A court in Pontevedra, Spain has made history by issuing the first-ever conviction of a company for providing pirate television services through the sale of decoders. Engel Systems S.L and its directors were found guilty of breaching copyright laws with the sale of unlicensed premium TV sports channels. This landmark decision marks the first instance of a firm being held accountable for selling pirate IPTV services, a significant departure from previous cases that primarily targeted private individuals.

The legal action resulted in fines for seven company staff, including managers, ranging from €540 to €7,290 based on their involvement in the illicit operation. The company itself faces a hefty penalty of €673,000 along with a civil liability payment of 397 US dollars. Additionally, Engel Systems is prohibited from future sales of set-top boxes, and its directors have been disqualified for seven years.

Furthermore, the private defendants received prison sentences, which were commuted upon payment of fines and consideration of mitigating factors such as the protracted duration of the trial, spanning over seven years until the final, unappealable judgment.

Engel Systems had operated unlawfully for six years, initially engaging in card-sharing piracy, providing unauthorized access to pay TV systems through legitimate subscriber cards. Subsequently, the company transitioned to IPTV, a prevalent method of piracy wherein customers access content via the internet. This mode of illicit access, particularly popular among young people, often involves operators offering monthly subscriptions well below official rates. La Liga reported approximately one million individuals utilizing illegal IPTV services at the commencement of the current Spanish football season.