to Myfastfang50
Illegal decryption
occurs where someone sells or uses softwear to unscramble programming which a cable or satellite company encypts (scrambles) so it can charge authorized users money. The offense is stealing. Echostar's Complaint is linked to one of the emails in this thread and you may want to read the federal statutes which are violated by stealing programming.
Illegal decryption can occur whether or the patent for the encryption or decryption program is stolen. For example, if the softwear used to illegally decrypt the program is independently invented and does not use the patent holder's invention, it is not patent infringement. In fact, it would be theft even if the encryption program or decryption program is not patented.
Whether the encryption program or decryption program is patented has nothing to do with whether the decryption of the program by someone who does not pay for it is illegal. The reason for patenting the program is to prevent a competitor from using it. Thus, for example (and i do not know the players), there are probably different patentsfor Nagravision and PowerVu.
On the other hand, if a patented decryption program is stolen and used, then there could be a patent infringement claim.
The difference between your folded paper example
above and the stealing of satellite signals is that (generally) no federal or state law prohibits anyone from picking up a folded pice of paper they see laying around.
But, of course, if the paper is in mail addressed to somreone else and is opened without the permission of the addressee, that can be a crime.
Please note that, by referring to the lawsuit, I am not expressing an opinion on its merits or suggesting the allegations are true. I merely want to refer you to the statutes cited there.
Iceberg said it well. And much more succinctly.