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1 BENJAMIN B. WAGNER United States Attorney 2 MATTHEW D. SEGAL Assistant U.S. Attorney

3 501 I Street, Suite 10-100 Sacramento, California 95814 4 Telephone: (916) 554-2708

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FILED

APR 0 8 2010

IN THE UNITED STATES DISTRICT COURT FOR THE

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EASTERN DIS~RICT OF CALIFORNIA

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UNITED STATES OF AMERICA,
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Plaintiff,
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v.
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NICHOLAS SUMMERLIN, and
13 ANGELICA PARSON, 14

Defendants.

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VIOLATIONS: 18 U.S.C. § 371 - Conspiracy; 17 U.S.C. §§ 506(a) (1) (A) and 18 U.S.C. § 2319 (b) (1) - Criminal Infringement of a Copyright (2 Counts)

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COUNT ONE:

.IN~.I~l:M~Nl: [18 U.S.C. § 371 - Conspiracy]

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The Grand Jury charges:

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NICHOLAS SUMMERLIN, and ANGELICA PARSON,

21 defendants herein, as follows:

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23 1.

At all times relevant:

I. INTRODUCTION

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a.

"Adobe Creative Suite Master Collection 3," was a suite

26 web, video, and/or audio media.

25 of copyrighted computer programs used to create content for print,

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b.

"Craigslist.org" was a website that could be used to post

28 and respond to online classified advertisements to buy and sell

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goods or services.

c. "Microsoft Office 2007" was a suite of copyrighted

computer programs used for creating, processing, and presenting text, pictures, and numerical data.

d. "PayPal" was an e-commerce business allowing payments and

money transfers to be made through the Internet. PayPal served as an electronic alternative to traditional paper methods such as checks and money orders.

e. "Rosetta Stone" was a copyrighted computer program for interactive language learning. The company that produced Rosetta Stone did not distribute to consumers a single DVD edition containing twenty-seven languages, and never produced a DVD entitled "Ultimate Rosetta Stone DVD," or "Multilanguage DVD."

f. "Torrent Sites" were Internet sites that used "Torrent" protocols to allow users to distribute and/or receive large amounts of data without the heavy demands on their computers that would be needed for standard Internet hosting.

II. BACKGROUND

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Defendants NICHOLAS SUMMERLIN and ANGELICA PARSON met each

20 other in Brookings, Oregon in the summer of 2008. While living in 21 Brookings, Oregon, they supported themselves in part by selling

22 infringing copies of Rosetta Stone and Adobe software. Between on 23 or about December 31, 2007 and on or about October 27, 2008,

24 defendant SUMMERLIN's PayPal account posted 149 sales transactions, 25 including twenty-nine sales of software entitled "Rosetta Stone

26 Multilanguage DVD v2," containing interactive programs for learning 27 twenty seven languages, with a total retail value of approximately 28 $300,000.

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1 3.

On or about March 30, 2009, defendant NICHOLAS SUMMERLIN

2 received an email from Rosetta Stone warning him that Rosetta

3 Stone's software was copyright protected and instructing him to 4 cease and desist his illegal conduct.

5 4. On or about July 7, 2009, defendant ANGELICA PARSON received 6an email from Rosetta Stone warning her that Rosetta Stone's

7 software was copyright protected and instructing her to cease and 8 desist her illegal conduct.

9 5. On or about March 7, 2009, defendant NICHOLAS SUMMERLIN moved 10 to Roseville, California, where he continued to sell pirated,

11 infringing copies of software. Defendant ANGELICA PARSON remained 12 in Brookings, Oregon until in or about October 2009, when she

13 relocated to Roseville, California to live with defendant NICHOLAS 14 SUMMERLIN.

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16 6.

