ILNews

7th Circuit overrules itself in satellite TV case

Back to TopCommentsE-mailPrintBookmark and Share


The 7th Circuit Court of Appeals overruled one of its own decisions from 20 years ago, finding that judges have discretion in whether penalties are imposed on those who steal encrypted television satellite signals or help others take them without paying for the service.

Deciding today in the case of DirecTV v. David Barczewski and Jonathan Wisler, Nos. 06-2219 and 06-2221, the three-judge appellate panel mostly affirmed a ruling from then-U.S. District Court Judge David F. Hamilton from the Southern District of Indiana.

The case goes back to jury verdicts against Jonathan Wisler and David Barczewski, who respectively had intercepted encrypted signals from the company’s satellite system without authorization and furnished devices to help others steal the signals. Both defendants bought electronic gear from a merchant that had advertised its products designed to help facilitate the theft of those signals and both participated in online discussion groups about decrypting those signals without paying.

But the case also involves penalties imposed by the District judge, and that’s a legal issue more significantly addressed in this case that the appellate court heard arguments on in February 2007. While affirming Judge Hamilton’s decision, the appellate judges found that one of its own decisions from 1990 that Judge Hamilton relied on wasn’t correct in finding that judges are mandated to give out maximum damages calculated under 18 U.S.C. §2520(c)(2), which says, “courts may assess as damages” involving the use of satellite signals taken without payment or permission.

In Rodgers v. Wood, 910 F.2d 444, 448 (7th Cir. 1990), the appellate court in Chicago held that the highest penalty calculated under that federal law section is mandatory – effectively leaving District judges without any discretion about whether or not damages should be assessed and that those should be imposed at the highest level.

The Rodgers ruling was the nation’s first appellate decision on that issue of statutory penalties being mandatory or permissive after Congress in 1986 overhauled that section of federal law. Specifically, Congress revised the language from “shall” to “may” in assessing those damages. Since then, other Circuits have analyzed that issue in the past 15 years and disagreed with Rodgers - the 4th, 6th, 8th, and 11th Circuits have held that §2250(c)(2) allows judges to not award damages.

Now, the 7th Circuit is following suit.

“Developments that leave this Circuit all by its lonesome may justify reexamination of our precedents, the better to reflect arguments that may not previously have been given full weight and to spare the Supreme Court the need to intervene,” Chief Judge Frank Easterbrook wrote for the panel that also included Judges Joel Flaum and Diane Sykes. “We overrule the portion of Rodgers holding that award of the maximum damages specified in §2250(c)(2) is mandatory. We conclude that the District Court has discretion not to award statutory damages under the statutory formula.”

Dismissing what the defendants argued, the panel wrote that the federal statute doesn’t require judges to set penalties according to wealth and the economics don’t matter.

“District judges have discretion to consider other reasoned approaches too; there is latitude in the word ‘may.’ The District judge used that latitude to give Barczewski the lowest available penalty,” Chief Judge Easterbrook wrote. “But judges need not go easy on hourly wage-earners who decide to steal TV signals, any more than they need to go easy on people who choose other forms of theft to supplement the family budget. People who do not want to pay the market price for goods or services must refrain from theft and cannot complain if the price of crime is steep.”

The case is remanded to the Southern District on the issue of statutory damages against Wisler.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. A sad end to a prolific gadfly. Indiana has suffered a great loss in the journalistic realm.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

ADVERTISEMENT