Why CEG-TEK’s DMCA settlement system will FAIL.

This is a rather tricky article to write, especially since I am setting some copyright trolls apart from others, and I am unsure whether this is a good idea or not.

It is my opinion that the “Six Strikes” System which has recently gone into effect will ultimately kill Copyright Enforcement Group’s (CEG-TEK)’s “CopyrightSettlements.com” settlement system. In short, their selling point of attracting new copyright holders (the production companies) with the promise of big profits through volume settlements (from you, the internet users) by the sending of DMCA scare letters directly to internet subscribers via their ISPs will fail. I am concerned that the production companies / copyright holders might decide to start once again suing defendants in copyright infringement lawsuits.

Copyright trolls take two forms — the “copyright troll” lawyer, and the production company who embraces the concept of extorting settlements from so-called “infringers” rather than selling their copyrighted product on the marketplace.  There is one entity often missing from our blog’s focus on lawyers and their clients — the “IP enforcement company” (“IP” = intellectual property) who is working behind the scenes to 1) acquire clients for their firm, 2) track the peer-to-peer / bittorrent downloads and torrent swarms, 3) hire and maintain one or more attorneys capable of suing, and 4) converting their tracking efforts into CASH [in terms of $$$ settlements from accused downloaders].

This explains why whether you are sued by Patrick Collins, K-Beech, or Malibu Media, you’ll be contacted by someone on the Lipscomb & Eisenberg law firm’s collection team. Similarly, if the production company is Digital Sin, Zero Tolerance, Girls Gone Wild, etc., then your IP enforcement company is the Copyright Enforcement Group (CEG-TEK) and you will be sent DMCA letters suggesting that you settle their claims against you or else they may sue you (so far, this has not been the rule, but the exception). Yet, if your plaintiff is AF Holdings, Hard Drive Productions, Openmind Solutions, or any of the others connected with Prenda Law Inc. or the new Anti-Piracy Law Group, your IP enforcement company is one of John Steele’s entities. In other words, every copyright troll plaintiff is a client of a particular IP enforcement company, and that IP enforcement company has one or more lawyers on their team (or more often then not, as with John Steele and Ira Siegel — very different entities) — the lawyers themselves appear to own an ownership interest in the IP enforcement companies they run and work on behalf of.

It is my understanding that an enterprising attorney (or members of his IP enforcement company’s sales team) will often attend annual pornography conventions, and they will rub shoulders with production companies who end up being the copyright holders in these lawsuits.

The traditional IP enforcement companies (Lipscomb, Steele, etc.) will tell them, “I am aware of your company’s piracy problem, and I have a solution. Look at all our data as to the piracy of your videos.  Our team of experts can track the piracy of your copyrighted content, and our team of “expert” lawyers will sue defendants on your behalf. Instead of defending themselves, the accused internet user will be shamed with a lawsuit and will settle with us for thousands of dollars (average asking price: $3,400), we’ll take our commission, and we’ll both be millionaires. And, we’ll cut down on piracy in the process.

CEG-TEK (the Copyright Enforcement Group) and Ira Siegel has a different approach, and I believe the Six Strikes System will be the achilles heel of their “out-of-court pre-lawsuit settlement” approach.

The Copyright Enforcement Group was essentially formed because Ira Siegel didn’t like the idea of suing defendants and having all of his settlement activities monitored by a federal judge who can ask him uncomfortable questions about his activities. Rather, he has been paying ISPs to send out “DMCA” settlement letters (invoking and in my opinion, misusing the Digital Millennium Copyright Act) in order to scare defendants into settling cases before they are filed in federal court. Settlements average $200 per accused title, but I have seen a few $500 per-title settlements as well.

It is my understanding that the way CEG-TEK acquires new clients — their “unique selling proposition,” if you will — is that they tell production companies, “we can track and sue the downloaders if we want — we have attorneys in a number of states who can sue defendants, and possibly get a $3,400 settlement from a few of them [once in a while]. However, if you come on board with us, we will send DMCA settlement letters out to the internet user directly via his ISP, and that letter will point them to our Copyright Settlements (www.copyrightsettlements.com) website where they can enter their unique username and password and privately pay their settlement fee. The settlement fee will be $200 and not $3,400, but the quantity of users who will pay us our small fee and move on will be significantly higher than those who will settle a federal copyright infringement lawsuit. We’ll all make millions!”

