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DirecTV Sues Anyone Who Bought Smartcard Reader? 1072

MImeKillEr writes "The Register is reporting that DirecTV is suing anyone known to have purchased a smartcard programmer, regardless of whether or not they're actually using the device to enable stealing their programming. They're sending out letters & when people call to clear up the confusion, DirecTV is demanding a $3500 settlement as well as the programming device. They've filed 9000 federal lawsuits against alleged pirates thus far. They're obtaining lists of who purchased the devices during raids against the sites that offer them for sale."
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DirecTV Sues Anyone Who Bought Smartcard Reader?

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  • BARRATRY! (Score:5, Interesting)

    by Grendel Drago ( 41496 ) on Thursday July 17, 2003 @03:12PM (#6464023) Homepage
    So... they're demanding to sue en masse like this? Using lawsuits and demanding massive settlements? Isn't this the definition of barratry---abuse of the legal system for extortion? If so, do smartcard reader owners have the basis for a class action?

    --grendel drago
  • Why not? (Score:3, Interesting)

    by rosewood ( 99925 ) <rosewood AT chat DOT ru> on Thursday July 17, 2003 @03:13PM (#6464031) Homepage Journal
    Well, if they can get a guy convicted for something he was planning to do and had not done it yet (and it wasn't murder) then why cant they sue people for things they haven't done?

    I mean, its sick-twisted-wrong but it makes sense unfortunatly.

  • Newsflash: (Score:4, Interesting)

    by TrollBridge ( 550878 ) on Thursday July 17, 2003 @03:14PM (#6464040) Homepage Journal
    There is a big difference between a smartcard reader (from the headline) and a smartcard programmer (from the article).

    Is this sensationalism or an honest mistake?

  • so... (Score:5, Interesting)

    by bani ( 467531 ) on Thursday July 17, 2003 @03:15PM (#6464068)
    ...if someone's name is falsely or erroneously in one of these vendor's lists...?
  • by Malc ( 1751 ) on Thursday July 17, 2003 @03:16PM (#6464076)
    Are they doing this to people outside their market, such as Canada? They're not allowed to sell their service here, but I know several people who have grey market equipment and have purchased a card programmer.
  • Re:BARRATRY! (Score:5, Interesting)

    by imaro ( 584142 ) <(imaro2) (at) (sio.midco.net)> on Thursday July 17, 2003 @03:16PM (#6464083)
    Seems like people would have an excellent suit in response to false claims. If the device was not used to facilitate an illegal activity, then its libel/slander. You could atleast go to court for emotion damages, and a judge would probably make the defendent pay lawyer's fees for the victim.
  • Re:So... (Score:2, Interesting)

    by betacrash ( 645763 ) on Thursday July 17, 2003 @03:18PM (#6464110)
    I guess its time to sue Target(c)(TM) as well http://www.target.com/gp/detail.html/sr=2-1/qid=10 58469368/ref=sr_2_1/602-0951896-7659812?asin=B0000 66PI0
  • Yep. (Score:5, Interesting)

    by Geekenstein ( 199041 ) on Thursday July 17, 2003 @03:19PM (#6464122)
    Old news, this. As for suing anybody who bought a smart card reader, that's bull. They are going after the customers of sites that pretty much state that use as the purpose of the product. The only possible defense is that the chips aren't programmed (usually) out of the store to write DTV's cards, but thats been even harder to use since the hardware itself is being put together to send the right kind of signals to break into their cards.

    That being said, they usually just demand money and the return of the equipment purchased. Of course the people they sue usually don't have the resources to fight the claims, so who knows if this will actually be tested in court?
  • Hrmmm..... (Score:2, Interesting)

    by Mhrmnhrm ( 263196 ) on Thursday July 17, 2003 @03:20PM (#6464137)
    It's really too bad I didn't buy one of these things. I'd love to get the EFF and ACLU to take my case, given that I don't even own a satellite dish of any sort. Can we say $10B USD countersuit for extortion? Seems from the article that several judges have been seeing through this shenanigan, and might actuallly be willing to sock it to DirecTV.
  • Once again... (Score:5, Interesting)

    by DJ Rubbie ( 621940 ) on Thursday July 17, 2003 @03:22PM (#6464168) Homepage Journal
    The bully has it their way.

    Imagine, an innocent person buying a product that could be used to reprogram other equipment, such as an electronic control for art exhibits, or access control at the keyboard, is now threatened to pay thousands of dollars in damages because a corporation decided that piece of equipment can be used to violate their protection schemes (and the DMCA). The hapless individual, fearing more lawsuits in federal courts (thus costing even more than the original sum of money), decides to pay up to this bully to avoid more troubles...

    Oh wait, that just happened. This is the kind of events we really should support the Electronic Frontier Foundation (EFF) for. If you happen to know anyone who are harmed by this, let them know about the EFF.
  • by Anthony Boyd ( 242971 ) on Thursday July 17, 2003 @03:24PM (#6464205) Homepage
    When he called the company to clear things up, he found they weren't interested in his explanations: they wanted $3,500 and the smart card programmer, or they would literally make a federal case out of it and sue him under anti-piracy laws. "I didn't know what to do, I was completely flabbergasted. So I sent the money in," says Sosa.

    You know, people like Sosa make this really difficult. DirecTV is doing something unethical, I believe. People are getting wrongfully accused in my opinion. But Sosa just rolled over and paid out $3500. These people are a problem because they help a bad system to stay bad. It makes it terribly difficult for me to have sympathy for someone who has such a lack of conviction, such a failed sense of justice. They don't care. Should we?

