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ELI Forums => Higbee Associates Letter & Lawsuits Forum => Topic started by: Joan X on May 26, 2018, 12:18:25 AM

Title: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on May 26, 2018, 12:18:25 AM
According to Higbee & Associates twitter account, they just got awarded $48,000 for the use of a single picture.  Is this real???  Can someone who knows how, verify if this is real????  I just went from fretting a little to freaking out.  I am not going to sleep.

Here is the link:  https://twitter.com/higbeecopyright

The document is at https://www.higbeeassociates.com/wp-content/uploads/2018/05/Grecco-45K-Default-Judgment.pdf

I have been ignoring Higbee’s emails and calls, but am now having serious second thoughts.  I could afford to pay one or two thousand dollars, but $48,000 would require me to refinance my house and take money out.   The thought of it makes we want to puke.   Have I screwed myself???  Politicians need to fix this law.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on May 26, 2018, 12:45:32 AM
I am 99.9999 percent sure that is a real court order.  I am working off of my iPad and cannot access Pacer, the court web site, to get all of the details.  I will check when I get in the office on Tuesday morning.  Higbee & Associates is a reputable law firm who has too much to lose by posting a fake or altered court order. 

There is no need to puke or lose sleep.  It does not sound like anything has happened to you yet.  You have not “screwed yourself.”

I am  curious about the underlying facts of the case.  I will go through court documents on Tuesday.  But, even without going through them, there are several important things to take away from this:

First, this should remove any doubt that these cases, even involving a single image, can result in significant liability.  There is serious risk in ignoring copyright claims.

Second, do not take advice from anyone who does not know all of the relevant facts of your case, such as how the image was used, who is the copyright holder, what state/circuit the case can be filed in, who the attorney is, what defenses are available or what you have to lose.   It is easy for people to boldly say ignore the claims when it is not their money that is on the line.

Third, even though this is a default judgment, a federal judge evaluated this claim and awarded the copyright holder a lot of money and ordered that the infringer pay Higbee’s attorneys fees.

Fourth, Higbee can use this judgment to support claims for damages in future cases.  This is a good outcome for him and his client, which is probably why it is on Higbee’s Twitter.

Okay, a couple things to keep in mind:

1, this is a default judgment, meaning the defendant did not fight back.  This means the judge only gets one side of the story.  The outcome may have been different if there was an attorney fighting it.

2, the copyright holder was Michael Grecco, who apparently is a very legitimate photographer.  It is easier for Higbee to get a bigger award of damages when the photographer is well established.  He might not be able to get as large of an award of damages with a different copyright holder. 

3, Higbee has a judgment, but he still has to collect the money.   The defendant may never have the ability to pay. The defendant can also negotiate with Higbee to voluntarily pay a reduced amount, instead of making Higbee go through all the work involved in collecting.

Things I wish I knew and might find out when I review the pleadings:

What was the original pre- litigation demand amount, if any?  Based on what I have read on here about Higbee demands, my guess is this case could have been settled for a couple thousand dollars or less.

How was the photo used?

What was the licensing history of the photo? Though, this might not be too relevant as the award of damages was statutory.

Why did the defendant not answer the complaint?

Will the defendant file a motion to set aside the default?

You probably don’t have anything to worry about during the next few days as it is a three day weekend for the courts and most attorneys.  Higbee could theoretically electronically file a lawsuit while th court is closed, but  i imagine that is very unlikely.  You should sleep.  Focus on the fact that you have options and nothing bad has happened yet.  Also, the outcome in this case is not typical.  If it were, Higbee would have a lots of stories about them on his twittter.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on May 26, 2018, 10:35:32 AM
I was hoping to hear that it was fake..... but Ihad a feeling it was real.  I appreciate the reply. 

My understanding is that they are less likely to sue people who do not have a lot of money.   Is there a way for Higbee & Associates to tell if I have money???

