In a significant crackdown, Taiwan’s Criminal Investigation Bureau (CIB) has dismantled a pirate IPTV operation that had been illicitly streaming content for over two years. The operation, which authorities discovered was hidden in a seemingly abandoned house, resulted in the seizure of over 279 pieces of equipment, including 72 set-top boxes, 72 video encoders, servers, networking devices, bank records, and mobile phones. Two individuals were taken into custody.

Hidden Operation Unveiled

A quick glance at the blocking records from Italy’s Piracy Shield system indicates that illegal IPTV servers can be set up almost anywhere. Servers linked to Asia, including those based in China, Hong Kong, and Taiwan, frequently appear on the AGCOM list, causing widespread issues for copyright holders globally.

While enforcement in China is often viewed as insufficient by rightsholders, Taiwan has seen more frequent raids, with international copyright holders likely benefiting from these actions.

Illegal Streaming Software Leads to Crackdown

According to a report by Taiwan’s CIB, an investigation into online auction platforms led authorities to an app called Qingtian TV, also known as Sunny TV. This app, similar to other pirated TV services, offered unauthorized live streams of legitimate broadcasters, packaged in a convenient mobile application.

The investigation revealed that the perpetrators were using illegal streaming software based on the infamous Xtreme Codes platform. Xtreme Codes, a tool widely used by IPTV pirates, enables the capture, encoding, and distribution of live TV streams. Its use by the operators of Sunny TV played a crucial role in helping authorities gather the necessary evidence to launch their crackdown.

The content distributed via Sunny TV included programming from prominent TV networks such as Taiwan’s Satellite Radio and Television Business Association and members of the Japan-based anti-piracy group CODA, which includes TV giants like TBS, Fuji TV, NTV, and TV Asahi. The estimated market value of the pirated content over two years exceeded one billion Taiwan dollars (approximately US$31.2 million).

The case was referred to the Taichung District Prosecutor’s Office, which led to coordinated raids in Taichung City and Yunlin County.

Empty House Served as Operation Hub

One of the main suspects, identified as Mr. Li by CIB, along with accomplices, had reportedly rented an inconspicuous, seemingly deserted house to conduct their illicit activities. The house’s dilapidated exterior helped keep their operation under the radar.

However, inside the house, authorities discovered a different story. The raid unveiled an array of equipment used to capture, encode, and distribute pirated content. The confiscated items included 72 set-top boxes and 72 signal encoders, along with servers, network switches, bank records, and mobile phones, totaling 279 pieces of evidence.

The Structure of the Piracy Network

According to the CIB, Mr. Li, along with another suspect named Mr. Chen, were arrested. Chen is accused of selling illegal OTT (over-the-top) software through various online platforms, frequently changing accounts to evade law enforcement.

Although CIB mentioned two other suspects, their identities and roles in the operation remain undisclosed.

The CIB also released a diagram outlining the entire IPTV piracy operation, from capturing and encoding live broadcasts to the distribution and consumption by end users. The diagram notably includes Cloudflare, reflecting a growing trend where this company’s services are implicated in piracy operations, albeit with limited context.

By publicizing these connections, authorities may be attempting to increase pressure on companies involved, even peripherally, in facilitating piracy.