Zuffa Gets Some Help From The Government in its Piracy Battle

In my earlier article, Zuffa’s Piracy Fight– Winning The Battle, But Can It Win The War?, I described Zuffa’s multi-pronged attack against the piracy of its intellectual property.

In that article, after addressing the different prongs of the attack, I concluded as follows:

Despite all of its successes outlined above, it is important to remember that shutting down infringing streaming sites around the world is like the old game of “whac-a-mole,” i.e. just as quickly as you shut down one site, another site pops up and so on. Further, while Zuffa continues to file after the fact lawsuits against bar owners for publishing unauthorized broadcasts of UFC events, the problem is obviously continuing as is evidenced by the sheer number of lawsuits Zuffa is filing each month.

There is, of course, a deterrent effect – perhaps a website operator will be less likely to illegally stream a ppv (or a bar owner will be less likely to illegally publish a broadcast in its bar) knowing that it may be sued down the road, but clearly the deterrent effect alone will not completely curb the problem.

Further, the international nature of some of the streaming sites would, I imagine, make it even more difficult to obtain effective relief in the US courts.

Today Zuffa received some assistance in its battle from the United States Attorney’s Office for the Southern District of New York–assistance that will undoubtedly add to the deterrent effect mentioned above.

Specifically, according to a press release issued by the USAO today:

PREET BHARARA, the United States Attorney for the Southern District of New York, and JAMES T. HAYES, JR., the Special Agent-in-Charge of the New York Office of Homeland Security Investigations (“HSI”), announced the arrest today of BRIAN McCARTHY for criminal copyright infringement. McCARTHY illegally streamed live, copyrighted sporting event telecasts, Pay-Per-View events, and other television programming through Channelsurfing.net, a website he operated. Through advertising revenue he obtained for the website, McCARTHY made well over $90,000, in proceeds from the crime. The arrest follows the February 1, 2011, seizure of that website’s domain name, pursuant to a seizure warrant issued by U.S. Magistrate Judge FRANK MAAS in the Southern District of New York.

UFC events were among those allegedly streamed at Channelsurfing.net:

Indeed, as set forth in the press release:

According to the Complaint unsealed today in Manhattan Federal Court, and the Seizure Affidavit through which the “Channelsurfing.net” domain name was seized:

“Until it was seized by law enforcement on February 1, 2011, Channelsurfing.net provided access to illegal, pirated telecasts of sporting events of the National Football League (“NFL”), the National Basketball Association (“NBA”), the National Hockey League (“NHL”), World Wrestling Entertainment (“WWE”), and theUltimate Fighting Championship (“UFC”) –- all of which hold the copyrights to the televised broadcasts of their respective sporting events.”

According to the press release, “McCARTHY, 32, of Deer Park, Texas, is charged with one count of criminal infringement of a copyright. If convicted, he faces a maximum of five years in prison.”

The press release concludes by stating that “[t]he charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.”

The website has been taken down — indeed, if you attempt to go to the URL, a government seizure notice comes up.

Justin Klein is an attorney at Satterlee Stephens Burke & Burke LLP in New York City where he concentrates his practice in commercial litigation and represents clients in the fight industry.  He regularly addresses current legal issues that pertain to combat sports, including efforts to legalize MMA in New York, at his Fight Lawyer website.  He is a licensed boxing manager with the New York State Athletic Commission as well as the founder and Chairman of the Board of the New York Mixed Martial Arts Initiative, a non-profit organization that gives inner city youth the opportunity to experience the emotional and physical benefits of martial arts training.  Justin lives in New York City where he trains in jiu jitsu and boxing.

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