Five Convicted for Running Major Pirate IPTV Service in the US

A federal jury in Las Vegas has convicted five men accused of operating one of the largest pirate IPTV services in the United States. Kristopher Dallmann, Douglas Courson, Felipe Garcia, Jared Jaurequi, and Peter Huber amassed millions in revenue through their subscription service, Jetflicks, which reportedly offered more content than Netflix, Hulu, Vudu, and Amazon Prime. Four of the men face up to five years in prison, while Dallmann could face a maximum of 48 years.

In 2019, a grand jury indictment charged eight men from Las Vegas with conspiring to violate criminal copyright law through their IPTV services, Jetflicks and iStreamitAll. The indictment detailed how the defendants reproduced tens of thousands of copyrighted TV shows without authorization, distributing the content to paid subscribers across the US.

Jetflicks allegedly offered access to over 183,200 distinct TV show episodes, while iStreamitAll provided an even larger library with over 118,479 TV shows and 10,980 movies, surpassing the content available on Netflix, Hulu, and Amazon Prime at the time.

Five Men Tried in Las Vegas

While some defendants pleaded guilty in 2021, receiving sentences from one year to 57 months in prison, five defendants went to trial before a Las Vegas jury last month. During the trial, Kristopher Dallmann, the alleged leader of Jetflicks, sought a mistrial, claiming that the evidence presented was inadmissible and damaging to the defence. The court rejected his request, and all five men were found guilty by a federal jury this week.

Guilty Verdict for Jetflicks Operators

Dallmann, Courson, Garcia, Jaurequi, and Huber were convicted of conspiracy to commit criminal copyright infringement. Additionally, Dallmann was found guilty of two counts of money laundering by concealment and three counts of misdemeanour criminal copyright infringement.

“Their scheme generated millions in criminal profits while causing significant losses for copyright owners,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These convictions highlight our commitment to protecting intellectual property rights and prosecuting digital piracy.”

U.S. Attorney Jason M. Frierson for the District of Nevada emphasized that the defendants’ conspiracy to reproduce and distribute thousands of copyrighted TV programs for personal gain had serious consequences. “This case demonstrates our dedication to combating intellectual property theft and holding violators accountable,” Frierson said. 

Cracked IPTV: A Risky and Illegal Choice

Using cracked IPTV software, such as Xui or Xtreme, is illegal and poses significant risks. These illicit versions are often riddled with malware, leaving users vulnerable to data theft and identity fraud. Beyond security threats, individuals caught using cracked IPTV can face hefty fines or even imprisonment.

Unlike legitimate IPTV services, cracked options are notoriously unstable, resulting in frequent buffering, poor video quality, and frequent service interruptions. Moreover, these illegal platforms lack essential security updates, further exposing users to cyberattacks.

The allure of free content often masks the severe consequences of using cracked IPTV. It’s crucial to understand that accessing content without proper authorization harms content creators and the entire entertainment industry.

Furthermore, a significant portion of individuals operating cracked IPTV services engage in illegal activities. Their ability to quickly establish new platforms when caught hinders law enforcement efforts and perpetuates the cycle of piracy.

A Failed Aviation Entertainment Ploy

Assistant Director in Charge David Sundberg of the FBI Washington Field Office noted the defendants’ unusual response when copyright complaints threatened their business. They attempted to disguise Jetflicks as an aviation entertainment company. Dallmann claimed that Jetflicks MoVi Entertainment System converted customers’ DVD collections for in-air viewing. He later admitted that downloading TV shows from other pirate sites and streaming them for a fee had become the main business.

Sentencing has not yet been scheduled. Courson, Garcia, Jaurequi, and Huber each face a maximum of five years in prison, while Dallmann faces up to 48 years, according to the Department of Justice.

The Motion Picture Association (MPA), whose members’ content was heavily infringed by Jetflicks, has not yet issued a press release in response to the convictions. However, MPA’s Senior Executive Vice President and Global General Counsel, Karyn Temple, later issued a statement praising the verdict.

“This verdict is a landmark victory for intellectual property rights. The Motion Picture Association applauds the Department of Justice for its successful prosecution of five individuals who illegally profited by infringing upon copyrighted works belonging to ACE,” Temple stated. “The jury’s conviction underscores the criminal nature of these offences and the significant harms caused to the creative industry.”