Dish Network, LLC et al v. Mercado

Filing 20

FINAL JUDGMENT granting 19 Motion for Default Judgment; granting 19 Motion for permanent injunction. The Clerk is directed to close this case. Signed by Judge Susan C Bucklew on 6/27/2012. (JD)

UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
DISH NETWORK L.L.C., a Colorado
Limited Liability Company,
ECHOSTAR TECHNOLOGIES L.L.C.,
a Texas Limited Liability Company, and
NAGRASTAR L.L.C., a Colorado
Limited Liability Company,

)
)
)
)
)
)
)
Plaintiffs,
)
)
v.
)
)
HECTOR MERCADO d/b/a
)
HEC’S COMPUTER WHAREHOUSE
)
www.hecspc.com, www.fta4dummies.com )
and www.fta4dummies.net
)
)
Defendant.
)
)

Case No.: 8:11-cv-2138-T-24 TGW

FINAL JUDGMENT AND PERMANENT INJUNCTION

I.

NATURE OF THE CASE
1. The Plaintiffs brought this action against the Defendant Hector Mercado (hereinafter
"Defendant”) for his sales and/or distributions of DISH Network piracy devices and
services which enabled his purchasers to receive encrypted, copyrighted, subscriptionbased DISH Network satellite television programming without authorization and without
payment to DISH Network.
2. Defendant was properly served with a copy of the Summons and Plaintiffs' Complaint, but
Defendant failed to file an answer, responsive pleading, or otherwise defend himself from
the lawsuit within the time allowed. Plaintiffs submitted evidence that Defendant is not an

infant, not an incompetent person, and not on active duty in the military or otherwise
exempted under the Service Members' Civil Relief Act.
3. As a result of Defendant's failure to answer Plaintiffs' Complaint or otherwise appear in this
action at all, the Court accepts as true the following well plead allegations in Plaintiffs'
Complaint:
a. DISH Network is a multi-channel video provider that delivers video, audio, and data
services via a direct broadcast satellite system to more than 14 million subscribers.
DISH Network uses high-powered satellites to broadcast, among other things, movies,
sports and general entertainment services to consumers who have been authorized to
receive such services after payment of a subscription fee, or in the case of a pay-perview movie or event the purchase price.
b. DISH Network contracts for and purchases the distribution rights for most of the
programming broadcast on the DISH Network platform from providers such as network
affiliates, pay and specialty broadcasters, cable networks, motion picture distributors,
sports leagues, and other holders of programming rights. The works broadcast on the
DISH Network platform are copyrighted. DISH Network has the authority of the
copyright holders to protect these works from unauthorized reception and viewing.
c. DISH Network programming is digitized, compressed, and scrambled prior to being
transmitted to multiple satellites located in geo-synchronous orbit above Earth. The
satellites then relay the encrypted signal back down to Earth where it can be received
by DISH Network subscribers that have the necessary equipment.
d. The EchoStar Technologies receiver processes an incoming DISH Network satellite
signal by locating an encrypted part of the transmission known as the entitlement

control message and forwards that message to the smart card. Provided that the
subscriber is tuned to a channel he is authorized to watch, the smart card uses its
decryption keys to unlock the message, uncovering a control word. The control word is
then transmitted back to the receiver in order to decrypt the DISH Network satellite
signal. Each receiver and smart card is assigned a unique serial number which is used
by DISH Network when activating the equipment, and to ensure the equipment only
decrypts programming that the customer is authorized to receive as part of his or her
subscription package and pay-per-view purchases.
e. Prior to June of 2009 there existed a method of unauthorized interception of DISH
Networks signals whereby certain Free To Air ("FTA") satellite receivers were
programmed ("modified") with certain software, modified FTA card hack piracy
software. Once programmed the modified FTA receivers were capable of decrypting
DISH Networks encrypted, copyrighted, subscription-based, satellite television
programming without authorization, thus allowing for the unauthorized receipt of the
signals and without payment to DISH Network.
f. There exists a method of unauthorized interception of DISH Networks signals whereby
Internet Enabled Free FTA satellite receivers are programmed ("modified") with certain
software, modified FTA/IKS piracy software. Once programmed the modified internetenabled FTA receivers utilize the Internet to make connections with certain computer
servers which provide internet key sharing ("IKS") television services that deliver the
computer software and decryption codes needed to decrypt DISH Network television
programming without authority, thus allowing for the unauthorized receipt of the
signals and without payment to DISH Network.

g. The internet key sharing ("IKS") television services can be purchased through
subscription services whereby subscriber can obtain Internet access to a computer
server which then provides the computer software and decryption codes needed to
decrypt DISH Network television programming without authority to modified internetenabled FTA receivers, thus allowing for the unauthorized receipt of the signals and
without payment to DISH Network.
h. The Defendant sold and/or distributed DISH Network piracy devices and services by:
i. Selling and/or distributing FTA receivers and Internet enabled FTA receivers while
directing purchasers to websites, including his own websites where the modified
FTA card hack piracy software and the modified FTA/IKS piracy software was
available to modify the receivers;
ii. Selling and/or distributing FTA receivers that had already been programmed
(“modified) with modified FTA card hack piracy software;
iii. Selling and/or distributing modified FTA card hack piracy software by
programming it into and thus modifying an internet-enabled FTA receiver; and
iv. Selling and/or distributing a service through paid subscriptions to a private server
providing internet key sharing ("IKS") television services.
4. Based upon the Defendant’s sales and/or distribution and/or modification of DISH piracy
devices the Defendant is liable for five (5) violations of the Communications Act, 47
U.S.C. § 605 (e)(4) and he has violated the Florida Unauthorized Reception of
Communication Services Statute, Florida Statute § 812.15.

