Channelsurfing.net operat...UFC events

The UFC's war on piracy got some federal help this morning.

U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) unit today arrested the operator of Channelsurfing.net.

Federal officials charged 32-year-old Bryan McCarthy of Texas with one count of criminal infringement of a copyright. He allegedly posted illegal streams of the UFC, NFL, NBA, WWE and other sports programming.

According to today's release, McCarthy made more than $90,000 in profits from online merchants who paid him to advertise on the site. Since it was seized on Feb. 1, the site has received 1.3 million hits.

"Today's arrest is another step forward in the ongoing investigation by New York HSI agents into copyright infringement and theft of intellectual property rights," James T. Hayes, special agent in charge of HSI in New York, stated. "We will continue to investigate illegal streaming of programming on the Internet in an effort to preserve legitimate and creative business interests and deter others from engaging in online piracy."

McCarthy, who purchased the domain in 2005, faces up to five years in prison if convicted.

"Brian McCarthy allegedly sought to profit by intercepting and then streaming live sporting events, hiding behind the anonymity of the Internet to make a quick buck through what is little more than high-tech thievery," Preet Bhara, U.S. Attorney for the Southern District of New York, stated. "This arrest sends a clear message that this office, working its partners at HSI, will vigorously protect the valuable intellectual property rights through arrest and domain-name seizures.

The Channelsurfing.net site now contains a note about the seizure with logos from the Department of Justice, the National Intellectual Property Rights Coordination Center and HSI.

As MMAjunkie.com (www.mmajunkie.com) reported in mid-2010, UFC officials announced they had reached "confidential settlements" with more than 500 businesses and individuals as a result of illegal broadcasts and viewing of UFC events. The UFC really ramped up its anti-piracy efforts just this year, and as White told MMAjunkie.com, he sees only one surefire way to get pirates' attention.

"When people start going to jail, people will stop doing it," White said.

UFC CEO Lorenzo Fertitta testified before the U.S. House Judiciary Committee in early 2010 during a referendum on Internet piracy of sporting events. He said the UFC's anti-piracy team, for example, had uncovered 271 illegal streams of January's UFC 106 event with more than 140,000 viewers.

The UFC annually offers approximately a dozen PPV offerings and in 2010 earned an estimated $450 million in PPV revenue. The events cost $44.95 each ($55.95 for the HD version) both via cable/satellite providers and via official online outlets.

Currently, the promotion has just a handful of authorized online PPV affiliates – UFC.com, Yahoo! Sports and MMAFighting.com, for example – who charge the same $44.95 fee. Lawrence Epstein, the UFC's general legal counsel, said the Internet price is mandated by the promotion's contract with pay-per-view providers such as DirecTV and DISH Network and cannot be lowered.

All other outlets – including those who charge a discounted fee – are doing so illegally, Epstein said.

(Pictured: Dana White)