The reason I think CEG-TEK’s business model of sending DMCA letters will ultimately fail is because the Six Strikes System has undermined CEG-TEK’s abilities to contact so many internet users. In short, instead of sending the DMCA letters directly to the ISP subscribers as Charter and a number of smaller ISPs do, the big ISPs have banded together and formed something called the “Six Strikes System” which essentially gives six warnings to their subscribers before giving copyright holders access to their subscriber’s contact information for the purposes of suing for copyright infringement or sending DMCA threat letters as CEG-TEK does every day.

In other words, anyone who has Comcast, Time Warner, Verizon, etc. as their ISP will no longer receive CEG-TEK’s DMCA letters. Instead, they receive a notice such as “we have received a complaint of copyright infringement from your account; stop this activity.” But with ISP members of the Six Strikes Program, CEG-TEK’s DMCA LETTERS ARE NO LONGER FORWARDED OVER TO THE SUBSCRIBERS! What this means is that let’s say 75% of the market share of internet users (I’m using this number merely as a hypothetical) will no longer go online and settle CEG-TEK’s claims against them. Or in other words, the www.CopyrightSettlements.com website as of a week or so ago [the plan went into effect roughly a week or so ago] will have experienced a 75% drop in settlements.

Knowing the production companies who signed on with CEG-TEK with the sole purpose of making millions in settlements from these DMCA letters, I suspect that they are starting to get upset and impatient because CEG-TEK’s promise of directing would-be defendants to their website is no longer the money-making machine they thought it would be. As a result, I am concerned that the production companies who signed on with CEG-TEK might start opt for suing defendants once again en masse.

PERSONAL NOTE: I obviously don’t want to scare anyone because I am very far from screaming “the sky is falling.” We have been defending clients in countless cases filed in federal courts across the U.S., and in recent months, there has been a clear change in the level of education of the judges and their feelings towards “copyright troll” plaintiffs. Possibly with the help of our POLICY LETTER (or simply our phone calls and faxes to a judge’s chambers when one is assigned to a copyright infringement case).  Judges are now educated as to the copyright trolling problem, and it is much more difficult to go after defendants because our collective arguments (such as, “an IP address is not a person,” and “just because you can prove an IP address snapshot was involved in a download does not mean that copyright infringement occurred,” etc.) are starting to take plant themselves deeply in the federal court system. In other words, if they start suing, we are very prepared, and they are almost a year-and-a-half behind.


UPDATED COPYRIGHT ENFORCEMENT GROUP (CEG-TEK) ARTICLES (from this blog):
Canada begins receiving CEG-TEK DMCA settlement letters. (3/12/2015)
How time limits / purged records stop a copyright holder from learning a downloader’s identity. (12/18/2014)
CEG-TEK’s growing list of participating ISPs, and their NEW alliance with COX Communications. (11/12/2014)
The Giganews VPN Problem (11/12/2014)
CEG-TEK is now your friendly “photo” copyright troll. (6/13/2013)
CEG-TEK’s new “you didn’t settle” letters sent from Marvin Cable. (3/22/2013)
CEG-TEK’s DMCA Settlement Letters – What are my chances of being sued if I ignore? (2/22/2013)
Why CEG-TEK’s DMCA settlement system will FAIL. (2/22/2013)


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.

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    Malibu Media Copyright Troll – The “New Kids on the Block”.

    malibu-media-case-consolidations

    Meet your new Malibu Media copyright troll.

    There seems to be a new production company who has decided that it is a better business model for them to start suing internet users (e.g., copyright trolling) rather than selling their cheap flicks on the internet one by one. The company name is Malibu Media, LLC, and while the actual “film” allegedly downloaded probably varies from case-to-case, it appears as if “Tiffany Teenagers in Love” seems to be the primary title they are using in their lawsuits.

     [NOTE: BEFORE READING THIS ARTICLE: If you have not already done so, and you are implicated as a John Doe in a Malibu Media, LLC lawsuit, read these first:
    1) “Everything You Need To Know in One Page About Your Malibu Media, LLC (X-Art) Lawsuit [FAQ]
    2) “In-Depth Malibu Media.  Their Lawsuits, Their Strategies, and Their Settlements

    FOR IMMEDIATE CONTACT AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at info [at] cashmanlawfirm.com, or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.]

    Why are the lawyers the same as we have seen with other troll lawsuits?!?

