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1996 Economic Espionage Act and DirectTV 324

Pharmboy writes "The Register reports a 19 year old will plead guilty to the 1996 Economic Espionage Act for giving away DirectTV secrets, even though they admit he did not pirate the service or profit from the theft." See our original story on this case.
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1996 Economic Espionage Act and DirectTV

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  • by Bearded Pear Shaped ( 665665 ) <nerves&gmx,net> on Friday April 25, 2003 @11:21AM (#5808404)
    Yes gentlemen
    Thank you all for coming here today
    The bidding for these DIRECTV SECRETS
    Will begin at

    ONE MILLION DOLLARS

    MUAH HA HA HA

    No, spice network is extra.
    • Secret 1: There's nothing on, ever
      Secret 2: The history channel is concerned with the history of hitler, the occult, UFOs and the secrets of the pyramids only
      Secret 3: You're fat
      Secret 4: There's still nothing on
      • > Secret 2: The history channel is concerned with the history of hitler, the occult, UFOs and the secrets of the pyramids only

        No, that's the science channel!

        *sigh*... remember when the "science" channels showed science?

        What the fuck's next, Discovery? You gonna give that douchebag from the cold-reading "crossing over" some air time too?

      • Secret 2: The history channel is concerned with the history of hitler, the occult, UFOs and the secrets of the pyramids only

        But they all share the same history. (i.e. Hitler being sent back in time by Nazi sorcerers, and building the pyramids with the help of aliens in UFOs)
  • hmmmm... (Score:2, Funny)

    by Anonymous Coward
    How can I blash Bush or Ashcroft for a bad law passed during Clinton's time as president?

    Oh, fuck it, I'm a liberal and I'll blast Bush anyway for an isolated case of judicial abuse! It doesn't have to make sense!!!

    • A group of ppl. trying to justify their moral/religious convictions as laws, will always create problems, be they democrtats/republicans or any-one for that matter.
    • Passed and not enforced without specific Justice Department permission during the Clinton years.

      Blatantly misused as a sledgehammer to try and "shock and awe" the satellite TV community now.

      If it still don't make sense, then you're not paying attention. Of course, I'm still not sure what blash is.

      • by Mr. Underbridge ( 666784 ) on Friday April 25, 2003 @01:01PM (#5809246)
        Blatantly misused as a sledgehammer to try and "shock and awe" the satellite TV community now.

        I fully expected to read the article and find out that the kid had just cleverly reverse-engineered stuff as a hobby, making him a poor persecuted martyr. I really did.

        But, that perception was WRONG. This kid had access to sensitive trade secrets. I see absolutely nothing defensible that he did. I would love if someone would explain to me how it should be perfectly OK to steal trade secrets and publish them. I suggest starting with the always persuasive "patents, copyrights, and secrets want to be FREE" argument.

        So I'm waiting for the "misuse" argument. To me, the fact that they only went after a kid who really is a thief gives them credibility.

        Honestly, I would love to hear from someone who actually read the article and feels otherwise.

    • Re:hmmmm... (Score:4, Interesting)

      by grumpygrodyguy ( 603716 ) on Friday April 25, 2003 @11:38AM (#5808553)
      How can I blash Bush or Ashcroft for a bad law passed during Clinton's time as president?

      No no, back up. In Clinton's days these laws were a lot like marijuana statutes. They were very rarely enforced, and when they were it ammounted to a slap on the wrist.

      Now that George W. Orwell and friends are in charge, these laws have been convoluted into a completely different picture. Now any kind of intellectual curiousity is treated like a "bad taillight" in which a cop can harrass you for being what you are. Intellectuals, the middle-class, and computer professionals are the last demographic republicans want to hear from.

      The internet is a threat to any regime whose existence depends on the falsification of information. The funny thing is, so many Slashdotters here claim to be republican. They're either scared shitless over losing thier jobs, so they say "hiel hitler!" I don't need healthcare, I like working 70 hrs a week, I like living with my parents. Or they are the .0001 percent of the population who are so smart that they don't have to worry about being fired. Sadly they've never had the chance to learn about compassion, or being human.
      • Re:hmmmm... (Score:3, Insightful)

        by Alidar ( 655471 )
        If they were passed with no intention of being enforced, what was the point?

