2 PREZHDAROVI v. BULGARIA JUDGMENT THE FACTS I. THE CIRCUMSTANCES OF THE CASE A. Background 6. The applicants were born in 1968 and 1965 respectively and live in Pazardzhik. They are spouses. 7. On 20 August 2002 the first applicant, as a sole trader, took out a bank loan in order to purchase computers and to set up a computer club. The computer club was situated in a garage owned by the applicants. The second applicant assisted the first applicant in running the club and replaced him when he was absent. 8. When he started his business, the first applicant purchased five computers and several computer games, which he installed on the computers. His customers were able to use the computers for one Bulgarian lev (BGN) per hour. 9. As the first applicant was renting the computers to his clients, he was obliged to pay the necessary licensing fees to the distributors of the companies that owned the copyright of the products. However, in 2004 the first applicant failed to renew his contracts with the distributors. 10. On 3 April 2004 the police conducted a check on the applicants’ premises and warned the first applicant to abstain from illegally reproducing and distributing software. 11. On 9 November 2004 the director of the local sanitation department at the Ministry of Health ordered that the computer club be closed down for health reasons. B. The search and seizure of the computers 12. On 31 January 2005 Mr V.E., a manager of a company that distributed computer games, lodged a complaint with the district prosecutor in Pazardzhik. Mr V.E. stated that he had visited the applicants’ computer club on several occasions in the period between September and December 2004. He claimed to have noticed that despite their lack of a software license for reproduction and distribution, the applicants had installed certain types of games on the computers and were renting them to their clients. Mr V.E. mentioned specifically some of the games. He also claimed that the applicants had visited his office several times and had been aware of the requirements concerning reproduction and distribution of computer games. Lastly, he claimed that he had warned the applicants about the possible sanctions but had received only threats in response, especially from the second applicant.