Software pirate gets 7-year prison term; $5.4 million fines

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A 27-year-old man was sentenced to 7 years in prison for running what is being called the largest software piracy operation in the country. Nathan Peterson of Los Angeles even sold copyrighted software belonging to Microsoft and Adobe through his website iBackups.com, prosecutors alleged.

The FBI got a look at the site in 2003 and shut it down in 2005. U.S. District Court Judge T.S. Ellis III sentenced Peterson to 84 months in prison and ordered him to pay restitution of more than $5.4 million. In December, Peterson had pleaded guilty on two counts of copyright violations.

He also admitted to illegally copying and selling more than $20 million worth of software.
'Stealing the intellectual property of others is always a bad idea in any context. It's theft,' said a statement issued by Chuck Rosenberg, U.S. Attorney for the Eastern District of Virginia. The FBI alleged that with the proceeds of the sale, Peterson was able to fund 'an extravagant lifestyle,' that included ownership of multiple homes, cars, and a boat.

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