United States v. Stephen L. Shriver, Joseph R. Denman, Harry Lawrence Daly, and Joseph D. Fones

989 F.2d 898
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 2, 1993
Docket92-1510
StatusPublished
Cited by50 cases

This text of 989 F.2d 898 (United States v. Stephen L. Shriver, Joseph R. Denman, Harry Lawrence Daly, and Joseph D. Fones) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Stephen L. Shriver, Joseph R. Denman, Harry Lawrence Daly, and Joseph D. Fones, 989 F.2d 898 (7th Cir. 1993).

Opinion

MOODY, District Judge.

On September 26, 1991, defendants-ap-pellees were indicted under certain provisions of the wiretap laws, 2 specifically 18 U.S.C. § 2511(1), 18 U.S.C. § 2512(l)(a) and (b), and Section 705(a) of the Communications Act of 1934, 47 U.S.C. § 605(a), for conspiring to manufacture, sell and assist others in the use of electronic devices commonly known as “modified descramblers”. 3 On December 19, 1991, the government, plaintiff-appellant, obtained a superseding indictment against defendants, containing substantially the same charges as those contained in the original indictment. Defendants then moved to dismiss the counts of the superseding indictment arising out of the wiretap laws, on the ground that the conduct with which defendants were charged did not violate either § 2511 or § 2512. Prior to trial, the district court 4 granted defendants’ motions and dismissed all counts of the superseding indictment charging defendants with violations of 18 U.S.C. §§ 2511 and 2512, 782 F.Supp. 408. The district court reasoned that, as a matter of law, the conduct with which defendants were charged — the manufacture and sale of modified descramblers — is not covered by the wiretap laws, and that such conduct is governed exclusively by Section 705 of the Communications Act of 1934, 42 U.S.C. § 605. The government has now appealed that order. 5

The government argues that the district court improperly dismissed before trial the counts arising out of the wiretap laws. The government contends that it was entitled to a trial on those counts, since it is a factual issue as to whether defendants’ alleged conduct falls within the scope of the wiretap laws. Had a trial occurred, the government contends, it would have proven through expert testimony that, in fact, defendants violated § 2511 and § 2512. Defendants, on the other hand, argue that the district court properly granted their motions to dismiss, for, to them, the language and legislative history of the wiretap laws clearly demonstrate that Congress never intended the wiretap laws to cover modified descramblers. Thus, defendants contend, no trial on the matter was necessary, because, as a matter of law, neither § 2511 nor § 2512 applies to the conduct alleged in the superseding indictment. For the following reasons, we reverse the opinion of the district court and remand with instructions for an evidentiary hearing in accordance with the terms of this opinion.

This appeal is one of first impression for this court. It involves the question of whether the wiretap laws cover the manufacture and sale of modified descramblers. Modified descramblers are electronic devices that intercept satellite transmissions to privately-owned, home satellite dishes. They enable their users to receive clear reception of television programs without having to pay the television programmer a subscription fee, and, as gleened from the mounting information now available to the court, modified descramblers in general operate as follows. Pay television programming is transmitted by satellite in an encrypted, scrambled format, so that nonsub-scribers cannot gain free access thereto. *900 To receive the programming, one can either subscribe through a local, cable television company, or one can own a satellite dish and purchase the programming directly from the program provider.

In either case, though, a descrambler is necessary to descramble the programs for which the subscriber has paid. Owners of satellite dishes must purchase what is called' a home satellite television de-scrambler, an electronic device that contains what is called the Video Cypher II circuit board. General Instruments, Inc. makes these Video Cypher II descramblers, and each one has a unique address, programmed onto computer chips contained on the circuit board. The address allows the owner of a satellite dish to view those encrypted television programs to which the owner has subscribed.

These Video Cypher II descramblers, though, can be modified, so as to allow free and clear reception of encrypted programs not subscribed to. The descramblers are modified by removing and replacing the unique address with a “working address”, an address identical to that of another de-scrambler, the latter of which is programmed to descramble a greater number of encrypted programs. The cloning process is done simply by copying the address of one descrambler onto blank computer chips and then installing those chips onto the circuit board of another descrambler.

Thus, any number of descramblers can be given the same address, and the owners of such modified descramblers can receive additional, encrypted programs without having to pay the programmer for them. Moreover, the programmer is not aware that the scrambled signals sent to a de-scrambler with a unique address are being unscrambled not only by that descrambler but also by any and all other modified descramblers using the same, cloned address. Understandably, owners and potential buyers of home satellite dishes are willing to pay a premium for these modified descramblers, since the device allows the owner to view encrypted broadcasts without paying a subscription fee to the programmer.

Defendants were charged with manufacturing and selling these modified de-scramblers, in violation of both the wiretap laws, specifically 18 U.S.C. §§ 2511 and 2512, and Section 705(a) of the Communications Act of 1934, 47 U.S.C. § 605(a). Everyone agrees that defendants were properly charged under Section 705(a) of the Communications Act of 1934; the law is clear that the' alleged conduct — assisting others in the unauthorized interception of scrambled, subscription television programming — is covered by 47 U.S.C. § 605(a). ON/TV of Chicago v. Julien, 763 F.2d 839, 843. (7th Cir.1985); see also United States v. Scott, 783 F.Supp. 280, 282 (N.D.Miss.1992) (§ 605(a) prohibits the unauthorized interception of satellite transmissions to home satellite dishes through the use of modified Video Cypher II descramblers). 6 *901 Thus, the only question on appeal is whether that same conduct falls within the meaning and scope of 18 U.S.C.

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Bluebook (online)
989 F.2d 898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-stephen-l-shriver-joseph-r-denman-harry-lawrence-daly-ca7-1993.