Dish Network L.L.C. et al v. James Terrazas
Filing
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FINAL JUDGMENT AND PERMANENT INJUNCTION by Judge John F. Walter. (MD JS-6, Case Terminated). (jloz)
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JS-6
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
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FINAL JUDGMENT AND
PERMANENT INJUNCTION
Plaintiffs,
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v.
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Case No. 2:15-cv-08951 JFW (JPRx)
DISH NETWORK L.L.C. et al.,
JAMES TERRAZAS,
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Defendant.
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I.
NATURE OF THE CASE
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Plaintiffs DISH Network L.L.C., EchoStar Technologies L.L.C., and
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NagraStar LLC (collectively, “DISH Network”) filed this action against Defendant
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James Terrazas (“Defendant”) for selling or otherwise trafficking in passcodes used
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for accessing a pirate television service called NFusion Private Server (“NFPS”).
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The NFPS service provided Defendant and his customers with control words or
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“keys” that decrypt DISH Network’s satellite signal. With these control words,
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Defendant and his customers were able to circumvent the DISH Network security
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system and receive DISH Network’s satellite broadcasts of copyrighted television
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programming without having authorization from or without paying the required
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subscription fees to DISH Network.
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2.
Defendant was properly served with a summons and DISH Network’s
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complaint, but failed to file an answer, responsive pleading, or otherwise defend the
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lawsuit within the time allowed. DISH Network submitted evidence that Defendant
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is not an infant, is not incompetent, and is not on active duty with the military or
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otherwise exempted under the Servicemembers’ Civil Relief Act.
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3.
As a result of Defendant’s failure to answer or otherwise appear in this
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action, the Court accepts as true the following well-pleaded allegations from DISH
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Network’s complaint:
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(a)
DISH Network is a multi-channel video provider that delivers
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video, audio, and data services to approximately 14 million subscribers throughout
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the United States via a direct broadcast satellite system. DISH Network uses high-
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powered satellites to broadcast, among other things, movies, sports and general
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entertainment services to consumers who have been authorized to receive such
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services after payment of a subscription fee, or in the case of a pay-per-view movie
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or event the purchase price. (Dkt. 1, Compl. ¶¶ 9-10.)
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(b)
DISH Network contracts for and purchases the distribution
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rights for most of the programming broadcast on the DISH Network platform from
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providers such as network affiliates, pay and specialty broadcasters, cable networks,
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motion picture distributors, sports leagues, and other holders of programming
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rights. The works broadcast by DISH Network are copyrighted. DISH Network
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has the authority of the copyright holders to protect these works from unauthorized
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reception and viewing. (Id. ¶¶ 11-12.)
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(c)
DISH Network programming is digitized, compressed, and then
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scrambled prior to being transmitted to multiple satellites that are located in geo-
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synchronous orbit above Earth. The satellites relay the encrypted signal back down
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to Earth where the signal can be received by DISH Network subscribers that have
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the necessary equipment. (Id. ¶ 13.)
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(d)
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The EchoStar Technologies receiver processes an incoming
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DISH Network satellite signal by locating an encrypted part of the transmission
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called the entitlement control message and forwards that message to the NagraStar
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smart card. Provided that the subscriber is tuned to a channel that he is authorized
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to watch, the smart card uses its decryption keys to unlock the message, uncovering
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a control word. The control word is transmitted back to the receiver in order to
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decrypt the DISH Network satellite signal. (Id. ¶¶ 17-18.)
(e)
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NFPS is an Internet key sharing service that provides end users
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with the control words that descramble DISH Network television programming.
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End users that acquire control words from NFPS service are able to view DISH
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Network programming without having authority from or paying the required
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subscription fee to DISH Network. (Id. ¶ 25.)
(f)
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Defendant violated the Digital Millennium Copyright Act, 17
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U.S.C. § 1201(a)(2), and the Federal Communications Act, 47 U.S.C. § 605(e)(4),
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as alleged in Counts I and II, by trafficking in passcodes for the NFPS service,
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which are primarily designed for and have no legitimate commercial purpose or use
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other than to circumvent the DISH Network security system and receive DISH
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Network programming without authorization. (Id. ¶¶ 25-28, 39-41.)
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DISH Network requested statutory damages of $1,000 for each
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passcode trafficked in by Defendant, pursuant to 17 U.S.C. § 1203(c)(3)(A).
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II.
Upon default of Defendant, and the Court having reviewed the applicable
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FINAL JUDGMENT & PERMANENT INJUNCTION
law, evidence, and record in this matter, the Court hereby ORDERS as follows:
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Defendant, and any person acting in active concert or participation
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with Defendant that receives notice of this order, is hereby permanently enjoined
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from:
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(a)
manufacturing, importing, offering to the public, providing, or
otherwise trafficking in passcodes to the NFPS service, any other code or password
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used in accessing an IKS server, and any other technology or part thereof that is
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used in circumventing DISH Network’s security system or receiving DISH
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Network programming without authorization;
(b)
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circumventing or assisting others in circumventing the DISH
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Network security system, or receiving or assisting others in receiving DISH
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Network’s satellite signal without authorization; and
(c)
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testing, analyzing, reverse engineering, manipulating, or
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extracting code, data, or information from DISH Network’s satellite receivers,
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smart cards, satellite stream, or any other part or component of the DISH Network
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security system.
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2.
This permanent injunction takes effect immediately.
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3.
Judgment is entered in favor of DISH Network on Count I and Count
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II of the complaint alleging Defendant’s violations of 17 U.S.C. § 1201(a)(2) and
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47 U.S.C. § 605(e)(4), respectively.
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4.
Statutory damages of $100,000 are awarded to DISH Network on
Count I, in accordance with 17 U.S.C. § 1203(c)(3)(A).
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IT IS SO ORDERED.
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Dated: March 1, 2016
Hon. John F. Walter
United States District Judge
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