Directv, Inc. v. Lovejoy

366 F. Supp. 2d 132, 2005 U.S. Dist. LEXIS 2983, 2005 WL 757385
CourtDistrict Court, D. Maine
DecidedFebruary 16, 2005
DocketCV-03-215-B-W
StatusPublished
Cited by1 cases

This text of 366 F. Supp. 2d 132 (Directv, Inc. v. Lovejoy) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Directv, Inc. v. Lovejoy, 366 F. Supp. 2d 132, 2005 U.S. Dist. LEXIS 2983, 2005 WL 757385 (D. Me. 2005).

Opinion

ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

WOODCOCK, Disti’ict Judge.

These dispositive motions address the narrow issue of whether and the extent to which this Court may draw an adverse inference from a party’s assertion of the Fifth Amendment privilege. DirecTV, Inc., the Plaintiff, operates a digital satellite entertainment business, beaming programming to its subscribers. To receive and view DirecTV’s signal, a subscriber must be equipped with digital satellite system hardware. Once DirecTV transmits its signal, anyone with the right equipment can decode the encrypted signal and, in the case of non-subscribers, enjoy DirecTV’s programming without suffering the disadvantage of actually paying for it. DirecTV claims Toni Lovejoy, the Defendant, did just that: purchased and used a pirate access device to facilitate unauthorized access to DirecTV’s programming. 1 In response to discovery, Ms. Lovejoy asserted her Fifth Amendment privilege to remain silent, challenging DirecTV to prove its case without her testimony. The parties filed cross-motions for summary judgment. This Court concludes it cannot grant summary judgment to DirecTV based exclusively on negative inferences from Ms. Lovejoy’s assertion of her Fifth Amendment privilege and, absent such negative inferences, there exist genuine issues of material fact. Therefore, this Court DENIES both parties’ motions for summary judgment. 2

I. FACTUAL BACKGROUND

A. DirecTV

DirecTV provides digital satellite television programming to its subscribers throughout the United States. To receive satellite television, subscribers must be equipped with specialized hardware, including a satellite dish, an integrated receiver/decoder (IRD), and an access card to operate the IRD. DirecTV encrypts its signals so that only its subscribers may access its programming.

B. Modern Day Pirates

Once DirecTV transmits its encrypted signal, it is subject to electronic hijacking by simple decoding. 3 To protect its investment and prevent unauthorized use of its signal, DirecTV periodically updates its security system by installing and administering electronic countermeasures (ECMs). ECMs send a signal that targets unauthorized access cards and disables them. In response to DirecTV’s security measures, satellite pirates 4 have developed pirate ac *134 cess devices, such as bootloaders, dead processor boot boards, glitches, HU loaders, emulators (“EMU”), and unloopers, which circumvent DirecTV’s encryption and simulate critical functions in its access cards. For example, the EMU is hooked up to a computer that sends a signal to the IRD, which decrypts the television signal. In essence, the EMU makes the satellite believe the unauthorized user has a valid access card and subscription. DirecTV and these electronic pirates engage in a serious game of technological leapfrog: DirecTV implements a new, more sophisticated security system, which is breached by the pirates; DirecTV devises an even more sophisticated system, only to be compromised.

C. The Computer Shanty

On or about December 1, 2001, DirecTV alleges it executed writs of seizure with the assistance of the United States Marshals Service against The Computer Shanty, an internet seller of pirate access devices. (Compl. ¶ 16 (Docket # 1)). Through The Computer Shanty raid, DirecTV confiscated records that “confirmed the existence of a distribution source for the country-wide transmission of devices primarily designed for the unauthorized interception of DirecTV’s Satellite Programming.” (Id.). DirecTV also obtained “various business records evidencing the ongoing illegitimate enterprise, including orders, invoices, electronic communications, shipping documentation, purchase receipts, credit card receipts and customer lists.” (Id.).

D. The Computer Shanty and Ms. Lovejoy

DirecTV alleges that The Computer Shanty’s customer lists confirm Ms. Love-joy made two purchases of pirate access devices. (Id. ¶¶ 16, 19). Specifically, DirecTV asserts that, on or about September 25, 2000, Ms. Lovejoy purchased one Wildthing X Super Unlooper from The Computer Shanty, and that, on or about March 25, 2001, Ms. Lovejoy purchased one Atmel Coded with X Code from The Computer Shanty. (Id. 1119). DirecTV alleges Ms. Lovejoy purchased these devices from The Computer Shanty by placing the orders using interstate or foreign wire facilities, the devices were shipped to Ms. Lovejoy’s address in Brownville, Maine, and she received the devices through the United States Postal Service or commercial mail carriers. (Id. ¶¶ 19, 20). DirecTV further claims Ms. Lovejoy “manufactured, assembled, distributed, and/or sold one or more Pirate Access Devices, knowing or having reason to know that the design of such devices render them primarily useful for the purpose of surreptitious interception of DIRECTV’S satellite transmissions.” (Id. ¶ 21). Other than admitting she is a resident of Brownville, Ms. Lovejoy either denied or pleaded she is without sufficient knowledge to form a belief regarding each substantive allegation. (Aff. Def. and Ans. ¶¶ 1^8 (“Ans.”)(Docket # 7)).

E.Ms. Lovejoy Asserts the Fifth Amendment

After suit was filed, DirecTV and Ms. Lovejoy engaged in discovery. Although forthcoming in her response to some of DirecTV’s inquiries, when asked about the essential allegations of this law suit, she demurred, asserting her Fifth Amendment right not to incriminate herself. 5 Ms. Lo- *135 vejoy also engaged in discovery directed toward forcing DirecTV to concede it cannot prove its case without her testimony. 6

II. STANDARD OF REVIEW

Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). A fact is “material” if it has the “potential to affect the outcome of the suit under the applicable law,” Santiago-Ramos v. Centennial P.R. Wireless Corp., 217 F.3d 46, 52 (1st Cir.2000), and for an issue to be “genuine,” the evidence relevant to the issue, viewed in the light most favorable to the non-moving party, must be “sufficiently open-ended to permit a rational factfinder to resolve the issue in favor of either side.” Nat’l Amusements, Inc. v. Town of Dedham, 43 F.3d 731, 735 (1st Cir.1995), cert. denied, 515 U.S. 1103, 115 S.Ct.

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Bluebook (online)
366 F. Supp. 2d 132, 2005 U.S. Dist. LEXIS 2983, 2005 WL 757385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/directv-inc-v-lovejoy-med-2005.