Man Who Sold $100 Million Worth of Pirated Software Gets 12 Years In Prison
An anonymous reader sends this quote from Bloomberg:
"A Chinese national was sentenced to 12 years in a U.S. prison for selling more than $100 million worth of software pirated from American companies, including Agilent Technologies Inc., from his home in China. Li and his wife, of Chengdu, China, were accused of running a website called 'Crack 99' that sold copies of software for which 'access-control mechanisms had been circumvented, the U.S. said in an unsealed 46-count indictment. The pair was charged with distributing more than 500 copyrighted works to more than 300 buyers in the U.S. and overseas from April 2008 to June 2011. The retail value of the products was more than $100 million, the government said. Li is the first Chinese citizen to be 'apprehended and prosecuted in the U.S. for cybercrimes he engaged in entirely from China,' prosecutors said in court filings."
He should have done the transactions in bitcoin.
Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
THIS is proper use of the copyright laws.
500 copyrighted works to more than 300 buyers in the U.S. and overseas
The retail value of the products was more than $100 million, the government said.
In other words... on average ~$200,000 per product, and ~$333 thousand per buyer
This makes sense, when you are talking about companies like Agilent that sell overpriced products, that retail for probably approximately $500,000
That's why the "pirated $100 million in software" is neither impressive, nor indicating a particularly outrageous pirate.
The outrage, should be the pricing of Enterprise software, not the" inflated retail price " as some sort of metric of the pirate's activity.
Obviously, the buyers weren't willing to pay the price the maker wanted to sell the software at. Therefore, those sales by definition were not worth the retail price.
In simple economic terms... the high price places their product out of demand.
By definition, they're worth what the buyer was willing to pay the pirate for the procureent.
If you're selling a $500,000 software product; going after pirates is not a winning business strategy -- it's figuring out, why the heck you can't pitch your product to legal buyers, and make your desired revenue there. Either the pricing is all wrong, or your marketing or product targetting is all wrong.
A more realistic figure would be software price after it has been discounted by the sales person.. Most (all?) enterprise software is discounted heavily and comes with large ongoing maintenance and support fees.
Of the U.S.A ruling the world as normal. Move along, nothing to care about here.
Let's pretend I host a website that allows you to download hundreds of novels and other works. These are all still under copyright in the USA. But I, and my website, are located in a place where all these works are in the public domain (e.g. Australia, and Russia).
If I then (perhaps I'm a masochist) visit the USA, can I be arrested and charged? Probably not actually.
But, if I suddenly allow you to download novels etc. that are not in the public domain in the country I operate in, I suddenly can be charged in the USA? Even though I never visited that country, nor had any dealings there?
Why the fuck do countries have laws that allow them to prosecute people who are did their criminal activity in another jurisdiction?
HELP MY ACCOUNT HAS BEEN HACKED BY AN ILLIBERAL ART STUDENT SET TO DESTROY THE INTERWEBZ!
per dollar.
standard has been set.
38 seconds for a 10 dollar movie.
so fuck the 5-10 for that... call it a five dollar fine/restitution and people can keep their stuff, even. you know damn well that 100+ million was not recovered.
Don't travel to U.S territories if you're wanted for U.S crimes.
Now, i wonder how many American's will be charged for crimes against the STATE in China, for example, supporting pro Tibet movements... After all, if its good enough for the goose...
Obviously because so many crimes cross international borders. He sold illegal product to US citizens over the internet, and was then dumb enough to make a delivery on US soil. There's no room for outrage here unless you're the kind of edgy guy that thinks anarchy would be cool.
Try reading the Bloomberg story before spouting off.
Without googleing who the fuck are Agilent Technologies Inc.
Wanna buy a shirt?
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Let's pretend I host a website that allows you to download hundreds of novels and other works. These are all still under copyright in the USA. But I, and my website, are located in a place where all these works are in the public domain (e.g. Australia, and Russia). If I then (perhaps I'm a masochist) visit the USA, can I be arrested and charged? Probably not actually.
I would say yeah. They've shown all you have to do to be arrested on entry to America is post a few ill thought tweets.
