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Software Pirate Downloads Seven Years
SecurityProNews
Staff Writer
2006-09-11
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The owner of a "massive" software piracy site was sentenced in federal court on Friday to 87 months in prison, following prosecution by the U.S. Department of Justice.
Nathan L. Peterson, 27, of Antelope Acres, Calif., was also ordered by a federal judge to forfeit the proceeds of his operation and pay restitution totaling more than $5.4 million. Peterson included among his assets numerous homes, cars, and a boat, all of which he purchased with piracy profits.
The DOJ said Peterson is believed to be the most prolific online commercial distributor of pirated software ever convicted in the United States.
"This defendant lined his pockets by stealing the hard work of others," said Fisher. "Today's sentence sends a clear message that those who sell pirated software will be convicted and punished."
Peterson ran his operation between 2003 and February 2005, when the FBI shut down in the www.ibackups.net website. The site sold copies of software copyrighted by Adobe Systems, Inc., Macromedia Inc., Microsoft Corporation, Sonic Solutions, and Symantec Corporation at prices substantially below retail.
The software purchased on Peterson's website were reproduced and distributed either by download or by shipment through the mail on CDs. Peterson often included a serial number that allowed the purchaser to activate and use the product.
"Stealing the intellectual property of others is always a bad idea in any context. It's theft. And, so, a sentence of seven plus years in prison and restitution of $5.4 million is richly deserved," said U.S. Attorney Chuck Rosenberg.
The investigation was conducted by agents of the FBI's Washington Field Office. After receiving complaints from copyright holders about Peterson's website, an undercover FBI agent made a number of purchases of business and utility software from the site, which were delivered over the Internet and by mail to addresses in northern Virginia.
Sales of the software resulted in nearly $20 million in losses to the owners of the copyrighted products. The government seized a number of bank and trading accounts, a fully restored 1949 Mercury Coupe purchased originally for $44,000, a 2005 Dodge Ram, a 2003 Chevrolet Corvette, a 2004 Toyota Camry, a 2005 Toyota Corolla, and a 2006 Mercedes-Benz S-Class purchased for $125,000.
About the Author:
SecurityProNews is a daily online and email publication focusing on internet security issues.
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