DIRECTV, Inс. (“DTV”) appeals the district court’s grant of summary judgment on its claims for illegal interception of its satellite transmissions in violation of 47 U.S.C. § 605(a) and 18 U.S.C. § 2511(l)(a), and for modification and assembly of pirate access devices in violation of 47 U.S.C. § 605(e)(4). We affirm as to the interception claims and vacate as to the device claims. 1
I
DTV is a nationwide provider of direct-to-home satellite programming, including movie channels, sports, major cable networks, and local channels. DTV offers products on both a subscription and pay-per-view basis, and it encrypts — that is, digitally scrambles — its satellite broadcasts to guard against unauthorized access. A typical system consists of a small DTV-compatible satellite dish, a DTV receiver (also known as an “integrated receiver/decoder” or “IRD”), and a DTV access card. The dish connects to the receiver, which in turn connects to the user’s television. A DTV access card, when inserted into the receiver, allows the receiver to decrypt the various channels or services that the user has purchased. A DTV access card is a smart card, similar in size and shape to a credit card, and also contains an embedded computer and memory.
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. Such piracy can take various forms, including modifying a
Defendant Marc Robson is a self-employed computer consultant who has, in the past, taken numerous technical education classes related to computers, taught classes on how to use various software packages, and done work for IBM. DTV has presented evidence indicating that Robson possessed an emulator, which is a printed circuit board that is inserted into the receiver in place of an access card. An emulator — used in conjunction with a personal computer, special software, a smart card reader/writer, a DTV access card, and a DTV receiver — allows an individual to intercept DTV’s satellite programming without paying for it. 3
According to DTV, on February 27, 2001, Robson posted a message at an internet website that acts as a clearinghouse of information regarding, among other things, pirate access devices and the pirating of satellite transmissions. The post read: “Just got my mcl489 chip and putting together an emulator. But haven’t done anything like this before. When placing the chip into the pcb does the copper side go up or down?” The post was made under the username “dobson”— a username that had been registered utilizing the e-mail address of Robson’s wife. Robson denies having an emulator, making the web post or even visiting the website. Robson also denies that emulators are primarily used for pirate activities.
DTV first became aware of Robson following its execution of a writ of seizure at a mail shipping facility used by a device merchant named Card Unlooping. Records seized indicated that Robson purchased a PS2 Plus SU2 Unlooper (“the unlooper”), worth $249.00, on March 5, 2001. According to DTV, the unlooper can be used to alter or restore functionality to DTV access cards that have been disabled by misuse or by an ECM; 4 it acts as a smart card reader/writer, but with additional capabilities. DTV maintains that the unlooper has no commercially significant purpose other than piracy.
Robson admits to purchasing the un-looper, but claims he did so to program smart cards for security purpоses. 5 Robson invokes his position as a consultant and his desire to anticipate prospective clients’ needs to justify his interest in learning smart card technology. He maintains that he threw the unlooper away after being unable to make it work.
Before us are DTV’s claims against Robson for violations of the Communications
The district court granted summary judgment to Robson on these claims. 9 As to § 605(a) and § 2511(l)(a), the district court held that “[m]ere possessiоn of un-loopers and emulators is insufficient to raise an inference of illicit use of these devices.” 10 The district court held that § 605(e)(4) does not apply to “individual users.” 11 DTV timely appeals.
II
We review a grant of summary judgment de novo, applying the same standard as the district court. 12 “Summary judgment is proper when the pleadings and evidence demonstrate that no genuine issue of material fact exists and the movant is entitled to judgment as a matter of law.” 13 “An issue is material if its resolution could affect the outcome of the action.” 14 A dispute as to a material fact is genuine if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. 15
The district court was obligated to “consider the evidence in the light most favorable” 16 to DTV as the nonmovant, and to “indulge every reasonable inference from the faсts” in favor of DTV. 17 If a movant alleges an absence of specific facts necessary for a nonmovant to establish an essential element of its case, then the non-movant “must respond by setting forth ‘specific facts showing that there is a genuine issue for trial.’ ” 18 “After the nonmov-ant has been given an opportunity to raise a genuine factual issue, if no reasonable juror could find for the nonmovant, summary judgment will be granted.” 19
Ill
DTV challenges the district court’s grant of summary judgment on its inter
A
DTV’s interception claims implicate the criminal provisions in § 605(a) and § 2511(l)(a), in conjunction with their respective civil remedies.