    What surprises me is that while this is a new “troll” (using the term loosely,) the local counsel they are using suggests to me that the same entity [behind the Patrick Collins, Inc., K-Beech, Inc., NuCorp, Inc., Raw Films, Ltd., Zero Tolerance, etc. cases] is also behind this case. In other words, this is simply a new client climbing on the bandwagon looking to cash in on the ongoing mass extortion scheme. The rules, however, have not changed.

    [HINDSIGHT: (2017 UPDATE:) LITTLE DID I KNOW AT THE TIME THAT GUARDALEY WAS NOT ONLY THE FORENSIC COMPANY BEHIND THE MALIBU MEDIA, LLC LAWSUITS, BUT ALL OF THE MAINSTREAM MOVIE LAWSUITS *AND* ADULT FILM LAWSUITS FILED ACROSS THE U.S. (PRESUMABLY WITH THE MPAA / RIAA AS THE INVESTOR BACKING THE LAWSUITS).]

    Pasted below is a list of the cases, separated by the court in which the case was filed in, and who the local counsel is. I have dealt with each one of these guys before, so as far as I am concerned, this is just one more troll to add to the list of companies who are suing defendants.  I have included the newer filings of Raw Films, Ltd. to show that these are the same attorneys.

    California Central District Court – Adam M. Silverstein of Cavalluzzi & Cavalluzzi

    Malibu Media LLC v. John Does 1-10 (Case no. 2:12-cv-01647)
    Malibu Media LLC v. John Does 1-10 (Case no. 2:12-cv-01675)
    Raw Films, Ltd. v. John Does 1-10 (Case no. 2:12-cv-01653)

    Virginia Eastern District Court – David / Wayne O’Bryan of O’Bryan Law Firm

    Malibu Media, LLC v. John Does 1-26 (Case no. 1:12-cv-00160)
    Malibu Media, LLC v. John Does 1-26 (Case no. 1:12-cv-00161)
    Malibu Media, LLC v. John Does 1-15 (Case no. 1:12-cv-00163)
    Malibu Media, LLC v. John Does 1-27 (Case no. 1:12-cv-00165)
    Malibu Media, LLC v. John Does 1-08 (Case no. 1:12-cv-00166)

    California Southern District Court – Adam M. Silverstein of Cavalluzzi & Cavalluzzi

    Malibu Media, LLC. v. John Does 1-13 (Case no. 3:12-cv-00358)
    Malibu Media, LLC v. John Does 1-25 (Case no. 3:12-cv-00362)
    Malibu Media, LLC. v. John Does 1-15 (Case no. 3:12-cv-00369)
    Raw Films, Ltd. v. John Does 1-11 (Case no. 3:12-cv-00368)

    Colorado District Court – Jason Aaron Kotzker of Kotzker Law Group

    Malibu Media, LLC v. John Does 1-29 (Case no. 1:12-cv-00397)
    Malibu Media, LLC v. John Does 1-16 (Case no. 1:12-cv-00399)
    Malibu Media, LLC v. John Does 1-30 (Case no. 1:12-cv-00402)
    Malibu Media, LLC v. John Does 1-10 (Case no. 1:12-cv-00405)
    Malibu Media, LLC v. John Does 1-27 (Case no. 1:12-cv-00406)
    Malibu Media, LLC v. John Does 1-18 (Case no. 1:12-cv-00407)
    Malibu Media, LLC v. John Does 1-15 (Case no. 1:12-cv-00408)
    Malibu Media, LLC v. John Does 1-27 (Case no. 1:12-cv-00409)

    District Of Columbia District Court – Jon A. Hoppe of Maddox Hoppe Hoofnagle & Hafey LLC

    Malibu Media LLC v. John Does 1-5 (Case no. 1:12-cv-00233)
    Malibu Media LLC v. John Does 1-16 (Case no. 1:12-cv-00235)
    Malibu Media LLC v. John Does 1-11 (Case no. 1:12-cv-00237)
    Raw Films, Ltd. v. John Does 1-3 (Case no. 1:12-cv-00234)
    Raw Films, Ltd. v. John Does 1-19 (Case no. 1:12-cv-00236)

    Pennsylvania Eastern District Court – Christopher P. Fiore of Fiore & Barber LLC

    Malibu Media LLC v. John Does 1-15 (Case no. 2:12-cv-00664)
    Malibu Media LLC v. John Does 1-17 (Case no. 2:12-cv-00665)
    Malibu Media LLC v. John Does 1-10 (Case no. 2:12-cv-00666)
    Malibu Media LLC v. John Does 1-11 (Case no. 2:12-cv-00667)
    Malibu Media LLC v. John Does 1-22 (Case no. 2:12-cv-00668)

    What to expect based on what these “?attorneys?” have done before.

