Nathan Peterson, 26, of Antelope Acres, Calif., faces a maximum sentence of 10 years in prison and a $500,000 fine when he is sentenced in April.
Peterson admitted in a plea that he controlled iBackups.net, which sold copies at below-market prices of software products from Adobe Systems, Macromedia, Microsoft, Sonic Solutions and Symantec. He began operating the site in 2003 before being shut down by the FBI in February.
Peterson’s operation, authorities said, netted $5.4 million in profit. They estimated value of the copyrighted software was nearly $20 million.
“The defendant’s website was the largest for-profit software piracy sites ever shut down by law enforcement,” U.S. Attorney Paul J. McNulty said. “It clearly demonstrates our resolve to prosecute thieves who sell other people's property on the Internet.”
The software products purchased on Ibackups.net were distributed either by downloads and shipment through the mail, authorities said. IBackups used Google AdWords extensively to recruit customers.
The company sold pirated software, claiming it was “backup software” — legal copies of software to be used by the software owner for backup in case of system crashes. It is, however, illegal to resell such copies.
With the bust, the government seized numerous assets from Peterson, including several bank accounts and six automobiles. Two of the cars included a fully restored 1949 Mercury Coupe and a 2006 Mercedes-Benz purchased for $125,000.
