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Software Pirate Gets 7 Years in Prison

By Ed Oswald, BetaNews

September 22, 2006, 3:20 PM

A California man has been sentenced to seven years and three months in prison and ordered to pay $5.4 million in restitution as a result of a federal piracy case, software company Autodesk said Friday. In addition to Autodesk, 26-year-old Nathan Peterson also was copying and selling software from Adobe, Macromedia and Symantec, the company said in a statement.

Estimated losses to the software companies range anywhere from $7 million to $20 million. As a result of his conviction, Peterson will also be forced to forfeit any property obtained as a result of the money made from the operation, including multiple cars, homes and a boat.

Among the items seized are a number of bank and trading accounts, a fully restored 1949 Mercury Coupe purchased originally for $44,000, a 2005 Dodge Ram, a 2003 Chevrolet Corvette, a 2004 Toyota Camry, a 2005 Toyota Corolla, and a 2006 Mercedes-Benz S-Class purchased for $125,000.

Peterson operated iBackups, a company that claimed to sell the software as "backup copies" for owners of the original software. The Software Information Industry Association first alerted the FBI of this possible illegal activity in 2003, which in turn an investigation led to the site being shut down.

In December, Peterson pleaded guilty, and the sentencing occurred on September 8, Autodesk said.

"Peterson has said that most of the software was sold to individual consumers, although he did sell to some companies and to at least one school district," Autodesk License Compliance director Sandy Boulton commented. "We commend the FBI and Department of Justice for their efforts and hope that consumers will purchase products direct from the developers or from their local authorized resellers to eliminate the risks of engaging in illegal activities."

In addition to his software conviction, Peterson was also sentenced to 16 months in prison on gun charges in California related to an investigation by the Los Angeles Police Department.

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By Portal3

posted Sep 25, 2006 - 11:33 PM

Theft is a crime? Do they lock up all the developers stealing code from on another or does the said company just do a payout?

Funny how you can steal a few $million and if your company pays the "victim" out then everything is A-ok. The persons responsible are still a "menace" to the public but we can pretend nothing happened.

Why isn't this so with individuals?

Score: 0

By PC Rat

edited Sep 24, 2006 - 11:50 PM

...

"Certainly deserves
to be jailed, but it
still bothers me that
there is no equality
in the sentencing of
criminals"

...

Whenever you commit a crime, you risk 'inequity'
in sentencing. So best not to commit crimes !

Since this was a federal prosecution, the PC Rat
will observe that for the past dozen years we had
federal sentencing guidelines which attempted to
make more equity in sentencing ...until just last
year when The Supremes ~discovered~ that
sentencing guidelines are "unconstitutional" !

Yet in this instance your fav rodent doesn't think
the sentence was unfair. The guy wasn't a "thug"
hitting people over the head ...but he ~did~ steal
millions of dollars.

But if you're saying thugs ought to get harsher
sentences, Bro. Rat wouldn't disagree.

...

The Computer Rodent

...

Score: 0

By wincement

posted Sep 25, 2006 - 1:36 PM

Please, please, PLEASE...

stop talking in third-person.

Score: 0

By Silentmaster101

posted Sep 26, 2006 - 10:55 AM

yeah its getting realy annoying. he must live in his mom's basement

Score: 0

By Tenoq

posted Sep 24, 2006 - 8:56 PM

Certainly deserves to be jailed, but it still bothers me that there is no equality in the sentencing of criminals. You'll jail this guy for 7 years for ripping people off; then send a thug to jail for just 2 years. Doesn't make me feel confident in the legal system. :P

Score: 0

By PC Rat

edited Sep 24, 2006 - 4:33 PM

...

"So please lay off
your bs. It just
shows your true
personality in life
if you think he
deserved this."

...

Thank you for justifying theft. Is kidnapping and
rape ok with you, too ?

You criminals can be expected to stick up for one
another !

...

The Computer Rodent

...

Thou shall
not steal.

...