    On a personal note (obviously not legal advice, as each plaintiff above handles cases differently, and each person’s situation is different): We have seen these attorneys before in other cases. If you receive a copy of a subpoena from your ISP indicating that you have been implicated as a John Doe Defendant in any one of these cases, you’ll probably be instructed in the letter to file a motion to quash. As you know from my MANY articles on this blog, you know my opinion that such motions have been a waste of time for defendants (e.g., plaintiff attorney will claim that because you are not yet “named” as a defendant, you have no “standing” to file such a motion, etc., etc., etc.). More likely than not, you will not receive a letter from your ISP, and one of their creditor-like “bulldogs” will begin calling you and threatening to name you as a defendant unless you settled your case against them. They will make up odd numbers on the spot as to how much their “client” will settle for, but remember, these guys and gals (who often do not even sound sober and are probably sitting in a cubicle somewhere reading you a script) are not attorneys and likely do not have authority to settle your case. If you have spoken to me, you know my opinion is that 1) they shouldn’t even be calling you in the first place, and 2) you should not be discussing your case with them.

    What else can you tell me about the Malibu Media cases?

    [2017 UPDATE] The best way to learn about Malibu Media, LLC is to read what happened to them as it happened.  The list of stories below (in the order I listed them) tell the Malibu Media story in a way that you will understand them.


    FOR MORE INFORMATION ABOUT MALIBU MEDIA, LLC:Again, if you have been implicated as a John Doe defendant in a Malibu Media, LLC lawsuit, there are TWO (2) main articles you should read immediately:

    1) “Everything You Need To Know in One Page About Your Malibu Media, LLC (X-Art) Lawsuit [FAQ],” and then
    2) “In-Depth Malibu Media.  Their Lawsuits, Their Strategies, and Their Settlements.”

    FOR IMMEDIATE CONTACT WITH AN ATTORNEY: To set up a free consultation to speak to an attorney about your Malibu Media, LLC lawsuit, click here.  Lastly, please feel free to e-mail me at info[at] cashmanlawfirm.com, or call 713-364-3476 to speak to me now about your case (I do prefer you read the articles first), or to get your questions answered.

    CONTACT FORM: Alternatively, sometimes people just like to contact me using one of these forms.  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.

      Book a Phone Consultation with a Cashman Law Firm Attorney

      What to do when a copyright troll named and served you as a defendant in your bittorrent lawsuit.

      Copyright trolls have the power and force of the law to haul you into court and force you to defend your case by having you named and served as a defendant.

      I’ve been bumping into more clients than ever who did not retain counsel and have now been “named” as a defendant in their bittorrent case (e.g., they were one of many John Doe Defendants, and now they have been served with paperwork and are now a defendant in their case).  The purpose of this post is to very explicitly state what you are up against at this point (this is for attorneys [unfamiliar with these cases] defending clients as well, as many of you also call me with the same questions as named defendants) and to give you your options.  Here are a few examples of named defendants:

      Patrick Collins, Inc. v. John Doe 6, Ching Y., et al. (Arizona U.S. District Court; Case No. 2:11-cv-01602 [or 11-cv-1602]) (1/7/2012)

      K-Beech, Inc. v. George H., Shana S., Richard S., Brian T., and Catherine V. (Arizona U.S. District Court; Case No. 2:11-cv-01604 [11-CV-1604]) (originally, K-Beech, Inc. v. John Does 1-54) (12/19/2011).

      and K-Beech Inc. v. Derek L.K-Beech Inc. v. Paul F.K-Beech Inc. v. Carl P.; K-Beech Inc. v. Cesar V.; K-Beech Inc. v. Joseph G.; K-Beech Inc. v. Scott S.; K-Beech Inc. v. Hanna B., etc. (each in the U.S. District Court for the Eastern District of Pennsylvania)

      In short, my opinion thus far has been that these so-called lawsuits each are pieces of one larger “extortion scheme” where the plaintiff attorneys have acquired your name and contact information (whether through early discovery in a federal court, or a lawsuit in a state court such as Miami Dade, FL, Maricopa County, AZ, or even St. Clair County, IL).  Then they called you and sent you what I described as “scare” letters telling you that if you did not settle by a certain date, they would name you as a defendant (either individually or as a smaller group of Does) in your home state’s federal court.  For whatever reason, you did not hire an attorney and you became what I referred to as “low hanging fruit,” meaning that you became an easy target because by not hiring an attorney, you told them that you are not taking their case seriously and that you probably did not educate yourself about what they could do to you.