Wanna buy a shirt?
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If you made $100M (really that, not RIAA funny-math $100M, mind) then that is $100M that the original owners could have made.
Except when you consider that the prices official sources charge are usually much more. People most likely bought software from him because he was selling it at a cheaper price. Would they have bought it otherwise? Who knows? But why should we assume they would have?
Why the fuck do countries have laws that allow them to prosecute people who are did their criminal activity in another jurisdiction?
Because they want to, and because they can. Why wouldn't they want to do so? If you're allowing US residents to download novels from your Russian website, you're causing the US publishers to lose money. Since the US government is a government by the corporations, and for the corporations, obviously they're going to be very interested in shutting you down.
Therefore they will sell at the maximum price they can get maximum profit at. NOT your market price.
Because, as this event shows, there IS NO MARKET, you buy from one mandated sole supplier or GTFO.
That is not a market, unless you're going to accept being able to vote for the party in power makes Soviet Russia a democracy.
If it's legal in your country, they won't extradite you to another country to stand trial. Every time some reporter talks shit about a middle eastern country they start demanding that they be turned over to 'stand trial' for their blasphemy...we haven't turned anyone over yet. A lot of countries won't extradite to the US even if the crimes are illegal, because they know the system is bullshit. Like child support...they know if they extradite the person will just end up in jail for nonpayment, get out a month later, then end up in jail again for not being able to pay all the fines/fees/etc. Rinse/repeat until they die of old age.
Anyway, the US wouldn't be able to arrest you in your situation unless you went there. Then it's fair game on your ass. If you did something particularly bad, they might send people in after you..but they aren't going to do that over some $20 novels. Now if you had sold a joint somewhere....
Because they would probably never get prosecuted there, sometimes because there are no laws, other times because there is no effective system to apply the law, (even international law).
Whilst this tactic is of course open to abuse, and recently has been, it's also good for cases of war crimes etc.
Anyway, I think you're missing the point here; if you are party to/enable a 'crime' to be committed in a certain country, then they can go after you.
Seems fair enough. Remember, ignorance of the law is no defense. If you're doing business across borders, better know what you're doing.
Finally, you really think guy did NOT know what he was risking? He was selling stolen software!
I think there's a big distinction between low touch sales where you do not distinguish the country of your buyer (eg. he's from "the Internet", and you're selling to "the Internet", and high touch sales where you directly deal with every sale and know that you're selling to the US and that it is illegal there. You fall on the latter side even more if you're directly and knowingly communicating with Americans to negotiate the sale.
In the latter case, I think it's perfectly fair to require that you don't break the law in either country, and for the US to have jurisdiction over your activity.
OTOH, if US citizens were to fly to Russia (using your example) to purchase goods or services in a transaction that is entirely legal in Russia, then the US citizens should be the sole ones culpable for breaking any US laws when they return home.
Was this software "worth" $100M in the same way a single MP3 you could buy for $0.99 is "worth" tens of thousands of dollars when it comes to copyright claims?
Liberty in your lifetime
... does US Law apply in China?
Oh, that's right, the US Government believes that US Law applies everywhere in the world.
Stop calling it piracy, damn it. Did he sail the high seas then rape and pillage? No, he sold cracked software. It's called "commercial copyright infringement," but that doesn't sound so sexy, does it?
Every time you call it piracy, you let the corporatists win.
This guy ^
He sold $100m of software that he got for free!.. Well then, he must have $100m, right? No? Only $50k? Well then, he sold $50k of software, learn to math.
100 million for 12 years in prison... Might be worth it...
because they were involved in VICTIMLESS "crime" as defined by the U.S. (totally legal in their origin jurisdiction):
http://sports.espn.go.com/espn/poker/news/story?id=6362238
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aj..NNwfvacU
There are a couple more but most of them related to online poker.
Edward Snowden have chosen to defect to China. He basically recognize the superior human rights of China. The only group of people that defects to China are North Koreans. Therefore USA = North Korea.
This is only like 10 copies of Photoshop in Australia. Give the guy a break!