If I do send them an offer to settle the claim, is it better to do it by phone or email?  My friend’s husband is a lawyer.  Or if i do, would it be smart to have him send it?
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: icepick on May 28, 2018, 10:18:21 AM
I haven't looked at the case history but one thing that jumped out at me is it is for 'willful infringement' so they probably left the images up or something equally careless. I don't see it as anything to be alarmed about for people that have facts refuting any willful infringement claim Higbee might make, but that's just my opinion.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on May 28, 2018, 02:32:11 PM
Thank you.  That helps. I am pretty sure we removed it the from the page within a few days.  I dont want to go into too much detail.   The definitions i see about unitentional and wilful copyrigth infringement seem to overlap.  Can someone provide some clarity on what these terms mean???
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: kingkendall on May 29, 2018, 10:40:11 AM
Getting a default judgement is nothing Higbee can crow about.  It just means the defendant didn't respond to getting served court papers in the lawsuit.  Notice how Higbee didn't say it was a default judgment in he tweet.  He does mention $48,000 though and that is meant to scare the timid into paying up.  It's all part of his scare tactics. 
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: kingkendall on May 29, 2018, 02:03:08 PM
Quote
First, this should remove any doubt that these cases, even involving a single image, can result in significant liability.  There is serious risk in ignoring copyright claims.   

If this doesn't sound like it was written by a lawyer for Higbbe and Assocs, I don't know what does.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on May 29, 2018, 02:48:30 PM
I downloaded the complaint that Higbee & Associates filed in the case that resulted in $48,000 judgment.  It was Michael Grecco v. Monica Dodge d/b/a Fashion Illuminati.  I will write about it later today after I read it.

To your question about the definitions you mentioned that speak to the intent of someone accused of violating copyright law:    There are three levels of intent and each come with a very wide range of damages and different burdens of proof.  The federal law that governs it sets it forth at 17 U.S. 504

The typical infringement is usually referred to as unintentional.  The statutory damages on these claims range from $750 to $35,000.

Section 504(c)(2) describes willful Infringement.  The courts typically define it as “the defendant knew or should have known it infringed Plaintiff’s copyrights.  Willful copyright infringement does not require a showing of actual knowledge.  To prove willfulness, the plaintiffs may show that the infringer had actual or constructive knowledge that it was infringing the plaintiff’s copyright or that the infringer acted in reckless disregard of the ugh probability that it was infringing plaintiff’s copyrights.”  Arclightz and Films Pvt. Ltd. v. Video Palace Inc., 303 F. Sup. 2d 356, 361-62. 

This site has some good information about the different types of infringement, including innocent infringement, the burdens and available damages:

http://vondranlegal.com/what-is-the-legal-definition-of-willful-copyright-infringement/
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: A Lawyer on May 29, 2018, 03:21:23 PM
Quote
First, this should remove any doubt that these cases, even involving a single image, can result in significant liability.  There is serious risk in ignoring copyright claims.   

If this doesn't sound like it was written by a lawyer for Higbbe and Assocs, I don't know what does.

HA! Nice observation. Not sure Higbee would be bold enough to post, but who knows. He probably does reads these threads though. I think Ethan Seven's point was that it is incredibly risky to avoid a lawsuit once it's been filed. As was pointed out, it was a default judgment, which certainly makes this situation a bit different than a typical letter or phone call, but still something to consider when deciding how to respond.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on May 29, 2018, 03:44:21 PM
Sometimes the obvious needs to be stated.  That is what three decades of being in the legal practice will do to you.   I do have free time on my hands if Higbee is hiring in south Florida.   Though, I may be a little too defendant friendly and old for their crew.   8)

https://www.higbeeassociates.com/about/attorneys/
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: clist on May 29, 2018, 03:52:36 PM
Sometimes the obvious needs to be stated.  That is what three decades of being in the legal practice will do to you.   I do have free time on my hands if Higbee is hiring in south Florida.   Though, I may be a little too defendant friendly and old for their crew.   8)

Agreed.

Everyone who receives a demand letter should definitely take it seriously and get educated.

Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on May 29, 2018, 05:32:54 PM
I read the complaint and it was pretty vanilla, insofar as nothing jumped out as to why the judge awarded $48,000 for the use of one image, other than the copyright holder and plaintiff was an established photographer and Higbee claimed the use constituted willful infringement for commercial benefit.

The picture was a photo of Cher.  It was used for editorial purposes on the web site www.fashionilluminati.com

From Higbee & Associate’s 8 page complaint, which was electronically signed by Mathew Higbee:

“10. ... Michael Grecco is an award-winning commercial photographer and film director noted for his iconic celebrity portraits, innovative magazine covers, editorial images and advertising spreads...”

“19. Plaintiff is informed and believes that Defendant used Plaintiff’s copyrighted image without permission... for commercial benefit...”

“20. On information and belief, Defendant’s use of the image was deliberate and willful.”

A couple more things stood out:

1. They named the business and the business owner personally.
2. They filed it in Nevada and not in California or New York, where the plaintiff has studios.  Nevada and California are both 9th Circuit courts, so there might not be too much to this; especially since according to Higbee’s twitter and web site, they have offices in both states.

I will go through the motion for default judgment when I get a chance. 
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on May 30, 2018, 12:29:32 AM
Thank you for the very thoughtful and detailed responses.  I am very grateful for the encouragement and different point of views... you helped me get through a very stressful few days!!!

I made an appointment for a phone consultation with an attorney who does intellectual property law.  I emailed him copies of the information I received from The Law Firm of Higbee & Associates.  I also sent him some exerts from this forum.   So far, I am $175 into it.  But I feel better just knowing I have a course of action. 

I am looking forward to not having to think about copyright law, demand letters or law suits.  Again, thank you!!!
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: kingkendall on May 30, 2018, 12:10:49 PM
@ Joan X

It sure sounds to my like your leaning toward coughing up some cash to a copyright troll.  If it helps you sleep at night, that's fine and up to you.  But, if you go that route in light of the fact the chances of you actually getting sued is extremely small, the you become exactly what Higbee and other trolls are in business for, snatching up the "low hanging fruit."  Also consider this.  If you do settle without getting a summons and complaint filed against you in a federal court, you don't think other copyright trolls won't notice and send other demand letters your way?
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Robert Krausankas (BuddhaPi) on May 30, 2018, 01:14:46 PM
not to mention, most lawyers will suggest you pay them to avoid a lawsuit.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on May 30, 2018, 01:16:01 PM
If you do settle without getting a summons and complaint filed against you in a federal court, you don't think other copyright trolls won't notice and send other demand letters your way?

You raise an interesting factor that I have not previously considered in the calculation; that is, the longterm impact or “what impact will this have on future copyright claims?”

However, I would weigh the factor differently.   If someone resolves the claim prior to a lawsuit, which is a public document, being filed with the court, there is very little chance that any other copyright troll would find out about the claim.  Conversely, if the lawsuit is filed, the lawsuit is available for anyone to see online, this seems much more likely to draw more copyright demand letters.  If I represented plaintiffs, I might be inclined to build a list of people/businesses who were sued for copyright infringement and have my clients search those websites. 

Also, in general, a person/business becomes a more attractive target for copyright lawsuits after they have been sued once.  It makes it much more difficult for a defendant to claim that they were unaware of copyright law or the duty to make sure pictures are properly licensed after that person has been sued for copyright infringement.   Plus, a judge is more likely to punish a defendant that the judge believes is a repeat offender. 

I think this factor weighs in favor of resolving the claim in the pre-litigation stage.  The weight of the factor would probably increase if the alleged infringer has a lot of web content and uncertainty about the licensing history of some of the images on the website.   This should be a non-factor if the person/business is absolutely sure there are no other infringements on their website.