Section 605(a) provides, in part, that no person receiving [or] assisting in receiving ... any interstate or foreign communication by wire or radio shall divulge or publish the ... contents ..., except [in authorized circumstances.] No person not being authorized by the sender shall intercept any radio communication and divulge or publish the ... contents ... of such intercepted communication to any person. No person not being entitled thereto shall receive or assist in receiving any interstate оr foreign communication by radio and use such communication ... for his own benefit or for the benefit of another not entitled thereto. 20
Section 605(e)(3)(A), in turn, provides a civil remedy for “[a]ny person aggrieved by any violation of [§ 605(a)] or [§ 605(e)(4)].” 21
Similarly, § 2511(l)(a) imposes criminal liability upon any person who “intentionally intercepts, endeavors to intercept, or procures any other person to intercept or endeavor to intercept, any wire, oral, or electronic communication.” 22 A civil action is provided in § 2520(a): “[A]ny person whose wire, oral, or electronic communication is intercepted, disclosed, or intentionally used in violation of this chapter may in a civil action recover from the person or entity, other than the United States, which engaged in that violation such relief as may be appropriate.” 23
To prevail on its claims for violations of § 605(a) and § 2511(1)(a), DTV must demonstrate that Robson intercepted or otherwise unlawfully appropriated DTV’s transmission. 24 DTV has not presented any direct evidence that Robson engaged in illegal interception, or that Robson even had the DTV equipment necessary for interception — specifically, a DTV access card, DTV receiver, and DTV satellite dish.
Circumstantial evidence can support a finding that a communication was intercepted, even absent direct evidence.
25
no court has expressly addressed the sufficiency of circumstantial proof required for DIRECTV to establish actual interception of its satellite signals when a defendant admits that he purchased a device to receive free DIRECTV but denies that he was [able] to use the Pirate Access Device to actually receive or intercept DIRECTV’s signal. 27
Although the defendant here never admitted to illicit intentions in purchasing the pirate access device, we echo this sentiment in the face of a similar paucity of guiding caselaw.
DTV put forth the following circumstantial evidence as bearing upon its interception claims: (1) Robson posted a message on an internet website devoted to piracy indicating that he possessed an emulator and that he needed help in assembling it; (2) roughly six days later Robson purchased an unlooper for $249.00; and (3) both of these devices — emulators and un-loopers — are designed for the purpose of pirating DTV’s satellite transmission, and neither of these devices can be used for other legitimate, commercial purposes. 28
This circumstantial evidence of interception is confined largely to demonstrating the purchase and possession of the devices at issue, rather than the use of those devices to intercept DTV’s transmissions. Even indulging all reasonable inferences, we are persuaded that the evidence here falls short of the quantum necessary on the key element of interception.
B
Along this line, we note that there is conspicuously no civil action for merely possessing or purchasing a pirate access device. Neither § 605(a) nor § 2511(1)(a)
C
The evidence here is largely confined to the possession and purchase of the pirate access devices themselves, as opposed to the use thereof to actually intercept DTV’s signals. DTV has been unable to produce evidence that defendant had the DTV equipment necessary to intercept a signal — specifically, a DTV dish, receiver and access card. This is not to suggest that there always must be direct evidence as to each and every piece of necessary equipment. After all, the components — perhaps with the exception of a dish on the outside of a house — are capable of being kept and used in stealth.
33
However, the additional
The evidence that Robson was “putting together” the emulator does not get us much further than to conclude that he eventually possessed a functional emulator. 34 It is true that the possession of two purported pirate devices (the unlooper and the emulator) strengthens the circumstantial evidence somewhat. From the timeline associated with these two devices, it would perhaps not be unreasonable to infer that the unlooper was acquired to restore functionality to a damaged access card. Even so, at root, the evidence of these two devices — as opposed to one — • gets us little closer to actual interception and is still confined largely to possession of pirate access devices.