        What is worse saying "I'll pretend to believe this and do nothing about it" or "I'll follow the laws that are on the books regardless."?

        As far as the rest, I hate to break it to you but the Federal Government was not supposed to guarantee anything close to free healthcare and mandated work weeks and wages. The US was not founded with the idea that "everyone is free because we will give everyone everything they need" it was fou
      • Intellectuals, the middle-class, and computer professionals are the last demographic republicans want to hear from.

        These are the last demographic that *anyone* wants to hear from.

        Look around you: most Americans could give a shit about the Constitution or personal rights. Most Americans rejoice when their elected representatives pass laws blatantly violating the Constitution, because it makes them feel like they have some measure of power over their neighbors. They'll trade liberty for the illusion of
  • The Register reports a 19 year old will plead guilty to the 1996 Economic Espionage Act for giving away DirectTV secrets, even though they admit he did not pirate the service or profit from the theft.


    But, he put out information for anyone to read that he knew others could profit from illegally. And they did. Regardless of wheter or not he meant for people to use it illegally, he knew it was illegal to release the information. Therefore, he should go to jail. End of story.
    • by TopShelf ( 92521 ) on Friday April 25, 2003 @11:32AM (#5808503) Homepage Journal
      This is about as straightforward a case of corporate espionage as you're going to see - the guy made CD-ROM's of digitized documents and emailed them out to the "underground." Good luck with the goatse.cx, kid.
    • by pubjames ( 468013 ) on Friday April 25, 2003 @11:43AM (#5808595)
      But, he put out information for anyone to read that he knew others could profit from illegally. And they did. Regardless of wheter or not he meant for people to use it illegally, he knew it was illegal to release the information. Therefore, he should go to jail. End of story.

      It isn't quite as simple as you make out. It is true that he has released information in an illegal manner. And he did so knowing that others might use the information to profit illegally. But he shouldn't go to jail for that. Let's burn him! I'll start the chant! Burn him! Burn him! Come on everyone, join in! Burn him! Burn him!...
    • Do you also think that Johanssen (sp?) should go to jail for telling people how to decrypt DVDs?
      • by joshamania ( 32599 ) <jggramlich&yahoo,com> on Friday April 25, 2003 @11:53AM (#5808670) Homepage
        Johanssen reverse engineered the DVD-CCA's code using publicly available tools and information.

        This moron the story talks about STOLE confidential documents from his uncle's law firm.

        Honestly, who cares about this kid? His uncle's law firm is going to get nailed to the cross for his shenanigans. Not only are they going to get sued into oblivion, but you can bet that said uncle loses just about 100% of his business based upon this bit...
    • But, he put out information for anyone to read that he knew others could profit from illegally. And they did.

      No they didn't, at least not yet. According to the article:

      "Only a small percentage of the stolen data made its way to public websites, and none of it has yet inspired a successful hack against the cards."
    • by reallocate ( 142797 ) on Friday April 25, 2003 @12:01PM (#5808737)
      Your correct, of course, but it seems most Slashdotter's have missed the bus. The live in a fantasy land where nothing is property unless you can hit it with a hammer and believe that anything you or I might create belongs to them, not to us.

      In other words, spoiled consumerist brats who are trying to camouflage wholesale theft with bogus ideology.
      • They also don't realize the exteme seriousness of scientific and technological espionage. During the Cold War, the KGB found it much easier to infiltrate Western companies than Western governments. Because the USSR's command economy had trouble keeping up technologically with the West (indeed in fields such as computers, they were nearly a decade behind through much of the Cold War), huge percentages of Soviet technology was actually stolen from the West. During the 1980's, the Pentagon estimated that 70 pe
    • From the article:

      According to court records, the student began smuggling digitized copies of the papers out of the law firm on CD ROMs, and e-mailing them pseudonymously to the underground. Only a small percentage of the stolen data made its way to public websites,

      and none of it has yet inspired a successful hack against the cards.

