High-Tech Karaoke Pirate Streaming Servers Seized and 18 Arrested in Hong Kong 

• Hong Kong Customs conducted several raids and arrested 18 people suspected of infringing copyright and/or trading laws.
• Tens of karaoke devices, audio and video equipment, and network devices were seized during the operation.
• This was the first case where infringing karaoke songs used streaming technology.

High-tech hardware and remote servers powering an online karaoke streaming system were seized for the first time, and 18 people were arrested as part of a territory-wide enforcement operation called Magpie, mounted by Hong Kong Customs. The individuals are suspected of providing infringing karaoke songs using streaming technology.

Operation Magpie, which occurred between July 2 and 25, targeted illicit activities involving party room and restaurant operators who provided infringing karaoke songs for business profit to customers who privately booked the venues. 

Customs officers seized 39 karaoke devices used for playing suspected infringing songs, four gaming consoles with suspected pirated electronic games, as well as audio and video equipment and network devices worth approximately US $140,820 while raiding 31 party rooms and one restaurant in districts that included Kwun Tong, Causeway Bay, Tsuen Wan, and Mong Kok.

The raid of one data center and four party rooms that used streaming technology yielded five karaoke devices preloaded with suspected infringing karaoke songs and network equipment. They seem to have used a promotional copy of an intelligent song request system of some kind and a WeChat connection.

Hong Kong Customs also arrested 11 men and seven women, aged between 23 and 49, on suspicion of violating copyright and/or trading laws. Two of the 18 arrested individuals were charged with copyright offenses, while the other 16 were released on bail during the ongoing investigation. 

Punishments for operating a pirate karaoke system of any kind are fairly severe in Hong Kong. The maximum penalty upon conviction is a fine of US $6,400 per infringing copy and imprisonment for four years, while unfair trade practices could result in a fine of up to US $64,000 and five years of prison time.

Karaoke still generates billions of dollars a year for rightsholders. However, the music rightsholders involved are not mentioned.