Ever Wondered What a Site

WASHINGTON — The owner of a massive for-profit software piracy Web site was sentenced today in federal court to 87 months in prison, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Chuck Rosenberg of the Eastern District of Virginia announced.

Nathan L. Peterson, 27, of Antelope Acres, Calif. was also ordered by Judge T.S. Ellis, III of the Eastern District of Virginia to forfeit the proceeds of his illegal conduct and pay restitution of more than $5.4 million. The forfeiture involves a wide array of assets, including homes, numerous cars, and a boat, which Peterson had purchased with the profits from his illegal enterprise. Today’s sentence is the second recent major prison sentence received for software piracy. In August 2006, Danny Ferrer, 37, the operator of _www.BuysUSA.com, received a six- year prison sentence. Peterson is believed to be the most prolific online commercial distributor of pirated software ever convicted in the United States, the Department said. “This defendant lined his pockets by stealing the hard work of others,” said Fisher. “Today’s sentence sends a clear message that those who sell pirated software will be convicted and punished.”

Beginning in 2003, and continuing until its shutdown by the Federal Bureau of Investigation (FBI) in February 2005, Peterson operated the _www.ibackups.net website which sold copies of software products that were copyrighted by companies such as Adobe Systems, Inc., Macromedia Inc., Microsoft Corporation, Sonic Solutions, and Symantec Corporation at prices substantially below the suggested retail price. The software products purchased on Peterson’s website were reproduced and distributed either by instantaneous computer download of an electronic copy and/or by shipment through the mail on CDs. Peterson often included a serial number that allowed the purchaser to activate and use the product.

“Stealing the intellectual property of others is always a bad idea in any context. It’s theft. And, so, a sentence of seven plus years in prison and restitution of $5.4 million is richly deserved,” said Rosenberg.