I've known about this Masterfile case against a Washington DC patent lawyer for some time but thought this case might be settled quietly. It has not settled "quietly" because I found out about the settlement from National Law Journal (paid subscription):
http://www.nationallawjournal.com/home/id=1202720832518/Lawyer-Accused-of-Stealing-Stock-Images-to-Pay-8000Essentially, we have a PATENT lawyer from Washington DC who tried a tactic that ELI occasionally discusses about laying low and going dark. This tactic generally works only for people that are low profile, have extremely small business interests, and other circumstances that make filing a lawsuit financially not worthwhile or reputationally damaging.
Prior to 2013, ELI has discussed Masterfile's past aggressive use of litigation but it has dramatically slowed in recent years. I am quite confident that this was not because Masterfile was being nice. It likely had to do with the fact that filing several dozens of lawsuits resulted in the enrichment of its lawyers in legal fees, not Masterfile itself. I suspect many of those Masterfile wins were uncollectible. They had paper wins but when it came to money collections, it was likely met with limited success.
Had the financial outcome lawsuit run for Masterfile been very profitable for those collective lawsuits before 2013, there is no reason they would not continue. After all, they don't have a reputation as sloppy as Getty Images in the details and copyright registrations.
But there are certain cases that cannot be ignored. I never consulted with Jerry Joseph but had he called me for an ELI Support Call, I would have warned him that he was potentially a juicy target to be sued especially since it was a Masterfile case and to advise him to sign up with Oscar's Defense Letter Program BEFORE a potential lawsuit hit.
There was another case where I warned another individual that I felt he might be at risk of getting a lawsuit filed on him during my ELI Support Call with him. He kept making weird "legal" arguments which I thought would never hold water if confronted. Normally, I am not a fear-monger but I was legitimately concerned for the logistics and circumstances of his locale and case which might make him a lawsuit target. I advised him to get "insurance" by hiring Oscar and getting on his Defense Letter Program for $250 (of which I get nothing). Contrary to what some might believe, I don't make recommendations of the kind because of any financial kickback. I do so because I try to do right by every person who speaks with me and that some cases are simply more "juicier" than others for a lawsuit filing.
Unfortunately for this person, I was correct. He could have hired Oscar and got on the Defense Letter Program for $250 but he was too cheap about it due to financial concerns. I understand that no one wants to pay $250 if you don't have to but where can you find a competent excellent lawyer like Oscar Michelen in the U.S. who will represent you and help you settle for a flat fee of $250? Very few in the U.S., I suspect. In any case, this guy got served and now he is in for much more in legal fees. He tried to save on the Defense Letter Program but once a lawsuit is filed, that $250 is no longer on the table as far as Oscar is concerned. Certainly, Oscar still offers a favorable retainer agreement but it is to deal with a lawsuit, NOT just a settlement demand letter anymore.
Regarding Jerry Joseph's case, he was foolish to think that him being a PATENT lawyer in Washington D.C., he would be "low profile". I can see where Masterfile and Photo Attorney Carolyn Wright would want to make an example out of him.
In fact, the way they have settled is so unlike prior settlements. Most settlements are done quietly behind the scenes and the lawsuit is dropped. However, in his settlement, Jerry Joseph offered and Masterfile accepted a Consent Judgment of $8,000 to settle the claim. All of this is in the official public record.
The court documents are here:
https://www.scribd.com/doc/259241749/Masterfile-v-Jerry-Joseph-Offer-of-Judgmenthttps://www.scribd.com/doc/259241663/Masterfile-v-Jerry-Joseph-Notice-of-AcceptanceI am fairly confident this was done as a calculated move on Masterfile's part for the public record. I debated whether to report on the results of this case on ELI after I found about it in the National Law Journal.
I decided to report on it because:
#1, I've never communicated with Jerry Joseph and he never utilized the ELI Support Call. As such, I have no particular loyalty to him. I have no problems in saying The ELI Support Call is one of the most powerful, high-value programs I've developed to quickly bring up to speed any extortion letter victim in a customized, personalized way. It is also one gateway and stepping stone who might consider Oscar and his law firm as part of the solution. I advocate very hard for people who choose to utilize the ELI Support Call.
#2, My instincts on these matters are very good because people need to know that good instincts are few and far between when it comes to matters of incomplete facts. Anyone can make a good decision when presented with ALL information. But good decisions are hard to make when dealing with uncertainty. I've had lots of practice over the years in MANY ASPECTS of my business life where I often deal with uncertainty. Over time, I have honed my instincts over many so-called professional over uncertain business and legal matters. A business friend hired me this past week over an urgent matter because he has seen the way I work, heard my analysis, and the results I deliver. He didn't call a lawyer first, he wanted MY assessment BEFORE speaking to any lawyer. And he asked me which lawyer to use for his situation. I ended up going with him to a meeting with my local lawyer that I recommended and I even spoke up on my friend's behalf to connect my friend and my lawyer together.
In fact, overall, in my past experiences with MOST lawyers, my instincts are often better than their instincts because I look and have a feel on factors that transcend LEGAL ones. There is far more than meets the eye than most people realize. Most novices simply don't know what to hone in on.
#3, On cases not relating to Jerry Joseph, I have a high track record of making the right call. As a matter of disclosure, I anecdotally track what I would do myself if I were in a client's shoes and see if my decision was the right call for the next 2-3 years as the statute of limitations runs out. I am happy to report that I frequently "get it right".
#4, ELI is committed to reporting the truth even if it "helps" the opposing side. People need to know the truth to make an informed decision. Masterfile and Photo Attorney get some free exposure from ELI in their "victory" here. But that victory was largely because Jerry Joseph was very foolish, uninformed, and ignorant in the way he handled it. I don't think Masterfile and Photo Attorney would have filed a lawsuit against him or that he would have to agree to a Consent Judgment had he had the courage and the right insights to deal with it.
This just proves once again what I have said that many lawyers (even a patent lawyer who should have known better) are book-smart but not street-smart and flawed human beings that have plenty of weaknesses and stupidity in them. Too often laymen hold lawyers on a pedestal. I've dealt with many of them over the years both personally and online. Many are pathetically predictable and many of their weaknesses are bright as day to me. But there are smart, experienced lawyers also. And I have an instinct for sniffing them out over time.
#5, The National Law Journal article was terribly weak, basic, and offers none of the insights and commentary that I feel people need to make an informed decision. There are layers of complexity and there are characteristics of each party that only ELI would know because we have been following such matters since 2008. As full disclosure, the knowledgebase in my head I have developed over the years is because of my good relationships with many active ELI Community members. I have several eyes and ears reporting back to me. And it goes both ways, I report to them what I have. I value and respect the ELI Community and I treat them with respect and give them the attention THEY deserve for their loyalties to me.
For so many reasons, the Masterfile vs. Jerry Joseph case had many teaching moments for the ELI readership and I felt it necessary to use that as opportunity to make my points.
Masterfile and Photo Attorney can have their public victory dance. They even get free ELI coverage from it. But the greater good is served when people get smarter. That means being able to swallow and accept the "bad news" along with the "good news" that we frequently report on ELI.
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