Score: 0

By Tenoq

edited Sep 24, 2006 - 8:59 PM

Because he thinks this sentence unjust, you assume he condones rape and is therefore he's a criminal?! How the hell do you make that leap in logic? :P

Zealot.

Score: 0

By PC Rat

posted Sep 25, 2006 - 3:34 AM

...

"Because he thinks
this sentence unjust,
you assume he condones
rape"

...

No, the little jerk was condoning theft. When you
justify crime you can't stop at theft. EVERYTHING
is up for grabs !

...

The Computer Rodent

...

Score: 0

By PC_Tool

edited Sep 25, 2006 - 9:14 AM

Score: 0

By TC17

posted Sep 24, 2006 - 3:50 PM

Reading more posts here just reaffirms all the aholes we have living in this world. Get a life.

Score: 0

By TC17

posted Sep 24, 2006 - 3:49 PM

The story is misleading, he was SELLING the software. BIG difference.

So please lay off your bs. It just shows your true personality in life if you think he deserved this. People like you are the very reason why the RIAA runs around arresting Grandmas.

Score: 0

By Arakiel

posted Sep 25, 2006 - 11:28 AM

Your right, he didn't deserve this. 7 years is too short, he should have gotten at least 10. Lucky bas****.

Score: 0

By DigiBrian

posted Sep 24, 2006 - 3:01 PM

If you cant do the time dont do the crime

Piracy is a matter of time before you get caught, it is not IF you get caught but WHEN, because sooner or later you are going to piss off a customer and he is going to cash in the reward for you.

Score: 0

By Avion Airplane

edited Sep 24, 2006 - 10:20 AM

Quote By wincement posted Sep 23, 2006 - 2:09 PM

Just a guess, but do you happen to pirate software?

They're coming for you next.

My Question is why is it so easy to piriate software? With all the money software companies make, it seems like they would have better security measures on the software then what they have now

Score: 0

By wincement

posted Sep 25, 2006 - 1:39 PM

Because there is virtually no material cost to someone if they want to make a "digital" copy of something.

If you can access something, you can copy it. Simple as that. There are ways to make it more difficult, but there is absolutely nothing foolproof.

...yet.

Score: 0

By Silentmaster101

posted Sep 26, 2006 - 10:56 AM

well considering there is no way around a stand-alone recorder, i should say so.

Score: 0

By PC Rat

edited Sep 23, 2006 - 3:00 PM

...

"A California man
has been sentenced
to seven years and
three months in
prison"

...

And the Federal system has prisoners serve 85%
of their sentences.

So, this ~ain't~ going to be a year in prison and
out on 'good behavior' !

...

The Computer Rodent

...

"Share a file /
Go to jail !"

...

Score: 0

By x-ray

posted Sep 23, 2006 - 12:28 PM

cant see Copy_inligal as lone as he pays Firme_money some

Score: 0

By simko

posted Sep 23, 2006 - 6:28 AM

He was selling illegal so i cant say i feel sorry for him.

Score: 0

By PC Rat

posted Sep 23, 2006 - 3:03 PM

...

"He was selling illegal
so i cant say i feel sorry
for him"

...

Quite so ! It's all STEALING whether selling copied
software or sharing files without paying.

...

The Computer Rodent

...

"Share a file /
Be deported to
Detroit !"

...

Score: 0

By Tenoq

posted Sep 24, 2006 - 8:48 PM

No, grabbing a candy bar from the servo is stealing. Selling pirated copies of software is, funnily enough, software piracy.

Score: 0

By Silentmaster101

posted Sep 26, 2006 - 11:00 AM

because its not depriving the producer of the item, it is spatent infringement. NOT PIRACY, which is a stupid name for it. Pirates didn't go around making copies of treasure and selling it, or using software without permission, they stole, shot up people and sunk ships. and if you went and copied a candybar and sold copies of it, it would be patent infringement, NOT PIRACY, and NOT THEFT. got it? good.

Score: 0

By Paul Skinner

posted Sep 23, 2006 - 3:57 AM

I see PC_Tool isn't up yet.