  • by Anonymous Coward on Thursday July 17, 2003 @03:28PM (#6464264)
    I got slapped with this recently for buying a smartcard programmer that I was using to play with Sunray terminals a few years back. I went to a lawyer (and of course had to pay him!) and sure enough the cheapest way out is to pay them the $3500 regardless of what you used the device for. The cases are filed in FEDERAL court. Federal court was described to me as "A vending machine that takes $10,000 coins...and several of them at that" to plead your case before a verdict is even reached. Worst thing about this is that I've been a Directv subscriber for years and PAY for all the channels! My lawyer contacted the EFF and they wouldn't do a damn thing. Needless to say Directv just lost my ~$100 a month which is pretty #$#& stupid considering it would only take 3 years to cover the $3500. So basically I'm out $4K including the lawyer for trying to do some neat stuff with smartcard authentication.
  • What is the difference between a smart card reader and a smart card programmer? That you can glitch the card with the programmer? I can (and do) "program" smart cards with any old ISO-7816 compliant reader.

    Do I need something other than a PC attached smart card reader and a knowledge of how to send an APDU to the card to unloop it? What is it that makes the "programmer" special?

    The term "smart card reader" often confuses those new to smart cards. All "smart card readers" are also "smart card writers" (a term which will give you away as a newbie) in that they can send information to the card and recieve information from it.

  • Legal? (Score:2, Interesting)

    by paranode ( 671698 ) on Thursday July 17, 2003 @03:30PM (#6464285)
    "They're obtaining lists of who purchased the devices during raids against the sites that offer them for sale."

    Is it just me or does this sound highly illegal? When a place gets raided (assuming it was by law enforcement) doesn't law enforcement keep the evidence? Why would DirecTV of all people just be given this information when no laws have been proven broken? This sounds like another mockery of the justice system to me.

  • Re:Newsflash: (Score:4, Interesting)

    by hackstraw ( 262471 ) * on Thursday July 17, 2003 @03:34PM (#6464319)
    I used to program these guys, and this is the 1st time I've heard of a "smartcard programmer". So what is this big difference?

    For a little background, smartcards vary greatly in how "smart" they are. In fact, the first smartcards used in DirectTV systems were simple memory cards that had little or no tampering protection (they may of had a checksum for the ID number, but thats it). People used to put new cards on their devices and simply become another customer.

    Later versions used encryption and/or public/private keys, which were much more difficult to hack, but some of these too can be hijacked like a man in the middle attack by putting a device between the card and the reader, but this is rare.

    Personally, I find this hilarious. Let them go around suing people for all I care. All of the burdon of proof is on them to prove that you were stealing thier service. That would be very difficult to attempt if the person they were sueing did not do anything, like the sucker in the article that just wrote them a check.
  • Re:Haha (Score:2, Interesting)

    by shamino0 ( 551710 ) on Thursday July 17, 2003 @03:40PM (#6464399) Journal
    Who's willing to bet that no one is going to pay the $3500?

    Too late. The Register article already cited one person who paid up.

    Is it illegal to possess it?

    The DMCA states that posession of any device whose primary purpose is piracy is illegal. The real question here is if DirecTV can prove that the smart card programmers purchased are piracy devices and not just general-purpose programmers that are sometimes used for piracy.

    Given that the devices in question were advertised and sold as piracy devices, the result is not that clear. The device is general-purpose, but its stated purpose is piracy. If the court concludes that it's a piracy device, then posession is illegal. If not, then DirecTV will have to prove that it was actually used for piracy, which is much more difficult.

    This strikes a very similar parallel to DVD decryption software. It is general-purpose software (used for making player software as well as piracy). The MPAA's claim is that its primary purpose is piracy.

  • by ivan256 ( 17499 ) * on Thursday July 17, 2003 @03:40PM (#6464403)
    Would an intelligent consumer buy white flour from a cocaine dealer?

    That's hardly a reasonable analogy. White flour is cheap. Programable smartcard programmers are not. I've purchased an ISO programmer from a shady canadian sateleite pirate dealer simply because they were considerably cheaper there than through other sources. If I could have gotten a programable programmer for $15 elsewhere I would have. Now I just have to hope DirecTV doesn't come after me since I'm a paying customer... You can't pirate a signal you're paying for, right?
  • by Dachannien ( 617929 ) on Thursday July 17, 2003 @03:41PM (#6464413)
    Wow... Well, I went to the DEA's website expecting to see cocaine listed as Schedule I, but it is indeed Schedule II. I stand corrected.

  • stupid (Score:1, Interesting)

    by Anonymous Coward on Thursday July 17, 2003 @03:45PM (#6464457)
    For anyone who cries "it's obvious what they were going to use it for", consider Nintendo going after sellers of Gameboy cartridge writers and EPROM carts (was it Lik Sang? Can't remember.)

    Anyway, Nintendo managed to get them shut down because their carts were "obviously" being used to pirate games. Never mind that 90% of their customers were game developers (such as myself). Those who were releasing commercial games were happy to get their hands on hardware cheaper than Nintendo was charging (with the 3rd party carts it cheap to get all our beta testers set up with the game - we bought maybe 20 and they could then test using off-the-shelf Gameboys); the hobbyist developers finally had a decent source of development hardware.

    Which is exactly the same type of problem here. I'm not presuming 90% - but at least one person buying a smartcard reader probably had a legitimate purpose.

