Satellite Piracy - The European Experience

By John McCormac - Editor Of Hack Watch News

In mid-1994 the RCA digital satellite system (DSS) was introduced. The system is digital and therefore takes advantage of compression techniques to squeeze a number of channels into the bandwidth that would normally be occupied by a single satellite TV channel.

The DSS is currently transmitting from a pair of co-located satellites at 101 Degrees West. Since the satellites used are transmitting on a higher frequency with higher power, the size of the dish is also smaller. It is only the size of a pizza pan - about 18 inches in diameter. Currently there are about 150 channels being transmitted. More will be added. But something from the past is worrying people - piracy!

In the late 1980s and early 1990s piracy haunted the large dish C- Band satellite television. Could the same thing happen to the DSS system? Only time will tell. The DSS encryption is based on the VideoCrypt access control system. The European analog version of VideoCrypt has been repeatedly compromised by hackers over the last five years.

Europe - The Present Situation

There are three main scrambling systems in European satellite TV. The first and most obvious is VideoCrypt. This system is used by BSkyB and a number of other channels. (BSkyB is the broadcaster of the Sky Multichannels Package which carries three movie channels and a few general entertainment channels for the Irish and UK markets) There are an estimated 2.5 Million Sky subscribers using VideoCrypt smart cards to gain access to this programming.

The second principal system is EuroCrypt-M. It is used by Canal Plus, TV3, TV1000, FilmNet and a few others. There may be as many as 400,000 satellite subscribers to these channels. The market for these channels is mainland Europe and they have many more subscribers on cable. The third scrambling system is Nagra Syster, the only one that is still secure from signal hackers. It is used by Premiere, Canal Plus and Teleclub. While hackers are actively working on a viable hack, the system has fared well during the past four years.

One major difference between between Europe and the United States is the uniformity of American laws and their enforcement. Piracy has thrived in Europe because each nation has its own copyright laws and generally only protects its own channels. This makes it possible, for example, to legally sell pirate smart cards that allow access to BSkyB's VideoCrypt encoded channels throughout all of Europe except in the United Kingdom (UK).

The VideoCrypt system as used by DSS in the United States differs from the European implementation. The European implementation is a purely analog system that only scrambles the video. The DSS is a completely digital system that encrypts the digitally encoded video and audio. However there are some similarities. The most obvious is the smart card.

The European VideoCrypt system, like DSS, is based on a secure detachable processor - the removable smart card holds all of the critical data. The smart cards are both the systems' greatest strength and weakness. Smart cards permit the broadcasters to change or upgrade their conditional access system. In small quantities it can be relatively inexpensive but when there are a few million cards to be replaced, the costs increase. BSkyB paid 21 Million pounds for their last card change. Originally they had planned to change their cards on a three to six month cycle. Unfortunately when they changed their cycle, they gave the hackers enough time to hack the smart cards.

DSS faces a similar threat. Since the VideoCrypt system in Europe has been totally compromised, European pirates have already set their sights on DSS. Some sources have reported that DSS has, indeed, been hacked already and that pirate cards will be on the market by August. Even if it proves untrue, European hackers have an intimate understanding of the VideoCrypt system and it is a good starting point for a hack on DSS.

What Is VideoCrypt?

The European implementation of VideoCrypt is a video only scrambling system. The active video section of each line is cut and rotated about one of 256 points. The cutpoint for each line is generated from the output of a Pseudo Random Number Generator.

The seed for the PRNG is derived from the data transmitted over the air along with the video. The decoder extracts and passes this data to the smart card. The smart card runs the seed generation algorithm and returns the correct seed to the decoder. The decoder itself is essentially "dumb" because the main cryptography takes place inside the smart card.

VideoCrypt decoders contain a few built-in algorithms to stop pirate card from being used in the decoders. However due to a programming error on many of the original decoders and IRDs (integrated receiver-decoders), the most powerful algorithm, the Fiat Shamir Zero Knowledge test, did not work properly. Although the same authentication algorithm as used in the DSS system, it is doubtful that the same error was made.

