Hong Kong Customs Arrest Pirate Streaming Device Vendors

On May 25 and 26, Hong Kong Customs carried out a series of raids against four retail outlets suspected of selling “fully loaded” set-top boxes which provided unauthorized access to movies and TV shows. Seven men and one woman were arrested and charged with copyright infringement offenses. Officials have warned that offenders could be imprisoned for up to four years.

As Internet-capable set-top boxes pour into homes across all populated continents, authorities seem almost powerless to come up with a significant response to the growing threat.

In standard form these devices, which are often Android-based, are entirely legal. However, when configured with specialist software they become piracy powerhouses providing access to all content imaginable, often at copyright holders’ expense.

A large proportion of these devices come from Asia, China in particular, but it’s relatively rare to hear of enforcement action in that part of the world. That changed this week with an announcement from Hong Kong customs detailing a series of raids in the areas of Sham Shui Po and Wan Chai.

After conducting an in-depth investigation with the assistance of copyright holders, on May 25 and 26 Customs and Excise officers launched Operation Trojan Horse, carrying out a series of raids on four premises selling suspected piracy-configured set-top boxes.

During the operation, officers arrested seven men and one woman aged between 18 and 45. Four of them were shop owners and the other four were salespeople. Around 354 suspected ‘pirate’ boxes were seized with an estimated market value of HK$320,000 (US$40,700).

“In the past few months, the department has stepped up inspections of hotspots for TV set-top boxes,” a statement from authorities reads.

“We have discovered that some shops have sold suspected illegal set-top boxes that bypass the copyright protection measures imposed by copyright holders of pay television programs allowing people to watch pay television programs for free.”

During a press conference yesterday, a representative from the Customs Copyright and Trademark Investigations (Action) Division said that in the run up to the World Cup in 2018, measures against copyright infringement will be strengthened both on and online.

The announcement was welcomed by the Cable and Satellite Broadcasting Association of Asia’s (CASBAA) Coalition Against Piracy, which is back by industry heavyweights including Disney, Fox, HBO Asia, NBCUniversal, Premier League, Turner Asia-Pacific, A&E Networks, Astro, BBC Worldwide, National Basketball Association, TV5MONDE, Viacom International, and others.

“We commend the great work of Hong Kong Customs in clamping down on syndicates who profit from the sale of Illicit Streaming Devices,” said General Manager Neil Gane.

“The prevalence of ISDs in Hong Kong and across South East Asia is staggering. The criminals who sell ISDs, as well as those who operate the ISD networks and pirate websites, are profiting from the hard work of talented creators, seriously damaging the legitimate content ecosystem as well as exposing consumers to dangerous malware.”

Malware warnings are very prevalent these days but it’s not something the majority of set-top box owners have a problem with. Indeed, a study carried by Sycamore Research found that pirates aren’t easily deterred by such warnings.

Nevertheless, there are definite risks for individuals selling devices when they’re configured for piracy.

Recent cases, particularly in the UK, have shown that hefty jail sentences can hit offenders while over in the United States (1,2,3), lawsuits filed by the Alliance for Creativity and Entertainment (ACE) have the potential to end in unfavorable rulings for multiple defendants.

Although rarely reported, offenders in Hong Kong also face stiff sentences for this kind of infringement including large fines and custodial sentences of up to four years.