Category Archives: Sunlust Pictures LLC

Prenda is essentially done

Sometimes there are no words other than silence to best express the thoughts I have about Judge Wright’s order essentially referring John Steele and the Prenda Law Inc. gang to the IRS’ Criminal Investigation Division (CID) for all the settlements on which no taxes were paid. There is one police agency that a criminal organization does not want to be contacted by, and that is the CID.

The $81K in sanctions essentially funds the lead attorneys who spent time on this case. And, the referral to the bar associations means that the principals at Prenda Law Inc. may no longer have their law licenses shortly.

In sum, there is not much for me to comment here, except to be silent, because the judge’s order itself says all it needs to. Copyright trolling may seem profitable for the attorneys filing the lawsuits, but no money can compensate for the loss of freedom that one experiences when what was once a multi-million dollar law practice lands the principles in prison for tax evasion. This should be a lesson to all other copyright trolls out there. Judge yourselves accordingly.


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

The 12 minute hearing and the end of Prenda Law Inc.

While the Cashman Law Firm, PLLC and its clients were celebrating “freedom,” I am sure some of my readers will be wondering the fate of Prenda Law Inc. / Steele Hansmeier, PLLC / John Steele / Paul Duffy / Mark Lutz / Brett Gibbs et al. after their hearing today before Judge Wright.  Today was the big day where the world of those who have been injured by Prenda Law Inc.’s activities looked on to see their demise.

In sum, the hearing was short, and John Steele and his “gang” showed up as they were ordered to, but they decided to plead the Fifth Amendment to the United States Constitution rather than answer Judge Wright’s questions.  As a result, the judge did not allow them the pleasure of “pleading the fifth” as he appears to have no interest in lawyer gamesmanship.  Thus, after 12 minutes, he walked off the bench and ended the hearing.

While there was no immediate gratification for those who flew over to attend the hearing, in my opinion, “Popehat” described their fate better than I ever could:

“Prenda Law may still be standing. But it’s dead.”

I would be very surprised if I saw any further activities coming from this law firm. I expect that in a few days (if not sooner), Judge Otis Wright will write an order which will make any copyright troll shake in their boots, and it is my hopes that this order will serve as a warning shot to any of the other copyright trolls who go after individual downloaders using the tactics and corporate structures that Prenda employed.

It is my opinion (although I *am* still cautious until I actually see Judge Wright’s order,) this will likely be the end of Prenda Law Inc., John Steele, and Paul Duffy, as I expect that this will evolve into inquiries which will endanger their law licenses. I don’t think we’ll see the end of them, per se, as it is not so difficult to find a hungry lawyer who will agree to have his hand held while he lets others practice under his law license in the shadows.

On the other hand, I believe the result of this case (and Judge Wright’s influence over the the future penalties of unlawful copyright enforcement tactics) will force the bittorrent cases to evolve from its current state (which comprise mere pre-trial settlement “or else” tactics) to actually taking clients to court on the merits.  Also, while the inquiry in this case surrounded plaintiff copyright trolls who “invent” corporate figureheads, who seem to falsify copyright assignment documents, and who structure their business tactics to allow their activities to proceed with limited affects on the attorneys furthering their scheme) no doubt, this will be a damaging blow to those copyright holders who try to enforce their copyrights against individual downloaders.

Articles on the topic:
Forbes: Porn Copyright Lawyer John Steele, Who Has Sued More Than 20,000 People, Is Now The One In Legal Trouble

ArsTechnica: Prenda lawyers take Fifth Amendment; judge storms out: “We’re done” — Those in attendance describe Judge Otis Wright as “incandescently angry.”

TechDirt: Team Prenda Shows Up In Court, Pleads The Fifth… Angry Judge Ends Hearing In 12 Minutes

TorrentFreak: Prenda Copyright Trolls Plead the Fifth

Fight Copyright Trolls (SJD): Prenda trolls appear in Judge Wright’s courtroom only to plead the Fifth. Furious judge ends the hearing after 12 minutes

Follow-Up Articles:

ArsTechnica: Judge smash: Prenda’s porn-trolling days are over

Popehat: Prenda Law’s Attorneys Take The Fifth Rather Than Answer Judge Wright’s Questions


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.

Prenda Law Inc. sues the anti-troll internet community.