III. THE CONSPIRACY

Beginning no later than on or about August 23, 2009, and

17 continuing through on or about October 21, 2009, in the State and 18 Eastern District of California and elsewhere, the defendants

19 knowingly and willfully combined, conspired, and agreed to commit 20 an offense against the United States, to wit: criminal

21 infringement of a copyright, in violation of Title 17, United

22 States Code, Sections 506(a) (1) and (2) and Title 18, United States 23 Code, Section 2319(b) (1).

24 IV. MANNER AND MEANS OF THE CONSPIRACY

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The defendants executed the conspiracy by the following manner

26 and means:

27 a. They downloaded unauthorized copies of Adobe Creative

28 Suite, Microsoft Office 2007, and Rosetta Stone, from Torrent

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23 emaileddefendantNICHOLASSUMMERLIN.inpertinentpart.as 24 follows:

25 "So I was wondering if you had any software I could sell for

26 you, I want to make some extra cash until I get the

27 credit processing going. I was thinking whatever I sold I could

28 split 50/50 with you, so basically I would be doing the selling and

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sites.

b. They burned onto optical discs unauthorized copies of Adobe Creative Suite, Microsoft Office 2007, and Rosetta Stone that they had downloaded from Torrent Sites.

c. They used craigslist.org to offer for sale Adobe Creative Suite, Microsoft Office 2007, and Rosetta Stone (including a twenty-seven language version of Rosetta Stone) .

d. They used PayPal to receive payments for sales of unauthorized copies of Adobe Creative Suite, Microsoft Office 2007, and Rosetta Stone.

e. They delivered unauthorized copies of Adobe Creative Suite, Microsoft Office 2007, and Rosetta Stone through the mail or in person.

f. They exchanged emails with one another on how to conduct their' pirate software enterprise.

V. OVERT ACTS

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In furtherance of the conspiracy and to effectuate the

18 objects and purposes of the conspiracy, the following overt acts, 19 in addition to others, were committed in the Eastern District of 20 California and elsewhere:

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Conspiratorial Agreement

On or about August 22, 2009, defendant ANGELICA PARSON

a.

1 all you have to do is mail out the software. Let me know what you 2 think and what software I could sell."

3 b. On or about August 23, 2009, defendant NICHOLAS SUMMERLIN

4 replied, in pertinent part, as follows:

5 "Ok we could split 50/50 and I guess I would package/ship w/

6 tracking within 24 hours Monday through Friday for you babe.

7 You would have them pay you, and then what I would want you to do 8 is send me my half over paypal as a 'gift'. And also forward me 9 the email paypal sends you when you get paid.

10 This is what I sell at the moment hun:

11 MS Office 2007 Enterprise edition for the PC - can be

12 installed on multiple computers.

13 Adobe CS3 Master Suite - pc /w unused serial

14 The 27 language Rosetta Stone dvd for PC

15 Latin American Spanish Levels 1-3"

16 Sale of Microsoft Office 2007 to "J.M."

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c.

On or about August 31, 2009, defendant ANGELICA PARSON

18 agreed via email to sell "J.M." in Palo Alto, California a copy of 19 Microsoft Office 2007 in return for a $45 deposit to defendant

20 NICHOLAS SUMMERLIN's PayPal account.

21 d. On or about August 31, 2009, defendant NICHOLAS

22 SUMMERLIN's PayPal account received a $45 payment from "J.M."

23 e. On or about September 2, 2009, defendant NICHOLAS

24 SUMMERLIN sent a registered mail package to "J.M."

25 Sale of Adobe Creative Suite 3 to "S.C."

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f .

On or about August 31, 2009, defendant ANGELICA PARSON

27 agreed to sell "S.C." in Chico, California a copy of Adobe Creative 28 / / /

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1 Suite 3 in return for a $50 deposit to defendant NICHOLAS

2 SUMMERLIN's PayPal account.

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On or about August 31, 2009, defendant NICHOLAS

4 SUMMERLIN's PayPal account received a $50 payment from "S.C."

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h.

On or about September 2, 2009, defendant NICHOLAS

6 SUMMERLIN sent a registered mail package to -s , C."

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Sale of Rosetta Stone Software to "M.C."

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i.

In or about September 2009, defendant ANGELICA PARSON

10 copy of twenty-seven-Ianguage Rosetta Stone software in return for

9 negotiated a sale to "M.C.," in Arroyo Grande, California, of a

11 a $35 deposit to defendant NICHOLAS SUMMERLIN's PayPal account.

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j .

On or about September 12, 2009, defendant NICHOLAS

13 SUMMERLIN's PayPal account received a $35 payment from "M.C."

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k.

On or about October 6, 2009, defendant NICHOLAS SUMMERLIN

15 sent a registered mail package to "S. C."