Why the fuck do countries have laws that allow them to prosecute people who are did their criminal activity in another jurisdiction?
Many EU countries have such laws. Your post is mostly anti-US, but many EU countries assert legal authority over actions that never happened in their countries. I hate to resort to Godwin's Law but it does provide a great example. For instance, in the USA it is quite legal to own and sell Nazi memorabilia. Such violates French law. In fact, if it were up to the French they would prevent everybody in the world from doing this. They've sued Ebay in the past and other companies to force them to not show US listings of such to French citizens. I want to be sure I'm clear here - they don't want French citizens to see US listings intended only for US residents on such transactions. In the past Spain has prosecuted human rights violations that didn't occur in Spanish territory and didn't involve Spanish citizens. These are but a few cases.
The actions in this case are not as clear cut as some might like to think. The perp was engaged in software piracy or violations of copyright. The US government's official position is that software and media piracy is destroying the US economy and putting people out of work. It's an irrational argument, but it's what they say. So crimes like these are viewed as something like direct economic warfare against the USA, hence the overreaction in the penalty, which is meant to serve as a deterrent. Since the perp apparently sold his wares to US citizens, this provided the justification to go after him.
Just as a point of interest, Guam and the Northern Mariana Islands (Saipan is here) have special visa rules that don't apply to most US territories and Chinese citizens with a machine readable passport who fill out certain forms in advance are allowed visa free travel to the Northern Mariana Islands (they cannot travel to Guam without a visa though). Since the perp didn't need a visa to go to Saipan, that made it really easy to trick him into going there.
Why the fuck do countries have laws that allow them to prosecute people who are did their criminal activity in another jurisdiction?
Because criminal 'justice' is a business. From that POV, it is very easy to understand, and you don't waste time on silly sentimental trivialities...
“He’s not deformed, he’s just drunk!”
Ancient Chinese secret, huh?
I live in Belgium and started to drink beer when I was 15-16... Can I go on vacation to USA ? or is it too risky ?
Your signature makes me pro-abortion.
Yeah. I am kinda of edgy. I do kinda think that a bit of anarchy and fucking freedom would be sweet. You know, no fucking laws and shit holding us down! Fuck the man!
Also, we have enough production capability in the world that we could easily be living in a post-scarcity communist society by now. No state, no classes, no government. Just good old fashioned help your neighbor and take only what you need. Don't want to work? Hell if I care, come smoke a joint with me. There's enough to go around even if we all only work just 4 hours a week.
HELP MY ACCOUNT HAS BEEN HACKED BY AN ILLIBERAL ART STUDENT SET TO DESTROY THE INTERWEBZ!
He's not going to last 12 years.
There seems to be a common misconception across this thread about jurisdiction. The US has jurisdiction here because the guy stole (layman's term) from US companies (including my own). It's no different than if the guy had come into my office, taken my computer, and fled to China. Every country I know of follows this principle of law - it's not unique to the US. Luring him to Saipan permitted the DoJ to nab him and take him back to the US for prosecution under our copyright laws.
12 years is undoubtedly a stiff penalty, but it's unlikely that he will serve all of it. The penalty is more of a message to his associates and others like him.
what copyright law is supposed to do.
The Kruger Dunning explains most post on
To my understanding, much of China, including the government use cracked Windows software. A few years ago, this would be unthinkable, now China bows to US laws. What about those street vendors in China who sell knock offs of films and music? Will they fly American Airlines? The upside is China is gradually adopting GNU/Linux. I think their distros are Asianux and Red Flag. Not the best distros, but better than Windows.
"SO we bide our time, waiting for a purer kick to bloom and the future is still bleak, uncertain and beautiful" -GSYBE
No matter how much you dress this up as a piracy charge, hostage taking to secure the extradition of Edward Snowden is still hostage taking.
Saipan (Chinese people, but a U.S. territory)
A Chinese populated island in that part of the world that China doesn't claim to own? Standards in China have really fallen a long way.
How did they find him out?
"Why the fuck do countries have laws that allow them to prosecute people who are did their criminal activity in another jurisdiction?"
For trade reasons. Almost like its a global economy or something.
