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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.
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!
Don't travel to U.S territories if you're wanted for U.S crimes.
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.
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?
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!
THIS is the danger! Maybe it is less so because technically this theft is illegal in China, too, and he did step onto US soil. But the danger is that things we in the US think of as perfectly legal, like putting up web sites about Tibet's political struggles, or insult the royal family in Thailand, or trade in historical Nazi artifacts, we run the risk of being arrested in one or more countries. And to the extent that the US government demands extradition for things that are illegal here, for acts done in the other countries, those countries might demand similar extradition the other way.
now we need to go OSS in diesel cars
100 million for 12 years in prison... Might be worth it...
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.
If you leave your swash unbuckled can they arrest you for indecent exposure?
There is no right to feel safe thru security vaudeville at the expense of everyone's freedom, privacy and tax money.
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.
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