Smart Cards

     A Smart Card is a computer chip contained on a circuit board. The smart card is typically used instead of a memory card in a device where the memory needs to be protected. Security information enabling access is programmed into the smart card.

     A Smart Card Reader is an interface which permits a device such as a satellite television unit to talk to the smart card, most of which can also write to the smart card. A smart card reader built into the satellite television unit permits an individual to watch programs authorized by the smart card.

Are Smart Cards Illegal?

     Not at all. Smart cards are used in many industries, including satellite tv. Every subscriber to a service such as the DISH Network or DIRECTV will normally receive a smart card encoded with their subscription information - and it is legal, expected, and necessary to possess and use that smart cart to watch the satellite tv service. It is only where smart card technology is used improperly, such as the use of a reprogrammed smart card which allows the user to watch unlimited television programming without payment, that is illegal.

Is the Satellite TV Industry Doing Anything To Stop Illegal Smart Cards?

     The satellite tv industry, in recent years, has been most aggressive in initiating litigation against companies and individuals who sell smart cards encoded to descramble their television broadcasts. As a result, they have acquired many customer lists which include the names and addresses of their customers. Some companies, particularly DirecTV, have been aggressively pursuing people on those customer lists, sending demand letters accusing them of "illegal signal theft equipment" or "pirate access devices", demanding payment and threatening lawsuits. Many innocent people have received this type of letter.

What Are The Consequences For Illegally Using A Smart Card?

     If a satellite tv company files a lawsuit, under U.S. federal law it can and will ask for damages in the amount of lost revenue (generally a high estimate based upon what could have been watched through use of the unauthorized smart card), and if victorious may also receive damages of up to $10,000.00 per violation and an award of attorney fees and court costs. The attorney fee award may well be much larger than the amount owed for unpaid satellite tv fees. Damages may be significantly greater if the defendant is shown to have engaged in the manufacture, distribution, or modification of smart cards.