Pirate IPTV Ops See Damages Reduced By $7m, Admin Panel Evidence Fell Short

After years of plain sailing followed by several years of bad luck, two convicted IPTV operators in Sweden were sentenced to prison and ordered to pay rightsholders $18m in damages. On appeal, the men successfully argued that the amount was excessive and based on incorrect information. A dispute over an admin panel photograph led to damages being slashed by $7m.
After receiving an anonymous tip in 2019, anti-piracy group Nordic Content Protection (NCP), and members including pay-TV company C More (previously Canal+), Warner Bros. Discovery and streaming service Viaplay, launched a pirate IPTV investigation.

NCP received a similar tip in 2020, this time from police in the city of Gävle. They were passing on the details of another anonymous tip detailing the activities of a suspected pirate IPTV network. After a period of surveillance, which included wiretapping an unknown number of suspects, police executed warrants at two addresses, one in Gävle and the other in Sandviken.

Two suspected operators were detained along with evidence that included 47 gold bars, an expensive whiskey collection, around $25,000 in cash, and roughly $41,000 in bitcoin.

At the Stockholm District Court’s Patent and Market Court in October 2023, the men were found guilty of criminal copyright infringement and sentenced to prison. They were also held jointly and severally liable for damages totaling SEK 196,247,000 ($18 million), payable to C More, Warner Bros. Discovery, and Viaplay.

The Inevitable Appeal

In the belief that the sentences were too lenient, the prosecutor asked the Patent and Market Appeal Court to increase the sentences of the defendants, who in court records are identified by the initials S.Ö. and JL.

S.Ö and JL asked the Patent and Market Appeal Court to acquit them, dismiss the copyright holders’ claims for damages and the requirement to pay their legal costs, plus a full dismissal of a confiscation order against seized IPTV boxes.

In common with the trial at the lower court, the men denied claims that they retransmitted the plaintiffs’ TV broadcasts. JL appears to have conceded limited involvement in IPTV sales, handling just a few clients via a guest login to a service he’d previously handed over to someone else, plus sales of unmodified IPTV boxes.

Evidence showed that during the raids on the men’s homes, no ‘outward flow’ was identified from the suspects’ computers. However, one of JL’s computers contained software “that enabled reception and streaming of IPTV.” Evidence showed that S.Ö. paid for server space while JL had purchased server licenses and software subscriptions for receiving and distributing IPTV.

The content of chat messages and their handling of payments confirmed to the satisfaction of the court that the men were indeed involved in IPTV. All that remained was to determine the scale of the offending.

Thousands of Customers, But How Many Thousands?
The prosecutor’s case against the men called on significant evidence that reportedly left little doubt that they were closely involved with all aspects of the alleged IPTV business. To demonstrate that the operation distributed content illegally to many users, the prosecution partly relied on photographs taken during the raids, including those that claimed to show how many users S.Ö and JL serviced on the platform.

“According to the prosecutor, the photographs show that S.Ö. at the time of the crackdown had 4,619 users in the network and that JL had 8,303 users in the network, i.e. their network had a total of 12,992 users,” the court’s decision reads.

Evidence Fell Short

But there was a problem. S.Ö. and JL informed the court that the photographs, which showed IPTV panel software Ministra (formerly known as Stalker portal), did not show the number of users but rather the number of ‘events’ generated by users. That cast doubt on the claim that the service had close to 13,000 users.

Instead, several pieces of evidence backed up the defendants’ assertion that their platform had around 5,000 users, a claim that was first made in the anonymous tip received by NCP back in 2019.

Without making any changes to the substance of the underlying judgment, the Court of Appeal recalculated the damages payable to the rightsholders. From just over SEK 196,000,000 (US$18,210,000) the new damages amount of just under SEK 114,000,000 (US$10,591,000) trimmed the original amount by roughly US$7 million.