A $41.85 million final judgment and a permanent injunction issued against both Virtual Systems and its owner and CEO, Vyacheslav Smyrnov, individually. The International Broadcaster Coalition Against Piracy, Inc. (IBCAP) announced the outcome of the October 2024 lawsuit, which it coordinated.
The lawsuit had alleged that Virtual Systems implemented a “DMCA Ignored” policy, and advertised that “we ignore DMCA takedown notices.” The case was coordinated by IBCAP and brought by DISH Network L.L.C., an IBCAP member.
Evidence for the case was obtained and provided by the IBCAP lab, which monitors and builds evidence for illicit distribution that is then used to substantiate infringement claims in legal actions. Prosecution of the case was handled by Hagan Noll & Boyle, LLC.
Despite more than 500 separate notices of infringement from IBCAP, Virtual Systems allowed the continued use of its servers and network by numerous pirate services. Mr. Smyrnov was sued in his personal capacity for authorizing, directing and participating in Virtual Systems’ infringing activities and failing to exercise his ability to curtail those activities.
In the November 12 ruling against Virtual Systems and Mr. Smyrnov, the U.S. District Court for the Western District of Washington at Seattle determined that the “Defendants received at least 512 DCMA-compliant notices of infringement as well as United States court orders notifying Defendants about the infringement taking place on their servers and network and enjoining further infringement. The defendants did not take any actions to stop the infringement.”
The Court further found that Virtual Systems and Mr. Smyrnov willfully infringed the subject copyrights based on their “reckless disregard for, or willful blindness to, the copyright holder’s rights.”
Ongoing pursuit
This judgment follows a recent $3 million settlement paid by hosting provider Datacamp Limited in a separate lawsuit coordinated by IBCAP. Datacamp had been facilitating operations by 11 pirate services. The Motion Picture Association described it as enabling pirates to deliver programming illegally through its platforms, in comments that MPA filed with the Office of the US Trade Representative (USTR) for its 2019 Notorious Markets Report
Another lawsuit against hosting provider Innetra P.C. is pending. Innetra allegedly has been using its servers and network infrastructure to host and transmit the copyrighted works of IBCAP members over the internet, enabling access to unauthorized streams through pirate-operated set-top boxes, apps and websites.
Why it matters
“This ruling against Virtual Systems and its owner is another example of the consequences for hosting providers that choose to ignore takedown notices,” said Chris Kuelling, executive director of IBCAP. “The result of such noncompliance is not only a permanent injunction, but also significant monetary damages, in this case more than $41 million, personally owed by the owner, Mr. Smyrnov,” he said.
Further reading
IBCAP-Coordinated Lawsuit Results in $41.8 Million Judgment Against Hosting Provider Virtual Systems. Press release. November 13, 2025. International Broadcaster Coalition Against Piracy (IBCAP)
Order granting default judgment. DISH Network LLC, Plaintiff v. Virtual Systems LLC, et al. Document 23. Case No. 24-cv-1683-BJR. November 12, 2025. US District Court for the Western District of Washington at Seattle
VIrtual Systems hit with $41M lawsuit after ignoring hundreds of takedown requests. Article. October 16, 2024. Piracy Monitor
For facilitating illegal streaming, UK-based Innetra PC hit with $25M infringement lawsuit. Article. May 7, 2025. PIracy Monitor
Datacamp transported infringing content for 11 pirate services, paid a $3M settlement in 2023. Article. February 5, 2024. Piracy Monitor