    If there's a moral to this story could be: Don't charge too much for your product (DirectTV & cable companies). And destroy your customer order lists as soon as those orders are satisfied.
  • by Lucretius ( 110272 ) on Thursday July 17, 2003 @03:46PM (#6464464)
    This is an interesting tactic by DirectTV. From the sounds of it, this really isn't that expensive a way for them to not only stop some no-effort hackers from stealing their signal (as we all know, there are many who just won't stop because they are sent a letter like this), and make some revenue at the same time. I mean, if one of their operators makes 1 settlement per month, they have most likely more than paid their salary. Of course, they have to pay the lawyers a bit of money to sign these letters, but most likely not all that much (my guess is that very few of these actually go to trial, that would take money on DirectTV's side of the game as well).

    What I'm curious about is if there is any organization of a class action suit against DirectTV, where the class is the people who have been incorrectly identified by DirectTV as pirates? They would most likely be liable for mental anguish and defamation as well (seriouslly, blaming someone for being a pirate could be very damaging to them, especially to buisiness people).

    Here's to hopin'
  • by t0qer ( 230538 ) on Thursday July 17, 2003 @03:50PM (#6464512) Homepage Journal
    About a year ago our roomate bought a dish networks dish from her cousin that sells and installs the systems. He also sold her a smartcard reader that enabled "all the channels"

    My wife seeing "All the channels" kept insisting that we get the same system. I reluctantly agreed to let her do it (I thought our cable was just fine though) How could one go wrong with the setup though? Every channel on direct TV (including playboy =D ) for the price of a basic subsciption.

    Well about a month after we got the system we started to have problems. Dish networks sent out a signal that required us to reprogram the card. No problem, just insert the card into the programmer, attatch to computer and run a few things to update it... Cool works again. You could never tell when or where they were going to strike with the "zap signal" again. Sometimes I would come home, flip on the TV and get an error message. Nothing more irritating than having to reprogram your card every time you sit down to watch TV.

    Then the zap signals got worse, they didn't just fry the smartcard, they actually fried the flash on the base unit. So we would be without TV for a week or so while we waited for our roomates cousin to come over, take the box apart, put some hokey looking things with pins across the pins of the flash chip and reflash the unit.

    She would start the most ill logic fights with me "DON'T WATCH TV WHEN YOU GET HOME OR WE'LL GET ZAPPED!" she would tell me. WTF is it for then if not to watch it? (I don't think it really mattered if I was watching or not, the unit seems to be in a constant on state)

    After 4 months of this shit, I finally gave up on the card reader. I set all our cards back to thier defaults and tossed them in my junk pile. I told my wife I better not catch her using it again or I would just rip the entire dishTV system out and there would be NO TV.

    Now she won't get rid of the damn thing for the sake of argument. I told her from the get go I didn't really think it was a keen idea, and I think the only reason we're keeping it past the 1 year contract is because she doesn't want to admit it was a stupid purchase.

    Well anyways, our roomates cousin sold a lot of these 1 year subscriptions this way. Despite knowing the problems with it, he still continues to use this as a sales device to this day. We've had a number of friends that went for "all the channels" only to come home to a black screen or an error message.

    I just think it's irony that they're suing people for buying into their #1 sales hook. Hook line and sinker.
  • DirecTV logic (Score:2, Interesting)

    by DynamiteNeon ( 623949 ) on Thursday July 17, 2003 @03:53PM (#6464550)
    Should they really be able to sue people for listening in on the signals they send out?

    I suppose I could use the same logic and walk into a crowded room, yell out a bunch of stuff, and then sue everyone for listening in without my permission.
  • by British ( 51765 ) <british1500@gmail.com> on Thursday July 17, 2003 @03:54PM (#6464556) Homepage Journal
    What ever happened to companies not selling out your info to other parties?

    Okay, probably the smart card vendors didn't get paid by DTV for the customer list, but I would be mighty angry if they gave MY info to the DirectTV goons for this exortion.

    If i had to buy a smart card reader, I would pay in cash. And no, I don't want to sign up for a catalog of special smart card reader offers.

    So what lesson did we learn? Pay in cash for legally questionable items, such as the big bad smart card reader, or hydroponics equipment.
  • by StressGuy ( 472374 ) on Thursday July 17, 2003 @03:56PM (#6464587)
    What about anyone who downloaded MAME or one of it's equivalents? Could Nintendo/Sony/Sega/Atari/etc. assume it was intended for piracy and sue under the same grounds?

  • by ad0gg ( 594412 ) on Thursday July 17, 2003 @03:57PM (#6464592)
    Um how do they get default judgement if you ignore the letter? They have to serve you the papers for the lawsuit.
  • Re:BARRATRY! (Score:1, Interesting)

    by Anonymous Coward on Thursday July 17, 2003 @03:59PM (#6464615)
    I wonder what Echostar's (owner of Dish Network) take on this is... ...and what will Cablevision [nytimes.com] do about this?
  • by capedgirardeau ( 531367 ) on Thursday July 17, 2003 @04:06PM (#6464694)

    The whole premise is wrong in my opinion, I think I should be able to do what I want with things people give to me or leave on my property.

    If you are beaming your signals into my property, my house, my body, my kids, etc, I will damn well do what I please with them!

    I almost have a duty to intercept them and decode them and make sure they are not harmful in anyway.

