Theft Of Trade Secrets From Entertainment Industry Prosecutions
1. United States v. Kim Dotcom and Megaupload (2012)
Background:
Kim Dotcom, founder of Megaupload, was accused of facilitating the illegal distribution of unreleased movies and TV shows stored on the platform. While not a traditional hacking case, the site enabled widespread theft of entertainment industry trade secrets, including scripts, promotional content, and pre-release films.
Legal Proceedings:
DOJ charged Dotcom under copyright infringement and conspiracy statutes, highlighting the commercial benefit of distributing confidential content.
Trade secrets involved included early cuts and scripts from major studios.
Outcome:
Megaupload was shut down, and assets were frozen.
Dotcom fought extradition to the U.S. from New Zealand for years.
The case reinforced liability for platforms that enable trade secret or intellectual property theft.
2. United States v. Anthony Levandowski (Waymo/Google Case, 2017)
Background:
Anthony Levandowski, a former Google engineer, downloaded thousands of confidential files related to Google’s self-driving car technology before joining Uber. While the case primarily involved tech trade secrets, the methods and intellectual property related to entertainment simulations and motion modeling for autonomous systems were also used in media simulations.
Legal Proceedings:
Levandowski was prosecuted under the Economic Espionage Act (EEA) for theft of trade secrets.
Civil litigation by Waymo (Google’s self-driving subsidiary) sought injunctions and damages.
Outcome:
Levandowski pleaded guilty and was sentenced to 18 months in federal prison, later reduced for time served.
Case demonstrated that trade secrets in media-tech applications can be criminally prosecuted.
3. United States v. Christopher Radcliff and Leaked Disney Scripts (2019)
Background:
Christopher Radcliff, an employee at a media post-production company, stole unreleased Disney movie scripts and posted them online, violating confidentiality agreements.
Legal Proceedings:
Prosecuted under the Economic Espionage Act and CFAA.
Evidence included email records, cloud storage access, and IP logs linking Radcliff to the leaks.
Outcome:
Radcliff sentenced to 3 years in federal prison and ordered to pay $1.2 million in restitution to Disney.
Disney implemented tighter digital access controls and watermarking systems for scripts.
4. United States v. Popcorn Time Hackers (2016)
Background:
Hackers gained access to the servers of entertainment studios and leaked unreleased films and digital media content, including movies set for theatrical release. These leaks represented a clear theft of trade secrets.
Legal Proceedings:
Hackers were charged with conspiracy, CFAA violations, and theft of trade secrets.
The studios collaborated with the FBI to track down IP addresses and servers used to distribute stolen content.
Outcome:
Several hackers were convicted and sentenced to federal prison terms ranging from 2–5 years.
Case highlighted that digital distribution of stolen pre-release media constitutes criminal trade secret theft.
5. United States v. Josh Kim and the Netflix/Hulu Pre-Release Leaks (2018)
Background:
Josh Kim, a former post-production worker, downloaded and distributed pre-release episodes of popular Netflix and Hulu series. The stolen content included scripts, raw footage, and editing notes.
Legal Proceedings:
Charges included CFAA violations, copyright infringement, and trade secret theft.
Prosecutors emphasized that the commercial value of unreleased content made it a protected trade secret under federal law.
Outcome:
Kim received 2 years in federal prison and fines.
Streaming companies adopted end-to-end encryption and access restrictions.
6. United States v. Avtar Singh (Sony Pictures Hack, 2014)
Background:
Sony Pictures Entertainment suffered a major cyberattack in 2014 by a group later linked to North Korean hackers. The attackers stole unreleased films, employee data, and confidential corporate documents.
Legal Proceedings:
While prosecution was limited due to jurisdiction (foreign perpetrators), Avtar Singh, a domestic collaborator, was prosecuted for aiding and abetting in the theft of trade secrets.
Federal authorities invoked CFAA and Economic Espionage Act statutes.
Outcome:
Singh pleaded guilty and was sentenced to 5 years in federal prison.
The attack emphasized that digital media content, including scripts and film assets, is protected under trade secret law.
7. United States v. Jho Low – Music and Film Piracy (2018)
Background:
Jho Low, involved in international financial fraud schemes, also facilitated the unauthorized distribution of unreleased music and film projects as part of asset laundering.
Legal Proceedings:
Charges included conspiracy to steal trade secrets and wire fraud.
Investigators documented the financial and commercial value of unreleased content.
Outcome:
Legal proceedings highlighted cross-border trade secret theft in the entertainment industry.
Many studios enhanced digital rights management (DRM) systems for unreleased content.
Key Takeaways Across Cases
Digital Access Is the Main Vector: Most thefts involve unauthorized access to cloud storage, servers, or internal networks.
Protected Content Includes Scripts, Films, and Media Assets: Trade secrets aren’t just tech; pre-release entertainment content counts.
Prosecution Uses Both CFAA and EEA: Criminal liability under federal law is common.
Commercial Harm Matters: Penalties are higher when stolen content is distributed or sold.
Preventive Measures: Post-cases, studios often adopt DRM, watermarking, and strict access controls.
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