Directv Inc v. BuddenDirectv Inc v. Budden
I
Numerous “pirate access devices”2 have been developed to circumvent the necessity of a valid access card, thereby allowing users to illegally decrypt the DTV satellite signal and thus obtain DTV programming without purchasing it. Suсh piracy can take various forms, including modifying a valid access card or using a device to take the place of a valid access card.
In order to combat the proliferation of illegally modified
The late Hayden Black, a long-time acquaintance of Budden, asked Budden to help him purchase several bootloader devices from Mountain Electronics, an internet retailer. Budden agreed. Black directed Budden to the Mountain Electronics website and told him how to order the devices. Black gave Budden cash to pay for the order and asked Budden to have the devices shipped to Budden‘s address rather than to Black‘s home. Budden, using the alias Jeff Brown, placed the order on August 4, 2001. The shipment arrived COD. Budden paid for it with a money order--purchased with cash
Over the course of the next several months, the process was repeated, as Black requested Budden‘s assistance in placing several additional orders. As to these subsequent orders, however, Budden insisted that Black himself obtain the money order. Between August 2001 and November 2001 Budden placed five orders with Mountain Electronics for a total of 115 bootloaders. Eventually, Budden became uncomfortable with the situation and told Black that he did not wish to place аny additional orders. According to Budden, at the time of these events he had no knowledge of the nature of bootloaders; he did not read any description of a bootloader on the Mountain Electronics website and was concerned only with placing the orders; and Black had only indicated to him that the devices were “parts for satellites.”
DTV brought several claims against Budden for piracy, only one of which is directly at issue here: a claim for violation of
II
A
We first examine our jurisdiction. DTV argues that, because the district court only disposed of DTV‘s
It is true that the district court only explicitly addressed the
However, these facts fall by the wayside where all of the remaining claims have already been abandoned and the district court intended to dispose of all claims before it.8 In determining finality, we have “advocated a practical interpretation that looked to the intention of the district court” and held that “if the judgment reflects an intent to dispose of all issues before the distriсt court, we will characterize that judgment as final.”9 In National Association of Government Employees v. City Public Service Board we found that, to the extent the district court had not explicitly addressed certain claims, those claims had been abandoned.10 Specifically, “[i]n disposing of all Plaintiffs’ other claims, therefore, the district court undoubtedly believed that it was disposing of the entire case before it,” and it was “clear that no one associated with this case believed there to be a live
There are several indications here that DTV had abandoned all claims except for the
In sum, it is clear that DTV abandoned all other claims, that the district court treated the
B
Budden argues that DTV lacks standing because it is not a “person aggrieved” for purposes of bringing a
Section 605(e)(4) provides in relevant part:
Any person who manufactures, assembles, modifies, imports, exports, sells, or distributes any electronic, mechanical, or
other device or equipment, knowing or having reason to know that the device or equipment is primarily of assistance in the unauthorized decryption of satellite cable programming, or direct-to-home satellite services, or is intended for any other activity prohibited by [ § 605(a) ] shall be fined not more than $500,000 for each violation, or imprisoned for not more than 5 years for each violation, or both.16
A civil action for violation of this section arises under
[T]he term “any person aggrieved” shall include any person with proprietary rights in the intercepted communication by wire or radio, including wholesale or retail distributors of satellite cable programming, and, in the case of a violation of [
§ 605(e)(4) ], shall also include any person engaged in the lawful manufacture, distribution, or sale of equipment necessary to authorize or receive satellite cable programming.19
Budden contends that
First, in the past, we have held that “[t]he word ‘includes’
Second, this interpretation fits with common dictionary definitions and examples. One version defines “include” as meaning “[t]o have as a part or mеmber; be made up of, at least in part; contain” or “[t]o contain as a minor or secondary element.”23 That dictionary provides a telling contrast between “include” and “comprise“:
Include and comprise both take as their objects things or persons that are constituent parts. Comprise usually implies that all of the components are stated: The track meet comprises 15 events . . . . Include can be so used, but . . . more often implies an incomplete listing: The meet includes among its high points a return match between leading sprinters.24
A similar example in another diсtionary indicates the non-exclusive nature of “include,” as in the phrase “included a sum for tips in his estimate of expenses.”25
In sum,
III
A
We review a grant of summary judgment de novo, applying the same standard as the district court.33 “Summary judgment is proper when the pleadings and evidence demonstrate that no genuine issue
B
Budden argues that the affidavit of James Whalen was not competent summary judgment evidence.38 According to his affidavit, Whalen, a Senior Director for DTV‘s Office of Signal Integrity, is “familiar with the usual and customary business practices involved in all aspects of DIRECTV‘s investigаtions of individuals and businesses suspected of illegally obtaining access to DIRECTV programming.” He describes how, on December 11, 2001, and April 18, 2002, law enforcement officials, with the assistance of DTV
Budden attacks Whalen‘s statement by pointing out that, while it is a sworn affidavit, it does not state that his testimony is based on personal knowledge, nor does it aver that the statements therein are true and correct. These arguments are unavailing.
