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Messages - Ethan Seven

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91
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.

92
The sample complaint is usually the last pre-litigation attempt to resolve a claim, but that does not necessarily mean they will not call or email you one more time before giving up or filing the lawsuit.  It probably is impossible to know.

They will probably not file the lawsuit if they think you do not have money to pay.  Conversely, if they do file, they will because they believe that you have money or assets.  Therefore, they will certainly be asking for much than $2,000.  My guess is they would at least triple the original demand amount.  But again, it is impossible to know for sure.

If they do file the lawsuit, you will need to hire an attorney to file an answer or settle prior to answering.  My guess is that hiring an attorney to file an answer will cost you at least $2,500.  There is the possibility that a good attorney may spot a defense you have not raised, which might get them to dismiss the case or dramatically reduce their demand.

You also have the option to try to settle it yourself after they file.  This is risky as many defendants throw gas on the fire by making admissions that make things easier for the plaintiff.  If you attempt to negotiate, familiarize yourself with Rule 408.

You can also not fight it and accept a default judgment, and make them collect.  This is very risky if you have assets.

I hope this helps.

93
Class action is fantasy land talk.  I can see no basis for it in law... not even on a bad TV show.

Think about just this part:

Your class would profess to be a group of people who did not comply with a license and then were harmed because they thought it was a good idea to settle a claim that they believed had no merit. 

The problem should be obvious.


94
A Lawyer is correct. 

If the copyright holder waits for than 3 years (it might be 5) to register the work after creation, they have the burden at trial to prove the registration is valid, but it is an easy burden. 

Many photographers are just starting to register their old work for a couple of reasons.  First, they did not need to in the past because it used to be difficult for people to copy their work, which mostly appeared in print. Second, reverse image search services make it easy for them to see who is using the images without a license.

95
$60,000!  That is a big number in a default judgment.  I wonder how many images were used?

96
The copy of the complaint is usually the last step in the pre-litigation process.  If you ignore it, my guess is that the law firm will either file suit or stop pursuing the claim.  If they do file a law suit, it will inevitably look at least slightly different than the “mock” complaint. 

Sending the pre-litigation copy of the law suit is is a tactic that is used in many different practice areas.   It is designed to do a few things. 

1.  It shows the judge that they took every step possible to try to get you to settle the claim before “forcing them” to file the law suit.  This is an important tactical step that they will use to paint you in a bad light and to use to bolster their chances that the judge will order you to their attorneys fees.
2.  It is designed to warn/scare you about what might happen in hopes that you decide to settle prior to them having to file the case.
3.  Depending on the quality of the letter, it should help you better understand the nature of the claims and facts that support it, again with the hopes that it will help you see the merits of settling the matter prior to litigation. 

It sounds like you made an offer to settle.   If it was verbal, resend it via email so that you have documentation that you made a good faith effort to resolve the matter.   It will annoy the judge if you made an offer and they did not respond or counter prior to commencing litigation. 

StockFood America is vastly different that RightsHaven.  RightsHaven was created solely for the purposes of suing people for copyright infringement.  RightsHaven did not create, sell or even own a valid interest in any copyrighted material.      StockFood America on the other hand, looks like a well established licensor of copyrighted images.  There is also a good chance that they own copyrighted material that they purchased or created themselves. 

The title of the registration certificate does not matter.  What matters is what images are listed or referenced on the certificate or what images were made in the deposit that accompanied the registration.  My guess is that StockFood America does a large volume of regristartions and that it is a database export of a large number of photos.   You could request a deposit copy from the US Copyright Office. 

As far as where to go from here, it is a business decision with no perfect, one-size fits all answer.   

97
Has anyone been tracking Higbee's filings noticed if the volume has gone down in the last few months?

It looks like Higbee & Associates has filed about 50 copyright law suits this year.  I am not sure if that is a historic increase or decrease in volume.   According to the site below Higbee filed a lot filer of copyright law suits in 2017:

http://copyright-demand-letter.com/liebowitz-law-firm-top-filer-of-copyright-law-suits-in-2017/

I looked at some of the law suits that he filed.   I noticed Higbee occasionally partners with other law firms on copyright cases.  He might be outsourcing some of his litigation to other law firms, if so, this would complicate knowing what to make of the number of law suits filed by Higbee & Associates when trying to evaluate the threat of litigation. 

98
BuddhaPi is correct if it is a civil case.   17 U.S. 507(b) states that no claim shall be brought after three years from the time that the claim accrued. 

The claim accrues when the infringement is discovered by the copyright owner. 

If the alleged infringement started prior to three years, it is good to ask when they discovered it.  If it was more than 3 years ago, you are off the hook.

The statute of limitations is 5 years if the case is a criminal case of copyright infringement. 

99
If the facts support a defense based on copyright abuse, you can fight it and possibly win an award of attorneys fees. I am not saying you should not fight it. I am just trying to make perfectly clear that it will not be an inexpensive fight that will resolve in a couple of hours.  You should plan to spend $25,000 or more.  You do not want to start a fight you cannot afford to finish, otherwise you will be forced to fold before you get to a verdict, which would be a total waste.   I wish you the best of luck.  What you describe sounds like a lousy situation.  I will try to read more about it.

