Industry Canada launches next phase in multi-faceted strategy against DTH piracy

Industry Canada has decided not to take a hard-line stand against satellite TV dealers peddling illegal equipment, opting instead – at least for the time being – to send an information letter to more than 470 dealers across the country. According to department officials, Industry Canada believes that raising awareness is the best course of action to take in combating the grey and black satellite TV market at this time. Jim Theissen, a policy analyst with the department, says if a hard-line approach were taken, then the government had to be ready to respond to it. "If you take a hard-line approach – a cease and desist order going out to 500 companies – you have to be prepared to follow up if they don’t cease and desist," he says. "It’s better to send an information letter out (now) and then with future letters we will see how we can work with the RCMP to maybe send cease and desist letters." The department has been working on several different methods to raise awareness of the issue. In sending the letter to nearly 500 dealers in the country, the government is trying to cast a wide net around the whole satellite dealer community. "This was kind of a shotgun approach to get the information out to as many people as possible," he tells Report on Wireless, adding that this is part of a multi-faceted approach to make as many people as possible aware of the law. Earlier this year, the department issued a Determination of Interference on the interference caused by the use of illegal satellite decoder cards, commonly known as AVR cards (RoW, June 24/02). These cards make satellite TV receivers send out a spurious radio interference that resembles the emergency locator beacon of a downed airplane. The technical assessment of certain AVR cards doesn’t seem to have made an impact on the continued use of the cards. Theissen admits that a quick scan of the web and even the mainstream media demonstrates there is still a fair amount of use going on. In this light, the government will soon unleash a campaign on the owners of web sites advertising the illegal equipment. Industry Canada will also soon target newspapers that carry the advertisements of companies offering illegal satellite TV equipment. To combat the use of illegal satellite TV equipment, the government has set up provincial task forces to monitor and investigate the situation. It is also considering working with Canada Customs and Revenue Agency to try to seize certain equipment at border crossings. While the department has chosen to go the informational or awareness route, a few broadcasters and one licensed satellite TV player have filed a major lawsuit against a plethora of satellite TV dealers. Bell ExpressVu LP, CTV Inc., Astral Media and Alliance Atlantis Communications Inc. are seeking $100 million in damages. Cable companies are also planning their own suit, which is expected to be filed in about a month. Janet Yale, president and CEO of the Canadian Cable Television Association (CCTA), says that any action against the use of illegal satellite TV equipment is welcome. Her lukewarm comments of support at the recent Canadian Cable Systems Alliance annual meeting suggest that she would have preferred a more forceful response from Industry Canada. "Well, I think that any steps are good ones. I think it’s important to have concrete action. I think sending letters to dealers is fine, but I think enforcement is better," she said. "What we’re looking for is a serious ramp up of resources on the part of the RCMP to deal with this issue quickly, effectively and forcefully right across the country." Yale is also looking for a more aggressive stance from the CRTC, which recently rejected a complaint filed by the CCTA on behalf of the Black Market Coalition against grey/black market satellite TV dealer CTY Telecom. In commenting on the commission’s ruling that it didn’t have the jurisdiction to intervene in the CTY Telecom case, Yale says she had hoped the CRTC would have taken more of a lead role. "I thought this was a great opportunity for the CRTC to show some leadership on this issue to other parts of government and to take a tough stand against the dealers," Yale says. "But what we’re looking for is a sign from government that they take the issue seriously. We’re looking for in terms of signs actions that can be taken to chill the market … to let dealers know that anybody who has a role to play in enforcement will take whatever steps are in their power to do it. Now, I understand that the CRTC had a different view of their powers on this and I’m sure the dealers would have challenged the commission in court if they had reached a different conclusion. "I think of it as a missed opportunity to take some risks, to take a tough stand and to try and chill the market in terms of making it tougher for dealers to get away with allowing people to hack into these systems." For more information on the satellite TV piracy issue, please refer to the Oct. 24/02 issue of RoW affiliate newsletter Canadian Communications Reports.

Industry Canada launches next phase in multi-faceted strategy against DTH piracy

News | October 28, 2002

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