Munich, May 05, 2008. Premiere has scored a great victory in the fight against the organized criminal theft of rights. The Munich-based premium pay-TV operator obtained an injunction from the Hamburg District Court against importers of so-called patchable free-to-air receivers. The importer Zehnder is, with immediate effect, with threat of penalties of up to €250,000 or detention for breach of court order of up to six months,
“prohibited from producing, importing, distributing, selling, owning for commercial purposes and/or promoting the sales of digital receivers whose firmware (operating system) contains a so-called emulator which simulates the presence of a smart card and which, in conjunction with available software, enables circumvention of the access control system of the claimant.” (stated as Number 1 in the injunction)
At the same time, the Hamburg District Court ordered Zehnder GmbH
“to hand over all receivers described under Number 1 in their possession to the competent marshal for safekeeping and legal custody.”
Investigation of all distribution channels from the importer to consumers
As discovered by Premiere’s IT specialists, the receivers in question have implemented preinstalled applications which are clearly designed to enable the illegal reception of Premiere programming without a subscription. Premiere has initiated an investigation of all distribution channels from the importer to consumers in order to stop the illegal use of these receivers and will take legal steps against all those involved who have sold or bought these receivers.
Premiere is also supported in this investigation by the decision of the Hamburg District Court. In his verdict, the judge instructed the importer to
“immediately provide information about the origin and distribution channel of the receivers described under Number 1 and their operating systems, in particular the name and address of the manufacturer, the supplier and other prior owners, the commercial buyers and the volume of receivers produced, supplied, delivered and ordered.”
Comprehensive legal action for damages against all people involved
Premiere is also preparing to take comprehensive legal action for damages against the importer Zehnder as well as all people involved in trading these receivers. Hans Seger, Chief Programming and Technology Officer at Premiere: “The decision of the Hamburg District Court marks a partial victory for us in our fight against the organized criminal theft of rights. We will continue our efforts and take all legal steps against these criminal actions. We will not just take advantage of all the measures available under criminal law, but in addition we will also call to account all those who have tried to enrich themselves at other people’s expense with significant damage claims. In the interests of our honest subscribers we will also take legal action against the buyers of these receivers. The illegal viewing of Premiere programming is no trivial offence.”
Since the Christmas season 2007, so-called patchable free-to-air receivers, made mainly in Asia, have been imported to Germany in large numbers. Importers knew fully well that these receivers contained preinstalled devices designed to help circumvent Premiere’s security system. This illegal trade has had serious consequences for Premiere. Subscriber growth has reduced growth greatly since the Christmas season 2007. The Munich-based pay-TV operator also had to implement a cost-cutting package in the double-digit millions to compensate for the shortfall. The respectable receiver industry, which complies with the general legal code and does not support piracy, has also suffered from the illegal competition. This has led not only to significant falls in sales but could also mean the loss of jobs.
In the fight against the organized criminal theft of rights, Premiere does not just take all possible legal steps but also implements technical measures against illegal reception. The Munich-based pay-TV operator has already announced that it will be introducing two new encryption systems from the two worldwide market leaders NDS and Nagravision starting in the second quarter of 2008.
The ingenious clou is that the security gap will be closed by Premiere centrally, using an automatic software download and will therefore be as convenient as possible for all subscribers. And most importantly: no receivers will have to be exchanged in this phase. By the end of the third quarter, every customer who owns a Premiere-compatible receiver will receive a new smart card to swap the old card in their receiver. It’s as simple as that!
Hans Seger: “Very soon, only honest subscribers will be able to enjoy Premiere’s programming. We have created the basis to put a stop to the organized criminal theft of rights. None of the illegal receivers will work once the new encryption systems are in place. So anyone who owns one of these receivers has not just made themselves liable to prosecution but has also thrown money out of the window.”
Contact for press:
Torsten Fricke
Corporate Spokesman
Tel.: +49 89/99 58-63 50
torsten.fricke@premiere.de
Stefan Vollmer
Director Corporate Communications
Tel.: +49 89/99 58-63 77
stefan.vollmer@premiere.de
Contact for investors and analysts:
Christine Scheil
Vice President Investor Relations
Tel.:+49 89/99 58-10 10
christine.scheil@premiere.de
Susan Eckenberg
Senior Manager Investor Relations
Tel.:+49 89/99 58-10 11
susan.eckenberg@premiere.de