I am curious as to how you think other copyright trolls would become aware of a claim that is resolved in the pre-litigation stage, especially considering how these claims probably all involvem confidentiality as part of the settlement.  I suppose theoretically that the lawyers could be sharing information with each other, but this seems very unlikely as it would pose several serious risks and could seriously harm their clients by violating their settlement agreements.   Am I missing something?
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: A Lawyer on May 30, 2018, 01:31:49 PM
@ Joan X

It sure sounds to my like your leaning toward coughing up some cash to a copyright troll.  If it helps you sleep at night, that's fine and up to you.  But, if you go that route in light of the fact the chances of you actually getting sued is extremely small, the you become exactly what Higbee and other trolls are in business for, snatching up the "low hanging fruit."  Also consider this.  If you do settle without getting a summons and complaint filed against you in a federal court, you don't think other copyright trolls won't notice and send other demand letters your way?

Just curious, how do you think other trolls would find out about these settlements? Or, for that matter, how would they even find out that a letter is being sent by Higbee to a particular person in the first place. The letters and settlements are not public record and Higbee certainly doesn't gain anything by telling his competition. I also disagree with your "piggyback" theory. Assuming other trolls could find that information out, I doubt anyone would suddenly be inundated with letters from other lawyers. I think I read on some other thread that these guys use reverse image searches and other stuff, so you only get a letter if the photo appears on your website. I don't think any lawyer would be stupid enough to send a letter and risk their license for a few hundred bucks, just because some other lawyer sent a letter and got a settlement. What would they even say? Unless a person's website is chock full of unlicensed photos, I highly doubt any other trolls would come out of the woodwork all of the sudden.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on June 05, 2018, 07:25:44 PM
I am late to the party and a lot of good discussion has occurred. While I don't necessarily agree with everything Ethan Seven has written and concluded, I admit he has done what I would have if I was inclined to dig in further. I probably won't because of my time constraints.  I also know things are not what they seem so I don't buy into your headline so easily without conditions.

Some quick comments I would like to make to Joan X.

The points Ethan Seven make that there is more to the story of the $48K judgment is entirely spot on and he has taken the time to outline some of the issues he saw which led to the $48K. It didn't just happen without some cause. Michael Grecco is an unusual plaintiff who I am familiar with his prior lawsuits.  Most plaintiffs are not of his kind or his reputation.  Also most people are not infringing upon celebrity photos.  And most people take down photos once informed to avoid the "willful infringement" accusation.

Default judgments can sometimes be reversed and the case be re-opened. I have seen it before. They are not as final as you might thing. But the defendant has to be willing to re-appear. It may not be worth it because it might be uncollectible. Regardless, you can bet that Higbee or anyone else representing Grecco will be leveraging this judgment to irrationally scaring others into settling.

You have also helped Higbee & Associates by posting the "captivating" headline title you did. Most casual readers will read the title and not go any further. Their fears will be triggered by the title of your headline.

I have been in this business long enough so I don't really try hard to "convince" people to change their feelings or fears. You clearly are rattled by this and no one is going to guarantee you will not get hit with a lawsuit at some point however the small the odds are.  Given your ongoing concern about a lawsuit, you either need to negotiate a settlement yourself or go hire Oscar Michelen and get on his legal representation program which is very reasonable priced.

If you go to a random IP lawyer, chances are they will not be aware of the players as we do and how they operate. And chances are they will be pretty expensive.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on June 05, 2018, 07:31:15 PM
I totally agree.

Higbee and others will play this up for all the attention they can get. It is an excellent propaganda tool to use. Hence, we tell people to get educated. The uneducated and uninformed will continue to be victimized with their simplistic views and understanding of this phenomena.

Getting a default judgement is nothing Higbee can crow about.  It just means the defendant didn't respond to getting served court papers in the lawsuit.  Notice how Higbee didn't say it was a default judgment in he tweet.  He does mention $48,000 though and that is meant to scare the timid into paying up.  It's all part of his scare tactics.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on June 05, 2018, 07:33:29 PM
That was my thought exactly.  "Willful infringement" accusations tend to be leveled at those who do not remove the image(s) in question upon notification. Taking down an image down goes a long way to scaling down the situation.

