Unauthorized Decryption
95 Unauthorized decryption involves unscrambling an encrypted signal. In the terrestrial and satellite broadcasting environment, encryption has typically been used only for pay satellite broadcast signals, but digital terrestrial broadcast signals can also be encrypted. Encryption systems are typically used to exclude those who have not paid for services. Authorized users receive decryption boxes or smart cards that permit access to the encrypted signals. Unauthorized decryption involves circumventing encryption systems to gain access to the signals.
96 Unauthorized decryption does not affect broadcasters’ costs of production, programming, or current distribution because those must be borne to serve existing paying customers. If the unauthorized decryption induces broadcasters to invest in additional encryption technologies, or switch encryption technologies, however, the investment and switching costs for that technology increase distribution costs.
97 Those engaging in unauthorized decryption who would otherwise be able and willing to pay for service deny that revenue to the broadcaster. Consequently, the average price per legitimate customer increases as broadcasters recover costs across fewer paying customers.
98 An exception to unauthorized decryption can result when decryption is for uses that would be condoned under copyright exemptions and limitations. In such instances, intellectual property considerations should supersede narrow signal protection considerations, according to proponents of consumer and social positions. Their position is that such uses of signal should be considered as authorized.
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