Thank you for using our forum. My name is ***** ***** I hope to assist you today.
I am sorry to learn about this situation.
If I understand correctly, you have been contacted by Direct TV and they are claiming you have been using a residential receiver for commercial purposes (for a restaurant) for the past 10 years.
You indicated that you only used the receiver for local channels and that the receiver was not branded as Direct TV.
It is going to be important to start by identifying the contract you have with the satellite provider (either Direct TV or Jade), and what the terms of that contract are. (Many small satellite companies merely brand other larger companies products for their own use, so I would not be surprised to find that your receiver was actually a Direct TV product that has been rebranded).
Once you identify that contract, you can determine whether or not it is a residential or a commercial contract. (Unless you actually signed up for a commercial contract, you can safely assume that you have a residential contract).
The satellite company has a right to enforce the penalty provisions in their residential use contracts regardless as to how many channels you are using. (So even if you are only showing local channels on your residential receiver in your restaurant, they can still pursue you for money damages).
Television providers (Direct TV, Comcast, etc.) have been much more aggressive in pursuing this lately (technology to assist them in identifying where their receivers are being used has greatly assisted them in this regard).
The one thing that you can use in your defense is the statute of limitations, you do not give your state, but the statute of limitations for breach of written contract would apply (you can find your statute here: http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html) and use this to limit your damages (they can only collect for those years that are within the statute).