Press Release
For Immediate Release
September 8, 2003
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United States Department of Justice
United States Attorney
Central District of California
Thom Mrozek, Public Affairs Officer
(213) 894-6947
Contact: James W. Spertus
Assistant United States Attorney
(213) 894-5872
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Concluding the first federal criminal case in Los Angeles involving
the theft of trade secrets, a University of Chicago student was sentenced
this morning for stealing sensitive trade secret information regarding
DirecTV's Period 4 conditional access card.
Igor Serebryany, a 19-year-old student whose home is in the Los Feliz
area of Los Angeles, was sentenced to five years of probation, a term
that will include six months of home detention. Additionally, United States
District Judge Lourdes G. Baird ordered Serebryany to pay $146,085 in
restitution to DirecTV and to the law firm where he stole the information.
Serebryany stole the secret information while he was working for a copying
service that had been hired by DirecTV's legal counsel, Jones Day Reavis
& Pogue in Los Angeles. The stolen trade secret information pertained
to DirecTV's 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 Period 4 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.
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.
On April 28, 2003. Serebryany pleaded guilty to the charge in federal
court in Los Angeles.
The case was investigated by the Cyber-crime Division of the Federal Bureau
of Investigation in Los Angeles.
CONTACT: Assistant United States Attorney James W. Spertus
(213) 894-5872
Release No. 03-120
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