100
“Can you file a defense for a default judgement? Most judges have common sense and most lawyers can show  evidence of the predatory practice of these websites in one or two pages. If so, would that ruling of a default judgement be filed for others to use as precedence?“

—-
I think you mean summary judgment.  You could move for summary judgment, but that would be after you file an answer, make initial disclosures and start discovery.   If you are paying a decent lawyer, you will be at least $7,500 into the case.

The outcome you desire would be possible if Judge Judy had jurisdiction, but sadly copyright matters are handled in federal courts by federal judges who follow the federal rules of civil procedure. 

Simply put, a class action is a fantasy that will never come to fruition for more reasons than I can explain in an afternoon.

You need to ignore them or negotiate a settlement in hopes of not getting sued.  If you get sued, you have three options,  1 settle quick, 2 prepare for a long expensive fight or 3 not fight and live with a default judgment.

101
So a friend who has copyright attorneys on retainer tells me to not give them a dime, period! He says copyright infringement cases need to prove damages and willful infringement...

This is a real good example of why you do not want to take second-hand legal advice.  What you say your friend said is wrong.   There is never a need to prove willful infringement, even innocent infringers can be found liable under copyright law.   Damages only need to be proved if the copyright holder is seeking relief under 17 U.S. 504(b). 

Fighting these cases does not take 1 or 2 hours.   That would be awesome.  Unfortunately, if you are sued, fighting it requires you or a lawyer who represents you appearing in court, probably multiple times.  Most defendants settle these claims very fast because it is usually much cheaper to pay a couple thousand dollars and eliminate the risk than it is to fight it and still face the risk of losing, and then possibly having to pay the copyright owner’s legal bills.  That is why about 98% of these cases settle within the first 3 months of the litigation.    US Copyrght law is very pro-copyright owner.  These plaintiff’s know it and it emboldens them. 

You always have the option to not fight it and accept a default judgment.  However, if you have assets or income, you probably don’t want a judgment against you.   

102
Robert Krausankas (BuddhaPi) is absolutely correct.   As is with most contracts, the devil is in the details.  RM Media does make it clear that even their “free” images are subject to terms of a license. 

A judge may believe that a very unsophisticated person did genuinely believe that the images were free and was therefore an innocent infringer, but even so, the minimum a judge could award is $200 in statutory damages per infringement. 

If you could convince the judge that RM Media was abusing copyright law, you might be able to get the judge to not award them attorneys fees or costs.   If you fail to prove that, you could be stuck with paying court costs and attorneys fees.

If you do not have money or assets, you can ignore them and hope they don’t sue you.   My guess is that they will not sue you if they see you do not have assets or any prospect of soon acquiring them.

103
Copyright cases can only be handled in Federal court-period!

Well, the United States Supreme Court and multiple federal district courts disagrees with you, but hey, what do they know?  ;)

See some fairly recent cases:  Maxient, LLC v. Simplicity Corp., 2014 WL 5422195 and Dent v. Renaissance Mktg. Corp., 2014 WL 545006.


Disclaimer:  I maybe be a lawyer, but I am not your lawyer.  Copyright matters can have serious consequences.  If you have assets worth protecting, consult a lawyer who is familiar with copyright law and who can take the time to properly review the facts of your case. If you cannot afford one, call your county or state bar association and ask for a list of free or discounted legal resources. 

104
If they litigated, it would probably be in federal court   However, since California has a cause of action that sounds in copyright, it is possible, though very unlikely, they could file in superior or small claims court.  It is also possible that they could bring a state law case under another tort theory, but this too is unlikely.   

Small claims court in CA has a $10,000 limit on damages.  Lawyers are also not allowed to represent individuals in CA Small claims court.

It is very, very rare a copyright owner opts to file a state law in small claims court.  I read somewhere on this forum about some plaintiff doing it somewhere in New England.   That plaintiff had images that were made available on an expensive subscription service, which may make state law claims more viable.

However, it would be very surprising to see someone choose a state law when they have the option to use federal law, which is very pro-copyright holder, especially in the 9th circuit, which includes California.  The courts in the 9th are generous with awards of damages and frequently provide awards of attorneys fees.   

I appreciate your commitment to fighting, but if you are paying an attorney and hope to get to a meaningful ruling , it will most likely cost you north of $10,000.  $2,000 might allow you to get a decent answer filed, but that is no where close to a substantive ruling.   A substantive ruling will not be possible until after a few hearings and most likely, significant discovery. 

If you involve Google, you can bet the any defense attorney willl want at least a $25,000 retainer and will tell you to plan to spend a minimum of 250,000.  Google fights hard and their attorneys are good.

If you were considering seeking declaratory relief from a federal copyright claim, which is almost always a bad idea unless you are facing the threat of an injunction or some other odd fact, you would have to do it in federal court.

105
My saying a person needs to weigh the ethical concerns about a particular claim is no where near to saying this board is “infested with ethically challenged people.”   




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