NewsLeadership23 March 2023

1+1 media Group reports on key successes in the fight against piracy in the first quarter of 2023

For 1+1 media, a member of the Clear Sky Anti-Piracy Initiative, intellectual property protection has always been a priority.

Since the beginning of the full-scale war, the work in this area has gained new importance. Thus, the media group's team, led by Smartsolutions attorneys, has been actively involved in combating the consequences of the aggressor country's information influence. This is primarily due to the fact that illegal streaming services, in addition to streaming Ukrainian TV channels, often provide viewers with access to Russian propaganda channels.

The active work of the "fighters against pirates" brought the first results back in 2022 and continued to win victories this year. In particular, in February 2023, courts in different regions of Ukraine delivered 3 verdicts against infringers of 1+1 media's related rights at once. Here are the key successful cases in the fight against piracy in the first quarter of 2023.

Illegal cable TV services. Zhytomyr region.

The offender, using his own experience and skills in the telecommunications sector, retransmitted a number of television channels of Ukrainian media groups using cable television technology to residents of Zhytomyr region in order to obtain illegal income (from early 2018 to May 2022). At the same time, he did not have the appropriate permission of the right holders (license). 

In the course of the pre-trial investigation, the Investigation Department of the Main Department of the National Police in Zhytomyr region conducted investigative actions, and the SBU Office in Zhytomyr region conducted a set of operational and investigative measures that documented the illegal activity. In particular, a court-authorized search was conducted, material evidence and the instrument of the crime - telecommunications equipment - were seized, and forensic reports were obtained.

The investigation classified the pirate's intentional actions, which resulted in the illegal distribution of broadcasting programs, causing material damage on a particularly large scale, under Part 3 of Article 176 of the Criminal Code of Ukraine.

Taking into account the unconditional admission of guilt, with the consent of the victims, the offender and the prosecutor of the Zhytomyr Regional Prosecutor's Office entered into a plea agreement.

Following consideration of the agreement between the suspect and the prosecutor, in February 2023, the Radomyshl District Court of Zhytomyr Region found the offender guilty of committing criminal offenses under Part 3 of Art. 176 of the Criminal Code of Ukraine and sentenced him to three years of imprisonment with a probationary period of 1 year 6 months.
In addition, the court decided to apply a special forfeiture - to confiscate the instruments of crime, namely all the telecommunications equipment seized from the pirate, into state ownership.

Trade in "flashed" set-top boxes. Odesa.

In order to make a profit, a resident of Odesa ordered smart set-top boxes of various brands and modifications from China through a popular marketplace, on which she installed software for illegal viewing of TV channels without the permission of the copyright holders. The offender was selling the "flashed" players on an online ad platform, which attracted the attention of both the media and law enforcement.

After 1+1 media and Starlight Media appealed to the police, officers of the Cybercrime Department in Odesa region conducted covert measures to document the illegal activities of the Odesa resident and searched her apartment, during which a batch of dozens of Internet set-top boxes was seized. Eventually, law enforcement officers obtained forensic opinions in the field of telecommunications and intellectual property. The collected evidence was sufficient to serve the suspect a notice of suspicion of committing a crime under Part 2 of Art. 176 of the Criminal Code of Ukraine - intentional infringement of related rights committed on a large scale.

The media groups found it possible to conclude a reconciliation agreement between the victims and the suspect, who pleaded guilty to the crime. At the same time, an agreement was reached on compensation for the losses incurred by the rights holders.

In February of this year, the Prymorskyi District Court of Odesa found the offender guilty of committing a criminal offense under Part 2 of Art. 176 of the Criminal Code of Ukraine and sentenced her to pay a fine with confiscation of the instruments of crime - the seized batch of set-top boxes - to the state.

Connecting viewers to the popular pirate OTT service. Kamianets-Podilskyi.

A resident of Kamianets-Podilskyi, pursuing a mercenary goal, used a sufficient level of technical and computer knowledge to illegally distribute broadcast programs. The offender registered as a "partner" of a popular pirate OTT service that provides illegal access to television channels for a monthly fee.

By advertising IPTV services in the region, the offender attracted customers from among local residents, for whom he set up access to TV channels. In addition to the fee for connecting set-top boxes or SMART TVs, the offender, being a dealer of a paid pirated service, received a percentage (commission) of the monthly top-up amounts of the subscribers-viewers he attracted.
After receiving a complaint about the crime from the lawyer of 1+1 media, the events for the offender developed similarly to previous cases: employees of the Cybercrime Department in Khmelnytskyi region conducted covert investigative search operations, searched the premises with the seizure of equipment, and conducted forensic examinations.

However, this time, law enforcement officers also caused trouble for the offender's subscribers - the "telemaster's" customers were interrogated by the cyber police as witnesses to a criminal offense.

Taking into account the circumstances of this criminal proceeding and the collected evidence base, the investigation qualified the intentional actions of the defendant under Part 1, 2 of Art. 361-2 of the Criminal Code of Ukraine (unauthorized sale of restricted information stored in automated systems created and protected in accordance with applicable law), as well as Part 1 of Art. 176 of the Criminal Code of Ukraine (illegal distribution of broadcasting programs that caused material damage in a significant amount).

Since the offender repented, cooperated and provided the investigation with important information that would further help expose the organizers of the streaming service, the prosecutor of the Khmelnytskyi Regional Prosecutor's Office, with the consent of 1+1 media, entered into a plea agreement with the defendant.
 
As a result, the Kamianets-Podilskyi City District Court of Khmelnytskyi Region passed a verdict finding the offender guilty of committing criminal offenses under Parts 1, 2 of Art. 361-1, Part 1 of Art. 176 of the Criminal Code of Ukraine and sentenced him to a fine as agreed in the agreement with the prosecutor.

Vyacheslav Mienko, Head of the Clear Sky Anti-Piracy Initiative, commented on the initiative's plans for the next period: "In 2023, we have set ourselves ambitious goals aimed at strengthening the processes of intellectual property protection and defense of Ukraine's information space. Close cooperation with law enforcement agencies, in particular the Security Service of Ukraine, the Cyber Police and the Prosecutor's Office, has already brought significant results in the first quarter of this year. In the future, the anti-piracy initiative, together with its proactive market participants, will continue to fight off infringers to bring about positive changes in the culture of content consumption. It should also be recalled that financing piracy is a separate criminal offense, which is why piracy exists in the first place. On March 31, 2023, amendments to the Law of Ukraine "On Advertising" will come into force, which will explicitly prohibit advertising on pirated resources. We are pleased that our initiative to introduce such a ban was supported by the Ukrainian MPs and will continue to pay due attention to the development of this area of anti-piracy."

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