Two Victorian men have been charged with allegedly making and selling fake pay TV cards which give viewers access to Foxtel and Austar without a subscription.
The Australian Federal Police (AFP) raided properties in three states and said they believed up to 50,000 cards could be circulating across Australia.
The AFP executed 10 search warrants, seizing hundreds of the fake cards and set-top decoders in Victoria, NSW and Queensland during their six-month investigation.
They also seized $169,000 in cash and several computers from one Sydney property.
Rodney Doove, 42 from Mount Waverley in Melbourne's east, was granted bail after appearing in Melbourne Magistrates Court on Wednesday.
The matter was adjourned until July 9 for a committal mention.
A 27-year-old Sebastopol man was due to face court in Ballarat on Thursday.
They are charged with making, distributing and selling fake smart cards and dealing with the proceeds of crime.
The maximum penalty for each of the offences is five years imprisonment.
Chief executive officer of the Australian Subscription Television and Radio Association Debra Richards said the industry was committed to ensuring those who committed piracy were brought to justice.
"Continued piracy will threaten the industry and jobs," Ms Richards said.
"It could also drive up the cost of subscription."
Ms Richards said some pirates had been known to approach people in shopping centre car parks, or knock on the doors of people who had satellite dishes.
Austar chief executive officer John Porter welcomed the AFP's actions.
"That the AFP is taking piracy so seriously is a very positive move for consumers in Australia, Mr Porter said in a statement.
"In the end, people who fall for this cannot only lose their money but also their access to the service.
"STV piracy is no different from walking into a video shop and stealing a DVD and we therefore vigorously support the pursuit of the people who are committing this serious crime."