    If they arrived unsolicited in the physical mail they would be mine to keep by federal law no questions asked.

    You don't want me to do anything with them?? Then keep them off my land and out of my body, problem solved.

    These are physical radio waves, you are dumping them on my property and I can't do what I want with them?

    I dont think so....

  • by TheRaven64 ( 641858 ) on Thursday July 17, 2003 @04:09PM (#6464737) Journal
    Correct me if I'm wrong, but I was under the impression that you only had to pay anything if:
    1. You used a lawyer, or
    2. You lost the case.
    If you did have a valid reason for owning the device, and you paid for all of the channels, then this could have been resolved simply without actually getting the legal system involved. Firstly, you write back saying `see you in court'. Next, you send to their lawyers:
    1. A copy of your DirecTV bills for the last year.
    2. A copy of the sunray manual (with the pasages about the use of the smartcard reader highlighted).
    3. A covering letter saying that you will be presenting this evidence in court, but if they drop the case, and provide you with a written appology and $3500 in compensation, then you will not persue a claim of $100000 in damages for barratry against them.
    If, after this, their lawyer advises them to persue the case then they should get new lawyers.
  • by sharky611aol.com ( 682311 ) on Thursday July 17, 2003 @04:11PM (#6464762)
    ...from Microsoft. It's only a matter of time til they go after folks who bought XBox mod chips, assuming DirectTV doesn't get a massive counter-suit. On a side note, this article just spurred me to become a member of the EFF. Way to go DirectTV!
  • by FooGoo ( 98336 ) on Thursday July 17, 2003 @04:28PM (#6464960)
    when they started making it harder to get guns if your a law abiding citizen. But, it's crybaby time when they start going after tech. Sucks to perceived as a criminal doesn't it.
  • by Talking Goat ( 645295 ) on Thursday July 17, 2003 @04:47PM (#6465162)
    "They are gonna have a hard time..."

    See, because you were actually intelligent in going about purchasing this stuff. I can't tell you how many sob stories I've heard from people in the "hobby" about the "letter." In the last 2-3 years, the DTV hacking market just blew up bigtime, and there were tons of sites that were selling equipment. In the mad rush to beat the competition, a ton of these places actually started accepting credit cards. WTF... The standard had always been money orders, find a reputable dealer (that isn't base in the U.S. dummies!!), buy your stuff, and have it sent to a safe address.

    Now you've got thousands of people with letters, dealers and fulfillment houses raided, and a bunch of dumb m***erf**kers that can't figure out how they got busted.

    While I totally disagree with the tactics that DTV is employing, all I can say is what in the f**k do you guys expect?!?!

    Simple fact is that the letters that these people got were not sent because they bought a generic smart card reader/writer. They bought devices with (usually) Atmel AT90S2313-10PC I.C.'s on them which were programmed with a flash that had no other purpose than to circumvent the security on a DTV access card. Now, I don't have a problem with DTV getting ripped off; I could care less. But the fact remains that these devices are illegal access devices, and as such, are illegal. Sucks, yeah, but that's why you have to be f**king careful when you buy this stuff!!!!
  • by Triumph The Insult C ( 586706 ) on Thursday July 17, 2003 @05:00PM (#6465281) Homepage Journal
    Until I read this. On the phone with Customer Service as I write this, cancelling my order. =)
  • by mzo23 ( 571704 ) <mzo@lea[ ].info ['ked' in gap]> on Thursday July 17, 2003 @05:02PM (#6465293) Homepage
    When you buy a hammer for something legit do you purchase in cash and make tons of attempts to hide your identity because some crazy person could smash someone else's property with it? I'm sure legitimate purchasers of the card programmers weren't thinking "Oh boy I hope DirecTV doesn't come after me for working on my new security hobby." Many of the victims don't even have a satallite(sp) dish. When you have to hide your identity just to buy something completely legit something is wrong with the world. I can't see how DirecTV would even lose $3,500 when someone does use it for illigitamite (sp) reasons. As someone else mentioned that's approximately 3 years of service. So that's assuming the customer was going to stay with them for another 3 years. Not to mention, I don't think most people who cough up the $3,500 are going to stay customers. So does this mean DirecTV doesn't plan to last another 3 years or grow at all? Aren't they posting high profits? There's no excuse for their behavior. And the real morons are the ones who let shit like this slide. Should you have purchased your VCR under an assumed name?
  • Re:Legal extortion. (Score:3, Interesting)

    by guacamolefoo ( 577448 ) on Thursday July 17, 2003 @05:02PM (#6465297) Homepage Journal
    In any trial where you represent yourself, the judge is obligated to make sure that your rights aren't trampled. It creates a double-bind situation, psychologically. The judge, on the one hand, is requred to be impartial. On the other hand, he also has to be watching out to make sure that the opposing lawyer isn't taking unfair advantage of the situation.

    You haven't been in court much, have you?

    This means frequent breaks while the judge explains what various things mean, proper procedure, form for questions, etc. Ten people representing themselves in court would be disasterous to a judge's schedule. A thousand people doing the same will clog the system so badly ...

    The judge will go out of his way not to help someone who doesn't know shit just as much as he will go out of his way not to help a smart lawyer. There are exceptions, but I clerked for a judge (whom I greatly respect), and as much as he wanted to sometimes, he would not do anything for them beyond judge what was properly before him. To do otherwise violates every principle that matters to judges.

    In short, if you go into court with the idea that a judge will explain things to you at all or help you in any way if you are pro se, you are going to walk out without being concerned about constipation ever again.

