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Satellite TV firm searches for pirates

DirecTV sues four Citrus County residents in a nationwide legal effort to deter theft of its signal.

By COLLEEN JENKINS, Times Staff Writer
Published October 22, 2003

DirecTV, the largest provider of digital satellite television in the country, has sued more than 15,000 people nationwide in the past year for alleged piracy of its products and programming.

So far, four Citrus County residents have found themselves caught in the litigation ambush.

If judges side with the California-based company, these individuals could face up to $10,000 for each violation of federal and state laws. The damages jump to $100,000 if DirecTV lawyers can prove an individual sold the products instead of just possessing them for personal use.

The lawsuits reflect an aggressive effort by the 9-year-old company to crack down on the illegal use of devices and equipment designed to allow free, unauthorized viewing of DirecTV's protected satellite programming.

That's a loss of between $34 and $88 a month per customer for the specialized programming subscriptions that comprise the company's revenue.

The company offers more than 225 channels of digital programming that is transmitted from two broadcast centers to satellites approximately 22,300 miles above Earth and then back down to customers' satellite dishes.

DirecTV has invested more than $1.25-billion to develop this direct broadcast satellite system, according to court documents.

"This is the kind of message we're trying to send to consumers, that this is an illegal activity and it has serious consequences," said DirecTV spokesman Robert Mercer from the company's headquarters in Los Angeles.

"You can get caught and there are serious consequences," he said. "You will not steal DirecTV's signal with impunity."

Four local men are finding that out the hard way. DirecTV is seeking damages and permanent injunctive relief against Gerome Rizzo Jr. of Beverly Hills, Neil Shaw of Lecanto, Ray Wallace of Crystal River and David A. Chiodo of Inverness.

According to lawsuits filed in Citrus County Circuit Court within the last month, these men have purchased and used illegal modified access cards and other devices that link them into DirecTV's television programming without having to pay.

Only Shaw could be reached for comment Tuesday.

"It's extortion," he said of the lawsuit filed against him. "It's ridiculous. Everyone that purchased anything from various companies three or four years ago is getting these stupid, stupid lawsuits."

Shaw wouldn't comment on whether he bought illegal devices or say if he used them. But he has secured a lawyer.

"He's getting a game plan together to fight this," Shaw said. "It's got me worried sick."

Raids on various Internet companies suspected of distributing DirecTV's equipment led to the discovery of sales and shipping records that provided the satellite TV company with names of people who bought the pirated devices, court records show.

The company then sent about 80,000 to 90,000 individuals two letters, demanding they quit using the product or face legal action, Mercer said. Some people settled the issue by paying about $3,500 for each device they bought from someone other than DirecTV.

The rest have received summons for a lawsuit, Mercer said.

In April, the U.S. District Court's Orlando division dismissed a DirecTV suit filed against five Florida residents for similar allegations. The court ruled that the company had not shown that the individuals actually used the electronic devices they purchased.

As a result, the company has sharpened its wording in court documents. Some cases could be dropped if defendants present solid evidence of their innocence, Mercer said, but "it's very, very rare that that would happen."

He admitted the suits likely had come as a shock to most of the people named in them.

"These are often otherwise law-abiding citizens who just didn't think anything of stealing a satellite TV signal," he said. "If they think we're not going to follow through, they better think again."

- Colleen Jenkins can be reached at 860-7303 or cjenkins@sptimes.com

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