      It seems at least for now, nobody has really made any money off the stolen data. However, it does seem clear that he did commit "corporate espionage" by releasing these docu

      • That's the problem with computer/internet crimes. The punishment doesn't fit the crime. They send these people to Federal-bubb's-bitch prison when they are not truely a danger to society. Contrast that to the damage done by the Enron gang and remember that IF they see an prison time it will be at a white-collar golf resort prison.
    • But, he put out information for anyone to read that he knew others could profit from illegally. And they did. Regardless of wheter or not he meant for people to use it illegally, he knew it was illegal to release the information. Therefore, he should go to jail. End of story.

      No actually, the law generally covers people who PROFIT from espionage. He did not. What I thought was odd, as stated in my submission that was heavily truncated, was the fact that they choose THIS law to prosecute under, rather tha
    • By that logic, writing a book, "How To Not Get Arrested" would contingently make a person responsible for every crime commited that prosecuters are unable to find criminals attached to.

      "His book was just too good," Dick Hertz, the chief prosecuter for Anyl County explained. "The book outlines things that the average criminal doesn't know, like how police conduct investigations and what crimes we're most interested in prosecuting to further our political careers. He even has an appendix dedicated on how to

  • Put him in jail (Score:5, Insightful)

    by possible ( 123857 ) on Friday April 25, 2003 @11:24AM (#5808435)
    The Economic Espionage Act of 1996 doesn't require that the defendant benefit from the act of espionage, it refers to the benefit of "any foreign government, foreign instrumentality, or foreign agent". That's worded specifically to include foreign companies. It doesn't even matter what your intent was, if you knew (or should have known) that your act of espionage would benefit them, then you have violated this law.

    And let's be clear -- this WAS an act of corporate espionage. He knowingly stole trade secrets from his work and posted them online. Put him in jail, and any hippies who think what he did was right, you can go join him.

  • Theft is theft (Score:5, Insightful)

    by SwissCheese ( 571510 ) on Friday April 25, 2003 @11:24AM (#5808436)
    So what he didn't profit or use the service, he still illegally obtained trade secrets and distributed them to those who would try and profit, or at least enabled those who are trying to steal service. Now he's caught and is being punished. The lesson learned here: Actions lead to Consequences.
    • This case seems inappropriate in the same way charging a common mugger with assassination or treason for happening to kill a political leader is inappropiate.

      Certainly he deserves to be in trouble. That doesn't mean that every crime involving a similar action necessarily applies.
    • Theft is... (Score:4, Insightful)

      by zenyu ( 248067 ) on Friday April 25, 2003 @12:16PM (#5808870)

      The problem isn't that he's getting prosecuted for theft. If he were I'm all for that, he probably stole those CDR's, wasted hours of his employers time, etc. But he's being prosecuted for profiting from the copying, when he clearly did not. He wasn't paid for releasing the information, he probably even lost money on the whole thing. I personally think there should be some legal punishment for what he did, he certainly betrayed a trust and we should discourage this type of damage. There may be a legal punishment for all I know. But, he has been prosecuted for something everyone knows he didn't do, that worries me greatly.
      • As other [slashdot.org] posts [slashdot.org] have pointed [slashdot.org] out [slashdot.org], he isn't actually being prosecuted for benefiting from his theft; he's being prosecuted for damaging the company he stole from and possibly benefiting foreign governments and companies in the process. He violated exactly the law under which he's being prosecuted. He also very likely violated several other laws, but this is the one under which DirecTV chose to prosecute him, and that's their prerogative.
  • by panurge ( 573432 ) on Friday April 25, 2003 @11:25AM (#5808453)
    If the Register account is correct, this really was deliberate theft of intellectual property. He knew what he was doing. He betrayed the trust of his uncle. He was either stupid, or a complete anal aperture. He actually stole material that some of the sites he sent it to seemed to have found too hot to handle.

    Perhaps he should get some kind of special award from the industry. Like the RIAA Platinum IP Theft Award. "See- we're not paranoid! There really are criminals out there! We need all the protection we can get!"

