Three years ago, pirated Blu-ray copies of “Spider-Man: No Way Home” began circulating on pirate sites, weeks before their official release.
Such high-profile leaks are rare, and the source of the breach remained unknown until earlier this year.
In February, the U.S. Department of Justice indicted 37-year-old Steven Hale from Tennessee, a former employee of a disc manufacturing and distribution company in Memphis. While working at the unnamed company between 2021 and 2022, Hale allegedly stole numerous “pre-release” DVD and Blu-ray discs from his employer.
These stolen discs contained many high-profile movie titles including “Spider-Man: No Way Home”.
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.
57 Month Prison Sentence
Hale was sentenced at a federal court in Memphis yesterday, where Chief Judge Sheryl H. Lipman handed down a 57-month prison term, exactly in line with the U.S. government’s recommendation.
Two separate sentences will be served concurrently. Hale received 21 months for the theft and distribution of hundreds of pre-release movie discs. A longer sentence of 57 months was handed down for the firearm charge, which ultimately defines the total prison term.
Judge Lipman also granted several requests by the defense. The court recommended that Hale be housed in a facility as close to Memphis as possible so he can be near his family. In addition, the defendant will be allowed to remain on bond and self-surrender to prison at a later date.
Hale Pleaded Guilty
The 21-month sentence for the copyright infringement charge is substantially lower than the maximum of 60 months. This is in part the result of a guilty plea the defendant signed in May. After accepting responsibility, the prosecution agreed to drop other charges and recommend a sentence at the low end of the guideline range.
Hale entered his guilty plea to Count Two of the indictment. The charge relates to his distribution of ten or more copies of copyrighted works, including pre-release movies, for commercial advantage and private financial gain. This includes the pre-release ‘Spider-Man: No Way Home’ disc, which is likely the source of the public leak.
The other films covered by this count are ‘Jungle Cruise,’ ‘Venom: Let There Be Carnage,’ ‘Encanto,’ ‘Eternals,’ ‘The King’s Man,’ ‘Shang-Chi and the Legend of the Ten Rings,’ ‘Resident Evil: Welcome to Raccoon City,’ ‘Marry Me,’ ‘Sing 2,’ and ‘The Matrix Resurrections.’
EVO
The “Spider-Man: No Way Home” leak is extra noteworthy, as it was one of the last films released online by the notorious piracy group EVO. This group was dismantled by the Portuguese authorities in late 2022, leading to multiple arrests.
There is no indication that Hale was in direct contact with EVO but, in the sentencing recommendation, the prosecution explicitly linked the Blu-ray theft to the copies that were leaked on pirate sites.
“At least one of the DVDs—that of ‘Spider Man: No Way Home,’ one of the most popular movies of all time—was ‘ripped’ and distributed tens of millions of times over the internet through pirate sites, causing the copyright owner tens of millions of dollars in damages,” the prosecution wrote.
The timing of the events also suggests that the leaked pirated copies may be linked to the stolen discs.
The EVO release of ‘Spider Man: No Way Home’ leaked online in early March 2022. A few days later, on or around March 14, the authorities searched Hale’s house and seized hundreds of pre-release discs that were still in his possession. The EVO group was eventually busted at the end of 2022.
From: TF, for the latest news on copyright battles, piracy and more.
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