Press Release
For Immediate Release
April 28, 2003
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U.S. Department of Justice
United States Attorney
Central District of California
Debra W. Yang
Thom Mrozek
Public Affairs Officer
Phone (213) 894-6947
thom.mrozek@usdoj.gov
Contact: James W. Spertus
Assistant United States Attorney
Phone: (213) 894-5872
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In the first criminal case in Los Angeles involving the theft of trade
secrets, a student pleaded guilty today to stealing sensitive trade secret
information belonging to DirecTV.
The trade secrets were stolen from the law offices of DirecTV's legal
counsel, Jones Day Reavis & Pogue in Los Angeles, by Igor Serebryany,
a student at the University of Chicago. Serebryany, a 19-year-old Hollywood
resident, admitted stealing the trade secrets from the law firm while
he was working there assisting the firm with its document management needs.
The stolen trade secret information pertained to DirecTV's latest and
most sophisticated conditional access card, the "Period 4" access
card. DirecTV had provided the secret information to Jones Day in connection
with civil litigation between DirecTV and one of its security vendors,
NDS Americas, Inc. DirecTV delivers digital entertainment and television
programming to millions of homes and businesses throughout the United
States. A consumer wishing to subscribe to DirecTV programming must first
obtain necessary hardware items, including a conditional access card,
to receive the satellite signals. The access card is a key component in
the security and integrity system for DirecTV satellite programming.
DirecTV invested more than $25 million to develop the latest generation
access card with the assistance of its security venders. The three previous
generations of DirecTV access cards have all been compromised by hackers
who have developed ways to circumvent DirecTV's conditional access technologies.
The Period 4 access card is the only DirecTV access card that has yet
to be compromised by the pirate community.
Jones Day was outside counsel for DirecTV and represented DirecTV in civil
litigation that was commenced in September 2002 by DirecTV against NDS.
In preparation for this litigation, DirecTV and Jones Day had been actively
reviewing documents pertaining to the development of the Period 4 card,
and in August 2002 DirecTV delivered the trade secrets to Jones Day. Some
of the trade secret information was so secret and valuable to DirecTV
that DirecTV had previously maintained the information only in encrypted
format on computer hard drives secured at DirecTV facilities. Serebryany
stole the information after gaining access to the secrets while employed
by a document imaging company that had been retained by Jones Day in relation
to the litigation.
Serebryany faces a statutory maximum sentence of 10 years in federal prison
when he is sentenced by United States District Judge Lourdes G. Baird
on September 8.
The case was investigated by the Federal Bureau of Investigation.
CONTACT: Assistant United States Attorney James W. Spertus
(213) 894-5872
Release No. 03-068
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