    GF.
  • by Quixadhal ( 45024 ) on Thursday July 17, 2003 @05:10PM (#6465400) Homepage Journal
    Since it seem that the United States Empire is moving more and more towards the concept of Guilty until proven innocent (or all the money is drained from you), perhaps the People should counter-sue DirecTV for all the future cancer cases that their satellite transmissions *MIGHT* be causing.

    The neighbors on both sides of me have DirecTV dishes, and since they get good reception I know the waveforms must be penetrating my house, and thus myself and my family. If we magically develop cancer 20 years from now, who's to say it wasn't that particular does of radiation that caused it?

    As long as the US still wants to pretend to be a democracy (rather than the commercial Oligarchy it really is), anything which enters my home belongs to me, and provided that my doing so doesn't infringe on other rights (making money is not a right!), I can use that signal however I choose. Heck, if I don't record it, I'm not even violating any copyright laws since I'm using the original signal, not a copy.

    Alas, I don't have DirecTV... I am stuck with cable, so it's a moot point anyways. Maybe when they start suing everyone who bought a television, since they MIGHT be watching something that was once pirated from DirecTV....
  • by Darth_Burrito ( 227272 ) on Thursday July 17, 2003 @05:11PM (#6465419)
    ... and pick up your open wireless access point... but is it right for me to even be on your private network at all?

    Fine by me, that's why I left the WAP open.

    What if you had used WEP and I cracked it and got onto your network

    You can passively crack all the WEP signals you want. I don't care, but I would think that cracking the resource AND using it would be some kind of trespass since there was no implied consent. A similar logic would apply to a cordless phone base station.

    Please excuse me while I step back into my faraday cage.
  • Re:BARRATRY! (Score:2, Interesting)

    by letxa2000 ( 215841 ) on Thursday July 17, 2003 @05:19PM (#6465509)
    It seems that doing lawsuits en masse, by definition, are objectively baseless. If they analyze each case and make an objective decision then I wouldn't see it is barratry. But if they just get a mailing list of people that have bought these things and fire off these threats indiscriminantly then they ARE going to be wrong sometimes and they are objectively baseless in the sense that they didn't even make a reasonable effort to determine if an individual accusation is baseless.

    I am somewhat worried about this whole affair because I did purchase one of these devices. Some years ago a visitor to my website that deals with microcontrollers wrote me asking about how to write microcontroller programs for smartcards. I didn't even know, until then, that smartcards HAD microcontrollers. So I immediately became excited at the possible applications and went out and bought one of these devices since I was going to play with the technology and, perhaps, come up with new products. Or at the very least expand my own microcontroller knowledge.

    Now it turns out that DirecTV is threatening anyone that purchased one of these devices. I don't doubt that many or even most people that purchase(d) them do so for less than legitimate uses, but there ARE those of us who have legitimate uses for them. The problem is that the article seems to suggest that DirecTV isn't interested in talking about it. They just ask you to pony up $3500. Otherwise they sue you for $10k plus fees. That's absurd.

    I haven't received one of these letters, but if I do then I'm definitely going to have to talk to my lawyer about what to do. It's bogus because $3500 is certainly going to be less than to defend my legal use of the device. At that point, it's extortion. DirecTV offers a settlement at a price point they know is less than what it will cost anyone to defend themselves so even innocent people just decide to cave and send them a check for $3500. But that's so much BS being in a position to have to pay DirecTV $3500 because if they sue you it's going to cost more.

    I don't have DirecTV, Dish, or cable. I don't even live in the U.S. right now. But if/when I move back to the U.S. I can guarantee you I WON'T be subscribing to DirecTV regardless of whether or not I ever receive one of these letters.

  • Re:BARRATRY! (Score:4, Interesting)

    by HiThere ( 15173 ) * <`ten.knilhtrae' `ta' `nsxihselrahc'> on Thursday July 17, 2003 @05:21PM (#6465526)
    If that's the only reason for corporations to exist, then coporations should be ruled illegal.

    Actually, there are many legitimate reasons, but it sure doesn't cover a lot of the garbage that they are into these days, and it seems to me that "revocation of corporate charter for not contributing substantially to society" should be put back on the books. Under that law a corporation must periodically prove that it's existence is a net benefit to society.

    (I forget the exact phrasing, and the exact terms used...but corporations used to have a very conditional existence.)
  • by guacamolefoo ( 577448 ) on Thursday July 17, 2003 @05:29PM (#6465620) Homepage Journal
    1. Directv is not suing "anyone" who bought a smart card. DTV is suing people who bought them from companies that were raided and shut down by the feds because they were breaking the law. That's a big difference taco. The seller of the cards is essentially the distinguishing characteristic here.

    Here's an analogy:

    It is illegal to buy things that are sold as illegal drugs, even if they are not drugs. For instance, if I buy flour from a dealer thinking it is coke, I go to jail for trying to buy drugs.

    Now. Let's say that I am in a swanky neighborhood and I need some flour for a tart. My next door neighbor is Pablo Escobar. I know he has flour, because I called him and asked. He sells it cheaply, too, even cheaper than my local grocer. So, I walk across the street and buy flour from Pablo (thinking that it is flour, and it is). Pablo put it in a plastic bag, because he always seems to have those.

