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Three Arrested For Conspiring To Violate the DMCA

jtcm writes "Three men have been charged with conspiring to violate the Digital Millennium Copyright Act after federal investigators found that they allegedly offered a cracker more than $250,000 to assist with breaking Dish Network's satellite TV encryption scheme: '[Jung] Kwak had two co-conspirators secure the services of a cracker and allegedly reimbursed the unidentified person about $8,500 to buy a specialized and expensive microscope used for reverse engineering smart cards. He also allegedly offered the cracker more than $250,000 if he successfully secured a Nagra card's EPROM (eraseable programmable read-only memory), the guts of the chip that is needed to reverse-engineer Dish Network's encryption.' Kwak owns a company known as Viewtech, which imports and sells Viewsat satellite receiver boxes. Dish Network's latest encryption scheme, dubbed Nagra 3, has not yet been cracked by satellite TV pirates."

8 of 335 comments (clear)

  1. Re:Proprietary algorithms by Idiot+with+a+gun · · Score: 4, Insightful

    Depends on the algorithm involved. Often one way algorithms rely on certain actions being computably inconvenient, not impossible. ElGamel and RSA basically break down to the idea that it's easier to multiply really big primes, than it is to factor the resulting really big composite. But in an embedded situation like a dish network box, they might not have the computational power to outrun a hacker with a desktop, so a bit of obscurity helps in slowing down any attacks. There's a strong chance that it'll be hacked at some point, as witnessed by the fact that they're on Nagra 3, not Nagra 1, but the hope is to hold off any attacks as possible, and make attacks prohibitively expensive.

  2. Re:I agree with the feds on this one by vertinox · · Score: 4, Insightful

    Serves them right, while I'm against the DMCA trying to profit off of someone else's work is not right. They deserve what they get

    Sounds like entrapment to me.

    (I posted this link because it sounds like the Feds did to the cracker the same thing they did to Mr. DeLorean)

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
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  3. Crime depends on who you are... by gillbates · · Score: 4, Insightful

    I'm thinking that if a security researcher had done the same thing, he would not be in jail. Nor would a large corporation.

    But a set top box importer does it, and suddenly it's a federal crime.

    The most troublesome part about this is that engineers routinely reverse engineer the work of others for the sake of creating compatible products - an exemption the DMCA explicitly allows. Perhaps the company wanted to offer a cheaper STB to Dish, and undercut the competition. Or perhaps they planned to sell directly to the black market, engaging in fraud. The act of reverse engineering a component tells us nothing about the company's intentions.

    I mention this because this very thing was done to Lexmark printers a few years ago. Instead of getting arrested, the manufacturer of competing cartridges was sued under the DMCA; the case went all the way to the SCOTUS, and Lexmark lost. It would appear this would set precedent regarding the legality of reverse engineering for the sake of creating interoperable products, but strangely, the FBI seems not to follow precedent. I find it odd that an activity which was legal and sanctioned by the DMCA - and even supported by the Supreme Court, is now interpreted as being illegal according to the very same law.

    If anything, this shows the illegality of an action depends more upon who you are than what you do. Best not to offend our corporate overlords, lest they have the FBI arrest you.

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  4. Re:I agree with the feds on this one by geekoid · · Score: 5, Insightful

    Breaking encryption should never be a crime.

    The satellite companies ahve a very weak business model. It involves sending information into everyoens house. If consumers find another way to view the data in their house, then tough tits for the satellite company.

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  5. Re:Whiskey Tango Foxtrot... by DaveV1.0 · · Score: 4, Insightful

    This is not for interoperability. The goal of this operation was to create smart cards that allowed people to view channels they did not pay for and to allow people who do not have an account to view the channels. The goal was to facilitate theft of service, not interoperability.

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  6. I disagree with the Feds on this one, 100% by Jane+Q.+Public · · Score: 4, Insightful

    The sole purpose of the DMCA Act and its friends was to protect certain particular corporate interests. While you may say that copyright infringers "deserve what they get", the fact is that there are perfeclty legal uses for a device that unscrambles encrypted signals... like time-shifting, for example. Why should you be forced to buy or lease a "DirecTV-approved" DVR, for example, when they would be cheaper on a competitive market?

    When you have competitive markets, you see lower costs, and improved technology. Sure, it leads to companies having their encryption broken, and being forced to re-invent the wheel... which they should be doing anyway. In the long run, it drives improvements in the market and technology.

    The DMCA is detrimental to the economy. The DMCA works to stifle innovation, in AMERICAN markets and for AMERICAN products.

    Protectionist policies, like this one, are seldom a good idea. The free market always did better.

    I am not blaming enforcement for enforcing the law, but it's a bad law. A very bad law.

    1. Re:I disagree with the Feds on this one, 100% by Jane+Q.+Public · · Score: 4, Insightful

      I do not agree.

      That is to say, of course I agree that satellite makes good competition for cable, especially in the rural areas. What I don't agree on is whether the DMCA is or was necessary to keep the satellite companies around.

      Back in the day, not so long ago, when it was not very difficult to bypass the scrambling of a satellite signal, only a small fraction of customers were actually doing so. There were even articles in mainstream electronics magazines on how to unscramble satellite... yet the number of people doing it remained at a tiny percentage. Yet even that small percentage made the satellite companies furious.

      Yet they continued to grow and be very profitable. Unscrambling did not stop them or even slow them down. Dishes and receivers continued to get cheaper. And satellite programming slowly but steadily continued to get more expensive (just like cable).

      I am not convinced that unscramblers harmed the satellite companies in any significant way. Now, they did have to do research... I remember for example when the Videocypher systems were replaced with Videocypher IIs. The satellite companies were trying to beat those darned hackers. And for the most part they kept ahead of the game. The number of people cracking the system were kept small, the satellite companies still continued to profit and grow, and satellite programs still slowly but steadily continued to get more expensive...

      Personally, I believe that the reverse-engineers kept the industry on its toes, and HELPED, rather than hindered, its progress.

      What has the DMCA done for the consumer? It is just as illegal to unscramble a cable signal as it is to unscramble a satellite signal. Now you are forced to buy equipment that is all "compatible" with a particular version of the satellite company's hardware (your DVR, for instance). You have to pay their prices for it. You do NOT have a choice. Today you can't for example, just get one kind of DVR and use it with either cable or satellite... you need a different one for each. You can't use one kind of unscrambler (adapter box) with either cable or satellite... you should be able to use a satellite receiver, and a separate decoder for both. But no. Duplication of hardware, and replication of similar technologies, all the way around.

      How is this efficient? How has that kept prices down? Hint: it hasn't.

      So now we have had some perfectly legal and very educational hobbies (building descrambler projects for fun) turned into crimes... and our prices are NOT lower, our products are NOT cheaper, our products do NOT interoperate...

      The free market did it better.

  7. Re:I agree with the feds on this one by fishbowl · · Score: 5, Insightful

    >And if I find a way to get into your car that you parked on a public street and drive it away, tough tits for you.

    What if I find a way to make use of the constant stream of cars that you put in my living room?

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    -fb Everything not expressly forbidden is now mandatory.