      Not realizing that the plaintiff attorneys are using the courts and the legal system to further their extortion scheme, you did not realize that these so-called “copyright trolls” could actually follow-up and “name” you as a defendant in your lawsuit.  As far as I’m concerned, it costs them essentially nothing to do this.  They have already sued you as a “Doe” Defendant, and by doing this they have already paid the filing fee.  The complaints are all essentially copies of one another so the paperwork is already written (and if there is a no-name local attorney involved, he has probably been given templates by the Lipscomb & Eisenberg, Prenda Law Inc., or other firm behind the scenes (e.g., if it is a Patrick Collins, Inc. or K-Beech, Inc. case), so naming a defendant is a piece of cake.  The hard part of finding a local attorney in many cases has already been done, and so it is just a matter of “naming” you as a defendant in the lawsuit.  Even Dunlap Grubb & Weaver, PLLC (parading as Media Law Group) has started to hire local counsel and sue dismissed defendants from their many cases from last year.

      Many people have asked me whether at this point they can “hide” from the process server so that they are not properly “served.”  Many have also told me “I don’t live at that address anymore,” “I’ve since moved so they’ll never find me,” or “my ISP doesn’t have my correct [NAME SPELLING/ADDRESS/PHONE NUMBER/E-MAIL {pick one}].”  My answer to each one of these is to point out that you are not fighting a traffic ticket… This is a copyright infringement lawsuit in federal court. Whether or not you are guilty, these cases have the ability to broke you (and to potentially seize your assets and force you into bankruptcy).  It borderline offends me when people stick to their “I’m not guilty, they can’t do anything to me” viewpoint because this is simply not true.  The so-called copyright trolls have the power and force of the law to haul you into court and force you to spend tens of thousands of dollars to defend yourself or face a default judgement (essentially a finding of “guilty” because you did not timely file an answer once you were named).

      If you are named as a defendant and you avoid service of process (“being served”), there are other ways to serve you.  Depending on the jurisdiction, they can post a notice at your last known address, they can publish a notice in the newspaper… the judge may even allow them to serve you by sending an e-mail to your last known e-mail address.  Don’t think that you are the first person to attempt to outsmart the legal system.  People have tried all these before (and some have even fled the country), and this is why every attorney now learns about the ins and outs of service of process in their first year of law school.

      So once you are named as a defendant, depending on your circumstances, the general rule is that you have twenty (20) days to file an answer in federal court.  An “answer” essentially is a denial of their claims, along with all your counterclaims and defenses (remember, if you don’t plead it in your answer, you lose the ability to argue it later).  Fail to file your answer in time and you’ve already lost your case and will be facing a default judgement.  On this note, NEVER rely on a default judgement being $750 plus attorney fees & costs.  I know you have seen those few judgments (e.g., DC’s Call of the Wild Movie, LLC v. Does case) where named defendants didn’t respond and they only got hit with the minimum $750 statutory judgement (but then again, Judge Alsup in N.D. California hit two defendants with $30,000 default judgments each for not filing an answer).  Judgements can be $750, $30,000, $150,000, and based on the sole discretion of the judge, any number in between.  I would never risk my financial future on hoping a judge had a good day.  In short, if you are named and served, you must file an answer with the court.

      This is the point where many defendants are when they  contact me.  They believe that they will “fight the good fight” and they will “take these f^%@&!! to court!”  What they don’t realize is that lawsuits cost money and time to fight, and that suddenly it becomes my job to manage their expectations and to explain to them that depositions take time.  Drafting and filing documents take time.  Hearings take time.  And do defendants want a barebones defense? or do they want me to give the plaintiffs hell as well?  This takes more time.  We CAN depose them, take interrogetories, and I’ve always said that with one winning case, we can bring down their whole extortion scheme.  But this all takes…time.  And time costs you money.  So be smart before you declare war on those who have sued you.  There are smarter ways to handle these cases, and so make sure your attorney knows your particular copyright troll, their capabilities, where they will crack, and where they will give in before you decide to step into the courtroom.

