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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UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

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DISH NETWORK L.L.C.,
ECHOSTAR TECHNOLOGIES
L.L.C., and NAGRASTAR LLC,

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DEFAULT JUDGMENT AND
PERMANENT INJUNCTION

Plaintiffs,

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Case No. 3:17-cv-00243-JD

v.
JULIAN NUNN,

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Defendant.

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1.

Plaintiffs DISH Network L.L.C., EchoStar Technologies L.L.C., and NagraStar

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LLC (collectively, “DISH Network”) sued defendant Julian Nunn for selling and trafficking in

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passcodes used for accessing pirate television services called NFusion Private Server (“NFPS”)

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and SatLobo (collectively, the “IKS Services”). The IKS Services provided control words or

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keys that decrypt DISH Network’s satellite signal. The control words allow users to circumvent

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the DISH Network security system and receive DISH Network’s satellite broadcasts of

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copyrighted television programming without authorization and without paying subscription fees

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to DISH Network.

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2.

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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).

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3.

DISH Network has provided evidence that Nunn is not an infant, not incompetent,

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and not on active duty with the military or otherwise exempted under the Servicemembers’ Civil

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Relief Act. Dkt. No. 18-2 (Van Riper Decl.) ¶¶ 3-4.

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4.

Nunn has failed to answer or otherwise appear in this action, and the Court accepts

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as true the following allegations from DISH Network’s complaint for the purposes of this default

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judgment:

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(a)

DISH Network is a multi-channel video provider that delivers video, audio,

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and data services to approximately 14 million subscribers throughout the United States via a

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direct broadcast satellite system. DISH Network uses high-powered satellites to broadcast,

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among other things, movies, sports and general entertainment services to consumers who have

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been authorized to receive such services after payment of a subscription fee, or in the case of a

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pay-per-view movie or event, the purchase price. Dkt. No. 1 ¶¶ 10-11.

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(b)

DISH Network contracts for and purchases the distribution rights for most

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of the programming broadcast on the DISH Network platform from providers such as network

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affiliates, pay and specialty broadcasters, cable networks, motion picture distributors, sports

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leagues, and other holders of programming rights. The works broadcast by DISH Network are

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copyrighted. DISH Network has the authority of the copyright holders to protect these works

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from unauthorized reception and viewing. Id. ¶¶ 12-13.

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(c)

DISH Network programming is digitized, compressed, and then scrambled

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prior to being transmitted to multiple satellites that are located in geo-synchronous orbit above

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Earth. The satellites relay the encrypted signal back down to Earth where the signal can be

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received by DISH Network subscribers that have the necessary equipment. Id. ¶ 14.

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(d)

The EchoStar Technologies receiver processes an incoming DISH Network

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satellite signal by locating an encrypted part of the transmission called the entitlement control

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message and forwards that message to the NagraStar smart card. Provided that the subscriber is

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tuned to a channel that he is authorized to watch, the smart card uses its decryption keys to unlock

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the message, uncovering a control word. The control word is transmitted back to the receiver in

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order to decrypt the DISH Network satellite signal. Id. ¶¶ 18-19.
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(e)

The IKS Services are Internet key sharing service that provides end users

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with the control words that descramble DISH Network television programming. End users that

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acquire control words from the IKS Services are able to view DISH Network programming

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without having authority from or paying the required subscription fee to DISH Network. Id. ¶ 22-

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25.

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(f)

Nunn violated the Digital Millennium Copyright Act, 17 U.S.C. §

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1201(a)(2), and the Federal Communications Act, 47 U.S.C. § 605(e)(4), as alleged in Counts I

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and II, by trafficking in passcodes for the IKS Services, which are primarily designed for and

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have no legitimate commercial purpose or use other than to circumvent the DISH Network

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security system and receive DISH Network programming without authorization. Id. ¶¶ 26-41.

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5.

DISH Network requested statutory damages of $10,000 for each passcode

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trafficked in by Nunn, pursuant to 47 U.S.C. § 605(e)(3)(C)(i)(II). Alternatively, DISH Network

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requested statutory damages of $2,500 for each passcode trafficked in by Nunn, pursuant to 17

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U.S.C. § 1203(c)(3)(A). Dkt. No. 18-1 at 5, 8-9.

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II.

FINAL JUDGMENT & PERMANENT INJUNCTION

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In light of these allegations and Nunn’s failure to contest them, the Court orders that:

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1.

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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

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trafficking in passcodes to the IKS Services, any other code or password used in accessing an IKS

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server, and any other technology or part thereof that is used in circumventing DISH Network’s

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security system or receiving DISH Network programming without authorization;

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(b)

circumventing or assisting others in circumventing the DISH Network

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security system, or receiving or assisting others in receiving DISH Network’s satellite signal

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without authorization; and

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(c)

testing, analyzing, reverse engineering, manipulating, or extracting code,

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data, or information from DISH Network’s satellite receivers, smart cards, satellite stream, or any

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other part or component of the DISH Network 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 II of the

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complaint alleging Nunn’s violations of 17 U.S.C. § 1201(a)(2) and 47 U.S.C. § 605(e)(4),

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respectively.

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4.

Statutory damages of $700,000 are awarded to DISH Network on Count I under 17

U.S.C. § 1203(c)(3)(A).
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The Court retains jurisdiction over this action for a period of 12 months for the

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purpose of enforcing this final judgment and permanent injunction. The Court also retains

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jurisdiction to alter the judgment should Nunn seek to challenge whether service of process was

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perfected.

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IT IS SO ORDERED.
Dated: July 26, 2017
Hon. James Donato
United States District Judge

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