Communications

• Author: International Law Group

The only shareholder and officer of Tech Electronics and Electronics Plus is Dawn Branton, a Lindsay, Ontario businesswoman.

Her businesses sell television satellite systems able to pick up programming signals directly from a satellite transmitter and other electronic goods. This direct-to-home (DTH) satellite reception entails a small satellite dish and a decoder box. Canadian owners regularly use the DTH systems to enjoy a wide range of televised programming signals, most of which come from the United States.

The Canadian Radio and Television Commission (CRT) licenses two providers in Canada to market DTH encrypted satellite programming signals. Subscribers buy the satellite dish, a receiving box, and a decoding card to access the signals. The DTH providers activate the access card for a monthly or annual fee. DTH providers in the U.S. sell the same type of systems, using access cards limited to subscribers who have U.S. addresses. U.S. providers do not have Canadian licenses to market their signals to individuals or businesses in Canada.

Thus, Canadian subscribers who wish access to U.S. DTH signals must somehow come up with a U.S. address. Ms. Branton and her companies (and other Canadian merchants) openly sold DTH systems with cards able to decode U.S. signals. They also enabled their Canadian buyers to receive the U.S. DTH services by setting up an address in the U.S. to which Canadian subscribers could sent the monthly payments.

On November 8, 1999, the Royal Canadian Mounted Police (RCMP) got three search warrants authorized by a judicial officer. The next day, the RCMP executed them at the two business premises of Tech Electronics and at one of Electronics Plus. They seized 320 complete satellites systems, 286 receivers and 96 satellite dishes along with documents, files, computers and other matters unrelated to the nature of the charges.

On November 12, the authorities charged defendants with violating Sections 9 and 10(1)(b) of the Radio communication Act of 1985 (RCA). Section 9(1) provides that no person shall, "decode an encrypted subscription programming signal or encrypted network feed otherwise than under and in accordance with an authorization from the lawful distributor of the signal or feed." Section 10(1)(b) punishes individual violators of Section 9 with a maximum fine of $5,000 and/or a term of imprisonment for not more than one year. Corporate law breakers are liable to a fine not to exceed $25,000.

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