The Kruger Dunning explains most post on
"anarchy and fucking freedom"
these are mutually exclusive. You can not have both. You should grow up and thing upon that.
"Also, we have enough production capability in the world that we could easily be living in a post-scarcity communist society by now."
THANK. It's more then goods. When the complete supply chain is robotic, then we can consider a completely social economy.
Not Communism. Again, grow up and read up.
And, of course, land will always be a scarcity.
"...even if we all only work just 4 hours a week."
Yes, are work week could be cut in half, although not down to 4 hours yet.
The Kruger Dunning explains most post on
He was arrested in June 2011 by U.S. agents when they lured him to a meeting in Saipan where he believed he was delivering 20 gigabytes of data to the representatives of U.S. businessmen. Saipan, an island in the middle of the Pacific Ocean, is part of the Commonwealth of the Northern Mariana Islands and like the Atlantic island of Puerto Rico is a commonwealth of the U.S., giving American authorities jurisdiction.
No Navy Seals or government conspiracies, just an old fashioned luring operation.
Sig. Sig. Sputnik
Given the Chinese government's peculiar and primitive sense of justice and appropriate penalties for crime I'm surprised he wasn't burned at the stake.
It's really quite a simple choice: Life, Death, or Los Angeles.
This is newsworthy because the crimes occurred outside the US but he was still considered to have broken US law.
Crimes transpire in the jurisdiction the victim was located in at the time of the crime, for a prosecutor to get envolved they need to have jurisdiction and probable cause first. Typically these two requirements are met when a victim asserts jurisdiction and probable cause to the commission of a crime in a complaint filed with a law enforcement office. The prosecutor, of that jurisdiction, then prosecutes the complaint on behalf of the victim, or on behalf of the people of that jurisdiction.
It's my understanding that the people bought the software while on US soil, so the crime would have happened here, wherever the complaint was filed. If you sell pirated software over the internet to someone in China, China and the US both have the right to prosecute you, because the act is presumably criminal in both jurisdictions.
I lived in China for a while, and there's nothing discreet about the availability of pirated media. Every mall has at least one store right out in plain sight which is jammed with music and DVDs, all of which are ripped copies. It's out there in public, and nobody thinks anything about it. If you buy the movies which are currently in theaters, you'll often get to see silhouettes of folks who stand up in front of the camera in the theatre. Software? It's usually about 2 bucks for a disk. Photoshop? Microsoft Office? Windows Server? You name it, it's available for basically nothing. Of course, you have no way of knowing what trojans or viruses are installed along with the software...
There is *no* enforcement of of copyright in China. Now, what makes this case different from most China copyright cases is that that the guy left China, and sold to American agents. If he'd kept it inside China, he'd have been fine.
I'm an individual! Just like everyone else!
That's comically absurd. You know things are bad when he's probably wishing he was tried in the Chinese courts.
We're going to pay 600,000$ to keep this guy locked in a cell for 12 years to say: "Don't Copy That Floppy". Go take a look at the average sentence for egregious violent crimes.
Shameful.
Some countries have laws that child raping and sex tourism is illegal no matter where it is. Im all for that, unfortunatley the USA is nearly always about $ and never about goodness.
Robin Hood was a troublemaker and King Richard wasn't good. Richard was mostly off murdering people in the Middle East for the terrible crime of Having Money While Not Being Christian. He took most of the country's men at arms with him, leading to the decline of law and order in England. He left his brother John to look after this sorry mess, but not before emptying the treasury. So John had no soldiers, an empty armoury and an empty treasury. He was obliged to hire mercenaries, which is always expensive and often just produces better armed bandits. As a result he had to raise a lot of money in a tearing hurry, which is why taxes were high. A consequence of this was fiscal and sometimes open rebellion on the part of his barons, who reacted to the high taxes by paying only under duress. Interestingly this situation led directly to the Magna Carta and modern democracy: arguably John invented democracy as a way of playing his barons off against each other (he could only subdue one at a time, as soon as he moved on to the next barony the last one rebelled again).
Amazing that you read neither what Reschekle wrote, nor what he was replying to.