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Man Gets 7 Years for Software Piracy

mytrip writes to mention a C|Net article about the largest sentence for software piracy ever handed down by a U.S. court. Nathan Peterson of Los Angeles has been levied with an enormous fine after selling millions of dollars worth of software between 2003 and 2005. "U.S. District Court Judge T.S. Ellis III on Friday ordered Peterson to pay restitution of more than $5.4 million. Peterson pleaded guilty in December in Alexandria, Va., to two counts of copyright infringement for illegally copying and selling more than $20 million in software. Justice Department and industry officials called the case one of the largest involving Internet software piracy ever prosecuted. "

3 of 296 comments (clear)

  1. Worse yet... by TheOtherChimeraTwin · · Score: 5, Informative

    ... his website ibackups.net has been defaced.

    (serves him right)

  2. Re: Especially since by UncleRage · · Score: 4, Informative

    Actually, having worked in a pawn shop in my younger years, I feel forced to chime in here.

    Most states have extremely strict laws regarding the pawn trade; and most pawn shops today are extremely careful concerning their business practices.

    Pawn shops in Florida (as an example) are highly regulated and are required to work with both state and local authorities. Forms (including make, model and serial numbers) of merchandise are filled out in triplicate and provided to the local police. When make, model and serial are not applicable (as in the case of jewelry), exact measurements (in both carat and composition) of stones and and metals are recorded as is a precise description of said piece. All of the above are matched against local and state stolen item reports on a weekly to monthly basis. (I use Florida as my example, as that is the state in which I worked; I gladly tie that in with others, as the National Pawnbrokers Association allowed me the opportunity to meet and speak with pawnbrokers from all over the country -- 99% of which followed the same practices).

    Often, in the case of theft, the Pawn Shop owner is the one that actually loses out in the case of stolen merchandise; as the property is then pulled into state custody as evidence and eventually returned to its owner.

    The pawn trade itself is, by and large, nothing more than a lending mechanism for the lower (to lower-middle class) establishment. Afterall, please tell me a single bank that's going to loan Bob Whoever a c-note to cover his insurance payment while waiting for a drywall job to pay up. Granted, it charges a higher interest rate, but even that is regulated in most states.

    I might suggest you take a look at the business models of both Cash America and Value Pawn as an example of how the industry has changed. Personally, I think the indy shop has more in the way of value for the lendee, but I mention them only to counter the "dark and stinky" shop notion that seems to surround the pawn industry.

    So, if you want to cite a comparison between immoral activities (such as the active sale of pirated software and something else), why not point the finger at professional lobyists, criminal defense lawyers and/or telemarketing firms?

    --
    #SickNotWeak
  3. Re:Wait... by Toby_Tyke · · Score: 4, Informative

    Well, as I understand it, (although it's not made fantastically clear in TFA, so I could be wrong) the $20 million figure is the market value of the software he sold, not the amount he sold it for. So say Program X sells for $400 in PC World, and our guy sells 50,000 pirate copies for $50 each, that would be software with a value of $20 million, but he only made $2,500,000. That's the standard way the softwre industry* produces figures for piracy, using the amount it would have sold for legitimatly.

    *Actually, every industry in any way affected by piracy/counterfeit goods does exactly the same thing.

    --
    "I realise this is not a very popular opinion but it's the truth, and there for needs to be said" -Bill Hicks