“Oh what a tangled web we weave, When first we practise to deceive!”
– Sir Walter Scott, Marmion: Canto VI. (1771 – 1832)

My greatest effort in this blog is not to decide what to write about, but what NOT to write about. I’ve been very aware of John Steele’s issues in Minnesota (where he made an appearance for one of his cases, and was served by Paul Godfread’s process server on the Alan Cooper identity theft issue). I’ve also been aware of the issues as to whether AF Holdings, Guava, (and we won’t mention Ingenuity 13, or the older MCGIP lawsuits) are in fact entities or whether there is an bit of sham involved in their formation and/or the enforcement of the intellectual property they appear to hold. I have also noticed the clear trend from the smarter lawsuits where Steele moved from suing hundreds of John Doe Defendants to him suing smaller numbers of John Does (20-75) in smaller “under-the-radar” lawsuits, and then finally to the “John Doe” individual lawsuits, some of which ended up with named defendants who were not served, others where the defendants were actually served, and finally others where a defendant and his attorney agreed to allow Prenda to add hundreds of unrelated defendants to the lawsuits as potential co-conspirators.

Then when even the individual lawsuits looked to no longer be fruitful for him, I noticed the move from copyright enforcement to absurd tactics, some of which involved having Mark Lutz pose as a representative for a production company.  I noticed when Prenda had their own local counsel (Joseph Perea) shift titles to avoid unauthorized practice of law issues (e.g., in Florida), and I noticed when local counsel Brett Gibbs ended up as “of counsel” for Prenda Law Inc., only to later disavow association from the firm when federal Judge Otis Wright mentioned the word “jail.” These absurd tactics have gone even farther, most recently with the creation of the Livewire Holdings, Inc. entity (see, Part I; Part II) using fake pictures on their website for their so-called “partners,” and reports that Mark Lutz (Prenda Law Inc.’s former paralegal, now pictured as “partner” in the Livewire Holdings, Inc. site) is back at it, calling dismissed defendants using a fake name.  I almost fell off my chair when I read local counsel Brett Gibbs’ most recent declaration [under oath] that [he has been informed that] Mark Lutz was the CEO for AF Holdings, LLC (p.4, paragraph 7), and that he was also the CEO for Ingenuity 13, LLC (p.4, paragraph 8).  Really?!?

All of this drama (including the Minnesota lawsuit and the so-called fake Alan Cooper issue) are topics I have purposefully chosen NOT to write about for the sole reason that they do not help my clients or potential clients understand the issues surrounding the copyright infringement lawsuits they face when they receive a subpoena notice from their ISP in the mail.

Behind the scenes, as owner of the Cashman Law Firm, PLLC, I and my staff have spent literally months building up local counsel networks and researching each federal court’s rules to properly defend clients who are named as defendants in their copyright infringement lawsuits. I personally warned a number of copyright trolls that if they named my clients, myself and the attorneys I work with would find a way to make defending these cases affordable. So you can understand why I was amused when the principals at Prenda Law Inc. shifted from what looked to be a trend towards individual lawsuits against former John Doe Defendants to their more recent “world domination” shenanigans which led to widespread questions as to the identity of the “real” AF Holdings, LLC Alan Cooper, which of the copyright troll entities are real and which are shams, and then once caught, which led to the finger-pointing which began between their local counsel and other defense counsel, and then ultimately to the finger-pointing towards the principals at Prenda Law Inc. I’m happy that their lawsuits have gone nowhere these recent months, but personally I feel that their focus has shifted to “doubling down” on what appear to be outright lies rather than representing their clients to stop the piracy of their copyrighted films.  I often stop myself from asking, “wasn’t that the whole purpose of this grand charade?”  At least the war I thought I was fighting was to defend internet users from being subjected to copyright extortion-like lawsuits for the downloading or viewing of copyrighted movies and videos.

For these reasons, I really have nothing to say or comment because what Prenda Law Inc. / formerly, Steele|Hansmeier PLLC/ or more recently, the Anti-Piracy Law Group / John Steele / Paul Duffy / Brett Gibbs / former paralegal Mark Lutz (and their local counsel, many still disgruntled) have been doing and their antics have little-to-nothing to do with the so-called “rampant piracy” and the copyright infringement I thought they were here to stop.

So now John Steele and the entities he supposedly has nothing to do with are suing Paul Godfread, the real Alan Cooper (as opposed to the one they have not yet produced), along with all of the anti-copyright troll internet population, probably most notably, Sophisticated Jane Doe (http://www.fightcopyrighttrolls.com), Die Troll Die (http://www.dietrolldie.com), and probably a handful of others who have been hugely helpful to our law firm over the years through their reporting on Twitter. I could easily be part of this group of anti-copyright troll “Does” from all the posts I have written on his cases.