      Now that you are named (and it took SEVEN PARAGRAPHS to get to this point), realize that your power of negotiating a settlement is severely limited at this point because the plaintiff attorneys have ABSOLUTELY NO REASON TO ACCEPT A SETTLEMENT AT THIS POINT.  I expect they are hoping that you do not hire an attorney and that you try to do this on your own, because if you mess up, they’ve just created a valid judgement against you which they can have the court enforce against you.  Now if you have retained counsel, maybe they *would* decide to settle because as you’re about to see, we’re about to cost them a lot of money.

      After we file the answer on your behalf, because their so-called evidence is insufficient to prove that you (and not someone else in your household, or someone using your internet connection living within a 3/4 mile radius [depending on the strength of your router]) downloaded their client’s copyrighted video(s), they will need to hire a digital forensics expert. This is a costly step for them – you do not pay a penny for this — so that they can make a mirror image of your computer(s)’ hard drives and go through them with the equivalent of a microscope to see whether they can find a hint of the file(s) you are accused of downloading.

      Assuming they do not find anything incriminating, they will pull you in for a deposition under oath where they will ask you many hours of questions (with me at your side; again, think time) about your bittorrent use, your internet habits and activity, your schedule on the date of the alleged infringement, and anything else they need to establish that it was more likely than not you who did the download.

      Again, assuming you are not guilty and assuming you did not say anything incriminating in your deposition, we would likely file for what is known as a summary judgement, essentially telling the judge, “Judge, they looked at my client’s computer(s). They questioned my client. They did not find anything and they have no evidence to move forward. Please dismiss.” Assuming we win, we will ask the court for attorney fees and costs to reimburse you for everything you have paid me. However, remember again, you just spent six months of your life fighting this. Had you contacted me before you were swept into this path of litigation, we could have avoided having you go through this in the first place.

      Remember, as much as each of these steps will take time to fight on your behalf (and I’m happy to do this for each one of you), I always tell people that it is important to be practical and smart.  Your plaintiff attorneys are looking at this like a business, and so should you.  I have no doubt they want to spend as little as possible to make the most amount of money from you that they can collect.  As giddy as they may be from getting a $150,000 judgement from you if they took you to trial, chances are they will never see a penny of it.  I have no doubt this is why not one of these bittorrent cases has ever gone to trial.  Your plaintiff attorneys know this, as this was the lesson we learned from the MPAA and RIAA lawsuits from a few years back (where they did bring defendants to trial) — that it is more expensive to get a few large judgments than it is to get many smaller settlements.  If I have not said this loud enough, let me say this explicitly.  Everyone (even each of your copyright trolls and their clients) has a cracking point and a monetary goal (yes, even after naming a defendant).  Your attorney should know 1) how far they are willing to go, 2) how far they have gone before, 3) at what point(s) they would consider a settlement and for how much at each point, and 4) how equipped they are to move forward in case you do decide to  use our firm’s services.   Without an attorney, you’re on your own and they have no reason not to trample all over you and demand as much as they can.  With an attorney, we are too much of a liability (one word from our client and we have no choice but to move forward with litigation) for them not to consider settling (contrary to what they’ll tell you) because we cost them time.

      Maria-Elena James, Judge vs. Ira Siegel, Troll

      As many of you have no doubt read on other blogs, some of the smaller cases have gone bust, others have been given permission to move forward.  At the risk of sounding repetitive, when you see a blog entry on this site, that means that something certainly relevant and of note happened in the bittorrent litigation world.

      As far as I am concerned, the former Steele | Hansmeier, PLLC (now Prenda Law Inc.) firm has started to copy the Patrick Collins, Inc. / K-Beech, Inc. business model (the Lipscomb & Eisenberg / Miami Dade / Florida State lawsuit model) of suing defendants in Florida under that state’s Bill of Discovery statutes, getting the judge there to rubber stamp their request to obtain defendants’ contact information from the ISPs (often without notice to the defendants), and then cold calling defendants and threatening to sue in that defendant’s home state unless they settle.  Ira Siegel’s firm has done the same thing with their Mike Meier attorney pretending to defend accused defendants and then switching sides only to start suing in federal courts of various states.  Dunlap Grubb & Weaver, PLLC has been quiet, naming some defendants and then subsequently dismissing them (presumptively when they settle or the court severs and dismisses their case for improperly suing defendants together in one lawsuit), and their big monster cases of last year have been widdling down into non-existence (bye bye Voltage Pictures, Inc. v. Does 1-5,000, etc.).  That means nothing, because now they are playing the same game as everyone else — sending thousands of “scare” letters telling defendants that if they do not settle, they will not only increase the settlement cost, but that they will “name” that defendant in a federal court in their home state.  While this is obviously not the topic of this blog entry, 1) please do not be gullible and give into their demands just because they have made up some arbitrary date and settlement amount, and 2) please do not be cocky as to think that you can outsmart them and take care of this matter on your own.  Both of these approaches have caused much angst for Doe defendants who later realized what they paid for was a second settlement.

