AEPOC Board of Directors' Meeting and Ordinary General Assembly in Baden-Baden, Germany
European legislative framework requires enhancement to new piracy threats

Anti Piracy Battle in Europe gains Momentum

	Copyright violation: Expert unit of Italian police department dismantles illegal Pay-TV dealer network. Big scoop in Portugal with hundreds of cards and pirate devices seized.
	Detecting of pirate boxes: Collaboration with Swiss customs successfully initialised - action to be continued in France
	New threats in piracy: Availability of 'off the shelf' illegal devices and issue of 'card sharing' call for extended legislative protection and more aggressive law enforcement

Baden-Baden, July 5^th 2005 - At the Board of Directors' Meeting and Ordinary General Assembly of AEPOC, the European Association for the Protection of Encrypted Works and Services, held in Baden-Baden on June 14, the members reviewed substantial achievements of law enforcement in regards to Pay-TV piracy while discussing the upcoming challenges in the fight against illicit access to pay services. The meeting was hosted by AEPOC member and consumer electronics manufacturer WELA Electronic whose Managing Director Herbert Lauble was present at the meeting.

AEPOC Secretary General, Davide Rossi, highlighted a successful anti-piracy investigation, being conducted in Portugal, with more than 1.300 illegal devices and other pirate equipment confiscated as a result of a systematic search in 35 locations by the Portuguese judiciary police. Supported by the security and fraud combat department of TV Cabo Portugal, this has been the biggest anti-piracy operation in the country until today.

Another large scale police investigation was presented by guest speaker Head Officer Fabiola Treffiletti of the Italian Police department specialized in communication fraud matters - Servizio Polizia Postale e delle Comunicazioni. This special unit, already created in 1981, has at its hands highly-skilled personnel and focuses increasingly on computer and media related crimes. The investigation named "Sat War" dealt with a violation of copyrights which was reported by Pay-TV provider and AEPOC member Sky Italia in April 2005. A dealer network based in Italy and Albania had offered illegal Pay-TV subscriptions for an Albanian provider to Italian consumers. This "offer" offends Sky Italia's exclusive rights - especially regarding sports events. The swiftly conducted investigation has led to 1.300 smart cards, 1.200 decoders and a sum of € 139.000 seized together with detailed documentation data. 23 individuals of Italian and Albanian nationality are accused and have to face a punishment of imprisonment from six to three years as well as severe fines according to the Italian penal code. The material is being analysed at present in order to issue the legal action.

Also the AEPOC-initialised collaboration with the European customs has led to substantial actions against Pay-TV pirates. In conjunction with Switzerland having ratified the European Conditional Access Convention AEPOC members offered their availability to hold training sessions to the Swiss customs for being more easily able to detect pirate boxes and stop illicit trade - at the boarders as well as within the country. AEPOC will continue this fruitful action and has achieved to offer a similar service to the French customs within the next weeks.

Regarding new technical means against piracy of audio-visual services, AEPOC judges the recent ruling by the US courts against the imposition of the FCC "broadcast flag" a setback for the US market. The flag consisted in a technical specification for fighting illegal re-distribution of digital broadcast TV contents. AEPOC sees though the possibility to put this issue of digital rights management on the European agenda and will enter into dialogue with the respective bodies at the European Union.

"Off-the-shelf" piracy devices call for enhanced European Legislation
As to the availability and functionality of illicit devices to circumvent conditional access systems, AEPOC members see the biggest threats for the industry in "off-the-shelf" and software-based piracy devices as well as the illegal "card sharing" mechanism. In several countries resellers have been identified offering devices which gave direct illegal access to pay services. AEPOC has reported these activities to the respective national bodies which will follow up the investigations. The IP-based mechanisms such as card sharing - which illegally multiply access for a row of reception devices with the help of one abused smart card - call for a more precise and extended European Conditional Access Legislation.

“The existing problem of piracy of audio-visual services must be put on the European legislative agenda again - with more emphasis and precision. Though substantial achievements have been made, the legal framework and corresponding law enforcement need to keep pace with the illegal techniques of the pirates”, AEPOC President Jean Grenier explains. “The shadow economy of pirates aims to make quick money at the expense of the industry and consumers. This endangers the existing companies within the media industry while consumers are facing higher prices due to the frauds perpetrated by the parasitic viewers. Moreover, also the naissance of innovative services - especially in the audio-visual and creative arts sector by younger companies - is threatened. In particular we need to remember that High Definition TV will create the ground for relevant investments but needs proper protection against any new form of abuse. Therefore AEPOC demands an extended European Conditional Access Legislation which punishes the possession of illicit devices or software and more generally every single unauthorised access to pay services”, Grenier concludes.

It was decided to hold the 3^rd European AEPOC Symposium in London during the British Presidency of the European Union.

AEPOC (www.aepoc.org) is the "Association Européenne pour la Protection des Œuvres et Services Cryptés" or the "European Association for the Protection of Encrypted Works and Services". AEPOC started its activities in 1995. Its current membership consists of 35 leading digital television and telecommunication companies including TV channels, conditional access providers, providers of transmission infrastructures and manufacturers of related hardware. AEPOC's goal is to eliminate the pirating of encrypted works and services and to encourage the development of the appropriate legal, operational and technological frameworks to increase the security and safeguarding of conditional access systems for Pay-TV, TV-based and IP services.

The AEPOC members are: ADD Europe, AL MAJD, Aston, Atmel, BSkyB, Canal+, Canal+ Polska, comvenient, Conax, Digiturk, Eutelsat, Humax, Hutro, Infineon Technologies, Irdeto Access, Motorola, Nagravision, NDS, Nokia, NTV-Plus, Opentech, Pace, Philips, Premiere, Sagem, SCM Microsystems, Showtime Arabia, Sky Italia, Sogecable, Thomson, TPS, TVCabo, UGC Europe, Viaccess - France Telecom and WELA Electronic.

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