{"id":86089,"date":"2025-11-14T09:00:46","date_gmt":"2025-11-14T09:00:46","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=86089"},"modified":"2025-11-14T09:00:46","modified_gmt":"2025-11-14T09:00:46","slug":"dish-wins-42m-default-judgment-against-dmca-ignored-host-virtual-systems","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=86089","title":{"rendered":"DISH Wins $42M Default Judgment Against \u201cDMCA-Ignored\u201d Host Virtual Systems"},"content":{"rendered":"

\"dmca-ignored-s\"<\/a>When a US-based web host receives a credible DMCA takedown notice, it\u2019s often a sign that action is required to resolve the complaint. That usually means taking down allegedly infringing content uploaded by a third party.<\/p>\n

Having met its obligations under the DMCA, compliance typically means that the host avoids liability for third-party infringement. Some overseas hosts operate somewhat differently, however, embracing non-compliance as a beneficial service feature.<\/p>\n

DISH Network vs. Virtual Systems, LLC<\/h2>\n

In the world of \u2018offshore\u2019 and \u2018bulletproof\u2019 hosting, DMCA non-compliance typically comes as standard. Ukraine-based Virtual Systems, LLC (also known as VSYS Host) advertises itself as a \u2018DMCA-ignored\u2019 host, meaning that when DMCA notices instruct the company to take content down, no action is taken.<\/p>\n

In October 2024, a lawsuit<\/a> filed at a Seattle district court accused Virtual Systems, LLC, and its alleged owner and CEO, Vyacheslav Smyrnov, of doing just that. <\/p>\n

Filed by broadcaster DISH Network and supported by the International Broadcaster Coalition Against Piracy (IBCAP), the complaint alleged that pirate IPTV services used Virtual Systems\u2019 servers to illegally \u2018transmit\u2019 linear streams and VOD content, to which DISH owns the rights.<\/p>\n

\u201cUsers accessed the Works through a set-top box (STB) or a website that links to the Works or provides a playlist used to access the Works. Users often had to purchase a subscription to view the Pirate Services\u2019 content, in addition to purchasing any required STB. DISH did not authorize the Pirate Services to distribute or publicly perform the Works and received no compensation from them,\u201d the complaint alleged.<\/p>\n

DMCA Takedown Notices Universally Ignored<\/h2>\n

At least in part, the lawsuit targeted unfinished business. Three of the IPTV providers hosted by Virtual Systems were on the losing end of previous legal action in the United States. They were restrained from further infringement under a permanent injunction with the same applying to Virtual Systems. DMCA non-compliance was an additional aggravating factor.<\/p>\n

\u201cVirtual Systems and Smyrnov, collectively, were the recipients of at least 512 Infringement Notices. Virtual Systems did not respond to the Infringement Notices and did not take any measures to stop the Pirate Services\u2019 infringement occurring on its servers and network. The Pirate Services kept infringing DISH\u2019s copyrights in Works aired on the Channels, even using the same IP addresses and URLs previously reported to Virtual Systems,\u201d the complaint continued.<\/p>\n

In May 2025, a DISH status report<\/small>[1]<\/a><\/small> running to 370-pages described work to comply with the requirements of Ukraine, with Smyrnov reportedly served under the Hague Convention. Local issues included what appeared to be an attempt by Smyrnov to file a pro se answer to the DISH complaint. But with no signature and other critical shortcomings, the complaint officially went unanswered.<\/p>\n

$41.8m Judgment in Favor of the Plaintiff<\/h2>\n

A default judgment was perhaps the most likely outcome from the beginning and with no direct contact and no answer on file, a win by default seemed all but inevitable. <\/p>\n

An order issued this week dated November 12 notes Virtual Systems\u2019 policy on DMCA compliance, which seems to strongly favor the customer, including those with \u201coccasional\u201d copyright issues.<\/p>\n<\/p>\n

\"virtual-policy\"<\/center><\/p>\n

The court also restated the three willful secondary copyright infringement claims in the original DISH complaint, the company\u2019s request for damages, plus a permanent injunction.<\/p>\n

\n

Count I \u2013 Materially Contributing to Copyright Infringement;
\nCount II \u2013 Inducing Copyright Infringement; and
\nCount III \u2013 Vicarious Copyright Infringement. <\/em><\/p>\n

Damages up to $150,000 for each registered work infringed.<\/p>\n<\/blockquote>\n

Finding no obstacle to granting a default judgment, the court considered DISH\u2019s request for maximum damages of $150,000 for willful infringement of each of the 279 copyrighted works listed in the complaint. <\/p>\n

A Reasonable Request for a Significant Sum of Money<\/h2>\n

Noting that a judgment of $41,850,000 is expressly authorized by the Copyright Act, the court nevertheless described the eight-figure claim as \u201ca significant sum of money.\u201d <\/p>\n

After weighing various factors, including DISH\u2019s withdrawal of claims for profits attributable to the infringement, plus attorneys\u2019 fees and costs, overall DISH claimed for less than it was entitled. As a result, a judgment of $41,850,000 was viewed as reasonable.<\/p>\n

DISH was also granted a permanent injunction, which includes \u201ca prohibition on providing any servers or network used in streaming or transmitting the material and requires termination of any current or future accounts of customers that stream or transmit the material.\u201d<\/p>\n<\/p>\n

\"judgment-dish\"<\/center><\/p>\n

Chris Kuelling, executive director of IBCAP, welcomes the judgment and notes that failing to comply with takedown notices can prove expensive, including on a personal level.<\/p>\n

\u201cThis ruling against Virtual Systems and its owner is another example of the consequences for hosting providers that choose to ignore takedown notices from IBCAP,\u201d Kuelling says.<\/p>\n

\u201cIBCAP does not tolerate hosting providers and content delivery networks that disregard the law and fail to comply with our takedown notices. The result of such noncompliance is not only a permanent injunction, but also significant monetary damages, in this case more than $41 million, personally owed by the owner, Mr. Smyrnov.\u201d<\/p>\n

In comments to TorrentFreak, Kuelling says that the Ukrainian courts \u201cseem to be in session and working despite the war\u201d so IBCAP are ready for the next stage.<\/p>\n

\u201cWith this order now in hand the attorneys will turn their efforts to collection and enforcement of the injunction,\u201d he concludes.<\/p>\n

The order granting default judgment is available here<\/a> (pdf)<\/em><\/p>\n

From: TF<\/a>, for the latest news on copyright battles, piracy and more.<\/p>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

When a US-based web host receives a credible DMCA takedown notice, it\u2019s often a sign that action is required to resolve the complaint. That usually means taking down allegedly infringing content uploaded by a third party. Having met its obligations under the DMCA, compliance typically means that the host avoids liability for third-party infringement. Some […]<\/p>\n","protected":false},"author":2,"featured_media":86090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[308],"tags":[],"class_list":["post-86089","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-torrent"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/86089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=86089"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/86089\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/86090"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=86089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=86089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=86089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}