      The topic of this blog entry is not Ira Siegel or his Copyright Enforcement Group, but it is Judge Maria-Elena James of the US District Court for the Northern District of California.  Prior to John Steele abandoning his cases in Illinois, the judges there started to shut them down as fast as he filed them.  I would posit that the failing of Steele’s business model of suing hundreds of out-of-state defendants in one lawsuit should have been a lesson to Ira Siegel who has not been paying attention, and now his cases are in trouble.  California’s Judge Maria Elena James — once a friend to Ira and his methods, has started to turn a fierce eye of judgement towards his cases.  It is for this reason that I suspect a bunch of his cases are about to go bust.

      Until 12/1/2011, all seemed to be good for Ira Siegel.  Sure he suffered a few setbacks, dismissed a few cases, but these — New Sensations, Inc. v. Does 1-1,474 (3:11-cv-02770) and Patrick Collins, Inc. v. Does 1-2590 (Case No. 3:11-cv-02766) — his milk and honey — were moving forward flawlessly… until Judge James figured out that Ira Siegel was filing suits against thousands of defendants, extorting settlement agreements, and all this without naming even one defendant in any of his cases.  This angered her, and she ordered Siegel in both cases (identical orders) to disclose to the court all the details he could about all the Doe defendants, along with why she should not dismiss the case because he has failed to name and serve defendants within the 120 day limit given to him in the Federal Rules of Civil Procedure, Rule 4(m) (the reason a number of Dunlap Grubb & Weaver, PLLC’s (“DGW”) cases went bust in DC).  Essentially, this should have served as a warning sign that his case is about to be dismissed, but instead of fighting back or dismissing a smaller group of defendants (a tactic which DGW did in the West Coast Productions, Inc. v. Does case which kept their case alive for many months), Ira kept silent.

      One week later, by 12/7/2011, Judge James utilized simple and free programs known as “geolocation tools” to isolate the location of where a random sample of the putative defendants lived.  When she saw that none of them lived in California, she filed an orders in both cases questioning Ira’s “good faith” in filing this case in the first place.  She also indicated that had she known then what she knows now, she would have never given the order to allow Ira to subpoena the ISPs to determine who the John Doe Defendants were.  As a result, she ordered Ira to run the geolocation tools himself and dismiss everybody who did not live in California (coming soon).  She also ORDERED that Ira Siegel MAY NO LONGER SEND ANY SETTLEMENT DEMAND LETTERS.  Even better, to any Doe Defendants to whom he sent letters, he must send them a second letter telling them that they do not need to comply with his demand letter.  Lastly, she nullified any settlement reached on or after the date of her order.  Ira asked her to change her order, and on 12/8, she denied his request.  Thus, to those of you who received settlement letters, expect to get a second letter explaining everything that I have written here.

      While the scope of this article is to discuss the recent acts by Judge James, I wanted to point out that on Friday, the Digital Rights Foundation filed an amicus brief with the court urging them that Ira Siegel not only knew about these issues (e.g., filing against Doe defendants knowing the court had no personal jurisdiction over them), but essentially that what he has done amounts to fraud upon the court.

      You could end reading the article here, but if you would like to know Ira’s most recent set of acts (and this might actually make you upset) — for some time, he has been hiring local attorneys and has only now started suing John Doe defendants in states OUTSIDE of California — something in the past he never did.  In short, he is copying what Patrick Collins, Inc. has done for months now, and what John Steele (now, Prenda Law, Inc.) are now doing — that is, he is suing smaller groups of defendants in their home states, most recently with his Digital Sin v. Does cases that he is having Mike Meier file on his behalf.  I hate to make the comparison to something sinister, but you stamp him down in one court, and he spreads his tentacles out to other courts.  Obviously there is more to come.  I expect more news starting on Wednesday, 12/14 (or perhaps on the day(s) following this should the judge learn that he has not complied with her orders).

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