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On or about October 9, 2009, defendant ANGELICA PARSON

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17 received an email from "M.C." informing defendant PARSON that

18 "M.C." had received the Rosetta Stone software.

19 All in violation of Title 18, United States Code, Section 371.

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2 0 COUNT TWO:

[17 U.S.C. § 506(a) (1) (A) and 18 U.S.C. § 2319(b) (1) - Criminal Copyright Infringement]

22 The Grand Jury further charges:

23 NICHOLAS SUMMERLIN,

24 defendant herein, as follows:

25 In the course of 118 PayPal transactions between on or about

26 April 25, 2009 and on or about October 21, 2009, in the Eastern

27 District of California and elsewhere, defendant NICHOLAS SUMMERLIN

28 did willfully, and for the purpose of commercial advantage and

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1 private financial gain, infringe at least one copyright by

2 reproducing and distributing, during a 180-day period, ten or more 3 copies of one or more copyrighted works, which had a total retail

4 value of more than $2,500, to wit: unauthorized copies of software 5 Adobe Creative Suite, Microsoft Office 2007, and Rosetta Stone with

6 a combined retail value of no less than $409,013.00, all in

7 violation of Title 17, United States Code, Section 506(a) (1) (A) and

8 Title 18, United States Code, Section 2319 (b) (1) .

9 COUNT THREE:

[17 U.S.C. § 506(a) (1) (A) and 18 U.S.C. § 2319(b) (1) - Criminal Copyright Infringement]

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11 The Grand Jury further charges:

12 NICHOLAS SUMMERLIN,

13 defendant herein, as follows:

14 In the course of 212 PayPal transactions between on or about

15 October 27, 2008 and on or about April 24, 2009, in the Eastern

16 District of California and elsewhere, defendant NICHOLAS SUMMERLIN

17 did willfully, and for the purpose of commercial advantage and 18 private ,financial gain, infringe at least one copyright by

19 reproducing and distributing, during a 180-day period, ten or more 20 copies of one or more copyrighted works, which had a total retail 21 value of more than $2,500, to wit, unauthorized copies of software 22 Adobe Creative Suite, Microsoft Office 2007, and.Rosetta Stone with

23 a combined retail value of at least $152,417.00,

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1 all in violation of Title 17, United States Code, Section

2 506(a) (1) (A) and Title 18, United States Code, Section 2319 (b) (1).

A TRUE BILL.

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BENJAMIN B. WAGNER

9 United States Attorn y

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No.

UNITED STATES DISTRICT COURT

Eastern District of California

Criminal Division

THE UNITED STATES OF AMERICA

vs.

NICHOLAS SUMMERLIN, and ANGELICA PARSON

INDICIMENI

VIOLATION(S): 18 U.S.C. § 371 - Conspiracy; 17 U.S.C. §§ 506(a)(1)(A) and 18 U.S.C. § 2319(b)(I) - Criminal Infringement of a Copyright (2 Counts)

A true bill,

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Filed in open court this ~ day

of ~..J.l-----, A.D. 20 -'-0--

Bail, $

WARRANT: NO BAIL PENDING HEARING

'2: 1 0 - .M ... 0 1 3 5 [:'l'

~ lihi~

PENALTY SLIP ( IND I CTMENT)

DEFENDANT:

NICHOLAS SUMMERLIN

COUNT ONE:

VIOLATION:

18 U.S.C. § 371 - Conspiracy

PENALTY:

Not More Than 5 years imprisonment Not More Than $250,000 fine, or both; 3-years supervised release.

COUNTS TWO AND THREE:

VIOLATION: 17 U.S.C. §§ 506(a) (1) (A) and 18 U.S.C. §§ 2319(b) (1) - Criminal Infringement of a Copyright

PENALTY:

Not More Than 5 years imprisonment Not More Than $250,000 fine, or both; 3-years supervised release.

ASSESSMENT:

Mandatory $100 special assessment each count.

DEFENDANT:

ANGELICA PARSON

COUNT ONE:

VIOLATION:

18 U.S.C. § 371 - Conspiracy

PENALTY:

Not More Than 5 years imprisonment Not More Than $250,000 fine, or both; 3-years supervised release.

ASSESSMENT:

Mandatory $100 special assessment.