FBI charges satellite descramblers under DMCA

[mattman59]

FBI charges satellite descramblers under DMCA

The people behind the Viewsat satellite receiver have been arrested and charged with conspiring to violate the Digital Millennium Copyright Act thanks to their not-so-undercover efforts to crack DISH Network's latest encryption scheme.
By Jacqui Cheng | Last updated July 15, 2009 1:30 PM CT

The FBI has set its sights on satellite descramblers, charging three individuals behind the Viewsat satellite receiver with conspiracy to violate the Digital Millennium Copyright Act (DMCA). The indictment was unsealed this week after Viewtech owner Jung Kwak was arrested in San Diego, where he is currently being held without bail. Several associates were also arrested. The group faces up to five years in prison and a $250,000 fine each.

Some of our readers may be familiar with the Viewsat—it's a free-to-air (FTA) satellite receiver box that claims to provide users with access to free satellite programming, such as religious and cultural content. However, as most Viewsat customers also know, the device is engineered in such a way that makes it simple for users to grab what is otherwise designated as for-pay satellite programming. All that's required is for the FTA boxes to spoof DISH's smartcards so that the DISH Network can see that the boxes are authorized.

The satellite companies know that this practice isn't particularly rare, so they occasionally re-encrypt their signals and send out new smartcards to legitimate customers. In this case, DISH Network started rolling out new encryption known as either "Nagra 3" or "rom 240," this update "dramatically" reducing the sales of Viewsat receivers, according to the indictment document.

By March of 2008, Kwak began working with the other two defendants, Phillip Allison and Robert Ward, to circumvent this new encryption. Kwak allegedly agreed to reimburse their expenses and finance research on how to crack Nagra 3, while the other two worked together and recruited more hackers for the project.

Among other things, the group spent $8,500 on a microscope for use in analyzing the new DISH smartcard and paid $20,000 for detailed photographs of the card. In a particularly damning comment, Kwak apparently said on a March 2009 conference call that he wanted to reimburse expenses in person because, "I don't want no traces or records." Oops.

As a result, the FBI charged the trio with conspiracy to violate the DMCA, which bars circumvention of encryption technologies like the ones DISH uses. It's going to be hard for the defendants to argue their way out of this one, if the facts are true—not only did the group seek to profit from stolen satellite signals, it was also obviously aware that what it was doing wasn't legal and then (unsuccessfully) attempted to operate with no paper trail.

/FBI charges satellite descramblers under DMCA - Ars Technica

Wow....I am kinda shocked that these guys were not more stealthy about this.
Moderator edit!
No live links to outside sites!

[cruzat]

I don't know how many times this has been posted but I guess we'll add one more to the bunch since people don't seem to read the forums.


By the way please read the site rules and the part about live links to outside sites.

[xlch]

F.B.I. free to air box inspector

[ac1]

The group faces up to five years in prison and a $250,000 fine each.


Not too bad after making at least a $1M. How much do you guys think Kwak has made? where do I sign up? see, that's the kinda break i'm searchin for. wouldn't mind sacraficing 5 years to make enough cash to retire. beats working.

and he'd still be making money while serving his sentence, if convicted.

[pebbles7865]

the fbi couldnt find something better to do with their time like more serious crimes like murderers,rapist,child molesters this is what our tax $'s helps fight

[xlch]

this chit ain`t new been going on for a long time dick bitched have to do something.but FBI where`s the fcc they didn`t stop sending their chit to my yard .i`m getting tried of putting dishes up to see what it does to my family.all eggs aren`t in just one place .there too many people in this to know fta box should notbe sent with 8spk in them they can do that for them shelf in canada might be a little diff with mod laws.just like loaders you can flash the atmel your shelf people just don`t read and that`s that too many in this wants it easy and makes people think big money. you always think a head.READ PEOPLE READ

[cool_bisht@yahoo.com]

This clearly shows that FBI is in the pockets of big Corporate Networks.
Someone trying to re-engineer some peice of electronic component should be no concern to FBI but seems like they are on payroll of Dave.

[floder2]

Well Mr Jung Kwak made bail today.Looks like bail was set at $500,000also


this is on the viewsat usa site so dont count them out yet:

Viewtech regrets having to report that its founder, Jung Kwak, was arrested by the FBI last Friday evening and has been charged with being an alleged co-conspirator with others to violate satellite privacy laws. Jung denies the allegations and has pled not guilty. Viewtech expects that he will vigorously defend against the charges and will ultimately be vindicated.
Neither Viewtech, nor any of its employees, authorized distributors and dealers are involved in this criminal case. Viewtech has always been and remains against satellite piracy, which is illegal. Viewtech will continue to sell all of its FTA receivers and products, and will maintain its warranty, repair and servicing requirements to its thousands of loyal customers. Although we sympathize and support Jung in his efforts to fight these charges, Viewtech recognizes its ongoing and future business obligations as the FTA industry leader. We thank all of our distributors and their dealer network, and our customers, for their continued patronage

[luisv113]

This proves that you don't have to be too smart to make money.

These people are very rich and stupid at the same time, they should live and write code in the same countries where the boxes are made, and our goverment should be more concern about the fact that these factories where taken overseas (by american companies that cheat our tax laws) at the expense of american jobs to begin with.

Maybe we can struck a deal with these people, bring the factories back here and we let you do your thing.

Does anybody realize how many very needed jobs can be created here supplying the rest of the planet with boxes like they do there?

After all, as long as they get rich, who in the world cares about the laws that are supposed to protect our workers?

As for Dave and Charlie, you should bring down your prices to a reasonable level (instead of trying to hook customers thru deceptive adds), so most of our unemployed masses can at least afford some relief from the fact that our country will never recover from the depresion we are in because all our industrial base had been moved overseas, to the same countries that intencionally produce and sale here the boxes that use the software that so much worry you and our authorities.

[BullShk]

You just need the money for bail when you get caught... Don't seem to complicated to me !!!