The problem with the “sue everyone for defamation” approach is 1) the elements of defamation are simply not there (as Forbes Magazine might report, John Steele is clearly a “public person” who has cast himself forth as being one of the foremost and first copyright trolls), 2) his lawsuits likely invoke the anti-SLAPP laws because they appear to have been filed to “create chilling effects and to stifle speech,” and most importantly, 3) people like Sophisticated Jane Doe, Die Troll Die, and the others blog and tweet anonymously. Thus, even if they figured out which IP addresses did the posting or the tweeting, the IP address will likely point to a private VPN service who have no ability to even know who these anonymous bloggers are.

In closing, there is not much to say about these lawsuits. Techdirt wrote about them here.  ArsTechnica wrote about them here.  Sophisticated Jane Doe wrote about them here. Copyright Clerk wrote about them here. Jordan Rushie wrote about them here. No doubt there will be many more articles, and no doubt there will be much more drama. However, as far as these lawsuits affect his copyright infringement and “hacker” lawsuits (the purpose for which I write this blog), I cannot see them affecting his lawsuits positively, and if anything, this was a misstep for Steele and his affiliates.


UPDATE (3/9/2013): DENIED.  Automattic, Inc. letter to Prenda Law Inc. (on behalf of WordPress.com sites) rejects Prenda’s attempts to ascertain the IP addresses of the anti-troll community citing five (5) deficiencies in their subpoena.  Other notable reasons for non-compliance with the subpoena include: 1) rights under the First Amendment to anonymous speech; 2) right to privacy; 3) subpoena (“outrageously”) overly broad; 4) subpoena seeks information that is not likely to lead to discoverable information.

DING, DONG, THE HARD DRIVE PRODUCTIONS CASE IS DEAD!

I don’t know how to say this other than in my field of work, it is not often that I am shocked.  I often speak to local counsel who get excited that they are handling a “porn” case.  Just a few days ago, I called one of Steele’s (a.k.a., “Anti-Piracy Law Group”) local counsel.  When I introduced myself, he said to me (with a boyish excitement), “Aren’t you the porn lawyer?” to which I responded, “Aren’t YOU the porn lawyer?!?”

Anyway, I cannot help but to generalize these cases into “okay, one more production company suing a college kid or husband for clicking on a link and viewing copyrighted materials.”  What I often forget is that there is usually some guy behind the scenes who has trailed so far into the world of pornography that he has opened up his own company, produced some porn videos, and now is suing defendants for their download.

The motive is usually the same.  Instead of “let’s punish these pirates” as they would like you to believe, their motive is rather, “let’s hit up as many people for thousands of dollars each until we get shut down by the courts.”  In my opinion, this was the motive of the Hard Drive Productions, Inc. lawsuits.

Digressing, the epic news of the day is that the Hard Drive Productions, Inc. v. Does 1-1,495 (Case No. 1:11-cv-01741) case has been dismissed.  Congratulations to the Cashman Law Firm, PLLC defendants who have been released from this case.  

I don’t need to go into details about the case history — it has been riddled with controversy since they started suing internet users 2+ years ago.  As far as the legal issues were concerned, this was a typical copyright infringement lawsuit plagued with the same procedural issues that most of the other cases of its time suffered from — improper joinder (defendants were not part of the same “swarm”), and improper jurisdiction (defendants were sued in a court which did not have personal jurisdiction over them because the DC court’s reach could not decide the case against most of the defendants who were implicated in the lawsuit because they lived outside of the court’s jurisdiction).

What surprised me about the Hard Drive Productions, Inc. case was not Hard Drive Productions, Inc., but the District of Columbia judges who made a political mess of these cases.  Judge Beryl Howell came on the scene making pro-copyright troll rulings, such as 1) “you don’t need to decide jurisdiction or joinder until a defendant is named and served in a lawsuit,” 2) an ISP cannot file a motion to quash on behalf of their subscribers, and 3) accused John Doe Defendants cannot file motions to quash until they are named as defendants in the case.  Mind you, she was a copyright lobbyist before she was appointed a federal judge.

Then in February, 2012, Judge Facciola came in with a ruling in the West Coast Productions, Inc. v. Does 1-1,434 (Case No. 1:11-cv-00055) case which I was sure was going to kill the Hard Drive Productions, Inc. case and all the other bittorrent cases in DC.  In his order, he ruled that “a defendant who does not live in the District of Columbia cannot be sued in the DC court because the DC court lacks jurisdiction over those defendants.”  However, at some point, it appears to me as if the RIAA/MPAA copyright lobby (probably by using Judge Beryl Howell as their mouthpiece) pressured Judge Facciola into giving into the copyright lobby’s pressure, and with a few contradictory rulings, he transitioned over to being Judge Beryl Howell’s sidekick in these cases.