D
Although easelaw addressing the quantum of evidence necessary to survive summary judgment on interception claims is less than robust at the circuit level,
35
our conclusion finds additional support in recent district court cases. On one hand, contrary to our holding today, some district courts have found possession of pirate devices sufficient to give rise to an inference of interception for summary judgment purposes.
36
On the other hand, we are persuaded by the many courts that have indicated explicitly or implicitly that some additional evidence beyond mere possession is necessary for the plaintiff to survive summary judgment on an intercep
For example, the court in DIRECTV, Inc. v. Barnes, in ultimately denying summary judgment, acknowledged that
it is not enough for a plaintiff merely to show that a defendant possessed equipment capable of intercepting a communication in order to show that the defendant actually received or intercepted the plaintiffs communication. Rather, the plaintiff must produce circumstantial evidence sufficient to support the conclusion that there was an actual interception. 38
In Barnes the court was faced with evidence not only that the defendant purchased and possessed a pirate access device (an unlooper), but that he was a DTV subscriber who possessed all the necessary DTV equipment; admitted that he purchased the device “for the purpose оf attempting to obtain free DIRECTV programming and that he actually attempted to use the device”; and had a suspicious subscriber history' — a record of “frequent suspending and reactivating of his DIRECTV services[, which] is consistent with unauthorized interception of DIRECTV’s satellite signals.” 39 The present case is devoid of such additional evidence.
In DIRECTV, Inc. v. Morris, 40 the court granted summary judgment to a defendant who had purchased a smart card reader/writer and later an unlooper, despite the defendant’s having been a DTV subscriber and thus, presumably, possessed of the necessary equipment for interception. 41 The defendant attempted to modify his access card with the smart card reader/writer; apparently “messed up his system”; sought advice from a “pirate” website; and, on that advice, purchased an unlooper to fix the card. Nonetheless, the court granted summary judgment to the defendant on the § 605(a) and § 2511 claims, holding no actual interception could be shown: “There is no evidence that Morris ever intercepted any satellite transmissions. The fact that he had the opportunity is wholly deficient to sustain an award for statutory damages.” 42
Whether or not the cases cited above strike precisely the correct pose in assessing the necessary quantum of evidence in addition to purchase and possession, we are persuaded that the present case falls short. Where, as here, the evidence demonstrates little more than mere purchase and possession of the two pirate access dеvices — -particularly where there is no evidence as to other DTV components required for interception' — such evidence is insufficient to withstand summary judgment on DTV’s claims of actual interception.
rv
DTV also argues that summary judgment should not have been granted as to its claims under § 605(e)(4), per the corresponding civil action provided for in
A
Section 605(e)(4) reads:
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 direet-to-home satеllite services, or is intended for any other activity prohibited by [§ 605(a)], shall be [criminally liable]. 43
In its brief on appeal, DTV describes its claim for violation of this provision as follows:
DIRECTV alleges that Robson violated 47 U.S.C. § 605(e)(4) by assembling a device called an “emulator” which, when used in conjunction with a computer and certain software, will allow an individual to decrypt DIRECTV’S satellite transmissions and receive DIRECTV programming without paying for it. DIRECTV also alleges that Robson violated 47 U.S.C. § 605(e)(4) by using a different device called an “unlooper” to modify a DIRECTV access card to enable it to illegally decrypt DIRECTV’s satellite transmissions.
With respect to this claim, the district court held that Robson’s “assembly of the emulator is not actionable under § 605(e)(4)” because “[§] 605(e)(4) is a provision relating to manufacturers and sellers, rather than to individual users as Defendant is alleged to be.” 44
B
We are persuaded that the district court erred by categorically removing all “individual users” from the reach of § 605(e)(4). A number of courts have adopted a similar construction, holding that § 605(e)(4) exempts individual users— that is, the provision “targets upstream manufacturers and distributors, not the ultimate consumer of pirating devices.”
45
We reject this view. Nothing on the face of § 605(e)(4) suggests such a limitation. Indeed, it provides that
“[a]ny
person” who engages in the prohibited activities is
While the statute is clear on its face, it bears mention that prior to 1988 the provision read:
The importation, manufacture, sale, or distribution of equipment by any person with the intent of its use to assist in any activity prohibited by subsection (a) shall be subject to penalties and remedies under this subsection to the same extent and in the same manner as a person who has engaged in such prohibited activity. 48
Among other changes, the 1988 amendments to this section introduced three new terms: “assembles,” “modifies,” and “exports.” 49 The district court’s reading effectively nullifies these additions and, indeed, all of the terms listed in § 605(e)(4) other than “manufactures” and “sells.”