    I start to walk out of the house, and the cops raid the place. I get busted for trying to buy drugs. Now maybe I have a perfectly innocent reason for being where I am with what I have, but it sure looks bad, doesn't it? If I had been caught in the same circumstances and the occupant of the house was Ned Flanders and the cops were looking for a rapist, I wouldn't be in trouble, most likely. Is it wrong that this difference exists?

    Our courts are not truth detectors. There is no magic crystal that glows in the presence of honesty. Past experience and facts are all that a court can rely upon to make judgment calls.

    The facts here are that all of the dealers here were shut down for peddling illegal pirate TV devices. Their customer records were pulled and showed buyers and what the buyers bought. Maybe some of them are innocent, but most of them absolutely were trying to steal tv signals. They are now caught up in civil cases, where the burden of proof is lower than in criminal cases and Directv has some pretty damning circumstantial evidence. It is (rightly) on the shoulders of the defendants to put up or shut up and pay up.

    Mod me down if you want, but it won't change my mind that these people are, for the most part, thieves that are trying to justify their conduct after the fact.

    GF.
  • Re:BARRATRY! (Score:5, Interesting)

    by Arker ( 91948 ) on Thursday July 17, 2003 @05:40PM (#6465702) Homepage

    Well I for one would be happy to pay for advertising-free TV.

    But the greed here is incredible. Where do people get this notion that they have a legally enforceable right to make a profit off a bad business model?

    DTV has several options as I see them. They can write off the 'pirating' as inevitable and ignore it, concentrating on sucking the honest customers dry. They can change their offerings to compete better with the 'pirate' offers. Or they can use cartooneys to threaten everyone in sight hoping this will somehow make them more money than it costs.

    Apparently they're choosing door number 3, which I think is pretty dumb, but not surprising really.

    If I were them I'd try something a little more creative. What is the draw to the 'pirate' cards? You get access to whatever channels you want, for a one-time fee, instead of paying out the ass for the super-deluxe top of the line package every month just for the one channel you actually watch, am I right?

    Plus there is the element of everyone wanting to feel like they're the smart one, getting the forbidden fruit cheap while the other chumps pay big bucks month after month... I'm sure that's an element.

    Now remember, these 'pirates' are paying, they're just paying lump sums instead of recurring fees, and they're paying them to someone else. That's the problem, from DTVs point of view, if they would just look at it clearly.

    So, what I would do if I were them, is just start a little subsidiary. Hide the ownership, yo don't have to do anything illegal, just the kind of obfuscation any corporate lawyer or accountant knows how to do, so that it's not obvious. Have this little subsidiary get into the pirate card business. Have your techs working on breaking pirate cards, of course, as they've done all along. But have your techs and your subsidiary work together, so that most of the time when you break the other pirate cards those sold by your subsidiary don't break. Still break them sometimes, of course, so you get a round of upgrade sales, but make sure your own cards get the reputation for being the ones that usually don't break.

    Pretty soon, not only are you getting the regular fees from your ordinary subscribers, you also own the pirate decoder market as well. Now remember, they're working in a market where most of the costs are fixed. It costs them the same amount to run that programming whether they have 1 subscriber or one million subscribers. They have the exact same costs whether there are no 'pirates' or 10 or 100 or a million as well. So this extra income is pure gravy.

  • by n0cturnal79 ( 690290 ) on Thursday July 17, 2003 @05:45PM (#6465738)
    Yes, I have been served with papers, and trust me. . . this whole thing sucks.

    I was served at work, where i am a unofficial IT guy, with my fellow co-workers looking on as if i were a dangerous criminal. (Embarassing does not even begin to explain the feeling.) My first reaction was, WTF is this? I have never been sued before, i have never been in any kind of trouble before, hell, i have not had a speeding ticket in over 10 years. . . . but low and behold, here was a document stating that i am being sued for $120,000 by a company that i have been a long standing customer with for many years. As i read on, i found out that it was for a Smart Card Programmer. Once again that WTF feeling came back. . . . I purchased this equipment over 2 years ago for a security project that never got off of the ground. A company that i worked for wanted a better way to keep control over who used the company network, i found some info on smart cards, did a search for "smart card programmer" and purchased the cheapest unit i could find. (about $160 if memory serves me correctly), Only to find out that it would not work for what i wanted to do. And now im being sued! And as i said earlier, i am a DTV customer, have been for 6 years. If i were going to hack TV cards, you would think that i would do mine first!

    Just to make one thing clear, I am a poor guy, And as a poor guy, there are not many options for me to take. Anyway, i dont want to rant about this, however i believe that it is a great injustice. This is just extortion, plain and simple. I was told that i could settle for $4,500 before i went to court, or $10,000 after the court process had began. Alternatively, i could fight it, and the cheapest lawyer would be on the average of $15,000 by the time it is all over. Obviously, not a "poor boy" option. And since it is a civil case, i am not entitled to a court appointed lawyer. So the only option left for me is to fight it myself. Which, if any of you have ever looked into the paperwork involved in a Federal Civil Case, looks like i have just over a snowball's chance in hell.

    So if i go to court and loose, by law, they can take what little i have, and then some. One option that they could take is garnishment, and being that this is a Lawsuit for damages, they could take a chunk of my pay check for the next 25 years! I only make $12 an hour now, and have a wife and 2 kids, so this is not a good thing for a person who is just barely making it. This Lawsuit is designed to crush people like me so that people who have the money to pay the ransom, will do so.
  • Re: Probable cause. (Score:5, Interesting)

    by coyote-san ( 38515 ) on Thursday July 17, 2003 @05:54PM (#6465793)
    > No question these are pirate devices.