I haven't looked at the case history but one thing that jumped out at me is it is for 'willful infringement' so they probably left the images up or something equally careless. I don't see it as anything to be alarmed about for people that have facts refuting any willful infringement claim Higbee might make, but that's just my opinion.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on June 11, 2018, 10:41:28 PM
Did anyone ever confirm if this real or not???
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Robert Krausankas (BuddhaPi) on June 12, 2018, 11:17:06 AM
Did anyone ever confirm if this real or not???

it's real...
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on June 13, 2018, 03:37:57 PM
The paper judgment is "real" as any piece of paper is "real" but it may not be collectible and it is negotiable after the fact.  It ain't like that $48K is actually set in stone if someone is determined to not pay. In many cases, you can't squeeze blood from a rock. Judgments are settled quietly all the time by people who are knowledgeable.  But most average folks don't know it.

Did anyone ever confirm if this real or not???
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Joan X on July 20, 2018, 02:41:46 PM
I made my final payment on this matter and received a release of all claims from Higbee & Associates.  While I cannot discuss the terms, I am happy that it is over and was not as bad as I thought.   Mainly, I am writing to say thank you for the help and guidance.  This site was helpful.  Thank you. 
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Robert Krausankas (BuddhaPi) on July 20, 2018, 06:54:16 PM
Sometimes the obvious needs to be stated.  That is what three decades of being in the legal practice will do to you.   I do have free time on my hands if Higbee is hiring in south Florida.   Though, I may be a little too defendant friendly and old for their crew.   8)

https://www.higbeeassociates.com/about/attorneys/

where in south florida are you located if I may ask? perhaps we could do lunch sometime?
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on July 23, 2018, 12:07:29 AM
That is very kind of you to offer.  While I am sure I would enjoy your company and the conversation, I must regretfully decline. I have privacy concerns that are heightened by the nature of this forum.  My caution aside, I also spend most of my evenings as a caregiver and my days are usually spent sleeping/recovering or tending to my affairs.   It was generous of you to offer. 
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Ethan Seven on November 19, 2018, 01:25:20 AM
It looks like Higbee & Associates is using their results on default judgments as part of their sales pitch.

https://www.higbeeassociates.com/practices/copyright-law/

Some of our notable recent court successes:

Summary judgement denied to BackChina in infringement case

Alex Wild wins $15,000 copyright infringement judgement

Chris Sadowski wins $30,000 copyright infringement judgement

Michael Grecco wins $45,000 default copyright infringement judgement

Michael Grecco wins $60,000 copyright infringement judgement

Sadowski wins $50,000 copyright infringement judgement



Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: kingkendall on November 19, 2018, 10:58:17 AM
If Higbee is touting winning default judgement then things might not be going well for that law firm.  Getting a default judgment takes no work on their part besides filing a complaint and letting the clock run out.  There's also a strong possibility they never could collect a dime because if the defendant never responded to the complaint, as an entity they may cease to exist.  It's a win on paper only but is worth crowing about?  However, it does scare and impress the legally ignorant. 
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: A Lawyer on November 19, 2018, 04:52:04 PM
If Higbee is touting winning default judgement then things might not be going well for that law firm.  Getting a default judgment takes no work on their part besides filing a complaint and letting the clock run out.  There's also a strong possibility they never could collect a dime because if the defendant never responded to the complaint, as an entity they may cease to exist.  It's a win on paper only but is worth crowing about?  However, it does scare and impress the legally ignorant.

While I generally agree that defaults are nothing to crow about, I don't think the tactic here is no just to tout "wins on paper" but rather to show people that judges are more than willing to award high amounts of damages for the types of claims Higbee and his cohorts pursue. In my jurisdiction even if you get a default judgment you are still required to "prove up" the damages that you are asking for by submitting evidence to the judge. That could explain why the various amounts of the awards Ethan Seven posted about are so different for each photographer. Just because a defendant chooses not to participate in a lawsuit does not give the judge free rein to award whatever amount they want.

