Dish Network L.L.C. et al v. Nunn

Filing 22

DEFAULT JUDGMENT AND PERMANENT INJUNCTION. Signed by Judge James Donato on 7/26/2017. (jdlc1S, COURT STAFF) (Filed on 7/26/2017)

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1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 8 9 10 11 DISH NETWORK L.L.C., ECHOSTAR TECHNOLOGIES L.L.C., and NAGRASTAR LLC, 14 DEFAULT JUDGMENT AND PERMANENT INJUNCTION Plaintiffs, 12 13 Case No. 3:17-cv-00243-JD v. JULIAN NUNN, 15 Defendant. 16 17 1. Plaintiffs DISH Network L.L.C., EchoStar Technologies L.L.C., and NagraStar 18 LLC (collectively, “DISH Network”) sued defendant Julian Nunn for selling and trafficking in 19 passcodes used for accessing pirate television services called NFusion Private Server (“NFPS”) 20 and SatLobo (collectively, the “IKS Services”). The IKS Services provided control words or 21 keys that decrypt DISH Network’s satellite signal. The control words allow users to circumvent 22 the DISH Network security system and receive DISH Network’s satellite broadcasts of 23 copyrighted television programming without authorization and without paying subscription fees 24 to DISH Network. 25 2. 26 DISH Network served Nunn by leaving a copy of the summons and complaint at his residence with Jane Doe, a co-resident. Dkt. Nos. 13, 15; see also Fed. R. Civ. P. 4(e)(2)(B). 27 28 1 1 3. DISH Network has provided evidence that Nunn is not an infant, not incompetent, 2 and not on active duty with the military or otherwise exempted under the Servicemembers’ Civil 3 Relief Act. Dkt. No. 18-2 (Van Riper Decl.) ¶¶ 3-4. 4 4. Nunn has failed to answer or otherwise appear in this action, and the Court accepts 5 as true the following allegations from DISH Network’s complaint for the purposes of this default 6 judgment: 7 (a) DISH Network is a multi-channel video provider that delivers video, audio, 8 and data services to approximately 14 million subscribers throughout the United States via a 9 direct broadcast satellite system. DISH Network uses high-powered satellites to broadcast, 10 among other things, movies, sports and general entertainment services to consumers who have 11 been authorized to receive such services after payment of a subscription fee, or in the case of a 12 pay-per-view movie or event, the purchase price. Dkt. No. 1 ¶¶ 10-11. 13 (b) DISH Network contracts for and purchases the distribution rights for most 14 of the programming broadcast on the DISH Network platform from providers such as network 15 affiliates, pay and specialty broadcasters, cable networks, motion picture distributors, sports 16 leagues, and other holders of programming rights. The works broadcast by DISH Network are 17 copyrighted. DISH Network has the authority of the copyright holders to protect these works 18 from unauthorized reception and viewing. Id. ¶¶ 12-13. 19 (c) DISH Network programming is digitized, compressed, and then scrambled 20 prior to being transmitted to multiple satellites that are located in geo-synchronous orbit above 21 Earth. The satellites relay the encrypted signal back down to Earth where the signal can be 22 received by DISH Network subscribers that have the necessary equipment. Id. ¶ 14. 23 (d) The EchoStar Technologies receiver processes an incoming DISH Network 24 satellite signal by locating an encrypted part of the transmission called the entitlement control 25 message and forwards that message to the NagraStar smart card. Provided that the subscriber is 26 tuned to a channel that he is authorized to watch, the smart card uses its decryption keys to unlock 27 the message, uncovering a control word. The control word is transmitted back to the receiver in 28 order to decrypt the DISH Network satellite signal. Id. ¶¶ 18-19. 2 1 (e) The IKS Services are Internet key sharing service that provides end users 2 with the control words that descramble DISH Network television programming. End users that 3 acquire control words from the IKS Services are able to view DISH Network programming 4 without having authority from or paying the required subscription fee to DISH Network. Id. ¶ 22- 5 25. 6 (f) Nunn violated the Digital Millennium Copyright Act, 17 U.S.C. § 7 1201(a)(2), and the Federal Communications Act, 47 U.S.C. § 605(e)(4), as alleged in Counts I 8 and II, by trafficking in passcodes for the IKS Services, which are primarily designed for and 9 have no legitimate commercial purpose or use other than to circumvent the DISH Network 10 security system and receive DISH Network programming without authorization. Id. ¶¶ 26-41. 11 5. DISH Network requested statutory damages of $10,000 for each passcode 12 trafficked in by Nunn, pursuant to 47 U.S.C. § 605(e)(3)(C)(i)(II). Alternatively, DISH Network 13 requested statutory damages of $2,500 for each passcode trafficked in by Nunn, pursuant to 17 14 U.S.C. § 1203(c)(3)(A). Dkt. No. 18-1 at 5, 8-9. 15 II. FINAL JUDGMENT & PERMANENT INJUNCTION 16 In light of these allegations and Nunn’s failure to contest them, the Court orders that: 17 1. 18 19 Nunn and any person acting in active concert or participation with Nunn that receives notice of this order are permanently enjoined from: (a) manufacturing, importing, offering to the public, providing, or otherwise 20 trafficking in passcodes to the IKS Services, any other code or password used in accessing an IKS 21 server, and any other technology or part thereof that is used in circumventing DISH Network’s 22 security system or receiving DISH Network programming without authorization; 23 (b) circumventing or assisting others in circumventing the DISH Network 24 security system, or receiving or assisting others in receiving DISH Network’s satellite signal 25 without authorization; and 26 27 28 3 1 (c) testing, analyzing, reverse engineering, manipulating, or extracting code, 2 data, or information from DISH Network’s satellite receivers, smart cards, satellite stream, or any 3 other part or component of the DISH Network security system. 4 2. This permanent injunction takes effect immediately. 5 3. Judgment is entered in favor of DISH Network on Count I and Count II of the 6 complaint alleging Nunn’s violations of 17 U.S.C. § 1201(a)(2) and 47 U.S.C. § 605(e)(4), 7 respectively. 8 9 10 4. Statutory damages of $700,000 are awarded to DISH Network on Count I under 17 U.S.C. § 1203(c)(3)(A). 5. The Court retains jurisdiction over this action for a period of 12 months for the 11 purpose of enforcing this final judgment and permanent injunction. The Court also retains 12 jurisdiction to alter the judgment should Nunn seek to challenge whether service of process was 13 perfected. 14 15 16 IT IS SO ORDERED. Dated: July 26, 2017 Hon. James Donato United States District Judge 17 18 19 20 21 22 23 24 25 26 27 28 4

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