The Australian Financial Review www.afr.com l Wednesday 28 March 2012 49 PAY TV PIRACY Free to air: dirty tricks for all to see

From page 13 cannot produce a hack on their own - AT ALL!!! They are parasites of Deubel to be arrested in Thailand. sorts, living off of recycled He was thrown into prison for European know-how. But they are attempting to monitor the local great at spreading hacks.” UBC pay TV broadcaster, which As for Cottle: “it is amazing that used Mindport’s Irdeto. Bond thinks he’s the only one in the Just five weeks after engineering world who can do it. As Andy an arrest for piracy in Thailand, (Coulthart) will tell you – this guy Avigail Gutman was planning to is unoriginal and incapable of use Australian hackers to promote achieving this on his own. piracy in neighbouring Malaysia. “But he is a master-organizer, a In a 2008 court case in California project manager of sorts, who has brought by Echostar against NDS, managed quite an infrastructure in Reuven Hasak cited the MadMax OZ.” By March 2000 Gutman operation as an example of how reported that Bond’s group was NDS Operational Security would working on hacking European help its competitors. pirate cards for Irdeto, which could But in December 1999, Ray be reprogrammed to pirate Foxtel Adams had painted a different and Austar. view: the only assistance Operational Security had given Lee Gibling ran thoic.com, but it was funded and supervised by Operational Security. Photo: PANORAMA Mindport was the Bangkok Delaying tactics operation. action would be to eliminate Cottle Melbourne, who said he had been Gutman made arrangements with “That was done primarily as as a threat to any NDS systems but NEWS CORP given Cottle’s email address on Adams to obtain 20 to 30 of the Avigail feared that MM was about without disturbing his other Thoic by a business associate, European cards for Cottle: “Blank to become a threat to NDS products hacking activities (as much as Arthur Siskind “Scissors”. “I have been led to would be great. But an assortment in Australia. We are withdrawing possible) ... We do not want Cottle News legal counsel, believethere is a business of both blank and loaded (no from assisting them.” in jail until he has a successor for part of Office of opportunity for us to explore,” particular preference in country) Gutman herself wrote: “Rest the Irdeto hack.” Chairman, NDS George said. would be nice, too.” assured we are NOT doing any joint While Operational Security was director “This is my guy,” Gutman wrote Adams assured her he would action with Irdeto in OZ. This assuring Curle at Irdeto that it was when Adams obtained the email obtain the cards from an would clash with our business in his best interest not to move from Thoic. George and Scissors Operational Security consultant. interests (we are currently against Cottle, Gutman was focused were both informants working for “Much appreciated,” Gutman negotiating a simulcrypt solution for on the need for Cottle to produce a Gutman. wrote back. “The idea being, of the satellite and the digital-cable new hack of Irdeto. Genie Gavenchak By November 19, George and course, to delay their attempts to there, and other broadcasters might Two days later the plan had taken Senior News lawyer Cottle had met and were exchanging tamper with our StarTV system.” show interest, too. Mindport are not shape. “Remember you sent me the reporting to Siskind smartcards. On November 22, By mid-2000 Gutman’s relations aware of this yet, as far as I know.)” Malaysian Astro (Seca) system? ... I George wrote to Cottle, “Scissors with Irdeto were breaking down, as would like to use it in Oz (to divert wants feedback on the system he has Foxtel Satellite moved to broadcast their attention away from our given you . . .” streams using NDS as well as Double dealings system),” Gutman wrote to Adams. Cottle wrote back: “Okay the Irdeto (known as simulcrypt). Thus while Irdeto believed they He had sent Gutman a pirate David DeVoe receiver is of no use to us in But for Operational Security, the were collaborating with NDS device for the Malaysian Astro pay News CFO, NDS Australia :(. We need receivers answer was to drop Irdeto Operational Security to stop piracy TV service operated by MEASAT. It director capable of IRDETO.” completely. in Australia, Gutman was now used another conditional access George replied that Scissors had “I met with NELL aka Mary- working to replace Irdeto with an system called Seca, produced by told him, “The system given to you Ellen Payne from Foxtell,” Gutman NDS card used by StarTV in Hong Canal Plus. works using MEASAT satellite to wrote. “I explained the facts of life Kong. Gutman was now proposing to Chase Carey receive digital broadcasts from as far as piracy in concerned.” The conflict came to a head in send the Astro pirate box to Bond Currently Chief Malaysia . . . It is not Irdeto but The problem was “the up-link London with a meeting on October 007 to distract him from working Operating Officer, SECA, which is also used in France, satellite people want to keep Irdeto 13, 1999 between Ray Adams and on pirating StarTV. NDS director, was Spain and will be used in New running. They say that Irdeto can Irdeto’s vice president Special “BUT—before I do—I want to News executive Caledonia.” fix the problem. We convinced Nell Project, Andrew Curle, and a make sure with you that there is overseeing NDS in It should be a challenge to Cottle. that they cannot fix it—and former Dutch policeman, Steven nothing about the box or card that late 1990s For Scissors and Miller it was a explained why.” Kuster. (“The man is very keen but can trace it back to us . . . . is there?” fresh new business “with a large “We do not want simulcrypt in a bit of an amateur,” Adams wrote Adams was agreeable. Gutman