  • by binaryDigit ( 557647 ) on Friday April 25, 2003 @11:26AM (#5808461)
    He is no more innocent than someone who gets a bunch of people's cc#'s and makes them public. Just because he personally didn't financially benefit is totally beyond the point. Just because he did it against a "large faceless/heartless corp" and many "common folk just trying to exercise their god given right to watch ESPN" benefitted doesn't make it any more right.
    • That's exactly the same arguement the RIAA uses against YOU!

      It's also not a trade secret if ANYONE outside the company or its suppliers knows the information. In this case, they did.

      Apple often gets in trouble this way. It's their own employees that leak the information out a lot of times. The whole website MacWhispers has been created on the basis of "manufacturing partner tips" - that's economic espionage and Apple should shut that site down. MacWhispers is and does profit off this information. Apple C

      • It's also not a trade secret if ANYONE outside the company or its suppliers knows the information. In this case, they did.

        Rubbish. That information was not in the public domain - didn't you read the article? DirectTV went to extraordinary lengths to protect it, and being part of the sealed records of a court case doesn't mitigate that, otherwise every company who had a technical secret would be sued by their competitors.

        The author of this story blurb makes it sound like he was arrested by G-Men for rev

        • DirectTV went to extraordinary lengths to protect it

          Bullshit. Their measures were wholly inadequate. Just look at the evidence: some snot-nosed 19-year-old brat whose mama should've bitchslapped some manners into him managed to walk right out of the office with CDs full of privileged technical data.

          Frankly, I don't see this as a crime, but then I don't believe in this crap about 'intellectual property' either. If a company has trade secrets it's up to that company - not the government - to protect th
          • He didn't walk out of their office. He walked out of their lawyers' office.

            In any case, your argument makes no sense. By your logic, if you locked your house up, but I was able to circumvent it reasonably easily, then your possessions are in the public domain and I'm free to walk out with them. "Shit happens". It's up to you to protect your property, not the police and the courts.

            Although I suppose you know this already, and I'm taking the bait.

  • by L. VeGas ( 580015 ) on Friday April 25, 2003 @11:28AM (#5808475) Homepage Journal
    It may or may not be true that information wants to be free, but it is definitely true that 19 year-old kids want to do stupid things.
  • by Joe the Lesser ( 533425 ) on Friday April 25, 2003 @11:28AM (#5808476) Homepage Journal
    It was in the form of a memo:

    To: CEO of DirectTV
    From: Quality Assurance Engineer
    Re: Our service

    CEO,

    I regret to inform you that our product is inferior, and should not be purchased. I pray no one gets wind of this discovery.

    ~QA
  • Excellent (Score:5, Interesting)

    by dmadole ( 528015 ) on Friday April 25, 2003 @11:28AM (#5808480)

    I'm all for this.

    This case should not be confused with an independent person doing a "clean room" reverse engineering of the technology. This person was in a position of trust and violated that trust by stealing something that didn't belong to him.

    It's irrelevant that he did not profit from this. The cost to DirecTV is the same whether he used the information himself or passed it on to someone else who did.

    Why is this in YRO again? What rights online does this concern?

  • Irony (Score:5, Insightful)

    by Anonymous Coward on Friday April 25, 2003 @11:37AM (#5808544)
    It is really ironic that this is happening when the parent company of DirecTV at the time was busy giving away secrets regarding American rocket technology to the Chinese.

    Impacts?
    Giving away a hack to a TV box: Lost revenues for a satellite company.
    Giving away high tech secrets: Future possibility of incoming with a payload carried by our own technology.

    Which is really a worse outcome?

    • The parent company of DirecTV is Hughes Electronics, not Hughes Satellite. The parent company of Hughes Electronics was Hughes Satellite, but is (currently) General Motors.
  • by 0x69 ( 580798 ) on Friday April 25, 2003 @11:39AM (#5808558) Journal
    So our junior genius is working with a client's tip-top-secret documents, 10,000-to-1 he's signed some heavy-duty non-disclosure agreement and knows his uncle's company could get fried if anything leaks, yet he decided to make a hobby out of sending copies of the documents to the whole world.