The Fall Of VideoCrypt

VideoCrypt was hacked in fifteen seconds because it contained a fundamental flaw that was common to most of the smart card based systems designed in the 1980s. The data flow between the card and the decoder could be tapped just like a phone conversation. The data could be fed to other decoders and they could all decode the programming from the data produced by the one authorized card.

This hack, presented in a article written about the security of smart card based scrambling systems, is known as the McCormac Hack. It works and is in operation in Spain where it is feeding an MMDS (multipoint microwave distribution system) network from one smart card.

The ease with which VideoCrypt could be hacked was terrifying. Here was this system that was advertised as the most pirate-proof system yet developed and it was hacked. It was only the beginning of the nightmare for Sky and News Datacom.

The Infinite Lives Hack

Another major hack on the security of the VideoCrypt system was the Infinite Lives hack. At the time, the smart cards were using EPROM technology. These cards needed 21 Volts to program them. By limiting this voltage to 12 Volts or so, it was possible to prevent Sky from reprogramming or turning off the cards. (This is a variant of the hack on the France Telecom phone cards where the programming voltage pad was covered so that the payphone could not overwrite the card.)

The KENtucky Fried Chip Hack

The KENtucky Fried Chip was named after Ken Crouch, the head of Sky's Security Department. The hackers had modified the program in the IC that controlled the smart card interface. It would read the identity of the smart card inserted in the decoder. Then it would look to see if there was a kill message addressed to that particular card and if there was, the modified program ensured that the kill message never reached the card. This technique of modifying the operation of an IC in the decoder is known as "chipping" in the US. It was the first incident of this type of hacking in Europe. In the DSS system, the smart card interface is controlled by a custom microcontroller.

The Ho Lee Fook Hack

The name of this hack on VideoCrypt is more to do with the exclamation uttered by people told of the hack. It was a direct replacement for a smart card.

The first version drew heavily on the KENtucky Fried Chip hack. It modified the same chip so that it contained the same algorithm as the authorized smart card. Thus the first cardless Sky VideoCrypt decoder was born - something considered impossible by News Datacom. They had used Fiat-Shamir's Zero Knowledge Test and had integrated into the VideoCrypt system for just such an event. Strangely it never worked.

This first version of the hack was too insecure and too expensive. The solution was in a low cost microcontroller known as a PIC. The PIC controller range is manufactured by Arizona Microchip. They are RISC microcontrollers and as such can give a superior performance over conventional microcontrollers in certain applications. Pirate smartcards happened to be one of these applications.

In early June 1993, the first PIC smart card was developed. It was coded up on a wet Saturday afternoon somewhere in Europe. This was now a genuine pirate smart card - the very thing that the brochures on VideoCrypt said were impossible. Sky's VideoCrypt was to remain completely smashed for approximately one year - the remaining lifetime of the Sky's 07 card.

All of the Sky channels, and almost every other VideoCrypt encoded channel were available from the pirates. The minor electronic countermeasures (ECMs) that News Datacom implemented were easily dealt with by hackers often within a few minutes.

A leap in hacking technology had been made. The newer versions of the pirate cards were reprogrammable. With a modem it was possible to transmit a card update to all the European dealers within a few hours.

Since their technological attempts to control hacking had failed, Sky and News Datacom sought help from the Law. At first they attacked the pirates in the UK but then stupidly moved to Ireland.

VideoCrypt - The Irish Court Case - A Question Of Copyright

The law was cut and dried in the UK. Fortunately Ireland is not part of the UK. A major precedent was set when Sky tried to pursue David Lyons of Satellite Decoding Systems, an Irish based business, through the Irish courts. Sky alleged that the copyright of the software in their Sky smart card had been infringed.

Through a combination of technological ignorance and reluctance, Sky were defeated. They never provided any proof that the copyright of their software had been infringed. They claimed that since both cards decoded their channels, it was obvious that it was their software in both cards. It was pointed out that 2+2=4 but so does 1+1+1+1=4. They failed to distinguish between the output of the software and the actual software. The Judge ruled against Sky.

