Satellite Watch News December 1996 News, Rumors, Bits 'N Pieces


RCMP Strikes Again

A crackdown, which caused about 3,000 satellite-dish owners in southwestern Nova Scotia to lose their signal of some 100-plus channels, was a result of another Royal Canadian Mounted Police raid on Wednesday, Nov. 13th. Yarmouth RCMP seized about $250,000 worth of "illegal" direct-to-home satellite TV equipment and cash from two businesses and two area homes in Yarmouth and Shelburne.

The system crashed Thursday, prior to a news conference on Friday where police unveiled seized satellite receivers, computer systems and access cards used as decoders for pirated signals.

According to reports, the RCMP plan to charge three people with theft, fraud and illegally pirating telecommunication signals originating in the United States. Others, including a local business, may also be charged. The investigation began five months ago when residents starting complaining that their systems weren't working.
The RCMP were urged by Industry Canada to alert consumers to "beware". Reports indicate that U.S. satellite signals are being hacked locally and access cards are created to decode the signals. For over a year and a half the access cards, which look like credit cards, were sold along with satellite dishes and receivers to about 3,000 customers for between $2,300 and $2,500 each.

An undercover agent working on the case said the police will be taking action against only the manufacturers and distributors of the pirated cards and equipment, not the people who bought the small satellite dishes. The end result of these (seizures) is to educate the public as to what they are getting themselves into, according to the agent.
One consumer, whose system crashed Thursday, blames federal regulators for not allowing free trade in telecommunications. He said it's "archaic" for Canada to try to harness television signals when there are no similar controls over shortwave radio signals. "You can't just tell us to darken the skies and not look up, when everyone else is." He is now left with the options of selling his equipment, storing it or buying a signal from a U.S. company. But buying a signal through the U.S. is also illegal.
Industry Canada said at the news conference that there are only three Canadian companies who have been licensed to distribute satellite programming from the United States, but not one is up and running yet.
"Gray Market" Investigations
According to reports The Canadians government released a pamphlet stating that they may be going after citizens watching TV if, in fact, the signals they are watching are from any of the unauthorized U.S. satellite dishes such as EchoStar or DirecTv. "There are penalties for breaking the law which includes fines and, in some cases, jail terms" the pamphlet reads.
The pamphlet was distributed to dealers, retailers, and importers of U.S. equipment, expecting them to convey the information to consumers on criminal charges they could face. It contains warnings to consumers that they receive no guarantee on the merchandise or services, and that American service providers could cut off their signals in territories where the companies do not have programming rights.

It is estimated that over 200,000 U.S. DBS dishes are now in Canadian. Which seems ironic, when there are three Canadian companies licensed to provide the service in Canada, not one has been able to accomplish that as of yet. No court has ruled the dishes illegal. A Canadian satellite systems retailer who sells U.S. dishes said consumers are have been waiting two years for Canadian services, and its still not materialized as of yet.

According to the report the "gray market" dishes, satellite dealers or anyone (pirate, retailer or purchaser) involved in the distribution of the "smart cards" could be charged with a criminal offense.

While some satellite dealers claim the pamphlet is just another example of the government agencies trying to tell Canadians what they can and cannot watch on TV.

Industry Canada believes the U.S. satellite dishes are undermining the Canadian broadcasting system. Previously, Keith Spicer, former chairman of the Canadian Radio-television and Telecommunications Commission had said that his agency had no intention of getting into the homes of people to see if they were watching U.S. satellite TV or not.

The following article is on "Facts You Should Know" on DTH Satellite TV in Canada
a criminal offense. While some satellite dealers claim the pamphlet is just another example of t
DIRECT-TO-HOME SATELLITE TV
- Facts You Should Know -
CONSUMERS - Protect your investment: Make sure your reception equipment and programming services are legal.
DEALERS - Protect yourselves: Don't break the law!
* Digital direct-to-home (DTH) satellite broadcasting signals are scrambled, and viewers need a decoder to watch them.
* Signals are encoded because distributors rely on subscription revenues to operate their businesses.
* A "grey market" has sprung up to provide Canadian viewers with unauthorized satellite access to programming originating in the United States, often via U.S. addresses or accounts.
* To decode scrambled signals and programming without payment is an offence. Some viewers obtain illegal access cards and decoders on the black market.

