Three years ago, pirated Blu-ray copies of ‘Spider-Man: No Way Home’ began circulating on pirate sites, weeks before the film’s official release.
Shortly before, pre-release discs were offered in an eBay listing, suggesting that someone had managed to get their hands on several pre-release copies of the film. The exact source and circumstances were unknown.
Earlier this year, the mystery was partly solved when the U.S. Department of Justice indicted the alleged wrongdoer. Following an in-depth investigation by the FBI, the authorities indicted 37-year-old Steven Hale, accusing him of stealing several Blu-rays and DVDs from his former employer; a disc manufacturing and distribution company in Memphis.
In May, Hale pleaded guilty to stealing and distributing numerous DVD and Blu-ray discs for commercial advantage and private financial gain. Among them, the pre-released ‘Spider-Man: No Way Home’ and other titles such as ‘Venom: Let There Be Carnage,’ ‘Encanto,’ and ‘The Matrix Resurrections.’
Firearm Charge
In addition to the copyright infringement charge, Hale was also indicted for a firearm offense. When raiding his premises, law enforcement found a gun in a car that was registered in his name, which, for a felon, is a separate criminal offense.
The defense argued that the gun, which was loaded, didn’t belong to Hale but to his father. In addition, Hale’s attorney also stressed that it “was simply there by coincidence,” not to facilitate the copyright infringement.
The government agrees that there’s no apparent connection between the firearm and the theft of the DVDs and Blu-rays. However, the ‘coincidental’ discovery doesn’t necessarily mean a lower prison sentence.
Government Recommends a 57-Month Prison Sentence
This week, the U.S. Department of Justice (DoJ) shared its position on the upcoming sentencing with the court. The filing notes that this isn’t the first time that the defendant has had a run-in with the law.
“The defendant has an extensive criminal record involving armed robbery, attempted robbery, theft of property, and driving with a suspended license, as well as pending gun and drug charges,” the DoJ writes.
The filing also reveals Hale’s theft of the films was deliberate and methodical, stating he would hide boxes of DVDs near a “malfunctioning emergency door,” cut the security tape, and then move them to his vehicle after hours to avoid detection.
Interestingly, the government agrees with the defense that the gun was not specifically linked to the copyright infringement. In fact, the DoJ views these as separate offenses.
“In this case, there is no indication that the defendant possessed or used a firearm to steal DVDs from his employer or commit copyright infringement,” the recommendation reads.
This is not necessarily good news for the defendant, as the DoJ further argues that both crimes should not be grouped at all, contrary to a suggestion in the pre-sentence report. Instead, the DoJ requests separate sentences for both crimes, to be served concurrently.
In this case, the government recommends a 57-month prison sentence for the firearm charge, which is at the low end of their 57- to 71-month calculation. This is higher than the 21-month prison sentence it recommends for the copyright infringement.
If the court agrees, the defendant will have to serve the longest sentence, which is related to the firearms charge.
Defense Hopes for Leniency
Earlier this month, the defense called for a lower sentence, also arguing that the gun had nothing to do with the stolen movies.
The defense’s strategy focused on lowering the sentence in other ways, concluding that 37 to 46 months would be a more suitable sentencing range.
This lower sentence would be appropriate considering that the gun was not Hale’s and “there by coincidence.” In addition, the defense argued that his previous attempted robbery conviction should not count as a “crime of violence”.
Hale’s attorney asked the court for leniency, painting a picture of a man who made a “very poor choice” after struggling against difficult circumstances his entire life. Despite growing up impoverished, he managed to get a Bachelor of Science degree in Business Management.
MPA Requests to be Heard
With both sides heard, the Tennessee federal court is expected to announce Hale’s sentence in the coming weeks. Interestingly, the MPA has asked to chime in before that happens.
The movie industry group, which represents the victims in this case, indicated that it would like to address the court at sentencing. In a declaration shared in this case, the MPA mentions that the movie studios were severely harmed by Hale’s actions.
The financial harm likely adds up to “many tens of millions of dollars,” MPA’s Larissa Knapp argued, noting that leaked copies of the Spider-Man movie were shared millions of times before the official premiere.
While the MPA focuses on the massive financial damages from the copyright crime, the judge’s final decision may ultimately hinge on a ‘coincidental’ firearm charge that both sides agree was entirely separate.
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A copy of the DoJ’s position on the (sealed) Pre-Sentence Report is available here (pdf) and the defense’s position can be found here (pdf)
From: TF, for the latest news on copyright battles, piracy and more.
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