Blog Archives

US Pay-TV Piracy Gets Korean Businessman US$28 million Fine

Antipiracy website satscams.com reports that a US court in San Diego has ordered Korean businessman Soo Jong Yeo and his company Vicxon Corp fined US$28 million for shipping internet-key-sharing boxes to the USA. The case was brought by North American pay-TV provider Dish Network/Echostar, whose program bouquet could be intercepted by the key-sharing devices. It was a follow-on to a 2012 decision which already saw the US leaders of this piracy conspiracy fined $64 million, bringing the total fines in this set of cases to $92 million.

See here for the story.

The legal reasoning in these case was interesting: the court recorded violations of the US Digital Milennium Copyright Act (DMCA), which prohibits marketing, importing, distributing, etc. etc. of circumvention devices, components, software or technology. And it said that the fact that the set-top-boxes in question might theoretically have been used to receive satellite FTA programming was not relevant. “Downstream customers’ lawful or fair use of circumvention devices does not relieve [the defendant] from liability for trafficking of such devices under DMCA,” because the “receiver and iHub have several firmware and hardware components that serve limited or no legitimate purpose other than circumvention of DISH Network’s security system.” The fine was calculated by reference to the DMCA’s minimum statutory damages of US$200 per violation. (At least several hundred thousand pirate boxes were imported and sold by the conspirators.)

Unfortunately, a simple internet search still reveals many current offers for the same piracy equipment on China-based internet sales sites, all specifying they are for shipment to the USA. The import ring may have been busted in the USA, but the China piracy export machine chugs ahead……no doubt with profits to the Korean owners!

For those interested in more information, the Summary Judgment of the US court can be downloaded here.

CASBAA Applauds Liberalization of Investment Controls in India

CASBAA responded positively to proposals by India’s TRAI to liberalize foreign investment controls on pay-TV network operators. In keeping with other liberalizations in India recently, TRAI proposed allowing up to 100% foreign investment on pay-TV companies, to parallel changes in process for telecom companies. In a submission, CASBAA “welcomed and supported” the TRAI proposal that investment in the “carriage” sectors be increased to 100% across the board. Download the submission paper here

Movement on Cable Package Pricing in Taiwan

Taiwan, which has had a large, static, legally-mandated analogue cable TV package for years, is in for some change, with consumers paying less for basic TV, but having more choice for premium content. The National Communications Commission announced on July 3 that in early 2017 it would oblige cable operators to offer tiers of programming. A basic tier, to include 11 named “must-carry” FTA channels plus others to be selected by cable operators, would cost only US$6.60 per month. Three add-on expanded basic tiers (which can be selected by consumers) are to cost only $4.30 each. At the top end, however, operators are expected to have more pricing flexibility for premium and HD channels. An obvious prerequisite for this type of pricing is full digitization. One hopeful sign is that Commission spokesperson Yu Hsiao-cheng implied it was not the Commission’s intention to continue past regulatory excesses. According to Yu, the commission would not limit the number of channels available in each group, nor would it interfere with the arrangement of the TV channels.

See an English-language press report here.

See a translation of the NCC’s media release here.

Taiwan Media Monopoly Debate Rages

Two recent articles from the English-language press illuminate the continuing, highly political, debate in Taiwan over “media monopoly” issues. They will be of interest to members following issues there.

1. An Op-Ed column in the Taipei Times provides good background on the origin and development of the complicated issues at stake: More

2. Meanwhile, the Want Want China Times (part of the conglomerate at the center of the “monopoly” storm) published that group’s point of view, which is anything but neutral: More

(Declaration of Interest: None of the companies in the Want Want China Times Group are CASBAA members, though they have been invited. Other players in the Taiwan pay-TV industry are members.)

More pay-TV piracy arrests in Greece

Continued efforts by the police electronic crime prosecution departments in Greece and Cyprus have resulted in twelve more cases involving piracy of pay-TV satellite services. These were heard before the Public Prosecutor and criminal prosecutions have been initiated against the defendants.

See full article here

Pirate Website Busted in California

Three brothers from Northern California have been charged with operating an illegal website which offered pirated streaming of popular TV shows and movies. They face up to five years in prison. The State Attorney General’s Office confirmed that Hop Hoang and his brothers, Tony Hoang and Huynh Hoang were arraigned on multiple counts each, including grand theft, conspiracy and receiving stolen property. See the full article here.

Tax rise warning from CASBAA and Indian Broadcasters

Hidden in the recent Indian budget was a boost in taxes on satellite transmission services. CASBAA and the Indian Broadcasting Foundation have written to Finance Minister P. Chidambaram with a clear warning: higher satellite taxes will mean hikes in TV bills for hundreds of millions of Indian consumers. The Associations noted that for the previous decade the trend had been to lower such taxes to facilitate India’s integration with the rest of the world and more closely track rates in other countries. The recent budget reverses that trend, proposing a boost in the tax rate from 10% to 25%. CASBAA and IBF called the higher rate “highly unreasonable, arbitrary and unjustified in prevailing market conditions.” They noted that the increase in taxation will inevitably cascade down and fall on a great mass of Indian taxpayers.

Download the letter here.