Rapid Enforcement Allied Computer Team Task
Force
Rapid Enforcement Allied Computer Team Task
Force
* Reducing the incidence of high technology crime through the apprehension of the professional organizers of large scale criminal activities. *
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FOR IMMEDIATE RELEASE
SAN JOSE United States Attorney Kevin V. Ryan announced
that the first two defendants today pleaded guilty and admitted in open
court to their involvement in what the recording industry is calling
the largest music manufacturing piracy seizure in the United States
to date. On October 6, 2005, law enforcement conducted searches of 13
locations in California and Texas in the undercover investigation called
Operation Remaster. The FBI estimates that approximately 494,000 pirated
music, software, and movie CDs, and DVDs, and more than 5,500 stampers
were seized during those raids. Stampers and masters are used to manufacture CDs and DVDs. A single stamper can potentially be used to manufacture 50,000 to 80,000 counterfeit CDs or DVDs of a single copyrighted work. As part of their plea agreements, the defendants also agreed to forfeit their interest in equipment used to commit the violations, including a replication machine; a silk screening machine; a barcode printer, and DVD 6 Bay replicators, in addition to other items. FBI Special Agent in Charge Joe Ford stated, This case involved the large scale production and distribution of counterfeit software and music media, which violates federal criminal law, as well as the legal rights of software companies and music artists. Today's plea agreements further demonstrate the success the FBI and the REACT High Technology Task Force are having in attacking this growing problem. In the plea agreement, the defendants admitted that, from September 2004 through October 6, 2005, they used replication and silk screening machines at Media Art Technology, Inc., in Hayward and Union City, California, for the mass reproduction of copyrighted software and music. This equipment allowed the defendants to quickly create tens of thousands of counterfeit CDs or DVDs. All the counterfeited works at issue are copyrighted in the United States. Brad Buckles, Chief of Anti-piracy for the Recording Industry Association of America (RIAA) stated, "The value of this prosecution to the entire music community cannot be overstated. This case involves mass quantities of commercially manufactured counterfeits that closely resemble authentic CDs. This kind of illegal product has the greatest potential for deceiving the consumer and displacing legitimate sales. The illegal profits generated by these highly sophisticated operations come at the expense of the artists, songwriters, retailers, record labels and many others whose creative energies make music possible. These pleas stemming from the largest U.S. manufacturing raid on record should leave no doubt that the consequences for theft of this kind are real. We commend the U.S. Attorney's Office and the numerous agents and officers who have worked this case along the way for demonstrating such a solid commitment to the protection of intellectual property." Each defendant pleaded guilty to the following five counts: As part of their plea agreements, the defendants admitted to serving as manufacturers in the conspiracy. Replicator conspiracies often involve geographically separate businesses that secretly handle different stages of the process of pirating intellectual property. Brokers, replicators, assemblers, packagers, printers, distributors and retailers play distinct roles in the conspiracy. Brokers solicit the orders of copyrighted works, while the replicators have the equipment to manufacture hundreds of thousands of CDs. Printers and packagers are responsible for assembling the CD case, booklet and artwork into a completed CD/DVD package that make the infringed work appear legitimate. Mr. Ryan continued, Operation Remaster has been particularly significant because we were able to strike at the source of the supply of pirated goods. Because pirating schemes are difficult to penetrate, law enforcement often works from the bottom of the distribution chain to the top. Here, we were able to identify the people supplying retailers with infringed products and seize a substantial amount of the pirated works before they could be distributed. On behalf of Symantec and its customers, we'd like to extend our thanks to all of the law enforcement agencies at the federal and local level belonging to the REACT Task Force that worked so hard to bring about these convictions, said William Plante, senior director, Global Security and Brand Protection, Symantec. Software piracy continues to be a serious matter that poses a tremendous security threat to the average user. We appreciate U.S. Attorney Kevin Ryan's office for devoting the resources and time necessary to bring this case to a successful conclusion. Defendants Wen and He are scheduled to be sentenced before U.S. District Court Judge Ronald M. Whyte on October 16, 2006 at 9:00 a.m. The next court appearance for a third defendant separately indicted in the case, Yaobin Zhai, a/k/a Ben Zhai, 33, of Fremont, California, is scheduled for May 22, 2006 at 1:30 p.m. Anyone with information about illegal piracy can contact the local FBI office at 415-553-7400, or the REACT Crime tip line at 408-494-7165. The maximum statutory penalty for each of the following counts of conviction is five years imprisonment, a $250,000 fine, three years supervised release, and a $100 special assessment for each violation.
In addition, the defendants infringing items and counterfeiting equipment
are subject to criminal forfeiture and destruction, pursuant to 17 U.S.C.
'' 506(b) and 509(a). However, any sentence following conviction would
be imposed by the court after consideration of the U.S. Sentencing Guidelines
and the federal statute governing the imposition of a sentence, 18 U.S.C.
' 3553. |
U.S.
DEPARTMENT OF JUSTICE