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@rpm
they can't, and aren't allowed to "enforce" anything
you can only be prosecuted if you are proved to be watching tv without a license.
how they do this is anyone's guess, as you do not have to admit to anything, nor let them into your home to check.
http://www.marmalade.net/lime/philip_dean.html
and honestly, are they really going to go round all those estates that bristle with satelite equipment knocking on every door?
I suspect many people are getting away with it