District Man Pleads Guilty to Federal Offense Involving Sale of Unlicensed Software

            WASHINGTON – Michael Bilecky, 34, of Washington, D.C., pled guilty today to a federal charge stemming from a scheme in which he illegally sold computer software at below- market prices by circumventing the product registration and licensing requirements, announced U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.

            Bilecky pled guilty in the U.S. District Court for the District of Columbia to a charge of trafficking in circumvention devices. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, Bilecky faces a likely range of 10 to 16 months in prison and a fine of up to $40,000. He also is subject to an order of restitution. The Honorable Reggie B. Walton scheduled sentencing for August 18, 2017 at 10:30 am.

            According to the plea documents, Bilecky came to the attention of the FBI after he advertised various computer software products for sale at below market prices, on websites such as eBay and Craigslist. An undercover FBI Special Agent posed as a prospective buyer and arranged to purchase a product made by Autodesk, Inc., at a fraction of its retail cost.

             Like other software programs, the product made by Autodesk had a license key. A software license key is a pattern of numbers and/or letters provided to a licensed user of a software program. License keys typically are created and delivered once the user has paid for the program and has agreed to the terms of use. A license key prevents a developer’s software from being copied, shared, or otherwise used illegally by non-licensed users.

           A separate class of software programs, known as “keygen cracks,” have been created with the purpose of bypassing the legal product registration and license key activation process by generating counterfeit license keys. According to the plea documents, Bilecky used this software in illegally providing the Autodesk product to the undercover agent. A subsequent investigation revealed that Bilecky sold the same “keygen crack” to seven other individuals between February and April of 2013 for commercial advantage and private financial gain.

           In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Jonathan P. Hooks and Allen O’Rourke, and Assistant U.S. Attorney Michael J. Marando, who is prosecuting the case.