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Feds reduced maximum infringement amount from "tens of millions" to $40,000.
Spider-Man attends a screening of "Spider-Man: No Way Home." Credit: Dave Benett / Contributor | Dave Benett Collection
An accused movie pirate who stole more than 1,000 Blu-ray discs and DVDs while working for a DVD manufacturing company struck a plea deal this week to lower his sentence after the FBI claimed the man's piracy cost movie studios millions.
Steven Hale no longer works for the DVD company. He was arrested in March, accused of "bypassing encryption that prevents unauthorized copying" and ripping pre-release copies of movies he could only access because his former employer was used by major movie studios. As alleged by the feds, his game was beating studios to releases to achieve the greatest possible financial gains from online leaks.
Among the popular movies that Hale is believed to have leaked between 2021 and 2022 was Spider-Man: No Way Home, which the FBI alleged was copied "tens of millions of times" at an estimated loss of "tens of millions of dollars" for just one studio on one movie. Other movies Hale ripped included animated hits like Encanto and Sing 2, as well as anticipated sequels like The Matrix: Resurrections and Venom: Let There Be Carnage.
The cops first caught wind of Hale's scheme in March 2022. They seized about 1,160 Blu-rays and DVDs in what TorrentFreak noted were the days just "after the Spider-Man movie leaked online." It's unclear why it took close to three years before Hale's arrest, but TorrentFreak suggested that Hale's case is perhaps part of a bigger investigation into the Spider-Man leaks.
TorrentFreak also noted that the plea deal doesn't just push for a lower sentence—recommending a "maximum reduction" while crediting Hale for "taking responsibility"—it also drastically cut down the estimated losses to studios. The court has yet to finalize damages, but the US Department of Justice estimated that the total "infringement amount" is no more than $40,000.
Under the plea deal, the DOJ agreed to drop one count of copyright infringement and another count of interstate transportation of stolen goods. But Hale remains on the hook for the other copyright infringement charge.
For stealing and distributing the discs, he faces a maximum five-year prison sentence and a $250,000 fine, plus three years of supervised release. He will also have to pay restitution to any victims who can show they suffered losses because of his leaks.
The exact damages and Hale's sentence will be determined at a hearing at a Tennessee district court at the end of August.
Spider-Man attends a screening of "Spider-Man: No Way Home." Credit: Dave Benett / Contributor | Dave Benett Collection
An accused movie pirate who stole more than 1,000 Blu-ray discs and DVDs while working for a DVD manufacturing company struck a plea deal this week to lower his sentence after the FBI claimed the man's piracy cost movie studios millions.
Steven Hale no longer works for the DVD company. He was arrested in March, accused of "bypassing encryption that prevents unauthorized copying" and ripping pre-release copies of movies he could only access because his former employer was used by major movie studios. As alleged by the feds, his game was beating studios to releases to achieve the greatest possible financial gains from online leaks.
Among the popular movies that Hale is believed to have leaked between 2021 and 2022 was Spider-Man: No Way Home, which the FBI alleged was copied "tens of millions of times" at an estimated loss of "tens of millions of dollars" for just one studio on one movie. Other movies Hale ripped included animated hits like Encanto and Sing 2, as well as anticipated sequels like The Matrix: Resurrections and Venom: Let There Be Carnage.
The cops first caught wind of Hale's scheme in March 2022. They seized about 1,160 Blu-rays and DVDs in what TorrentFreak noted were the days just "after the Spider-Man movie leaked online." It's unclear why it took close to three years before Hale's arrest, but TorrentFreak suggested that Hale's case is perhaps part of a bigger investigation into the Spider-Man leaks.
TorrentFreak also noted that the plea deal doesn't just push for a lower sentence—recommending a "maximum reduction" while crediting Hale for "taking responsibility"—it also drastically cut down the estimated losses to studios. The court has yet to finalize damages, but the US Department of Justice estimated that the total "infringement amount" is no more than $40,000.
Under the plea deal, the DOJ agreed to drop one count of copyright infringement and another count of interstate transportation of stolen goods. But Hale remains on the hook for the other copyright infringement charge.
For stealing and distributing the discs, he faces a maximum five-year prison sentence and a $250,000 fine, plus three years of supervised release. He will also have to pay restitution to any victims who can show they suffered losses because of his leaks.
The exact damages and Hale's sentence will be determined at a hearing at a Tennessee district court at the end of August.