The district court’s reliance on a footnote from the Second Circuit’s decision in Community Television Systems, Inc. v. Caruso is misplaced. 50 Caruso is focused on determining how to assess the number of § 605(a) violations and only mentions § 605(e)(4) in passing as an example of a provision that bases the number of violations on the number of devices. 51 Caruso notes that § 605(e)(4) is “the provision relating to manufacturers and sellers, rather than users, of cable descramblers, which states that ‘each such device shall be deemed a separate violation.’ ” 52 At best, this comment is dictum. In any case, it appears that the Second Circuit is speaking in brоad strokes in this footnote and a sensible reading of the court’s comment is simply that § 605(e)(4) does not apply to mere users — i.e. tautologically anyone who does not perform one of the activities mentioned: manufacturing, assembly, modification, etc. There is no indication in the context of Caruso that the court intended by its remarks to limit the clear reach of § 605(e)(4) or to introduce a distinction not found in the statute.
In short, we hold that § 605(e)(4) prohibits each of the activities listed therein, and provides no exception for “individual users.”
C
Robson did not defend the district court’s ruling with regard to “individual users.” Instead, Robson asserts on appeal that, in order to demonstrate that DTV is a “person aggrieved” who can bring a device claim for violation оf § 605(e)(4), DTV “must demonstrate actual interception.”
Plainly, nothing on the face of § 605(e)(4) indicates that interception is a required element for a violation. Further, no interception is required for DTV to qualify as a “person aggrieved” under the terms of § 605(e)(3)(A). 56 Robson’s argument to the contrary essentially amounts to an assertion that § 605(d)(6) is an exhaustive list of those who fit within the scope of “any person aggrieved.” We rejected such a contention today in a related case and need not retrace the samе path here. 57
Having rejected both the district court’s stated reasons for granting summary judgment on DTV’s § 605(e)(4) claim and Robson’s proffered alternate grounds, we decline to go further. That is, we offer no opinion at this time on whether Robson’s alleged actions in inserting a chip into an emulator qualify as “assembly]” 58 or whether the alleged use of an unlooper to alter a DTV access card qualifies as “modi-fi[cation]” 59 within the meaning of § 605(e)(4). We leave that to the district court to consider again in the first instance.
V
To summarize, the inferences from the facts in this case cannot stretch to “interception,” per § 605(a) and § 2511(l)(a);
AFFIRMED IN PART, VACATED IN PART, and REMANDED; SANCTIONS DENIED.
Notes
. We heard oral argument in this case on May 11, 2005, with two related cases, which are also issued today.
See DIRECTV, Inc. v. Budden,
No. 04-20751,
.
See DIRECTV, Inc. v. Nicholas,
. The computer, running the special "pirate” software, is conneсted via two separate cables to the emulator (which is inserted into the receiver) and to the reader/writer (into which the access card is inserted). With this system, the emulator is able to mimic the behavior of an access card unlocking the full range of DTV programming.
. In order to combat the proliferation of illegally modified access cards, DTV periodically sends out electronic countermeasures (“ECMs”) embedded within its satellite transmissions. ECMs detect and disable modified access cards, sending them into an infinite "loop.”
See Minor,
No. 04-50793,
.Robson has presented evidence, including "whitepapers,” suggesting that the unlooper he purchased is merely one of the many smart card reader/writers that have legitimate uses. DTV counters that the unlooper in question is not a run-of-the-mill smart card reader/writer, but rather has additional functionality — voltage and clock manipulation, or "glitching”— with the "sole function” being "to program and manipulate DIRECTV access cards.” DTV maintains that the "SU2” designation in the unlooper's name is an indication that the unlooper has such additional capabilities.
. 48 Stat. 1064, as amended (codified in relevant part at § 605).
. Pub.L. No. 90-351, tit. Ill, § 802, 82 Stat. 211, 212-23, as amended (codified at 18 U.S.C. §§ 2510-2522).