The TV-Crypt

Perhaps the most significant event of 1994 in the hacking world, was the formation of the TV-CRYPT. It is a non-commercial group interested in exploring scrambling systems. In some respects it is like the DESUG that was formed to hack the VideoCipher II in the mid 1980s. This is where the Omigod hack originated from. It is also where the Phoenix hack was stolen from.

When Sky One was scrambled in September of 1993, many European viewers were cut off from watching Star Trek - The Next Generation. The final season, Season 7, was about to be shown on Sky One. A high proportion of hackers watch Star Trek. What followed was only logical.

The logical answer was an emulator program for the personal computer to drive the decoder. Some of the commercial hacks were examined and in one case the code was extracted from one of the Ho Lee Fook chips. The code from the 8052 microcontroller was transcoded into C. From there it was transformed into the PC program known as Season 7 or Omigod. The pronunciation is Oh My God!

The distribution of the Omigod hack only took a few hours. It was available on all major BBSes and at many internet sites in Europe. There were even copies floating around at the Cable And Satellite Show in London, one of the biggest trade shows in Europe. Most of the top hackers in Europe were together in the same place at the same time.

Dark Wednesday - Sky Switch To 09

The reality of the situation was beginning to tell on Sky. They could no longer evade the problem and they switched to their new smart cards - issue 09. Although Sky had been sending these cards out since February it wasn't until May 18th that the pirates cards ceased to operate. The Omigod program stopped working. Sky had, or so they thought, won the war. The fun had only just begun.

The Great Code Auction

Something decidedly strange happened on June 20th. There was an auction in the Dorchester Hotel. Sky's 09 code was being auctioned off. More importantly it worked. Sky's smart card was compromised again.

It is not known how much money changed hands but the theory is that it was in the hundreds of thousands of pounds. The pirates and hackers were worked day and night to upgrade their cards with the new code. In bars throughout the UK, queues formed of eager customers, their beer in one hand and a pirate card in the other. The new code did not last long. Sky and News Datacom struck back with another ECM. This one was good. It was difficult for the hackers to solve.

The timing of the event had sown the seeds of uncertainty in the minds of pirates. Was it a sting by Sky? Was it a totally pirate operation? The full story has not yet been established. There was so much lying and deception going on that it was difficult to know who was involved.

What followed was a long hot summer of false starts and disgruntled customers. It seemed that Sky was winning as some of the pirates customers were signing up with Sky again but most decided to go with EuroCrypt-M cards and watch other channels. It was also possible to obtain a smart card from legal outlets and have it authorized for a few weeks. This ensured that those who wanted to view Sky were able to.

The Phoenix Program

The code auctioned in June made its way to the TV-CRYPT group where it was analyzed. The algorithm was an improvement on the 07 algorithm, but there was something else.

By rewriting the code it was possible to generate a correct checksum for any packet of data. By using a decoder emulation program it was possible to have an authorized smart card treat any data packet sent to it as valid.

This was a significant discovery. Sky's VideoCrypt system operated on an over the air authorisation procedure. Therefore if a data packet with a correct checksum was sent to a card it would be possible to switch on cards without the intervention of Sky. The card would not be able to tell the difference between a packet from a decoder emulator program and the real decoder.

By phoning Sky and having them turn on some legitimate cards over the air, it was possible to build up an understanding of how the authorisation scheme worked. The program was called Phoenix after the mythical bird. By the first week in August, the Phoenix program was posted.

To the TV-CRYPT the Phoenix program was an intellectual exercise to see how the VideoCrypt system worked. Some pirates saw things differently. They sold the program in some cases for thousands of pounds.

Genesis - Exodus - Exitus

The Star Trek influence runs through these hacks. Genesis was part of the plot of one of the Star Trek movies. One of the first commercial hacks was named Genesis. This was the combination of the Phoenix code and a blocker program. The combined program was loaded into a PIC16C84 microcontroller. One device could turn on all channels on a Sky card and block any kill signal that Sky sent to that card.

