Satellite Piracy

What is Satellite TV?

There are two types of satellite systems available to the consumer in North America. The older big dish, sometimes referred to as BUD (Big Ugly Dish)
systems and the newer DTH (Direct To Home) systems.

The two types are readily distinguished from each other primarily by the size of the dish antenna. As indicated by the name, big dish systems require
antennas varying in size from two to three metres (six to ten feet) in diameter while antennas used with DTH systems are only forty-five to sixty
centimetres (eighteen to twenty-four inches) in diameter.

Big Dish (C-Band) Systems

The first satellite systems available at the consumer level in North America appeared in the 1980’s and were the C-BAND or Big Dish satellite
systems that used large dish antennas. Originally intended for commercial use, these systems quickly became popular amongst hobbyists who
discovered that they could watch TV for free. At first, C-BAND transmissions were not scrambled but various encryption techniques were quickly
implemented. Hobbyists, then devised means to unlock the scrambled satellite feeds and satellite piracy was born.

Direct To Home or Direct Broadcast Systems

There are 4 companies licensed in North America to broadcast Direct To Home (DTH) satellite programming. Two of these companies, DirecTV (DSS)
and The Dish Network (Echostar) are licensed in the U.S. to provide programming to homes and other establishments within the United States.
In Canada, Star Choice and Bell ExpressVu are licensed by the CRTC to provide a similar service to Canadian residents.

A receiver designed for the American DirecTV or Echostar systems is not authorized to receive and decode the broadcasts of either Star Choice or
Bell ExpressVu. With the exception of Star Choice, ‘DTH’ satellite receivers require an access card, which contains programmable microchip circuitry,
to authorize the reception of channels for which a subscription has been paid.

As the US satellite ‘footprint’ overlaps into Canada, Canadian consumers have become easy and sometimes willing targets for satellite pirates who offer
US satellite dishes, receivers and access cards.

The Effects of Satellite Piracy

Satellite piracy adversely affects a broad spectrum of the entertainment industry. Canadian cable and satellite companies, program providers, intellectual
property owners and others involved in the duplication, distribution and retail sale/rental of motion picture programs are all being deprived of rightful
revenues. The CMPDA estimates that the total loss to industry in Canada in the year 2001, directly attributable to satellite piracy, is at least one billion
dollars. This estimate is based on a number of sources including public information provided by the Canadian satellite and cable industry, internet
publications by the grey market coalition and anecdotal information supplied by video retailers.

Satellite Piracy is a Criminal Offence

Both the Criminal Code of Canada and the Canadian Radiocommunication Act create criminal offences that involve satellite piracy.

Sections 326 and 327 of the Criminal Code provide that it is a crime to steal a telecommunication service or to possess, manufacture, sell, offer for sale or distribute a device to steal a telecommunication service.

Similarly, The Radiocommunication Act states in Section 9(1)(c) that it is an offence to decode an encrypted subscription programming service without authorization and in Section 10(1)(a) that it is an offence to manufacture, import, distribute, lease, offer for sale, sell, install, modify, operate or possess any equipment or device to decode an encrypted subscription programming service without authorization.

The Supreme Court of Canada, in a decision published on April 26, 2002, has confirmed that there is an absolute bar on Canadian residents decoding encrypted satellite programming. The only exception is where authorization is acquired (by way of a valid subscription) from a distributor holding the necessary legal rights in Canada.

If you have a satellite TV system and are not a subscriber to a legitimate Canadian satellite company. You could be breaking the law.

Legal Sanctions

Persons convicted of engaging in satellite piracy must also pay a heavy price. For example, if a person is found making, distributing selling or modifying equipment to pirate satellite TV, that individual may be subject to criminal convictions bearing fines to a maximum of $5,000 per count or charge under the Radiocommunication Act and the possibility of imprisonment upon conviction under the Criminal Code.

Convicted pirates are subject to the seizure of all illegal satellite equipment. All items seized are usually forfeited or destroyed.

Guilty parties can also be subject to civil actions for damages.

For further information, check Industry Canada's web page or contact the CMPDA's Anti-Piracy Operations.

© Canadian Motion Picture Distributors Association (CMPDA), 2006. All rights reserved.