Score: 0

By PC_Tool

posted Sep 23, 2006 - 10:56 PM

And what, pray tell, were you expecting?

Score: 0

By uberfly

posted Sep 23, 2006 - 12:49 AM

Love hearing stories like this. A**wipe got what he deserved. Living the good life off everyone elses hard work. Screw him. I hope he learns about new and exciting things in prison.

Score: 0

By wincement

posted Sep 23, 2006 - 2:05 PM

rofl...

A little harsh, but I can't say I disagree.

Score: 0

By Ramhound

posted Sep 22, 2006 - 11:45 PM

I thought Microsoft had some share in Autodesk, could have sworn I have seen a Microsoft product to deal with Autodesk, or is that AutoCad :lol:

Score: 0

By wincement

posted Sep 23, 2006 - 2:06 PM

They probably got sued by them at some point.

Score: 0

By crashoverride

posted Sep 22, 2006 - 7:50 PM

7yrs eh, they should fry the prick in my opinion.

Score: 0

By Tenoq

posted Sep 24, 2006 - 8:50 PM

Yeah, and while a murderer gets away with a $750 fine. I love "justice". :P

(For reference, this refers to an incident where a motor vehicle was used as a lethal weapon)

Score: 0

By crashoverride

posted Sep 25, 2006 - 11:03 PM

I'm just saying.. I mean in the old days people engaged in piracy would have been hang or shot.

Score: 0

By TheLurker

edited Sep 22, 2006 - 5:20 PM

"Typical BS on someone turning a profit and paying the mortgage and using copies of some whiney a** companies software to do it."

Your Kidding -- Right?

Wow.

Wake up from that delusional state your in.

He deserves Everything he Got... and LOST.

Case Closed.

Score: 0

By DotNet_Coder

posted Sep 22, 2006 - 7:43 PM

You know that at least one troll had to comment on how the big companies screw the little guy, right? lol It wouldn't be natural if it didn't occur...

Software companies screw their customers, and the government screws both the consumer and the companies, but theft is theft is theft. If the guy really wanted to make a difference, he could have supported open source applications, or worked out reseller rights with said companies. No matter how many different ways you slice it, theft is still theft.

~dnc

Score: 0

By psibersoma

posted Sep 22, 2006 - 4:47 PM

typical BS on someone turning a profit and paying the mortgage and using copies of some whiney a** companies software to do it. The US government steals and kills all the time and it doesn't get s-h-i-t ever done to it. wars are waged on false pretenses and yet noone gets punished for it. I'm willing to bet hard currency that most of all these companies that are whining about Mr. Peterson pirating their software won't admit that their phucking software is written by offshored programmers for pennies on the dollar and then sold to unwitting dupes for tens of thousands of dollars.. I don't give a rip about these corporations.. I work for one of them and I see how they phuck people out of their money all in the name of business..

Score: 0

By wincement

posted Sep 23, 2006 - 2:09 PM

Just a guess, but do you happen to pirate software?

They're coming for you next.

Score: 0

By bourgeoisdude

edited Sep 22, 2006 - 4:52 PM

"In addition to Autodesk, 26-year-old Nathan Peterson also was copying and selling software from Adobe, Macromedia and Symantec, the company said in a statement."

No Microsoft products? Tells a story, does it not? Apparently, Microsoft has better enforcement regarding large-scale piracy, because Nathan Peterson didn't pirate anything from Microsoft...

...of course, this doesn't HAVE to be the case, but I suspect it is...

Score: 0

By DotNet_Coder

posted Sep 22, 2006 - 4:05 PM

"because Nathan Peterson didn't pirate anything from Microsoft..."

That we know of... Most everyone [in the warez "business"] has pirated something from MSFT, so for this guy to not have done it would really surprise me. But, hey, not everyone loves MSFT... lol

~dnc

Score: 0

By Frostek

posted Sep 24, 2006 - 5:49 AM

If only he'd stolen millions from a company pension fund.

Then he would have got off scott free.

(Okay, so I'm cynical!) ;-)

Score: 0