Sky had totally lost control of their access control system. Even the 09 issue cards that Sky had previously turned off were being reauthorized. The problem had gotten out of control. Sky and News Datacom were searching desperately for some solution.

It seemed that Sky, through their Quick Start scheme had supplied the pirates with all the genuine Sky cards that they needed. The going price for a QS card in September reached 60 pounds (about $95). The legitimate dealers were getting them from Sky at 5 pounds per card (about $8).

After what can be described as a war of attrition, News Datacom came up with an ECM that completely killed the cards activated by Genesis blockers. These dead cards could not be reauthorized. However September 1994 was a very bad month for Sky. From pirate sources, who were monitoring the over the air data, it became apparent that Sky were trying to kill every card that it could not account for. In that month alone, Sky killed 569430 cards. It is not clear how many of these were QS cards and how many were people just giving up watching the Sky channels. The October kill figure was 220073.

Legal Action In The UK

Sky eliminated its security department in March 1993 even though this internal group had succeeded in stemming the flow of piracy in the UK. It was a stupid decision for which they would pay dearly.

A deluge of ill-considered legal action followed in the UK. Sky prosecuted the "small guys" who did not have the money to defend themselves. These people were breaking the law in the UK but in prosecuting it was a public-relations nightmare. They created martyrs.

In one case Sky drew the media's attention by trying to claim that the defendant was a main dealer for Genesis blockers. However as the defendant had only 300 blockers, it was obvious that he was not a larger dealer.

In a Sky affidavit in the case it was estimated that Sky lost 2.25 million pounds to piracy between January 01 and May 18 1994. According to their estimates there 50,000 subscribers lost. According to Hack Watch News, there were about 300,000 pirate Sky cards in the UK at the beginning of the year.

The 09 issue of cards in February 1994 cost Sky approximately 21 million pounds. The next card issue, 0A, due in September 1995, will probably cost another 21 million pounds ($30 Million).

Another card issue (0B) would be necessary in February 1995 if Sky wants to maintain the security of its system. The present annual cycle is not short enough to deter pirates. Sky originally planned to change the cards every three to six months. This would provide the pirates with a moving target. When the company changed to a longer cycle hackers saw the system as a very big sitting duck.

The Cloning Of VideoCrypt

A sure sign that VideoCrypt was defeated was that it was cloned. The clone system, called KeyCrypt, was demonstrated at the London Cable and Satellite Show in April 1994. The company that had cloned it, Hi Tech Xtravision, had previously reverse-engineered a rather complex Application Specific Integrated Circuit (ASIC) as part of a hack on a digital audio system. They also had a far better idea for a customized smart card which would prove a lot more difficult to hack. A case perhaps of poacher turned gamekeeper.

Despite the potential benefits of KeyCrypt, broadcasters who want to use it can't. Some undecided copyright issues prevent them from doing so.

The Present Day

At the time of writing, VideoCrypt is still hacked. There are a few working Omigod programs available for the PC and the MAC that can hack all of the VideoCrypt channels. These programs are free - most of the BBSes in Europe have copies. When Sky implements an ECM, the modified versions of the programs are posted on the BBSes within a few hours - an embarrassing situation for News Datacom and Sky.

Many of the pirate smart cards on the market now use American technology. One card has a keypad. When there is an ECM, the pirate card user just telephones an answering service to retrieve set of numbers. He then enters the numbers on the keypad and the pirate card resumes operation. Another card uses a modem. So when there is an ECM the modem does all of the hard work.

Things will change over the next few months though if Sky brings out its new 0A card. Then the pirates may be defeated - for a while. However, the problem is that nobody is sure how long the new card will remain unhacked. The most important lesson that the DSS broadcasters could glean from the European experience is that the cards have to be changed every six months. Otherwise it is certain that they will be hacked.

Copyright (c) 1995 Hack Watch News