Now would Higbee get that much if a case were to be litigated to judgment with a competent lawyer on the other side? Maybe, maybe not.  The point is, it's completely possible that he could achieve a substantial judgment. For most people, it's probably not worth the time and expense to find out.

Regarding collectability, I have posted a lot about that on these boards in the past. A company can go bust, but if it goes through bankruptcy the assets get divided amongst the creditors in bankruptcy court anyway. That course of action only makes sense if the company has nothing. Otherwise, you are sacrificing the company and they still get paid something anyway. If the company has assets it probably makes sense to fight or try and settle at a reduced amount to make it go away rather than sacrifice the business and go through the liquidation process of a bankruptcy. I remember a discussion on these boards a few months ago about Michael Greco collecting a default judgment against a company for $65K I think (somebody source me), so it's not like Higbee isn't making an active effort to collect on these.

If the judgments are against individuals (as opposed to companies) then there is a higher likelihood of collectability because you can't just "walk away" without doing some serious damage to your personal credit. If you have any assets they will just be liquidated to pay off creditors in bankruptcy, so it might make more sense to scrape up the money and try and settle it rather than nuking your credit for the foreseeable future. Judgments resulting from intentional torts generally cannot be discharged in bankruptcy anyway, and I am willing to bet that Higbee argues that these are "intentional" infringements when applying for the default judgment.

My point is, if you are going to fight then fight, if you are going to settle then settle. If you do get sued, then ignoring the problem and getting hit with a default judgment is usually the worst thing you can do.
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on November 21, 2018, 01:09:03 AM
Very nice catch.  Nice little collection of questionable judgments against some interesting legal entities.  I call them questionable since no one bothered to show up and the judge could pick any dollar amount based on his mood. Further, it always comes down to collectability.  Those judgments are so absurdly high, it is almost pointless to make any effort to pay them unless someone is willing to expend the time, resources, and energy to pursue them.

Many of the principals/owners of those legal entities will likely abandon their legal entity. It ends up being a paper judgment against a paper legal entity. Whether it becomes anything more remains to be seen.

The plaintiff will now learn how much that paper is worth. It is worth "something", just not what is published or printed, I can you that!

It looks like Higbee & Associates is using their results on default judgments as part of their sales pitch.

https://www.higbeeassociates.com/practices/copyright-law/

Some of our notable recent court successes:

Summary judgement denied to BackChina in infringement case

Alex Wild wins $15,000 copyright infringement judgement

Chris Sadowski wins $30,000 copyright infringement judgement

Michael Grecco wins $45,000 default copyright infringement judgement

Michael Grecco wins $60,000 copyright infringement judgement

Sadowski wins $50,000 copyright infringement judgement
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on November 21, 2018, 01:37:19 AM
I understand where you are coming from and your assessment is correct for a big segment of society. Without getting into a long discussion of how certain segments of socio-economic-cultural-educational circles conduct their lives, I can assure you that "bad credit" is normal and a way of life for large chunks of society.  It really isn't that big an issue for them. It is inconvenient but not catastrophic. Sadly, it is a natural way of life for them.

I personally dealt with those types of people for many years and I was amazed how people exist and get by. I removed myself with such clientele because I could not stomach it anymore but I know people who still do business in those circles. I continue to get schooled by new stories and techniques of how people get by in society with no computer at home, shit credit, no checking, no education, no checking account, etc.  But they have a smart phone. :-)

They could care less about any judgments because they have learned on the streets most judgments (default or not) don't impact them much. If it did, they wouldn't continue to indulge in such behavior.

As I have repeatedly stated in these forums, go have an honest talk with someone inside most collection agencies. There is a HIGH ratio of uncollectibles that exist and it is their full-time job and business to collect.  Collection agencies stay in business because "assets" (receivables/judgments/debts/claims) are freely given to them to work. Major financial companies sell their receivables, debts, and paper for pennies on the dollar just so they get "something" besides a total loss.

