Protect Your Business from Cable & Satellite Piracy Lawsuits Under 47 U.S.C. §553 & 47 U.S.C. §605
If you’re a bar or business owner who plays live events like MMA or boxing matches for your customers, you could be at risk of a lawsuit for video piracy. The piracy of cable and satellite broadcasts is a serious issue, especially when large sums of money are involved, and penalties can be steep.
Understanding the federal laws surrounding 47 U.S.C. §553 & 47 U.S.C. §605—which govern cable and satellite piracy, respectively—is essential in ensuring your business doesn’t accidentally become the target of an expensive and disruptive lawsuit.
What Is Video Piracy Under 47 U.S.C. §553 and 47 U.S.C. §605?
Cable piracy (47 U.S.C. §553) and satellite piracy (47 U.S.C. §605) involve the illegal interception or unauthorized redistribution of cable and satellite services. These statutes are designed to protect cable and satellite providers from the theft of their services, including the illegal broadcasting of live events.
In a typical scenario, a business like yours might face a lawsuit if you show an MMA or boxing match without purchasing the proper broadcasting rights. If the broadcast is pirated—whether through an illegal box or unauthorized service provider—you could be liable for infringement.
Potential Risks for Business Owners
As a business owner, the risks are significant if you’re unknowingly showing pirated content:
Legal Penalties: Under 47 U.S.C. §553, if your business intercepts or shows cable broadcasts without authorization, you could face fines and imprisonment. Under 47 U.S.C. §605, the penalties are even more severe for satellite piracy.
Civil Lawsuits: Aside from criminal consequences, the copyright holder or provider could sue you for damages. Civil penalties range from $1,000 to $10,000 per violation, and if the violation is willful, the amount could skyrocket to $50,000 for cable piracy or even up to $100,000 for satellite piracy.
Reputational Damage: A piracy lawsuit can also harm your business’s reputation. This could drive away customers and tarnish your brand.
Owner Liability: As the business owner, you can be held personally liable if a court finds that you had the ability to control the broadcast and a financial interest. This means you could face significant financial penalties or damages, even if the infringement was unintentional or carried out by an employee or contractor.
What Is a Business Owner to Do?
The good news is there are ways to protect yourself from these risks:
Always Secure Licensing: Whether you’re showing an MMA fight or a boxing match, always make sure you have the appropriate broadcasting rights. If you’re unsure about the licensing, consult with the event’s promoters or rights holders before broadcasting the match. They will provide the proper legal avenues to secure these rights.
Be Wary of Pirated Streams: If you come across a “free” or discounted feed of a major event, it’s important to verify its legitimacy. Pirates often offer services that look convincing but lack proper authorization. Accepting one of these unauthorized broadcasts can expose your business to serious legal penalties.
Control All Broadcasts: As the business owner, you have the responsibility to control what is broadcast. An employee, manager, or even a customer could expose you to liability for improperly broadcasting media. Implementing clear policies and monitoring all content being played in your business is essential to minimize exposure to liability.
Consult Legal Counsel: If you’re ever in doubt about whether your business is legally protected, consult with an attorney experienced in intellectual property and entertainment law. They can provide guidance on how to secure rights and avoid potential piracy claims.
Reducing the Risk of Willfulness in Piracy Cases
To avoid heightened penalties for willful piracy, business owners can take steps to demonstrate that any infringement was unintentional. Factors that may reduce the perception of willfulness include:
No Ticket Sales or Event Promotion: If you’re not selling tickets specifically for the fight or heavily promoting the event, it shows you weren’t actively trying to profit off the pirated broadcast.
No Drink Minimums or Specials: Offering specials or minimums tied directly to the event can indicate you’re profiting from the pirated content. Avoid these if possible.
Limited Advertising: Keep the event low-key and refrain from extensive promotions through signage or social media.
Unintentional Use: If you unknowingly received pirated content from a provider, it helps demonstrate lack of intent.
Prompt Corrective Action: If you quickly take down the pirated content upon learning of the issue, it shows good faith and can mitigate willfulness.
Taking these steps can help lower the chances of a court finding the infringement willful and reduce potential damages.
What to Do If You’ve Already Been Targeted for Piracy
If you’ve already received a demand letter or notice of a piracy lawsuit, don’t panic. Many claims can be disputed or reduced with the proper legal defense. Here’s what to do:
Evaluate the Claim: Review the details of the claim carefully. Is it a legitimate infringement notice or a demand from an overzealous copyright holder?
Seek Legal Advice: Consulting with an attorney early on can help you craft a strategic response and avoid paying unnecessary settlement fees.
Consider Defenses: Some common defenses in piracy claims may include lack of knowledge of the infringement or a dispute over the validity of the piracy accusation.
How to Reduce Future Risks
Once you’ve navigated any piracy issues, take proactive steps to safeguard your business:
Implement Internal Policies: Establish policies for event broadcasting and content licensing. Educate your staff on what’s required to legally show paid events.
Maintain Records: Keep records of all licenses and agreements related to events shown at your business. This documentation will protect you in the event of a legal dispute.
Work With Reputable Providers: Ensure you’re working with well-established providers for event broadcasting services. Reputable sources reduce the risk of accidental piracy.
Conclusion
Cable and satellite piracy lawsuits can carry significant financial and reputational risks for business owners, especially those showing live events such as MMA and boxing matches. By understanding 47 U.S.C. §553 and 47 U.S.C. §605, ensuring proper licensing, and consulting with legal counsel, you can avoid the potential pitfalls of piracy and keep your business protected.
If you’ve been targeted by a piracy claim or need guidance on how to secure the rights to broadcast events legally, don’t hesitate to reach out to a qualified attorney. With proper legal support, you can continue offering great entertainment to your customers while avoiding unnecessary legal risks.
