, the art is decopainted.
  10. Breaking news... by Mayhem178 · · Score: 3, Insightful

    Man thrown into prison for breaking the law. Stay tuned for more developments.

    --

    "You will pay for your lack of vision..." - Emperor Palpatine to Ray Charles

  11. How many adobe acrobats in a Limborghini? by nizo · · Score: 4, Insightful
    The judge ordered that items he bought with the money, including airplanes, a Lamborghini and other cars, be sold off to pay for the restitution.


    I wonder how many adobe acrobat software packages you have to sell to pay for a Lamborghini? I mean seriously, this guy was making piles of money:


    Ferrer's Web site began selling software in 2002 and was shut down by the FBI in October 2005, authorities said. Prosecutors said the illegal sales cost the software companies as much as $20 million, but industry officials say the amount could be higher.


    How exactly were these numbers computed?? This is all going back to the dead horse "but people wouldn't have bought the package if it was too expensive" argument; figuring the losses as each unit sold being a loss is absurd.

  12. Straight from the buysusa user agreement! by jdc180 · · Score: 3, Interesting

    I wonder just what this guy was smoking when he did this. Did he honestly believe he could hide behind this UA?

    7a: You are not permitted to duplicate or illegally distribute any product purchased from Buysusa. You agree to abide by the End User License Agreement contained within those products. You assume full responsibility for complying with all copyright laws. All products offered by Buysusa are fully compliant with sec. 117 of the US copyright laws. Buysusa reserves the right to refuse any customer for any reason. You understand that in order for Buysusa to make you a copy (OEM) of any software, you acknowledge that you are the legal owner of this same software, and are looking to just make a new copy (OEM) for archival (backup) purposes only. You also agree to destroy all copies of the software in the event it is ever no longer voluntarily in your possession. You understand that only the licensed owner (with a valid serial number, where applicable) of the various software found on Buysusa may use the services located here. You also acknowledge that the software you have was obtained legally and that you have the legal right to request this backup (oem) copy to be made. If you obtained your version though any other means, including any pirated versions, or if you do not already legally own the same version of the software requested, then you may not use this service. you also agree to hold Buysusa harmless for any damages that may occur for your failure to follow the U.S. Copyright and other laws as they pertain to the backup (OEM software) you are requesting. When you purchase any backup (oem) copy of software through Buysusa, you agree to assume full liability in the event your actions are deemed illegal. Buysusa does not condone software piracy and has every intention of complying with the laws pertaining to the duplication of software. By placing an order for software, you declare and warrant that you are provided all material on an "AS IS" basis, and Buysusa makes no representation or warranties of any kind. All title and intellectual property rights remain those of the respective content owner and any intellectual property protected by laws and treaties, without grant or rights to use, and not to copy or print. Any such documentation, serial number, activation services or material that is accompanying any software or document is provided by Buysusa only as documentation or to ease installation in the event your originals are lost, with no basis of value. The laws of the State of Florida will govern this agreement.

  13. He's got a criminal record, apparently by MyDixieWrecked · · Score: 3, Interesting

    http://www.polksheriff.org/cgi-bin/i080914?book=20 01020912

    that appears to be him... complete with mugshot and everything.

    --



    ...spike
    Ewwwwww, coconut...
  14. Re:I beg your pardon.. by kahrytan · · Score: 3, Funny


    He should have bought gold and burried it in his parent's backyard. And lived in a shanty apt.

    --
    \
  15. Re:Are Piracy Crimes Victimless? by shark72 · · Score: 3, Insightful

    I don't normally respond to ACs, but this is a great question:

    "Clear this up for me. How can people who can afford a computer (usually a nice on), supplies (CDs, DVDs, Scanners), and a broadband connection not be able to afford music, movies, software, games, or books?"

    They can afford them, of course. They simply choose not to buy the stuff legimately.

    We humans have a great capacity for rationalization. "I use [ P2P | allofmp3.com ] because buying CDs or from the iTMS is too expensive!" removes them a bit from the implications of piracy -- you see, they have no choice, because the real deal is simply priced too high. I take a more pragmatic approach; if you'd rather keep that $1 in your pocket by using P2P, then just say that it is so.

    --
    Sitting in my day care, the art is decopainted.