People who don't want to pay find ways of being evasive. Sure, there are occasional victories but it requires too much time and resources to collect. Unfortunately, I have learned the hard way.  And even lawyers who are in the business, have their limits of how much energy they will spend pursuing certain folks.

And your points of "fight then fight" or "settle then settle". Sheer avoidance IS a form of fighting! It is a fight on THEIR terms which is "catch me if you can". Like all fights, there are winners and losers. Some do it better than others.

The way I see it is, it always comes down to how hard someone is willing to avoid. Their socio-economic-cultural-educational background is very determinant on how it all goes down.

Regarding liquidating assets, what do you consider assets from ordinary people?  Their furniture, used clothes, big screen TVs, computer, cell phones, musical industries, toiletries, supplies?  Most "assets" are very low value or nearly worthless.  Any pawn shop will quickly educate anyone what the true market value of such items are worth.

Meaningful assets might include artwork, high-end furniture, real estate, business inventory, a brick-and-mortar business, bank accounts, etc.  But a very determined and knowledgeable person could place many of those types of assets within other legal entities or people they trust.  So, on paper, they look like they have few assets.

And retirement accounts and many trusts are nearly untouchable. There are very savvy high net worth people who aren't going to let all their assets be in their name and be exposed to just anyone easily collect from them. They could have a network and web of smaller entities, accounts, trusts, trusted individuals, etc. Divorce lawyers are a group to turn to get stories of high-class avoidance strategies because they have to sniff them out from spouses who don't want to disclose ALL the assets they have.

Both low-class and high-class avoidance strategies are alive and hidden in plain sight. In some circles, they are called "asset protection strategies" and they are taught by many lawyers! I know because I have taken some seminars over the years on such topics.  Very practical and good to know if you ask me.

I have considered writing and publishing about such topics for the affluent audience. Lots of people who fear the loss of acquired assets so I think there is a big, underground interest in such topics.

If the judgments are against individuals (as opposed to companies) then there is a higher likelihood of collectability because you can't just "walk away" without doing some serious damage to your personal credit. If you have any assets they will just be liquidated to pay off creditors in bankruptcy, so it might make more sense to scrape up the money and try and settle it rather than nuking your credit for the foreseeable future. Judgments resulting from intentional torts generally cannot be discharged in bankruptcy anyway, and I am willing to bet that Higbee argues that these are "intentional" infringements when applying for the default judgment.

My point is, if you are going to fight then fight, if you are going to settle then settle. If you do get sued, then ignoring the problem and getting hit with a default judgment is usually the worst thing you can do.

Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: A Lawyer on November 21, 2018, 05:20:15 PM
Many of the principals/owners of those legal entities will likely abandon their legal entity. It ends up being a paper judgment against a paper legal entity. Whether it becomes anything more remains to be seen.

Ok, I'll bite. I clicked on each of the judgments listed on Higbee's website and this is what I found:

Alex Wild $15,000 judgment - Against a corporation.

Chris Sadowski $30,000 judgment - Against an individual.

Michael Grecco $45,000 judgment - Against an individual.

Michael Grecco $60,000 judgment - Against an LLC. I posted about this earlier this year but now that I look into what Higbee posted on his website, it is a lot more interesting. Higbee didn't actually post a judgment, but he posted a court order denying defendant's motion to set aside the default judgment which had already been entered. Looks like after the default judgment was entered, the defendant tried to challenge it and get it set aside. The judge really chided the defendant and its attorney:

Quote
Defendant concedes it received actual notice of the filing of the action, and the record indicates that Defendant intentionally failed to answer. Defendant offers no reason, much less good cause, why Defendant did not answer or respond to a motion for default judgment when it knew such a motion was pending. In light of the Defendant’s silence on these key issues, the record indicates that Defendant waited to see how the Court would rule on Plaintiff’s motion for default judgment before Defendant decided to appear in this action. Then, only because the Court’s judgment was not in Defendant’s favor, Defendant decided to respond to Plaintiff and appear in this action months after its answer was due. In doing so, Defendant undermined the adversarial process and has attempted to take advantage of Plaintiff.

