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INTRODUCTION
Online streaming has become one of the most common ways people watch television and sports. Unfortunately, it has also become one of the most common ways copyright infringement takes place. The case of DISH Network L.L.C. v. DOES (2023) shows how the Digital Millennium Copyright Act (DMCA) can be used to protect digital broadcasts and encrypted content from unauthorized streaming websites.
In this case, DISH and its subsidiary Sling TV took on a network of anonymous operators behind a site known as Sportsbay. The website was dedicated to offering “free live sports” by decrypting Sling's secure programming and retransmitting it to millions of users. The court's ruling, which included nearly 500 million dollars in statutory damages, illustrates how seriously courts treat anti-circumvention violations under the DMCA.
BACKGROUND ON PLAINTIFF
DISH Network is the fourth-largest pay television provider in the United States. Its subsidiary, Sling TV, offers internet-based television programming. Sling secures its streams with advanced digital rights management technology, known as DRM, which comes from major providers such as Google, Apple, and Microsoft. This technology ensures that only paying subscribers who have purchased access can view Sling's content.
The programming that DISH and Sling distribute consists of copyrighted works that the companies acquire and license lawfully through broadcast and distribution agreements.
BACKGROUND ON DEFENDANT
The defendants, referred to as DOES, operated through multiple websites collectively called Sportsbay. These sites offered free live sports and television streams. According to exhibits filed in the case, the sites received more than 9.3 million visits in just six months. The homepage promoted easy access to “multiple links to watch any match” and listed “97 US TV Channels.”
The technology behind Sportsbay was designed to bypass Sling's DRM protections. When users clicked a link, the website connected to an embedded iframe that accessed encrypted programming directly from Sling's servers. This allowed users to watch live programming without paying for a Sling subscription.
Each time a user streamed a program, Sportsbay obtained and used DRM keys to decrypt the signal. In doing so, it effectively circumvented Sling's digital protections.
LEGAL ISSUES
The plaintiffs brought two main claims under the DMCA.
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Circumventing Technological Measures in Violation of 17 U.S.C. § 1201(a)(1)(A)
The DMCA prohibits any person from bypassing a technological measure that effectively controls access to a copyrighted work. Each time Sportsbay used a DRM key to unlock Sling's encrypted streams, it violated this section of the statute. -
Trafficking in Circumvention Technology or Services in Violation of 17 U.S.C. § 1201(a)(2)
The DMCA also prohibits offering or providing any service or technology that enables circumvention. By offering free public access to decrypted Sling programming, Sportsbay was trafficking in an illegal service designed to bypass DRM protections.
These violations were pursued alongside a request for permanent injunctive relief, statutory damages, and attorney fees.
INJUNCTIONS AND DEFAULT JUDGEMENT
Because the defendants failed to appear in court, the plaintiffs moved for default judgment. To obtain a permanent injunction, the court applied the four factors from eBay Inc. v. MercExchange (2006): irreparable harm, inadequacy of legal remedies, balance of hardships, and public interest.
For the default judgment, the court reviewed the Eitel factors, which include the merits of the plaintiff's claims, sufficiency of the complaint, and the possibility of prejudice. The court found that DISH and Sling had properly pleaded all elements and supported their claims with strong evidence and technical declarations.
COURT'S FINDINGS
The court held that the defendants violated Section 1201(a)(1)(A) by unlawfully obtaining and using DRM keys to decrypt Sling's encrypted programming. It also found that the defendants violated Section 1201(a)(2) by publicly offering and promoting services that enabled circumvention.
The reasoning mirrored prior cases, including DISH Network v. SatFTA, where modifying smartcards to bypass encryption technology was ruled a violation of the DMCA.
DAMAGES AWARDED
The court awarded 493,850,000 dollars in statutory damages. This was based on 2,469,250 violations, calculated at 200 dollars per violation, which is the minimum statutory amount allowed under the DMCA.
The court justified the damages by noting that the traffic data covered only six months of activity and that actual losses to the plaintiffs were likely higher. The court also noted that DISH did not request attorney fees, which are otherwise available under the statute.
DECLARATION FILED IN THE CASE
David Teplinsky, the Vice President of Programming and Strategy at DISH, explained that calculating the exact loss from unauthorized streams was impossible. Many users who watched on Sportsbay might have subscribed to Sling if the free option had not been available. This uncertainty helped justify the high damages request.
Christopher Ross filed a separate declaration confirming the technical evidence. His analysis verified that the Sportsbay sites bypassed Sling's encryption and redistributed its programming unlawfully.
NOTE ON THE ELECTRONIC COMMUNICATIONS PRIVACY ACT
Although this case was brought under the DMCA, it also touches on issues covered by the Electronic Communications Privacy Act (ECPA), which protects against the interception and unauthorized use of electronic communications.
Under 18 U.S.C. § 2511, a person can be held liable for intentionally disclosing or using electronic communications that were obtained through interception. However, courts generally require proof that the interception occurred “mid-flight,” before the content was transmitted to an end user.
In similar cases, such as DirecTV v. Robson, courts rejected ECPA claims when plaintiffs failed to show that the signal was intercepted in real time. For this reason, most IPTV piracy cases are litigated under the DMCA instead of the ECPA.
CONCLUSION
This case demonstrates the power of the DMCA to protect encrypted streaming and satellite content. Even when the infringers are anonymous and located outside the United States, courts can still award substantial damages and injunctive relief.
The decision also shows that “free streaming” websites are not harmless. They represent large-scale copyright infringement that can lead to hundreds of millions of dollars in statutory damages. Rights holders should act quickly when their encrypted content is being redistributed online, as the law provides strong remedies for these violations.
CONTACT A CALIFORNIA COPYRIGHT ATTORNEY
Since 2004, Vondran Legal has been a clear leader in copyright and trademark infringement matters across the United States. We have handled more than 1,000 infringement cases, including fair use opinions, DMCA takedown and counter-notice disputes, federal court litigation, and platform cases involving YouTube, Etsy, TikTok, Shopify, and Amazon.
If you believe someone has unlawfully accessed or distributed your copyrighted works, or if you received a copyright infringement claim, contact Vondran Legal for a confidential, no-cost initial consultation to discuss your rights and potential remedies.
