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Businesses The Courts

Appeals Judge Calls Prenda an "Ingenious Crooked Extortionate Operation" 71

ktetch-pirate ("pirate politician" Andrew Norton) writes with this news from his blog: [Monday] was the long-awaited appeals court hearing in the ongoing Prenda copyright troll saga. Almost exactly two years after Judge Otis Wright went sci-fi on Prenda and its principles, the 9th Circuit Court of Appeals held an appeals hearing requested by Prenda on the sanctions, and it was not a pretty day for Prenda. Highlights included Senior Judge Pregerson calling Prenda's operation an "Ingenious Crooked Extortionate Operation" after describing in detail how they operate.

Prenda also astonished the judges by welcoming the idea of a criminal contempt hearing, which Legal blog Popehat thinks is likely to happen, on top of the sanctions being sustained.
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Appeals Judge Calls Prenda an "Ingenious Crooked Extortionate Operation"

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  • by Anonymous Coward

    Don't you mean "Disingenuous"?

    • nope, My bad on a typo (I'm gonna blame a mixture of allergy and Bronchitis medication) but it should have been Ingenious.
  • by Anonymous Coward

    Anyone with the time should follow the YT link to the hearing. The whole damn thing is worth listening to, including a judge calling the companies' incorporation on Nevis a defiliation of the birthplace of Alexander Hamilton.

    captcha: infamy

    • Defiliation? He really said that?
      "The denial or lack of a male child"?
      "The abstraction of a child from its parents"?

      Nope, lost me there.

  • by bradley13 ( 1118935 ) on Tuesday May 05, 2015 @10:38AM (#49620861) Homepage

    I suppose there is some justice in the Prenda principals* living this trainwreck for years, as a sort of additional punishment before their inevitable jail sentences even start. However, I can't help but think that it shouldn't take this long. They spent years scamming people, before a court finally had the balls to actually take action against them (one somehow suspects special treatment for fellow lawyers). Now they are spending more years wasting judicial resources and time, meanwhile they may well be running some other, new scam to finance their modest lifestyles.

    * Note to editors: it's not "principles" - those are what the Prenda principals failed to live by.

    • I suppose there is some justice in the Prenda principals* living this trainwreck for years, as a sort of additional punishment before their inevitable jail sentences even start.

      Who's going to jail? The lawyers? They are just hired help. The executives of Prenda? They are exempt since they hide behind the "corporation." The venture capitalists who are funding the whole thing? No, they are so above the law that it's not even funny. Maybe a few people will be disbarred. That's about it.

      • Re: (Score:2, Informative)

        by Anonymous Coward

        The lawyers ARE the executives, whose corporate veil has already been pierced in several of the cases (so no hinding behind companies) and there are no VC's.

        The lawyers are representing companies they themselves own, but hiding that fact from the courts so they can sue over bittorrent downloads they themselves uploaded to TPB, while obstructing every court effort to get to the bottom of things.

        You're way off on how this case is going

      • Re: (Score:3, Informative)

        by Anonymous Coward

        The lawyers themselves are accused of contempt of court for falsifying court documents amongst a few other things, fraud of the courts included. They are very much looking at heading to prison as it was their own actions in court that are the basis of the criminal accusations.

      • by sjames ( 1099 )

        Lawyers can't use being hired help as a defense. They are officers of the court first, so it is their duty to refuse to behave unethically no matter who pays how much. Vigorous representation does not include illegal acts.

        Considering that the company listed an unwilling and unassociated person as an officer, it may well not even exist legally. No company, no protection. Beyond that, the corporate veil isn't quite blanket immunity, particularly when the company is small enough that the officers can't claim t

  • TL;DR (Score:5, Funny)

    by wonkey_monkey ( 2592601 ) on Tuesday May 05, 2015 @10:47AM (#49620945) Homepage

    Rave reviews for Prenda:

    "Ingenious" - Senior Judge Pregerson

  • These guys are rightly being destroyed for extorting settles from people accused of infringing porn. I understand your porn habits are more embarrassing than your taste in movies and music (usually), but how exactly is this different than extorting payments for those?
    Reasons I can think of:
    1. They're getting slapped down just for insulting the judge.
    2. Most other judges are wholly owned subsidiaries of the *AA
    3. Most other judges don't want to anger their politician masters who indisputably are.
    4. (least likely) The
    • by amicusNYCL ( 1538833 ) on Tuesday May 05, 2015 @01:38PM (#49622647)

      but how exactly is this different than extorting payments for those?

      From what I remember about what happened 2 years ago, their scheme went something like this:

      1. Buy copyrights to porn movies using a company controlled by them (the attorneys) but nominally owned by a handyman/friend of one the attorneys, whose signature was forged on the company documents.
      2. Release those movies on torrent sites.
      3. Track who (which IP addresses) were downloading them.
      4. Sue people on behalf of the holding company from step 1.
      5. Gather spurious evidence but secure settlement payment on threat of taking the people to court and making a public assertion that they downloaded the porn movies.

      One major problem with this scheme is that the lawyers doing the suing are also the people who stand to make monetary gain on the settlements, but this relationship was never disclosed or even really proven, despite a lot of circumstantial evidence. The lawyers took great pains to conceal the fact that they would personally receive the settlement money, that it was ultimately being paid to them and not some random holding company. The court wasn't able to prove that they were behind the holding company, and when pressed the lawyers could not adequately explain the relationships between the various lawyers, Prenda Law, the holding companies, the guy who owns the holding company on paper, etc. Put simply, it was a giant fraud scheme to release their own copyrighted movies on torrent sites and then sue people allegedly downloading them, while concealing the fact that the lawyers were being directly enriched by the settlement payments.

      • Could they have still gone after people in court?

        I mean, copyright infringement did happen. Or does the fact that they seeded the files mean that they can't go after anyone else for distributing the files?

        • The fact that they seeded the files did raise questions about distribution and permission (on comment sites like this one, anyway), but that issue was never adjudicated. The lawyer attacking Prenda (Morgan Pietz) showed evidence that the seeder's IP address was linked to the offices of Prenda Law (the law firm nominally representing the holding company), which raised questions as to why the attorneys representing the plaintiff were distributing the plaintiff's material (they were in fact the same people, i

        • by sjames ( 1099 )

          No. It came out earlier that their "evidence" was nowhere near sufficient to show infringement. It was a straight up extortion play.

      • by Rich0 ( 548339 )

        From what I remember about what happened 2 years ago, their scheme went something like this:..

        Judge Pregerson appears to have given a half-decent summary, that was quite succinct in the number of words spoken, and somewhat, less, succinct in the time taken to speak them. :)

        • It was indeed a great summery. I've clipped that section of video out, and will be playing it at all my future talks on this topic.
    • by sjames ( 1099 )

      Because the likely embarrassing nature of the titles is in itself a further extortion.

    • The cases you're talking about (the non-porn ones) happened many years ago. I mean Tennenbaum was 10 years ago, Thomas was about the same. However, the main difference is that instead of just straight suing, and then offering a settlement and suing, here they'll sue (john doe for ex parte discovery) then offer a settlement, but then NOT sue again. They go out of their way to not conclude the litigation.

      The Patel case in Georgia shows that perfectly. They Doe-sued in DC (in the court of former RIAA lawyer
  • They're ingenuous.

And it should be the law: If you use the word `paradigm' without knowing what the dictionary says it means, you go to jail. No exceptions. -- David Jones

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