I posted a while ago on this one, but it appears that the Defendant ponied up the money and paid off the judgment after Higbee attempted to collect.

Sadowski $50,000 judgement - Against a corporation

So of the five judgments, two are against corporations, two are against individuals, and one was against an LLC and was apparently collected after a failed attempt to get it set aside.

My point in making these posts is that I feel like a lot of the opinions on here promote a laissez-faire attitude toward getting sued or having a default judgment entered. The best course of action is always to deal with it (whether that means to fight or pay) rather than sit back and assume that you can just deal with it after the fact. You can't just "walk away" from a judgment against you individually. You would have to file bankruptcy (and nuke your credit), and liquidate most of your assets to pay your creditors (including the judgment you are attempting to avoid by filing bankruptcy in the first place).
Title: Re: Judge Awarded Higbee & Associates $48,000 for Use of 1 Photo!!!
Post by: Matthew Chan on December 07, 2018, 10:25:16 PM
You did a good job on taking on the analysis. Thanks for that. Very helpful.

I am NOT take a laissez-fair attitude about this. I am also not encouraging people to disregard claims or just let a judgment happen.  In 2008-2010, there were all kinds of people doing "strategic defaults" on mortgages. They were "passive" financial moves that people engaged in. They didn't fight or negotiate. They simply accepted the fact that they were willing to take a credit hit. Nearly all bad credit drops off after 7 years but most people don't know that.

We can argue the moral issues and the collateral damage all day long. My point is that people did it. It was a calculated risk many people took to get out from underwater homes.

I am not saying there are not negative consequences or collateral damage to taking a less-than-ideal path. I am saying there are weighted decisions involved.

I have seen and had discussions with a variety of people who are in bad credit, bankruptcy, student loans, mortgage loan modifications, foreclosures, evictions, IRS troubles, lawsuits, etc. situations over the years who are in very tough positions. People somehow find their way to me because they want to hear my "alternative insights" which I am often known for. I don't seek them out. People share all kinds of very personal financial and business information and situations with me. And over the years I have had a lot of information and insights told to me by professionals that they would never tell the general public. That is a fact. I accept credible information and insights no matter where it comes from and I disseminate it as fairly and responsibly as I can.  People can decide from themselves what to do.

I once told a woman that she will likely have to depend on a spouse or someone else for the rest of their lives because of their large unpaid student loans and their credit will be "bad" for the rest of their lives.  So does one spend a lifetime trying to pay off $90,000 student loan to have "good credit"? Or direct that $90,000 towards something else? I am not the morality police.  Very tough decision. It is easy to tell someone to do the "right thing" and pay the student loan off. For most people, doing it ain't quite so easy.

One thing I do know is that most people don't suddenly go live under a bridge and have nothing left in their names. People have very sharp and aggressive self-preservation instincts. People "self-preserve" in different ways. All kinds of unusual tactics and strategies are used in the name of self-preservation. That is a fact. Some deal with it head on, others prefer avoidance and the "catch me if you can" approach. 

I am simply making counter-points based on what I have seen. People have to make tough decisions for themselves.  It is easy for me to jump in agree with you. But I have seen life is not quite so simple for many people. 

As I have said before, we have a diverse group of folks on the ELI Forums. Every reader can decide for themselves what is best for them. It doesn't affect me one way or another. I just like to offer a smorgasbord of options to people to consider. Not just one way to resolve things.


So of the five judgments, two are against corporations, two are against individuals, and one was against an LLC and was apparently collected after a failed attempt to get it set aside.

My point in making these posts is that I feel like a lot of the opinions on here promote a laissez-faire attitude toward getting sued or having a default judgment entered. The best course of action is always to deal with it (whether that means to fight or pay) rather than sit back and assume that you can just deal with it after the fact. You can't just "walk away" from a judgment against you individually. You would have to file bankruptcy (and nuke your credit), and liquidate most of your assets to pay your creditors (including the judgment you are attempting to avoid by filing bankruptcy in the first place).