Operating a pirate IPTV service can be a dangerous endeavor, no matter where one’s located. In the United States, home to Hollywood and other major entertainment outfits, the risks are arguably even higher.

In the past, we have seen several pirate IPTV businesses being taken to court , with rightsholders almost always on the winning side. These cases can result in million-dollar damages awards or even multi-year prison sentences , if the feds get involved.

Despite this backdrop, some people are still willing to take a gamble. A lawsuit filed by Netflix, Amazon, and several major Hollywood studios at a Texan federal court in March of 2024, identified Dallas resident William Freemon as a prime example.

Hollywood Sues U.S.-Based Pirate IPTV Operation

The complaint accused Freemon and his company, Freemon Technology Industries (FTI), of being involved in widespread copyright infringement.

Freemon’s operation began between 2016 and 2019, when he allegedly sold “illegally modified Fire TV Stick devices” through two websites: firesticksloaded.biz and firesticksloaded.com. He registered these domains in his own name, at the same address where he later incorporated his company, FTI.

The defendant allegedly owned and operated four unauthorized streaming services at one point; Streaming TV Now, TV Nitro, Instant IPTV, and Cash App IPTV. In addition, the complaint linked him to a bulk reseller operation called Live TV Resellers.

‘Streaming TV Now’ was the most popular IPTV service, according to the complaint. It first appeared online in 2020 and offers access to 11,000 live channels, as well as on-demand access to over 27,000 movies and 9,000 TV series.

According to the legal paperwork, the services were clearly connected. For example, three of the four redirected paying subscribers to the same backend, hosted at stncloud.ltd. At one point, all five accused services, along with stncloud.ltd, shared the same IP address 5:183.209.216 (sic).

Freemon’s involvement was clear for multiple reasons, the plaintiffs argued. This includes evidence from a tutorial video connected to the IPTV operation, where the narrator logs into an Amazon account under the name “William Freemon”.

Defendant Responds, Evades, and Fails to Put Up a Defense

Getting Freemon into court wasn’t straightforward. It took seven service attempts, and when he was eventually served, the defendant told counsel he had no intention of filing an answer. In addition, he also failed to get an attorney for the LLC when the court instructed him to do so.

Despite never filing the required answer, Freemon submitted a stream of other motions, many of which failed to comply with local rules and were stricken by the court. This includes a motion with defenses on behalf of Freemon’s company, FTI, which came in after the court explicitly told him he could not to file it.

The movie studios eventually requested a default judgment, summarizing the troublesome legal process. This also revealed that Freemon threatened the rightsholders and demanded money if they wanted him to stop.

“Compounding this misconduct, Mr. Freemon has resorted to issuing threats and making escalating demands for payment from Plaintiffs, simply because Plaintiffs have brought this lawsuit to stop the infringement of their copyrights,” their motion stated.

Last week, Magistrate Judge Renée Harris Toliver issued various recommendations in this case. After reviewing all evidence, she advised denying Freemon’s motion to dismiss for a lack of standing and the motion to set aside the default. At the same time, Judge Toliver recommended granting the rightsholders’ motion for a default judgment.

Judge Recommends $18.75 Million and an Injunction

Without a formal defense, the magistrate judge recommends granting the motion for a default judgment in full.

The court notes that Freemon’s copyright infringement was willful. For example, when the movie companies sent a cease-and-desist letter in February 2023, he didn’t comply, but instead tried to obscure his connection to the services by claiming to have transferred domains.

The studios eventually turned that argument against him: to transfer a domain, the registrant must unlock it and provide an authorization code, meaning the admission itself proves he owned the domain during the infringement period. The services continued operating through at least January 2024, with one remaining active until the lawsuit was filed in March 2024.

As compensation for the widespread infringement, the movie studios requested statutory maximum damages of $150,000 per work for a representative set of 125 works, including prominent titles such as Universal’s Oppenheimer.

Recognizing that many more works could have been added if this case had proceeded to discovery, the court recommends granting the damages award in full, which would make Freemon liable for $18,750,000.

In addition to the damages, the plaintiffs also secured a permanent injunction that allows them to take over the IPTV-operation’s domains.

The recommended permanent injunction covers eight domains: instantiptv.net, streamingtvnow.com, streamingtvnow.net, tvnitro.net, cashappiptv.com, livetvresellers.com, stncloud.ltd, and stnlive.ltd. Once the judgment is approved, registrars have five days to transfer these domains to the movie companies.

If the registrars fail to do so, the TLD registries can be ordered to place the domains on hold. At the time of writing, none of the domains point to a working site. However, the rightsholders can add new domain Freemon-owned names to the list, should these appear online.

While the report and recommendation is a clear win for the movie companies, it is not final yet, as all the paperwork still requires approval from the district judge. Without a proper defense, however, an $18.75 million judgment appears to be the likely outcome for now.

—

The findings and recommendation on the motion for default judgment is available here (pdf) . The recommendation denying Freemon’s motion to set aside the default is here (pdf) , and the recommendation denying his motion to dismiss for lack of standing is here (pdf) .

From: TF , for the latest news on copyright battles, piracy and more.