DISH Network Wins $151.7 Million Judgment, Permanent Injunction Against Satellite TV Pirate in California

ENGLEWOOD, Colo. — Dec. 20, 2010 — DISH Network L.L.C. and NagraStar L.L.C. secured another significant victory today in their fight against satellite TV piracy.

On Dec. 16, 2010, a California Federal Court entered final judgment against Khackik Bagdasaryan (aka Blacklist) in the amount of $151,767,600.  NagraStar filed suit against Bagdasaryan in May 2009 for his role in the development and distribution of pirate software for Pansat-branded satellite TV receivers that were intended to gain unauthorized access to DISH Network programming.  The federal court also entered a permanent injunction against Bagdasaryan preventing him from future piracy-related activities under penalty of contempt of the Court’s order.  Finally, the Court ruled that the entire judgment amount of $151,767,000 is non-dischargeable in the bankruptcy proceeding initiated by Bagdasaryan earlier this year.

NagraStar and DISH Network continue to investigate and prosecute individuals who would engage in the circumvention of the NagraStar security technology or theft of DISH Network programming.

# # #

About DISH Network

DISH Network Corporation (NASDAQ:DISH), through its subsidiary DISH Network L.L.C., provides more than 14.2 million satellite TV customers, as of September 30, 2010, with the highest quality programming and technology at the best value, including HD Free for Life. Subscribers enjoy industry-leading customer satisfaction, the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation is a Fortune 200 company. Visit dishnetwork.com/” href=”http://www.dishnetwork.com/”>www.dish.com.

About NagraStar

NagraStar L.L.C. is a joint-venture between EchoStar Corporation and the Kudelski Group.  NagraStar supplies conditional access systems and security access devices and services to DISH Network and Bell ExpressVu Limited Partnership (operating as Bell TV).  NagraStar also offers these partners direct support, maintenance, security field investigations and implementation of new solutions in response to the rapid evolutions of the pay TV market.

Media Contact:

DISH Network

Francie Bauer, 720-514-5351, [email protected]

DrSagan (Carl Summers) Public Apology

Many of you know me from the forums as “DrSagan”. For several years I have been involved in the creation and distribution of piracy software, and in assisting others in the theft of DISH Network programming. I was also involved in the set-up, code support and operation of the Coolsat IKS server.

In February 2010, I was sued in California federal court by DISH Network, their security provider NagraStar, and their receiver manufacturer EchoStar Technologies. In June of 2010 I was ordered to appear before the Court by a federal judge. It was at that time that I found out DISH Network knew all about the Coolsat IKS server and the assistance I had provided in the set-up and operation of that server. DISH Network’s attorneys had copies of many of my emails, chat logs, and posts. They also had obtained sworn testimony from people that I was closely involved with in the piracy community.

On October 15 of this year, the California federal court entered a judgment against me in the amount of $14,860,800 as well as a permanent injunction order preventing me from future piracy-related activities under penalty of contempt.

I never made much money from my involvement in DISH Network piracy or the operation of the Coolsat IKS server, but it did not matter. The federal statutes that I violated expressly allowed for fines and penalties of up to $110,000 per act of circumvention or piracy I engaged in or assisted others to engage in. In the context of IKS, I learned that each time a new control word is provided by an IKS server or received by an end user that was a violation of the federal statutes. As in my case, this amounts to an extremely large amount of damages in a short amount of time.

Now that there is a judgment against me for almost $15 million dollars and a permanent injunction, I realize that DISH Network and NagraStar were harmed by my actions and for that I am genuinely sorry. Everyone that reads this and is even remotely involved in piracy should think hard about what they are doing and the serious consequences that can follow – it’s simply not worth the risks. DISH Network and NagraStar continue to aggressively investigate the theft of their services and, as I can attest, they will find and prosecute you to the fullest extent allowed by law as well as put bounties on your heads. And if you do not believe me … just check out all their successes on their website: Satscams.com.

Sincerely,
Carl Summers, DrSagan

DISH Network Corporation (NASDAQ: DISH), EchoStar Corporation (NASDAQ: SATS) and NagraStar LLC secured another victory in their fight against satellite piracy

On November 12, 2010, the United States District Court for the Eastern District of California entered a $16,766,400.00 judgment and permanent injunction against Intelligent Technologies, Inc. and its president and owner Byong Yong Kim in a lawsuit accusing them of trafficking in VisionSat-branded satellite receivers, pirate software, and other devices used to facilitate the theft of DISH Network’s subscription-based programming.  The permanent injunction bars Intelligent Technologies, Inc. and Byong Yong Kim from trafficking in similar devices and software in the future and from any further involvement in unauthorized use of proprietary technology supplied by NagraStar.  Intelligent Technologies, Inc. and Byong Yong Kim also agreed to forfeit all remaining inventory of the VisionSat-branded receivers, software, and other technologies at issue in the litigation as well as surrendering all computers and other electronic storage devices to NagraStar.

The lawsuit was filed against Intelligent Technologies, Inc. and Byong Yong Kim in December 2009.  DISH Network, EchoStar and NagraStar were represented by the law firm of Hagan Noll & Boyle LLC.

Another significant victory in the war against signal theft:

On November 5, 2010, the United States District Court for the Central District of California ruled in favor of DISH Network L.L.C., EchoStar Technologies L.L.C. and NagraStar LLC (collectively “DISH Network“) in their case against Global Technologies, Inc. (“Global Tech”).  Global Tech was a Korean-based manufacturer of Pansat-branded satellite receivers which were imported into, and distributed throughout the United States.  The Court’s Order Granted DISH Network‘s motion for summary judgment and found that Global Tech’s receivers were primarily designed and manufactured for use in the theft of DISH Network‘s subscription-based satellite television services.  Based upon that finding, the Court awarded DISH Network $626,260,000 in statutory damages and entered a permanent injunction against future efforts by Global Tech to traffic in similar products or engage in other efforts to facilitate the theft of DISH Network‘s services.  NagraStar and DISH Network continue to aggressively investigate and take action against companies and individuals who are engaged in attempting to compromise their security systems.

Federal Bankruptcy Court rejects Bagdasaryan’s attempt to seek refuge from NagraStar/DISH’s pending suit against him

On May 12, 2009, DISH Network and NagraStar filed suit against Khachik (“Chris”) Bagdasaryan in connection with his posting of circumvention software on various websites using the alias “Blacklist”.  On June 1, 2010,   DISH Network and NagraStar filed a motion for summary judgment against Bagdasaryan for his illegal-related activities seeking a permanent injunction and $151,767,600.00 in statutory damages.  In response, Bagdasaryan filed for bankruptcy in an effort to seek refuge from the pending claims against him.  On September 23, 2010, the Bankruptcy Court rejected Bagdasaryan’s efforts, and entered an Order on October 14, 2010, lifting the stay temporarily imposed by the Bankruptcy filing.   As a result, the civil suit against Bagdasaryan will be re-instated so that DISH Network and NagraStar can proceed to judgment.  This sends a strong message to other potential defendants who believe they can seek refuge from theft and fraud related claims by filing for bankruptcy in hopes of getting judgments against them discharged.