5. Based upon the Defendant’s sales and/or distribution and DISH piracy devices the
Defendant is liable for four (4) violations of the Digital Millennium Copyright Act
("D.M.C.A.”), 17 U.S.C. § 1201(a)(2).
6. Pursuant 47 U.S.C. § 605(e)(3)(C)(i)(II), the Plaintiffs are seeking $50,000 as the minimum
statutory damage for the Defendant’s five (5) violations of the Communications Act, 47
U.S.C. § 605 (e)(4). Pursuant to 17 U.S.C. § 1203(c)(3)(A), the Plaintiffs are seeking $800
as the minimum statutory damage for the Defendant’s four (4) violations of 17 U.S.C. §
1201(a)(2).
7. The Plaintiffs have established that they are entitled to injunctive relief pursuant to
provisions of 47 U.S.C. § 605(e)(3)(B)(i) and/or 17 U.S.C. § 1203(b)(1) and/or the Florida
Unauthorized Reception of Communication Services Statute, Florida Statute
§812.15(10)(b)(1) and/or Federal Rule of Civil Procedure 65.
8. The Plaintiffs have agreed to dismiss their other causes of action and/or claims as set forth
in the Complaint with prejudice so that a final judgment can enter in this case.

II.

FINAL JUDGMENT & PERMANENT INJUNCTION
Upon default of the Defendant, the Court, having reviewed the record, evidence, and

applicable law in this matter, hereby ORDERS and ADJUDGES as follows:
1. Defendant, and Defendant’s employees, agents, representatives, attorneys, and all persons
acting or claiming to act on Defendant’s behalf or under Defendant’s direction or authority,
and all persons acting in concert or in participation with Defendant, are hereby
PERMANENTLY ENJOINED from:
a. manufacturing, offering to the public, providing, or otherwise trafficking in any pirate

tools, software, receivers, or any other device, component, or part thereof that:
i. is primarily designed or produced for the purpose of circumventing DISH
Network’s security system or any other technological measure adopted by DISH
Network that controls access to, copying, or distribution of copyrighted works on
the DISH platform;
ii. has only a limited commercially significant purpose or use other than to circumvent
DISH Network’s security system or any other technological measure adopted by
DISH Network that controls access to, copying, or distribution of copyrighted
works on the DISH platform;
iii. is marketed for use in circumventing DISH Network’s security system or any other
technological measure adopted by DISH Network that controls access to copying or
distribution of copyrighted works on the DISH platform;
b. manufacturing, assembling, modifying, selling, or distributing pirate tools, software,
receivers, or any other device knowing or having reason to know that such device is
primarily of assistance in the unauthorized decryption of direct-to-home satellite
services;
c. receiving or assisting others in receiving without authorization, or otherwise
intercepting or procuring others to intercept, DISH’s satellite transmissions of
television programming;
d. operating

the

websites

www.hecspc.com

or

www.fta4dummies.com

or

www.HECSpc.com or any other website in a manner which would violate the terms of
the injunction.
2. The Permanent Injunction takes effect immediately.

3. Plaintiffs’ other causes of action and claims as set forth in the Complaint are hereby
dismissed with prejudice.
4. The Court further orders JUDGMENT for the Plaintiffs on their claims under the
Communications Act, 47 U.S.C. § 605 (e)(4), the Digital Millennium Copyright Act
("D.M.C.A.”), 17 U.S.C. § 1201(a)(2) and the Florida Unauthorized Reception of
Communication Services Statute, F.S.A. § 812.15.
5. Pursuant 47 U.S.C. § 605(e)(3)(C)(i)(II), the Plaintiffs are awarded $50,000 as the minimum
statutory damage for the Defendant’s five (5) violations of the Communications Act, 47
U.S.C. § 605 (e)(4). Pursuant to 17 U.S.C. § 1203(c)(3)(A), the Plaintiffs are awarded
$800 as the minimum statutory damage for the Defendant’s four (4) violations of 17 U.S.C.
§ 1201(a)(2).
6. The Plaintiffs are also awarded Costs of $440.00 pursuant to 47 U.S.C. § 605(e)(3)(B)(iii)
and/or 17 U.S.C. § 1203(b)(4) and/or Florida Statute § 812.15 (10)(b)(4).
7. Post-judgment interest shall accrue on the judgment pursuant to 28 U.S.C. § 1961.
8. This judgment is final.
DONE AND ORDERED this 27th day of June, 2012.

Copies to:
All Parties & Counsel of Record