    I'll agree that the law's a poor fit, and this young kid's whole life is toasted bad, but I feel sorry for him about like I feel sorry for the guy who tried pissin' on a 100,000 volt line knocked down in a storm.
  • by Anonymous Coward on Friday April 25, 2003 @11:39AM (#5808561)
    This was a law that was designed to prevent foreign companies from conducting espionage on American companies. Courts are supposed to (and generally do) take into account the intent of a law when they are overseeing a case. Stopping copyright infringement was not the intent of this law.

    This was a case of *civil* law. Criminal law shouldn't be involved. He violated his employer's trust, which is a civil matter.

    Do you know why they didn't pursue it in civil court? I would imagine that it is because they weren't damaged by his actions. (Because their system was good enough that people couldn't break it even with the information that he leaked.) They would therefore be unable to land a serious verdict, so they went the criminal way. And the US government went along with it, as it does.

    • I would do, but I'm out of points.
      The parent post captures the interesting aspect of the case -- i.e. that a crime that could be only weakly punished by civil law (because only marginal damage was done) was simply reinterpreted as a national security issue, and hey presto! a strong punishment.

      Not that the kid wasn't a twit, you understand.

    • Yeah, he stole from his employer, but we're not talking pens and staplers here. These were another company's trade secrets. Heavy duty IP like that was most likely guarded by a pretty hefty NDA. I say let him burn for it.

  • From my (brief) reading of the Act, there are two interesting things to consider:

    First, it is weaker than the DMCA in that it requires "theft" whereas the DMCA prohibits the "breaking and entering" part of defeating copy protection.

    Second, it appears stronger than the DMCA because acts can fall under its scope even if somebody is outside the U.S. Check out Section 1837... This chapter also applies to conduct occurring outside the United States if-- An act in furtherance of the offense was committed in th

  • Ok yeah, they mention this, but why not include the fact that the FNNC has all but relinquished control of the TS lines? Someone afraid to tell the *whole* truth? Maybe.
  • by baywulf ( 214371 ) on Friday April 25, 2003 @11:58AM (#5808709)
    The Enron executives.
    The Worldcom executives
    Those pump and dump wallstreet brokers from the 90s. ...

    These guys do far more damage than this kid ever did to our economy yet they will get far less severe punishment. What this kid did was wrong but I don't these others should be let off any easier.
  • Confession?? (Score:3, Interesting)

    by Rick.C ( 626083 ) on Friday April 25, 2003 @12:01PM (#5808731)

    From the article:

    "These weren't just instructions like, 'do this and do that.' He was putting up the actual changes to make to the card -- specific code bytes that needed to be changed," says Zwillinger. "People say you should be able to log onto the Internet and say anything. But if you go on the Internet and admit to misconduct, that's called a confession."

    IANAL, but my sister is, and her three rules are:

    Never confess.

    Never confess!

    NEVER CONFESS !!

    Her fourth rule is: Since it's illegal to lie to a policeman, if you're caught red-handed say nothing. Refuse to answer questions, demand an attorney, but never confess. A confession makes things soooo easy for the prosecutor.

    So how is posting something to the Internet, not under oath and without Miranda rights, considered a confession?
    • You don't have to admit to a crime in front of a cop for it to be used as evidence.

      This bozo sounds like a typical id10t. He knew what he was doing. He understood that his actions would harm his employer and co-workers (if you can't charge for PPV movies, you stop showing them).

      If I take a brick and smash your car windows with it, you're likely to be pissed. Rightfully so.

      What difference does it make that I was only curious what noise the glass would make when it shattered? or that I was pointing out a "
  • Intriguing (Score:4, Interesting)

    by karlowfwb ( 542982 ) on Friday April 25, 2003 @12:01PM (#5808743)
    I find it interesting that nearly every is coming out against this guy. While I whole heartedly agree that what he did was wrong, and that he should be punished, there seems to be a bit of a double standard.

    Read any article on the RIAA cracking down on P2P services and you will get a much more mixed set of opinions.

    Is this really that different from downloading music for which you have not paid? True, he 'stole' trade secrets, while MP3 are a product. However, either way, the issue is with the loss of income from the company.

    Just something to consider...