Judge Bates also came in appearing to protect the procedural rights of the accused defendants who lived outside of DC, but once again, after what appeared to be some pressure from the RIAA/MPAA copyright lobby (once again, my educated guess is that Judge Beryl Howell was the force behind what happened), he was removed from the case which Judge Facciola took over.  Then, after some time, it appears as if Judge Bates too eventually caved in to the RIAA/MPAA copyright lobby (some refer to them as the “mafia,” or the copyright police), and on my September 27th, 2012 post, Judge Bates reversed his decision in Hard Drive Productions, Inc. case and let the “extortion” of the John Doe Defendants at the hands of John Steele and Co. (a.k.a., Steele Hansmeier PLLC, a.k.a., Prenda Law Inc., and now a.k.a., the “Anti-Piracy Law Group”) continue.

So.  The story with this dismissal is not necessarily a Hard Drive Productions, Inc. story, but a story of the forces behind the public interest groups and lobbyists who pressure Washington to always rule in favor of the copyright holder, regardless of whether the copyright holder is a pornography company, or whether the copyright holder is involved in making B-movies.  Bottom line, these lobbyists insist that WASHINGTON MUST CONTINUE TO BE PRO-COPYRIGHT AND MUST CONTINUE TO RULE IN FAVOR OF THE COPYRIGHT HOLDERS, regardless of who the copyright holder is, or at what cost.

So as things stand in DC, there is still a split as to the rights of unnamed John Doe Defendants between the rulings of Judge Wilkins (relating to the “motion to compel” lawsuit by Prenda Law Inc. against Comcast relating to their Millennium TGA, Inc. cases [BTW, dismissed last week]) and the rulings of Judge Beryl Howell, because as you read, Judge Howell certified an interlocutory appeal to answer questions relevant to these cases, but it appears to me that someone is dragging their feet there in DC and hoping for a dismissal so that they don’t have to decide the issues.

Lastly, there is a lot of activity on Twitter as to the 28 or so defendants who have settled their case, and some anger directed at these anonymous defendants who have settled.  Quite frankly, they are not all anonymous.  What happened with these is that without warning, Prenda Law Inc. turned around and sued one of these defendants (or threatened to imminently sue these defendants) in lawsuits in their home states.  I understand that many, if not most of the defendants in the “Hard Drive Productions, Inc. v. John Doe” cases which were filed towards the end of 2011 probably settled (I’ve listed a few of the named defendants in the “At What Point Does a Copyright Troll Stop Being a Troll” article.)

In closing, people are asking me whether I think Hard Drive Productions, Inc. is dead, or whether this is just the next logical progression before a slew of defendants being named.  I must note that Hard Drive Productions, Inc. got their butts kicked quite a few times, especially with the Hard Drive Productions, Inc. v. John Doe, 3:11-cv-05634-JCS (Seth Abrahams) case and the Hard Drive Productions, Inc. v. John Doe, 4:11-cv-05630-YGR (Liuxia Wong) case, both in California.  If you look at the http://www.rfcexpress.com website, there have been ZERO filings since March, 2012.  A defendant must also understand that with the egos of these copyright troll attorneys, there is the saying, “As the ego of the attorney inflates, so does his hourly rate.

We also know there have been squabbles between Prenda Law Inc.’s local counsel and Steele, and we know that their own attorneys have been jumping ship (and in some cases even testifying against Prenda Law Inc. in their attempts to withdraw as local counsel.)  Thus, there are problems all around, so my best advise is to watch the http://www.rfcexpress.com website and see whether Hard Drive Productions, Inc. starts a flurry of lawsuits across the U.S. or not.  And remember — behind every lawsuit there is a person (joking using the term “person” to mean a human, a fictitious person (who might not exist), or an offshore entity) who needs to pay Steele’s legal fees so that he can pay for his Las Vegas lifestyle of traveling the country “not” representing his clients in these matters.


CONTACT FORM: If you have a question or comment about what I have written, and you want to keep it *for my eyes only*, please feel free to use the form below. The information you post will be e-mailed to me, and I will be happy to respond.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together.  That being said, please do not state anything “incriminating” about your case when using this form, or more practically, in any e-mail.