1
First, it is true that Rule 56 rеquires that summary judgment affidavits be based on personal knowledge: “Supporting and opposing affidavits shall be made on personal knowledge, shall set forth such facts as would be admissible in evidence, and shall show affirmatively that the affiant is competent to testify to the matters stated therein.”39 Nonetheless, while an affidavit certainly can explicitly state that it is based on “personal
Here, it is reasonably within Whalen‘s position--what one court has called his “sphere of responsibility“--as a Senior Director of Signal Integrity for DTV to be familiar with the Mountain Electronics investigation as described in his affidavit.44 We decline to find Whalen‘s affidavit deficient for lack of personal knowledge, as it is reasonably inferred.
2
Second, there is no requirement that sworn affidavits have a statement that the contents are “true and correct.” That incantation is required for unsworn declarations. When confronted with an unsworn declaration, we have held that because the “affidavit is neither sworn nor its contents stated to be true and correct nor stated under penalty of perjury,” it was not proper summary judgment evidence.45 We explained:
It is a settled rule in this circuit that an unsworn affidavit is incompetent to raise a fact issue рrecluding summary judgment. A statutory exception to this rule exists under
28 U.S.C. § 1746 , which permits unsworn declarations to substitute for an affiant‘s oath if the statement contained therein is made “under penalty of perjury” and verifiedas “true and correct.”46
Here, the lack of a recitation that the statement is “true and correct” poses no barrier for the Whalen affidavit. Budden‘s attack on the affidavit is without merit.
C
According to Budden, a reasonable finder of fact could conclude that DTV‘s evidence did not show that Budden distributed the bootloaders “knowing or having reason to know” the illicit nаture thereof, in violation of
While Budden contests whether he knew or had reason to know, he does not contest the actual nature of the bootloaders. On this latter point, the affidavits on behalf of DTV provide the only evidence, indicating that bootloaders are primarily used for piracy.47 In other words, while Budden‘s knowledge of bootloaders is contested, Budden does not dispute that bootloaders are devices that are “primarily of assistance in the unauthorized decryption of satellite cable programming, or dirеct-to-home satellite
As to the knowledge requirement, Budden denies knowing the nature of the bootloaders prior to this suit. According to Budden, he did not read a description of the devices on the Mountain Electronics website, and his friend Black kept him in the dark.
Budden‘s attempt to create a fact issue as to his knowledge by relying on a conclusory and self-serving affidavit is on unsteady ground.49 However, even crediting Budden‘s testimony, as did the district court below, summary judgment in favor of DTV was still proper because a reasonable person had reason to know in the circumstances of this case that the bootloaders being purchased are devices primarily for piracy. That is,
Budden admitted that Black asked him to order a number of bootloader devices from the website of Mountain Electronics, and that Budden did so. DTV has also presented uncontroverted evidence that Mountain Electronics markets the bootloaders as pirate access devices. In total, Budden ordered (over the course of five
The fact that Budden used an alias in placing the orders and eventually, after placing and distributing five orders of bootloaders, refused to place any more only strengthens our conclusion thаt he had reason to know the nature of the devices. In the present case, given the volume of devices ordered by Budden and the number of orders placed--even though relatively little time was expended--in combination with the other evidence mentioned, we are persuaded that a rational trier of fact could not find for Budden. Accordingly, the district court did not err in granting
IV
To summarize, we have jurisdiction to consider this appeal; DTV has standing as a “person aggrieved” to bring a claim for violation of
AFFIRMED.
Notes
When more than one claim for relief is presented in an action . . . the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reаson for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.
A bootloader is solely designed for the purpose of circumventing DIRECTV‘s conditional access system, and thus is only of assistance in the unauthorized decryption of DIRECTV‘s satellite transmissions of television programming. A bootloader has no purpose or use other than to modify the behaviors of P2/H aсcess cards that were previously modified and subsequently disabled by the Black Sunday ECM. Bootloaders thereby circumvent DIRECTV‘s conditional access system.