    (on a side note, I include myself in the 'double standard' group)
  • by OwnerOfWhinyCat ( 654476 ) on Friday April 25, 2003 @01:12PM (#5809388)
    There is something inherently deceitful about this young man's behavior and he should be punished for it.

    That said, lets look at the laws.

    It's called the Economic Espionage Act. The fact that it's wording can be made to fit this crime since Canadians will benefit from it doesn't speak to it's intent.

    Interviewer: "Congressman, this law that your working on, the one that can only be used with approval from the Justice Department for curbing Espionage, is it designed to be applied to 19 year kids who steal secrets from the Entertainment Industry?"

    The congressfolk involved would not have their work so trivialized. Protecting DirectTV from Canadians was not the intent of that law. They obviously left it overly-broad to relieve the justice department of the need to prove that it was benefiting a particular person or agency. If, for instance, we were at war with France and I was found sneaking GPS decryption secrets (to improve the accuracy of GPS guided cheese-bombs) across the French border, I could be convicted under this act without any particular recipient being proven. But it's worth noting: We are not at war with Canada.

    The congressfolk in question probably felt comfortable leaving the terminology overbroad because of the barrier imposed by limiting it to cases approved by the Justice Department for it's use, "...a limitation that was lifted in March, 2002." Which seems to be when it became popular to assume we are always at war. Being popular does not make it right.

    DirecTV's lawyer claims, "I imagine most people who steal get paid for it, or somehow profit by it... but it's the theft that's the crime. There's no more appropriate statute to use in this case."

    Yes. There is. Newsflash lawyerboy: Theft is already illegal. So there are many many more appropriate statues available. Theft of trade secrets has been a crime for some time and in other cases companies have gotten away with suing for years worth of R&D that were lost due to the secrets getting out, and those penalties were certainly non-trivial.

    The victory here has nothing to do with plugging a leak that lets those Evil Canadians (who apparently aren't worth the bother to provide service to) watch free T.V. The victory has everything to do with attaching Espionage to Entertainment theft. This is an ugly connection. When well established, it will allow the unprecedented monitoring capabilities of the federal government to be applied to any Digital Rights circumvention.

    And it would seem this has already occurred to them:
    "But Marc Zwillinger, the chief litigator in DirecTV's war on piracy, says Ump25's posts aren't much different from posting a DVD descrambling program to the Internet, which has been ruled illegal in the past."

    Now, or sometime in the near future, if you watch DVDs using Linux, you're not only violating the DMCA, since you trafficked in illegal copies of decss with "foreign powers" you're also a spy. If there are millions of spys among us, does that not make it easy to justify giving the Justice Department even broader interception and monitoring capabilities?

    I don't use drugs; I don't hire prostitutes; I don't dump my employers secrets out on the Internet for public consumption. And I never will.

    If chosen for jury duty, I will enter an unswaying not-guilty vote for anyone on trial for:

    Possession of Cannabis.
    Prostitution.
    Espionage with countries with which we are not at war.

    Not to protect my right to commit these crimes, but because the cost to our society for having laws like these is too great.
  • by OS24Ever ( 245667 ) <trekkie@nomorestars.com> on Friday April 25, 2003 @01:23PM (#5809517) Homepage Journal
    This has nothing to do with violating freedom or any other right we supposedly have under the constitution.

    he used his position within DirecTV to gain access to secret, confidential information, and leaked it to someone. What that someone did, or whether or not he benfitted is immaterial. He violated NDA from DirecTV, and violated that law.

    Just like if someone posted a source code module from Windows 2003, the secret recipie of Mickey D's Secret Sauce, or anything else confidential.
    • by Archfeld ( 6757 ) <treboreel@live.com> on Friday April 25, 2003 @03:03PM (#5810553) Journal
      he did not work for direcTV, he worked for an outside legal firm that was hired for an UNRELATED incident, he was an office assitant making photo-copies, he was a MINOR at the time of the violation, though he is 19 now, so the NDA does not hold water, HIS UNCLE, a partner in the law firm SHOULD be the one in trouble, he HAD lawyer/client relationship with the DirecTV and then allowed the documents into INSECURE hands.

      I do agree that this IS NOT a freedom of speech issue or a constitutional one though...
  • from the corporations..

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