Anatel intensifies the fight against gatonet by fining individuals, but is this efficient?

Report published on LexLatin shows that Anatel has intensified actions to combat pay TV piracy. The website highlighted a comment by Dr. Matheus Puppe, partner in the TMT, Privacy and Data Protection area at Maneira Advogados.

Anatel intensifies the fight against gatonet by fining individuals, but is this efficient?

By Rosa Ramos

(Photo: Bastian Riccardi – Unsplash)

“Fining individuals and buyers may raise awareness that these products and services should not be accessed through illegal means, but it is not the most financially efficient way to try to solve the problem.”

Months ago, the National Telecommunications Agency (Anatel) began a constant fight against TV Boxes (popularly known as gatonet), the famous devices that transform any television into a smart TV and are often used to access illegal cable television services and streaming platforms, through IPTV technology (an operating system that uses the Internet protocol to allow access to viewing on-demand apps). One of the most relevant measures that the Agency took was put into practice in March of this year, when it began to block all gatonets that were detected and were not approved by them.

This blocking (done with reverse engineering) was not only done to protect the copyright holders of the programs viewed on TV Boxes and the platform operators (who do not receive any remuneration for their material and services when transmitted via IPTV), but also to safeguard users' personal data, since these devices, when not approved and registered, are a vehicle for cybercriminals to steal information from the home networks to which they are connected.

This is how Anatel has been combating piracy committed by gatonet, increasingly escalating the measures until October 31st, when it announced that it had decided to fine a person 7.68 thousand reais for selling pirated TV Boxes (that is, not approved by Anatel). This was the first time that the agency imposed a penalty on an individual (up until that point it only penalized companies) in its fight against the use of these devices and the various infringements of intellectual property rights that were committed when they are used to illegally consume copyrighted material, which also harms several segments of the Brazilian economy (such as cinema and sporting events).

Tougher measures

From the point of view of intellectual property rights, the main infractions committed with a device such as gatonet violate the copyright of broadcasters, producers and other entities involved in the licensing and distribution of a television channel, “resulting in them not being duly remunerated for such services”, highlights Camila Camargo, a lawyer specializing in intellectual property at Prado Vidigal Advogados, who adds that the use of unapproved devices also affects stores and sellers that, Without due diligence, they end up selling these devices, most of the time, believing that they are legal and approved by Anatel.

Regarding the fine imposed on an individual, Matheus Puppe, partner in the TMT, Privacy and Data Protection area at Maneira Advogados, comments that the decision by Anatel's Board of Directors to fine a person “represents an important regulatory milestone in the fight against piracy and the violation of intellectual property rights in Brazil”. It is also a measure that reflects the seriousness with which the entity treats the issue of approval, “fundamental to guarantee the compliance of equipment with national technical standards and the protection of copyright, in addition to ensuring that Brazil continues to be a low-risk country for large international companies, by demonstrating the strong fight against piracy and intense supervision.”

Measures of this type highlight the tightening of the Agency's inspection policies and scope of action, measures aimed — it should be said — at establishing a fairer and safer market that guarantees global competitiveness and reduces Brazil's legal risk, in matters such as piracy and violation of rights in the digital environment, through inspection.

Alexandre Freire, advisor and rapporteur on these matters, told the media that both Anatel and other institutions have taken measures to combat piracy and that “the results obtained so far have proven to be relevant for Brazilian society, with an application that includes both market platforms and individual suppliers” and translate into better protection of consumer health and safety, as well as greater respect for intellectual property.

How efficient is it to fine citizens instead of companies?

“Fining individuals and buyers may increase awareness that these products and services should not be accessed through illegal means, but it is not the most financially efficient way to try to solve the problem, considering the sheer volume of users, the efforts to fine them, and the fact that it does not objectively address the main issue of illegal distribution,” highlights Camargo.

In his opinion, efforts to block illegal TV Boxes are an important step to stop distribution and go hand in hand with the identification of distributors and the application of sanctions, but as for markets and other suppliers, “it is urgent to establish due diligence and correct acquisition criteria before purchasing the products, to know the origin and, most importantly, ensure that the TV Box has been effectively approved by Anatel”; To achieve this, he emphasizes, “efforts must be made to generate awareness and accountability.”

Puppe explains that while fining individuals or purchasers can have a deterrent effect, it is more efficient to focus law enforcement efforts on distributors and sellers of pirated devices, who are responsible for the wider spread of these illegal devices and are likely to be involved in more significant violations than individual purchasers.

“By targeting these sources, Anatel can more effectively disrupt the supply chain and potentially reduce the availability of non-compliant devices in the market. However, fining some end users creates a general fear that will inevitably reduce demand for these products, and less demand would absolutely mean fewer offerings.”

Anatel can improve the application of these measures in markets and among physical suppliers by implementing stricter verification processes so that sellers ensure they only offer devices approved by Anatel, increasing surveillance and intelligence operations to identify and target large-scale distributors, collaborating with Internet service providers and customs authorities to track and seize shipments of non-compliant devices, says Puppe.

In addition, the Agency can continue to work with online marketplaces to develop better algorithms and reporting mechanisms to quickly detect non-compliant product listings and raise public awareness of the illegality and risks associated with the use of such devices, which may reduce demand. “The incorporation of these actions can lead to a comprehensive strategy that solves the problem of illegal TV Boxes, both from a supply and demand perspective.”