    I bought a reader and a number of crypto cards directly from a manufacturer, as part of a Linux SDK kit.

    I have never owned a dish system. I have continuously had a cable TV connection in my current resident (close to 10 years), a townhouse oriented in a manner that would make it difficult to set up a dish.

    I have been involved in Unix/Linux security systems for a number of years.

    I have discussed X.509 certificate authorities countless times in the past, and suggested that crypto cards would be good root certificates for small CAs. (The private key never leaves the cards, when you don't need them you toss them into a safe or safety deposit box, etc.)

    Now tell me again where there is any probable cause in my case. I haven't gotten that letter yet, but if I do I'll demand the court award them to compensate me for any and all defense costs because there isn't a shred of probable cause in my case.

    To be honest, I was surprised to learn that the dish systems use the same cards I had already purchased for use in experimenting with setting up a PAM module to recognize smart cards - I want something a lot like Solaris where you have to insert the card and enter your passphrase, and when you yank your card out you're automatically logged out. In the long run, it would also be nice to be able to store SSH RSA/DSA keys on the card, etc.
  • Re:BARRATRY! (Score:4, Interesting)

    by fishbowl ( 7759 ) on Thursday July 17, 2003 @06:00PM (#6465828)
    "The proper course of action is to let them take you to court, then contest it on the basis that they have to prove that you have used the equipment to 'steal' their service."

    If they are asking the State to press a criminal case against you, then yes. They could never reach the standard of proof needed for the case to even see the inside of a court room.

    However, if this is being brought as a civil suit, the standards of proof are not so high.
  • by Anonymous Coward on Thursday July 17, 2003 @06:34PM (#6466154)
    I couldn't find a way to send this to him, so I thought I'd post it here. Not that he'll read it, but at least I'll feel a tiny bit better while I convince my wife to give up our DirecTV service.

    -----

    Mr. Mercer,

    Regarding this statement:

    "I have to say, how innocent is someone who goes to website that is clearly identified as a pirate website that is devoted to selling equipment to steal satellite TV programming, and orders the equipment, knowing full well what they're getting?" says Mercer. "That's quite a stretch."

    Suppose I want to buy a gun, and I do the research to identify the kind of gun that I want. I find a store that has the gun I want for the same price as everyone else, but the guy behind the counter (which is, by the way, festooned with a"kill the [racial slur]s" poster) offers me an even better deal: the gun itself, plus a high-powered telescoping sight that he suggests "would be perfect for letting you kill someone -- or something -- at a distance". Now, I'm disgusted by his attitude and by the posters, but boy, that telescoping sight is really really cool, and I can't get it anywhere else, so I make the purchase and happily go off to hunt lions and tigers and bears, oh my.

    Now, should I be arrested for murdering people, because I bought the gun and sight from someone who openly thinks that murdering people is a good idea? Should I be sued in civil court for promoting racial violence because I made the purchase there? I would be interested to hear if you can justify it. Just remember, you can't compare it to an illegal gun purchase, because the devices in question are not illegal -- just like most devices that have legitimate and illegitimate uses.

    I am a DirecTiVo subscriber, and have been for some time. Tonight, I'll be doing my best to convince my wife that it's time to move on to something better, like less TV or the local cable affiliate. In the meantime, you might want to consider that your company has become an extortionist. I would imagine your shareholders are pleased, since this extortion increases actual revenue by extracting settlements from the innocent along with the guilty in a fashion that covers the cost of operations, while potential revenue lost to pirating can never be turned into actual revenue by any legitimate means. But you already knew that -- after all, I've been a subscriber for years, and you haven't made $3,500 out of me yet.
  • Re:CD Burners (Score:3, Interesting)

    by Gorak ( 26235 ) on Thursday July 17, 2003 @06:37PM (#6466179) Homepage
    OT, but when the US DoJ charges with you for posession of LSD-soaked blotter paper, they include the weight of the paper in the calculation of active doses.

    Since an active dose is around 100 *micro*grams, anybody who gets busted with LSD *always* gets done for major trafficking.

    It's fucked, but then so is the whole game.
  • by Hank Reardon ( 534417 ) on Thursday July 17, 2003 @07:04PM (#6466342) Homepage Journal
    Sorry about the double post, but I didn't notice that you bought it in the course of work.

    You might want to contact that old company, if they're still in business, and tell them what's going on. If they have legal council, and it's explained that this reader was bought during the course of a project from them, you might get some free legal advice or (unlikely) some representation.

    I know that there are lawyers who read /. Where are you guys? You should be chomping at the bit to help this guy out!

    To the poster: please keep us posted. I'm sure I'm not alone when I say I'd be willing to donate some money for a legal defense fund if you stipulated: (1) that any monies left over after defense were donated to the EFF or OSF; (2) a portion of any monies recovered in damages, if any, were likewise donated to the EFF or OSF; and (3) that you really stick it to the fuckers if you can.

    Please, please, please! Keep us posted.

  • Re: Probable cause. (Score:2, Interesting)

    by ConsumedByTV ( 243497 ) on Thursday July 17, 2003 @07:17PM (#6466429) Homepage
    Can you point me to how you have set this up?
    I would really like to setup something like that for my backup server with loop-aes hacked in there.

    It would rock my world if you could point this out to me.
  • Old news..... (Score:1, Interesting)

    by Retarded_Ninja ( 552341 ) on Thursday July 17, 2003 @07:19PM (#6466439)
    I submitted this exact story 3 weeks ago but it did not get posted. It actually goes a step farther.

