Cracking Down on Piracy: DISH Network Sues Ukraine-Based Hosting Provider

The International Broadcaster Coalition Against Piracy (IBCAP) has announced that its member company, DISH Network, has filed a lawsuit against Virtual Systems, a Ukraine-based hosting provider, for contributing to and enabling copyright infringement. The complaint alleges that Virtual Systems ignored numerous takedown notices and continued to provide services to numerous pirate streaming platforms, directly infringing on the copyrights of IBCAP members.

Combating the Scourge of Piracy: DISH Network Takes Legal Action

Exposing Virtual Systems' "DMCA Ignored" Policy

The lawsuit alleges that Virtual Systems implemented a "DMCA Ignored" policy, openly advertising that it would disregard copyright infringement notices. The complaint states that Virtual Systems ignored more than 500 separate notices of infringement from IBCAP and continued to allow numerous pirate services to use its servers and network, directly infringing on the copyrights of IBCAP member companies.This blatant disregard for copyright law is a significant concern for the media industry, as it enables the proliferation of illegal streaming platforms that undermine the legitimate business models of content creators and distributors. By ignoring DMCA takedown notices, Virtual Systems has become a safe haven for pirate services, allowing them to continue their unlawful activities without consequence.

Holding Virtual Systems and Its CEO Accountable

The lawsuit also names Vyacheslav Smyrnov, the owner and CEO of Virtual Systems, as a defendant in his personal capacity. The complaint alleges that Smyrnov authorized, directed, and participated in Virtual Systems' infringement, and failed to exercise his ability to stop the illegal activities.This move to hold the company's leadership personally responsible for the infringement is a significant step in the fight against piracy. By targeting the individuals who are directly involved in enabling and profiting from these unlawful practices, IBCAP and DISH Network are sending a clear message that there will be consequences for those who choose to support and facilitate piracy.

Seeking Substantial Damages and Injunctive Relief

The complaint filed by DISH Network seeks substantial statutory damages of up to $150,000 for each of the 279 registered works that were infringed upon, potentially amounting to a total of $41.85 million. Additionally, the lawsuit seeks to recover Virtual Systems' profits attributable to the infringement of thousands of unregistered works.Beyond the financial penalties, the complaint also requests an injunction prohibiting Virtual Systems from providing access to copyrighted works owned by IBCAP members. This would effectively shut down the company's ability to continue supporting pirate services, cutting off a crucial lifeline for these illegal platforms.

Building on Previous Successes

This lawsuit against Virtual Systems represents the second time IBCAP has coordinated a legal action against a non-US-based content delivery network (CDN) or hosting provider. The first case, the Datacamp lawsuit, resulted in a favorable outcome, with Datacamp paying $3 million and agreeing to implement takedown and repeat infringer policies.The success of the Datacamp case and the filing of this new lawsuit against Virtual Systems sends a clear message to non-compliant CDNs and hosting providers that supporting pirate services comes with significant risks. IBCAP's executive director, Chris Kuelling, has stated that this strategy of identifying and holding accountable non-compliant providers is a crucial part of the coalition's efforts to combat piracy.As the media industry continues to grapple with the challenges posed by illegal streaming platforms, the actions taken by IBCAP and DISH Network demonstrate a steadfast commitment to protecting the rights of content creators and distributors. By targeting the infrastructure that enables piracy, these legal efforts aim to disrupt the business models of pirate services and send a clear message that such unlawful activities will not be tolerated.