EchoStar Corp. claims in a lawsuit that a California company is making equipment and helping distribute software that allow users to pirate its satellite-TV programming.
The suit is part of EchoStar’s effort to combat what an industry consultant describes as a growing and costly problem for the Douglas County-based company. Eight manufacturers have sold a combined 2 million set-top boxes that can illegally receive Echo Star’s Dish Network programming, according to an analysis by the Carmel Group of California.
In its lawsuit filed in federal court in San Diego on July 13, EchoStar targeted Oceanside, Calif.-based ViewTech Inc. and Jung Kwak, its founder and president.
ViewTech makes “free-to-air” receivers that allow viewers to receive free programming aired via satellite, a legal practice. The company has sold 200,000 receivers at about $175 each, according to the Carmel Group, which published a report on the subject on Sunday.
But EchoStar says ViewTech enables and encourages piracy of its Dish Network programming.
The No. 2 satellite-TV company accused ViewTech of “engaging in the traffic of devices, components and technology that are primarily designed to circumvent and/or defeat (Echo Star’s) security system.”
ViewTech responded to the suit in a letter on its website written by its attorney, Manuel de la Cerra.
“ViewTech and Mr. Kwak intend to vigorously defend against the baseless claims made by EchoStar,” de la Cerra wrote. “ViewTech and Mr. Kwak are confident that they will prevail as the lawsuit proceeds.”
EchoStar’s problems with piracy have grown since 2004, when competitor DirecTV developed effective security technology that drove pirates toward EchoStar, according to the Carmel Group’s report.
EchoStar said it constantly updates its encryption and security technology to combat pirating but that ViewTech and others respond quickly.
In addition to making and distributing the set-top boxes, ViewTech provides its customers with technology and information that allow them to update anti-encryption software on their receivers, EchoStar alleged. That allows viewers to continue receiving free Dish Network programming even after EchoStar makes security changes to thwart pirating, the company said.
ViewTech assists in the distribution of updated pirating software through blogs and chat boards on the Internet, EchoStar said.
ViewTech “developed firmware and components within each unit that will accept and receive illegal pirate software that contains the secret keys and codes to (EchoStar’s) security system,” EchoStar said. “Once this technology is downloaded or ‘flashed’ into the … receiver, the unit will illegally receive Dish Network programming.”
EchoStar is asking the court to impose an injunction to stop ViewTech.
Staff writer Greg Griffin can be reached at 303-954-1241 or ggriffin@denverpost.com.