Protecting Canadian Rights
Distribution rights are sold by territory. A Canadian distributor who has purchased those rights suffers financial loss if a U.S. signal is illegally decoded in Canada. Likewise, the subscriber base for Canadian DTH distribution undertakings is significantly diminished if Canadians subscribe to unauthorized American DTH services. Canada's Radiocommunication Act contains provisions to protect the rights of these Canadian broadcasting service providers. There are penalties for breaking the law which include fines and, in some cases, jail terms.
The "Grey Market"
Under Canadian law, viewers may not use decoding equipment to watch programming purchased from anyone but the lawful distributor -- a person who has the lawful right in Canada to transmit an encoded signal and to authorize its decoding.
"Grey market" reception occurs when a decoder that is authorized to decode a signal in a programming service's legitimate market territory (the United States) is used to decode the signals in another territory (Canada).
Sometimes, Canadian dealers might offer to set up subscriptions with U.S. satellite service providers. Viewers--who might believe, or be told, that such subscriptions are legitimate--may be asked to provide a U.S. address, or have one provided for them. This is a sure tip-off that the service is not legal.
American DTH service providers do not have the lawful right in Canada to authorize the decoding of their programming.
Retailers who distribute "grey market" programming are aiding and abetting consumers to decode DTH signals that are not authorized for distribution in Canada and thereby putting themselves at legal risk. Dealers should know that it is illegal to import, manufacture or sell equipment used to decode signals provided by someone other than the lawful distributor.

The Black Market
Computer pirates create illegal decoding equipment for sale to consumers. Illegally modified decoders, and pirate access cards, enable viewers to watch programming without paying lawful distributors. Retailers cannot legally sell such equipment, and everyone involved -- pirate, retailer and purchaser -- could be charged with a criminal offence.
Don't Get Stuck With an Expensive Bird Bath
Consumers who use questionable methods to obtain signals to which they are not entitled are on shaky ground: financially, technically and legally. The equipment used to illegally decode U.S. signals is expensive--yet it comes with no guarantee that it can do the job, or can continue to do the job, for which it was purchased.
Broadcasters are continually upgrading their scrambling technologies, so illegal and expensive decoders can become obsolete in an instant. At any moment, American service providers could cut off their signals to viewers in territories where they do not hold programming distribution rights. And fly-by-night Canadian operators could quickly fold their businesses and disappear--again, leaving consumers holding the bag.
Needless to say, those operating in the black or grey markets do not offer guarantees with their merchandise or services. Consumers who think they are getting a deal by using such equipment or services have no protection at all.
Protect Yourself
Consumers should ask retailers if their equipment and services are legal, and make sure that their service providers are lawful distributors of programming.
* The types of programming offered by a service could provide a clue to its legitimacy. If there are very few or no Canadian services, or if American services such as HBO, Disney or ESPN are included, the grey market might be involved.
* If you are asked to provide a U.S. address, or if your retailer offers to provide you with one, chances are that the retailer is operating in the grey market.
* If you're offered equipment or access cards that let you decode programming without paying any subscription fees, watch out - - it's probably from the black market.
Dealers and distributors should be aware of the law.
* It is an offence to import, manufacture, modify or sell equipment intended to be used for illegal decoding.
* With respect to the distribution of "grey market" programming, persons who help consumers to decode DTH signals that are not authorized for distribution in Canada are putting themselves at legal risk.
The law provides for both criminal prosecution and civil action by private parties whose financial interests are affected by illegal decoding.
If In Doubt, Find Out
Industry Canada has responsibility for the Radiocommunication Act. For more information, please contact your Industry Canada District Office. You will find the number in the Government of Canada pages of the telephone directory.

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