James Murdoch potential for income”. our lives,” Adams told Payne. “. . . later of Kuster.) wrote again on October 23: “Why Deputy chief George ended with an urgent PS: Get rid of Irdeto and you get rid of Curle and Kuster had identified don’t we give it a shot. I can supply operating officer; “Please Bond don’t let me down, I piracy and the future threat.” Bond 007 (Cottle) in Sydney as the it to cottle and his merrymen . . . NDS director have given my associates a good Gutman complained to Adams on biggest hacking threat to Irdeto Double benefit - 1) diversion from 1999-2003, impression of you. After all at the February 25, 2001 that Foxtel had cards used by Foxtel, Austar and the NDS systems 2) verification of 2008-present end of the day we are all in for the not paid a penny for security in the Optus. Adams deflected them and the seca hack in Asia.” same reasons. $$$$$$$$$$$$” years it had been an NDS customer, persuaded Curle to leave the matter These two emails by Gutman Cottle wrote back: “Okay Measat, and said “but with the growing in Gutman’s hands. were exhibits in the 2008 Echostar Lachlan Murdoch I will have a play on the weekend . . . piracy down there, we will need Gutman wrote to Adams that case in California. Cottle told the NDS director, We can do this and no problem in them to start paying . . .” Reuven Hasak had told her to Financial Review he had no 2002-05 exploiting SECA and NDS She said Foxtel believed Irdeto postpone any joint action (“I am knowledge of the emails: “I never Videoguard . . . You can market, sell was working on security for them, concerned that it is premature to had any dealings with anyone and and distribute as we discussed when “which is ridiculous ... occasional take Cottle out of the picture and we certainly never been contacted by you were here.” buys and ‘boo’ raids which are don’t stand to benefit from such an anyone and it’s news to me I am The content of the emails show useless”. operation at this stage.”) mentioned in any documents, court Hasak’s testimony about the plan to Two days later Telstra signed a Later she would tell Curle was or otherwise.” provide the Seca box to Cottle was contract worth $937,500 for NDS to that “it is premature, in our When shown further emails that not correct. It’s puzzling that he provide security for the Foxtel opinon” to move against Cottle, as he had posted on Thoic, Cottle was initiative of Ms Gutman,” could not recall it, because he was smartcards, when the number of there was more to gain from keeping declined to make further comment. Hasak testified. “It was never due to be in Australia and New subscribers was between 500,000 an eye on him. On Monday the Financial Review approved.” Such a move would have Zealand with Gutman a week after and 1 million. It should be noted that under made contact again with Cottle, on needed his approval and he had these exchanges. This was on top of standard fees Australian law at the time, none of the outskirts of Sydney, where he never given it. Throughout the 2008 Echostar charged by NDS, which are believed the hacking or piracy of smartcards denied having any role in the case Hasak testified on many points to be up to $15 per card per year. that took place was illegal. hacking of pay TV smart cards. that he had memory problems. “One Piracy peaked in 2002 with about Making things even more “Good luck to them proving it Business opportunity of my weak points is I don’t 100,000 pirate cards in circulation, difficult for Operational Security, because I was never involved [in Yet the emails show Gutman remember. Sorry.” costing Austar and Foxtel an while Bond 007 was working on hacking],” he said. “I was not continued to act as if her scheme to No further open reference to the estimated $50 million per year. Irdeto piracy, he was also working involved with that [hacking cards].” get the Astro Seca box to Bond 007 Seca box can be found in the In 2003 Austar after writing off on a hack for the Star TV digital Cottle confirmed a friend had was going ahead. “Fact is—the Operational Security emails as $600 million in losses, switched to system. That card, which NDS provided him with a Star TV box, StarTV platform has all the holes of many were encrypted. the Irdeto 2 card, which promised to hoped to use with Foxtel, had which he had used to watch news the Sky Latin America platform,” As this correspondence was going end piracy. Fifteen months later, already been widely pirated in Latin channels, but he had not hacked it. she wrote on November 2. She was back and forth, Hasak had decided Foxtel was pleading with the federal America. Any report that StarTV He denied receiving an Astro box. pressing for the loopholes to be not to tell StarTV their system was government for tougher laws to stop was pirated could torpedo the deal In his 2008 court testimony, closed “and once this happens, and under attack. Gutman wrote of a pay TV piracy. NDS was working on with Foxtel. Reuven Hasak described Gutman as their Ozies get their hands on a meeting with a StarTV exec: “I told But by then piracy seemed to have “StarTV is not in the loop on the his “right hand” in Operational Seca box, it may delay their NDS Sue that she can/should forcefully become entrenched in Australia. issue at this stage,” Gutman wrote Security, but said the Astro plan projects”. deny any allegations of a Sky hack, with Angus Grigg on October 20. But she was working was never executed. On October 29, Cottle had should these come up.” on a plan. “I wanted to tell you that maybe received an email from “George Gutman was contemptuous of the n Neil Chenoweth is writing a book, “The objective of any current –I just wanted to say that maybe it Miller”(not his real name) in skills of Australian hackers: “They Murdoch’s Spies FRA 049