Buyer Beware: Industry Canada Cautions Canadians Against Buying Illegal Satellite Systems

OTTAWA, December 17, 2002 — During the holiday season, Industry Canada wants to remind Canadian consumers who are considering the purchase of direct-to-home (DTH) satellite systems to exercise caution and to ensure they are purchasing legal equipment.

The Supreme Court of Canada's April 26, 2002 ruling made clear that the unauthorized decoding of encrypted signals from either domestic or foreign providers is against the law. Since then, the Royal Canadian Mounted Police have seized equipment used for this purpose and laid charges against its dealers across Canada.

As more enforcement actions take place, more and more pirate dealers will be shut down, leaving consumers with useless equipment.

There are only two service providers in Canada licenced to provide encrypted subscription DTH services: Star Choice and ExpressVu. Consumers who buy illegal or "pirate" DTH satellite systems are at risk of losing their investment, as legitimate DTH providers often scramble their signals in order to protect them from unauthorized decoding.

Furthermore, some devices being sold to decode signals illegally can cause interference to radio frequencies used by public safety and search and rescue emergency communication systems.

Canadians interested in gaining further information on consumer, legal and policy information on direct-to-home satellite issues can do so by visiting Industry Canada's Strategis Web site at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf05562.html

To help Canadians avoid purchasing illegal DTH equipment, Industry Canada has prepared the attached checklist to inform consumers when making purchasing decisions.

For more information, please contact:

Media Relations
Industry Canada
613-943-2502

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Backgrounder
Legally Decoding Direct-to-Home Satellite Signals

An April 26, 2002 Supreme Court of Canada decision in the case of Bell ExpressVu v. Richard Rex, confirmed that the Radiocommunication Act forbids the decoding of encrypted subscription satellite television programming unless authorized by a lawful Canadian service provider.

Since then, law enforcement agencies have been seizing illegal equipment and laying charges. As a result, consumers who bought illegal equipment may find themselves with a useless investment.

Outlined below are some useful tips which can help consumers avoid being victimized by direct to home (DTH) satellite system pirates.

Consumer Tips

How can a consumer be victimized by pirate DTH systems?

• Pirate dealers provide consumers with hacking devices and software to illegally bypass the security system of DTH signals. Satellite service providers often send signals to disable such devices, leaving the consumer without any service.
• Some signal-hacking devices are likely to cause interference to police or aircraft communication services. These can be easily tracked down by interference investigators, who will then apply legal measures necessary to ensure that the device is no longer used.
• Consumers who happen to use the services of an American provider by registering a false permanent American address could lose their service at any time. American service providers have said they will not knowingly provide services to Canadian residents.
• Satellite service providers are planning to upgrade their technology with new security measures that have not been hacked. Such systems could be implemented at any time in the future making existing illegal systems useless.

As a buyer, how do I know when a system is legal or illegal?

• There are only two licensed DTH service providers in Canada that provide encrypted subscription DTH services: Star Choice and ExpressVu.
• Only paying subscribers to one of those licensed providers are entitled to decode their signals.
• A receiver labeled "DirecTV," "Echostar" or "Dish Network" is illegal in Canada, and serviced by an American provider who will not knowingly provide service in Canada.

What to check for when making a purchase

• Is the service provider Canadian? A receiver is from an American-based DTH service is illegal to use in Canada; only Canadian companies are licensed to provide DTH service in Canada.
• Are a registration fee and a monthly fee required? A licensed company will charge both.
• Did the service provider give you a credit card-sized circuit board device, or "smart card" to plug into a slot in the DTH receiver? Make sure to ask the retailer what service can be received with the card. If the answer is anything but Bell ExpressVu or Star Choice, there is a danger that the card is an illegal hacking device. Some of these devices can cause interference to emergency communications systems and therefore put local public safety at risk.

Where to get more information

• For further information concerning direct-to-home satellite services in Canada, please refer to the Industry Canada Strategis web site at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf05562.html.
• Information on the potential public safety hazards caused by some DTH pirate devices may be found at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf05659.html.
• Specific questions can be sent to Industry Canada by e-mail using the Strategis on-line form, or by contacting the Industry Canada Help Desk at 1-800-328-6189 (Canada) or 613-954-5031.