    DirectTV sent out letters to people that they were suing. In the manner in which they did it, many people believed it to be a scam so they did not reply. The courts ruled that anyone that does not respond automatically is ordered to pay the settlement ammount.

    Many of the people are now trying to fight the judgement for a few reasons:

    DirectTV filed a lawsuit on every customer they found in the company's records that theyve raided without asking:

    did the people recieve the product?
    did they use it to steal DirectTV broadcasts?
    did they use it for legitimate use?

    There are many other questions they chose not ask.
    This is just another way that Big Companies can do what they please without regard for the constitution. You can thank the corrupt American legal system and our wonderful politicians.

    Thank you America, Thank you!
  • by Anonymous Coward on Thursday July 17, 2003 @07:38PM (#6466587)
    Just as the subject says, this same thing happened to me, but I didn't do anything wrong, unless you count buying the card reader as "something wrong".

    In the quickest of analogies I would like to point out the error in the way DTV is doing business in this situation.

    "A man walks into a gun shop and buys a gun with the intention of harming someone other than himself. The man comes to his senses before committing this atrocious act. Should the man be arrested for simply having the gun or for buying it, even though he did nothing wrong?"

    This is exactly what happened to me. I will admit a friend told me about doing this exact thing. I started buying the necessary components, but lost interest as I knew it was not a good idea. I'm not Mr Perfect, but I have some moral compass. Anyway I get said letter and in short time clear it up without paying a dime, because I did nothing wrong, besides buying the device.

    My real comment is that I though we were all Innocent until proven Guilty? If the device in question is not illegal then how can someone be sued when they have done nothing wrong.

    Just my thoughts and ramblings.
  • by eyeota ( 686153 ) on Thursday July 17, 2003 @08:52PM (#6467062)
    DirecTV 's tactics are very simple. They are trying to scare the common person into settling out. The reality is, DirecTV can't afford to lose a trial against an individual otherwise it would set a prescedence. Once the prescendence is set, it is now defense for everyone on their list. I haven't found a single case where an individual ended up going to court. Many have settled out, but none have completed a trial and that's no suprise. Dealers/Distributors are a whole different story. Each dealer/distrubtor's situation is uniuqe unlike the suit against the individuals for posessing programmers.
  • Re:BARRATRY! (Score:3, Interesting)

    by Carnivorous Carrot ( 571280 ) on Thursday July 17, 2003 @09:16PM (#6467193)
    > The suit is in the public record, so then it's
    > libel (assuming you really are innocent).

    Yes, the truly massive numbers of people who bought smart card writers and didn't use them to get free DirecTV (note, not DirectTV) will completely swamp them with libel suits.

    A cricket chirps...

  • Re:BARRATRY! (Score:3, Interesting)

    by MrLint ( 519792 ) on Thursday July 17, 2003 @11:18PM (#6467900) Journal
    Please recall the MPAA vs DeCSS. (aka DoJ vs that kid) It was basically argued that if you had DeCSS the *only* thing you could possibly use it for was to pirate dvds. YA false argument fed to us. They dont want to go thru the trouble of actually proving any allegations, that would mean that their cases would see the light of day and be destroyed by it like a blood sucking vampires.

    Have any of the alleged dmca cases gone to court other than adobe's? I haven't heard of many that made it to the jury phase. The best way to keep a bad law from being tested is to keep it away from a jury.
  • by Scummer ( 686208 ) on Thursday July 17, 2003 @11:38PM (#6468021)
    I have been a customer for this company for more than 2 years now. But just out of protest against this lawsuit (and i told the customer representative this on the phone) i canceled my DirecTV service today.

    I know, i'm only one customer, so not a big loss, but at least i can sleep tonight.

    Thomas
  • by FFFish ( 7567 ) on Friday July 18, 2003 @12:10AM (#6468198) Homepage
    It sounds like it's time to leave the country.

    Seriously. Your government has gone looney, and corporations are running amuck. It's simple not worth living there anymore.

    When enough sensible people either (a) leave the country or (b) revolt, things will be forced to change.
  • by CrackHappy ( 625183 ) * on Friday July 18, 2003 @12:56AM (#6468387) Journal
    Scummer, thank god for people like you!

    The more people hear about this, the more will cancel their subscriptions, and the more likely DirecTV will get the message that this is a BAD idea. They will end up losing WAY more money by pursuing this kind of tactic than by taking the time and effort to investigate who they are after and determining whether they really are pirates.

    To all you DirecTV subscribers, this is the kind of action that will really get the message through. No matter how good their service is, is it worth the price we will be paying as a society if this kind of corporate bullying isn't stopped?

    Together, we can make a difference.
  • by Mr.Sharpy ( 472377 ) on Friday July 18, 2003 @10:21AM (#6470383)
    I got one of those damn letters, AT WORK, and I only bought a ISO smart card programmer from a site that was selling them cheap. The programmers (2) that I bought worked well for my application because they didn't use surface mount components, so they were easier to screw around with. Sometimes its easier to buy something prebuilt and modify it.

    The ISO smart card reader I bought is not illegal, and it should never be made illegal. If they are, I guess I will have to throw out the Toshiba laptop I have with a reader BUILT IN. And all of the other devices that read smart cards. I guess the door to my lab will be illegal too.

    MY GOD, DIRECTV WANTS TO TAKE OVER MY LAB!

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