Italian Supreme Court: Digital Piracy and the Strengthening of Supply Chain Liability. Resellers of Pirate Codes and Smart Cards May Also Be Held Liable.

By judgment No. 10451/2026, the Criminal Division of the Italian Supreme Court of Cassation has once again addressed the issue of audiovisual piracy carried out through IPTV systems, clarifying that criminal liability may also extend to parties involved in the final stage of distribution, such as resellers of pirate access codes or smart cards.

The case concerned an individual convicted of unauthorised access to an IT system, computer fraud and breach of copyright law, in connection with his participation in an organised scheme for the commercialisation of tools enabling the unauthorised viewing of pay-TV content.

The defence argued that the conduct should have been classified under the less serious offence of possession and dissemination of access codes to IT systems, provided for by Article 615-quater of the Italian Criminal Code, relying on the defendant’s alleged role as a mere final reseller. The Supreme Court rejected this argument, holding that the sale of codes and smart cards did not constitute an isolated act, but was instrumental to the unlawful dissemination of works protected by copyright.

According to the Court, where the tools placed on the market are intended to enable the unlawful enjoyment of protected audiovisual content, the special regime under Article 171-ter of Law No. 633/1941 applies. The conduct is not limited to the mere circulation of access codes, but forms part of a mechanism aimed at the unauthorised transmission of protected works.

The most significant aspect of the ruling concerns the reseller’s participation in the offences committed upstream in the distribution chain, including unauthorised access to broadcasters’ IT systems and computer fraud. The Supreme Court rejected a fragmented reading of the conduct, stating that resale represents the final stage of a single unlawful operation organised to acquire, distribute and monetise protected content.

From this perspective, the reseller is not necessarily a marginal actor. Even where the reseller intervenes only at the final stage, his activity may constitute an essential contribution to the organisation’s profit-making scheme and to the dissemination of the harm suffered by rights holders. The distribution network, in fact, enables the unlawful acquisition of content to be converted into a pirate service accessible to end users.

The Court also emphasised the subjective element of the offence. The reseller’s awareness may be inferred from the complexity and technical configuration of the tools sold, where those characteristics make it apparent that the reseller is participating in a broader unlawful system. In such cases, criminal intent may relate not only to the sale of the codes, but also to participation in the overall fraudulent scheme.

For businesses, the ruling has practical relevance in several respects. Audiovisual rights holders, streaming platforms, broadcasters and media operators may rely on this approach in their enforcement programmes, since the repression of piracy does not concern only those who technically carry out the unauthorised access, but also the commercial intermediaries that make unlawful distribution economically viable.

The decision is also relevant for marketplaces, technology providers, hosting providers, payment service providers and entities supplying infrastructural or commercial services potentially used within the piracy chain. Although the ruling does not establish a general monitoring obligation, it makes it essential to oversee contractual relationships, anomalous flows, abuse reports and procedures for removing or suspending services where there are concrete indications of unlawful use.

From an organisational standpoint, undertakings operating in the digital distribution of content should strengthen anti-piracy monitoring measures, the collection of technical evidence, cooperation with authorities and rights holders, and the traceability of unauthorised resale activities. Documentation of the unlawful chain may prove decisive in demonstrating the connection between unauthorised access, computer fraud, commercialisation of access credentials and copyright infringement.

The judgment therefore confirms a unitary approach to digital piracy: liability does not attach only to those who technically breach IT systems, but also to those who contribute to the distribution and monetisation of unlawful content. For media and digital businesses, the fight against piracy requires an integrated strategy combining criminal law protection, technological safeguards, contractual enforcement and the timely management of digital evidence.