. DTV voluntarily dismissed its claims for violation of 18 U.S.C. § 2512 and state civil conversion law.
.
See DIRECTV, Inc. v. Robson,
. Id. at 594.
. Id. at 595.
.
See Boudreaux v. Swift Transp. Co., Inc.,
.
Pluet v. Frasier,
.
Weeks Marine, Inc. v. Fireman’s Fund Ins. Co.,
.
See Anderson,
.
Caboni,
. Newport Ltd. v. Sears, Roebuck & Co., 6 F.3d 1058, 1064 (5th Cir.1993).
.
Slaughter v. S. Talc Co.,
.
Caboni,
. 47 U.S.C. § 605(a) (emphasis added).
. 47 U.S.C. § 605(e)(3)(A).
. 18 U.S.C. § 2511(1)(a).
. 18 U.S.C. § 2520(a).
.
See, e.g., Forsyth,
.See, e.g., Walker v. Darby,
.For example, in
Thomas v. Great Atlantic & Pacific Tea Co.,
In
Slaughter v. Southern Talc Co.,
.
Barnes,
. DTV also calls into question Robson's credibility.
. Section 605(e)(4), addressed infra, also does not address possession and purchase.
. 18 U.S.C. § 2512(l)(b).
.
See
18 U.S.C. § 2520(a) (providing civil action for person whose "electronic communication is intercepted, disclosed, or intentionally used in violation of this chapter”);
DIRECTV, Inc. v. Treworgy,
.
See, e.g., Treworgy,
.
Cf. United States v. Harrell,
. Of course, such evidence might have a significant impact on DTV's claim for violation of § 605(e)(4), discussed further below.
. DTV points us to our decision in
United States v. Harrell,
.
See, e.g., DIRECTV, Inc. v. Weikel,
No. Civ. 03-5300(JBS),
.
See, e.g., DIRECTV, Inc. v. Tadlock,
No. Civ.A. 03-1456,
.
.
Id.
at 784. The same district court judge as in
Bamesissued
a number of opinions along similar lines on the same day — in each case denying defendants' summary judgment motions on § 605(a) and § 2511 claims, but placing significant weight on the defendants' possession of all necessary equipment for interception, as well as other evidence in excess of mere possession and purchase of the pirate access devices themselves.
See DIRECTV, Inc. v. Gilliam,
.
. See id. at 969-73.
.Id. at 972 (emphasis added).
. 47 U.S.C. § 605(e)(4) (emphasis added).
.
Robson,
.
Albright, No. Civ.A. 03-4603, 2003
WL 22956416, at *2;
see, e.g., DIRECTV, Inc. v. Oliver,
No. 04-3454 SBA,
. 47 U.S.C. § 605(e)(4) (emphasis added).
.
Harrell,
. 47 U.S.C. § 605(d)(4) (1988) (current version at § 605(e)(4)); see Cable Communications Policy Act of 1984, Pub.L. No. 98-549, § 5(a), 98 Stat. 2779, 2803.
. See Satellite Home Viewer Act of 1988, Pub.L. No. 100-667, tit. II, § 205, 102 Stat. 3949, 3959-60.
.
See
. See id. at 435 & n. 6.
. Id. at 435 n. 6 (quoting 47 U.S.C. § 605(e)(4)).
. 47 U.S.C. § 605(d)(6) provides:
[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.
. We are pointed to no place in the record where it was raised; only by stretching the language in Robson's summary judgment motion can such an argument be found.
Cf. Robson,
.
See Holtzclaw v. DSC Communications Corp.,
. See 47 U.S.C. § 605(e)(3)(A) ("Any person aggrieved by any violation of [§ 605(a)] or [§ 605(e)(4)] may bring a civil action in a United States district court or in any other court of competent jurisdiction.").
.
See Budden,
No. 04 — 20751,
.
See Robson,
.
Cf. MCI Telecomms. Corp. v. Am. Tel. & Tel. Co.,
. Robson’s request for sanctions for a frivolous appeal is denied. We further note that Robson’s narrative of facts in his brief on appeal arrives unadorned with citations to the record, contrary to Fed. R.App. P. 28(a)(7).
