Grand Jury Indicts Russian Programmer

An early settlement is apparently not in the works for Russian programmer Dmitry Sklyarov. A U.S. grand jury has indicted Sklyarov and his employer, a Moscow-based firm, on charges of trafficking and conspiring to traffic a copyright circumvention device.

Sklyarov, who is out of custody on $50,000 bail, faces up to 25 years in prison and a $2.25 million dollar fine if he is found guilty of the charges handed up in the five-count indictment. His employer, ElcomSoft, could be liable for a fine of $2.5 million if found guilty, according to the Electronic Frontier Foundation (EFF), a civil liberties organization that has been involved in the case.

The indictment is sure to step up the debate surrounding the high-profile case, which hinges on the 1998 U.S. Digital Millennium Copyright Act (DMCA). The EFF, a number of computer users, and other civil liberties organizations have been vocal in their opposition to the act, which makes it a crime to traffic information, tools, or software designed to circumvent copyright controls.

Arrested for Demo, Sales

Sklyarov was arrested in Las Vegas in July and charged with violating the DMCA. He gave a presentation at the Def Con security conference there, showing material on eBook encryption. He also demonstrated and marketed an ElcomSoft product that can circumvent encryption technology used in Adobe's eBook Reader product.

The DMCA makes it a crime to traffic information, tools, or software designed to circumvent copyright controls. Adobe, under pressure from the EFF and some customers, withdrew its charges and indicated it would not voluntarily assist in the prosecution.

Sklyarov's case is the first criminal prosecution under the DMCA. ElcomSoft's encryption-cracking software is legal in Russia.

Vigorously Contested

"Even if one were to ignore the serious legal questions involving the DMCA, this case hardy cries out for criminal prosecution," says Joseph M. Burton, Sklyarov's attorney, in a statement. "Sklyarov and ElcomSoft's actions are not conduct that Congress intended to criminalize."

Sklyarov and his team plan to "vigorously contest" the charges, Burton adds.

Sklyarov and ElcomSoft are scheduled to be formally charged at an arraignment in federal court in San Jose, California on Thursday.