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May 18, 2013

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Attorneys accuse Righthaven of settlement shakedown

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Defense attorneys are complaining that Las Vegas copyright enforcement company Righthaven LLC is trying to force defendants into settling by running up legal bills with its aggressive litigation tactics.

These cases pit Righthaven, which sues over online infringements of Las Vegas Review-Journal stories, against the Las Vegas office of the law firm Lewis and Roca LLP.

Lewis and Roca, with at least five attorneys working on Righthaven cases, appears to be the busiest law firm when it comes to defending Righthaven defendants in litigation and settlements.

Lewis and Roca has been aggressive in its defense, accusing Righthaven of running a settlement shakedown operation involving frivolous no-warning lawsuits.

Lewis and Roca also won an important ruling giving defendants hope that they didn't infringe on Review-Journal copyrights because the Review-Journal encourages online sharing of its stories.

The latest dispute between Righthaven and Lewis and Roca is over whether discovery should get under way before judges rule on Lewis and Roca motions to dismiss in at least three cases.

In these cases, Righthaven attorneys say they want to proceed with "Rule 26(f)" conferences -- but Lewis and Roca attorneys want the conferences delayed until judges rule on their motions for dismissal.

Such conferences are required in federal lawsuits to plan for discovery, or the collection of information and evidence, and so the parties "can consider the nature and basis of their claims and defenses and the possibilities for promptly settling or resolving the case."

In the case of Canadian defendant MajorWager, Lewis and Roca attorneys Nikkya Williams, Michael McCue and Jonathan Fountain wrote in a recent filing: "Notwithstanding the likelihood that the court will soon rule on MajorWager's motion to dismiss, Righthaven is insisting that the parties proceed with a Rule 26(f) conference, which, of course, would trigger the deadline for making initial disclosures and commencing discovery."

"Righthaven is apparently attempting to put pressure on MajorWager, a foreign defendant, to incur potentially unnecessary attorneys' fees and costs in an effort to compel MajorWager to accede to Righthaven's settlement demands," the attorneys wrote in asking the court to delay the conference.

Similar requests for judges to delay the Rule 26(f) conferences were made by Lewis and Roca in at least two other cases involving EMTCity.com in New Hampshire and the Vote For the Worst LLC website in Utah.

In all these cases, Lewis and Roca noted there's no hurry to proceed with litigation since Righthaven isn't seeking temporary or preliminary injunctions to have material removed from websites. Righthaven's lawsuits focus on past infringements and the Lewis and Roca attorneys noted that in these cases the material has already been removed from the websites.

Lewis and Roca also said there's ample legal precedent to dismiss the three cases involving out-of-state defendants. They're arguing the Nevada court doesn't have subject matter and personal jurisdiction over the defendants given the trivial nature of the infringements in two of the cases, the fact the infringing material was posted by third parties in all three cases and the lack of contacts all three defendants have with Nevada.

Righthaven, however, says there's no need to delay the discovery process since Lewis and Roca stands little chance of succeeding with its motions to dismiss.

"MajorWager's unwillingness to agree to participate in a Rule 26(f) conference has prolonged the limited discovery required in this case and displayed a nonchalant attitude, if not blatant disregard, for the Local Rules and Federal Rules of Civil Procedure," Righthaven attorneys J. Charles Coons and Joseph Chu wrote in a filing this week.

"MajorWager's assumptions that Righthaven's Rule 26(f) requests have been unreasonable and an attempt to ratchet up attorney's fees are the exact opposite of Righthaven's actual intentions," they wrote.

The issues of liability and damages appear to lend themselves to settlement by way of a Rule 26(f) conference, they wrote in the MajorWager case.

"If a Rule 26(f) conference was held in good faith and both parties respected the intention of the Rule 26(f) conference to provide a forum for settlement discussions, it would limit both attorneys' fees and judicial resources," the Righthaven filing said.

Righthaven, which has sued at least 146 website operators since March, separately reached settlements with four more defendants. These bring to at least 47 the number of settlements Righthaven has reached, the terms of which are confidential in most cases.

The latest publicly-disclosed settlements involve defendants:

--Swadeep Nigam

--Rawguru Inc.

--Dan Cirucci

--The Above Network

Discussion: 5 comments so far…

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  1. SgtRock,

    I agree that it does seem a bit odd that they are using that defense, but when I go back to the original story it looks like the judge wants this case to go to trial. This is one of the third party poster cases involving a non-profit site.

    Some of these cases will be important for establishing guidelines if they actually go to verdict.

    They very last sentence in the original story is key:

    "The judge's findings on these issues are not final and Righthaven will have plenty of opportunities to contest Klerks' contentions should the lawsuit proceed and not be settled."

  2. It is possible that the judge wants to see if there is an "implied license" for "fair use". Sounds like a tautology, but maybe not. The argument would be that "fair use" implies that there is a license for that use.

    It will be more clear if this defense is deemed meritorious or not in the cases where it is the site owner copying a full article, especially if the site has advertising such as Google ads.

  3. For SgtRock:

    Thanks for your comments. To clarify a couple points:

    We've reported that since the Sun & Greenspun Media Group are not involved in the Righthaven litigation, it's not necessary for us to disclose whether law firms involved in Righthaven cases have also done work for the Greenspun companies.

    http://www.lasvegassun.com/news/2010/sep...

    You say: ``The Sun's own lawyers are saying that the Sun does not have copyright protection.''

    I am unaware of anyone saying anything like that.

    In the Righthaven cases, the ``implied license'' argument has been made only in relation to the Review-Journal and its terms of use and in the context of websites being sued without the Review-Journal first asking that the material be taken down. I am unaware of any other newspaper's terms of use coming up in the Righthaven litigation.

    The ``implied license'' defense likely would not be used if there was a case of a website that refused to remove infringing material upon demand or request -- because that website would have received notice that the material was posted without authorization.

    The Sun's reader agreement spells out how Sun material can be used and I can assure you those not in compliance have been hearing from us.

    http://www.lasvegassun.com/about/useragr...

    As for the extent of our coverage of Righthaven, it seems to be a story not going away with new suits filed regularly and defendants either settling or litigating -- all newsworthy in our view.

    You may disagree, I'd just refer you to national coverage the past month or so by the Associated Press, Bloomberg, Wired, Editor & Publisher, Poynter, the Washington Post & others.

    Thanks again for your comments.

  4. Steve, I have read the Sun's user agreement a few times now and think highly of it. But I have not read the RJ's agreement, assuming it was very similar to the Sun's.

    However, given that the RJ's agreement is a subject of lawsuits and is presumably included in court records, and also given that many of us refuse to give the RJ traffic, is there any legal way for the Sun to make a copy of the RJ's user agreement publicly available?

  5. I would have loved to have seen that copyright page before Righthaven entered the picture.

    But that is not the user agreement comparable to the Sun's, and I'm sure the RJ has one. And again, it would be useful to see it from the time before Righthaven was active.

    And the doctrine of "fair use" means you DO have a right to use the material in the way you did. The trick is in determining if the use was in fact covered by "fair use".

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