Perfect 10 Seeks Rehearing of Appeal as Receiver Is Appointed

Perfect 10 Seeks Rehearing of Appeal as Receiver Is Appointed

LOS ANGELES — A federal judge has appointed a receiver to satisfy a $5.6 million judgment against Perfect 10, which at the same time has asked the 9th U.S. Circuit Court of Appeals to rehear a panel’s decision that approved the award.

The approval of a receiver and the en banc appeal stem from Perfect 10’s $25 million lawsuit accusing Texas-based Giganews Inc. of direct and contributory infringement by allowing users to upload more than 165,000 images owned by Perfect 10 and neglecting to remove them when notified.

A federal judge sided with Giganews in 2015 and ordered Perfect 10 to pay the usenet service provider’s $5.64 million in attorneys’ fees and court costs defending the suit. Perfect 10 appealed the decision, challenging the central issue of “safe harbor” as defined in the Digital Millennium Copyright Act.

But in February, the 9th Circuit said that all of Perfect 10’s arguments in the case lacked merit, upholding the multimillion-dollar judgment.  

On Friday, Norm Zada, who founded Perfect 10 in 1997, told XBIZ that despite the 9th Circuit’s initial ruling, he’s hopeful that an en banc panel will reverse course. The 9th Circuit has yet decided whether to grant a rehearing.

“Basically what has happened is that group that makes hundreds of millions of dollars by not paying people for the use of their property took advantage of an overworked federal justice system and provided false and  misleading materials to persuade judges that the victim was actually responsible for the crime,” Zada said.

Zada was critical of recent press reports that characterized his legal claims were “frivolous” and that his targets were typically “big companies with deep pockets” (Perfect 10 has sued Google, Amazon, Visa, MegaUpload, Tumblr, Microsoft, CCBill and LeaseWeb, among others).

“[T]o suggest that filing a lawsuit against a party that steals your property is ‘frivolous,’ is ludicrous,” Zada said. “Prior to the case against Giganews, which is still on appeal, Perfect 10 only lost one case, the one against Visa, by a 2 to 1 vote.  

“I intend to pursue this matter to the bitter end and will expose the various methods used by various unscrupulous attorneys to destroy copyright protection in this country in a forthcoming book.” 

While the 9th Circuit wrangles with the request for a re-hearing in the case, a federal judge has laid out the terms of the inclusion of a receiver.

U.S. District Judge Andre Birotte Jr. ordered Zada and other Perfect 10 principals to turn over the books in relation to the company’s assets, including its intellectual property.

Finding assets might be hard to do, however. In court papers in 2015, Zada said that revenue for Perfect 10 is less than $40,000 a year and that the company has no more than $70,000 in financial assets. At the time, he said he hadn’t made any money as its CEO since 2007, “so there was no income to offset losses against.”

View order granting a receiver

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Streamate Spotlights Savannah Sly as December 'Elevate' Community Partner

Streamate has selected New Moon Network founder and co-director Savannah Sly as its Elevate Community Partner for December.

LaBellaDX Launches New Site Through YourPaysitePartner

Content creator LaBellaDX has launched her new official website through YourPaysitePartner (YPP).

Clip Page Launches 'Creator Analytics' Feature

Custom content marketplace Clip Page has launched the Creator Analytics feature on its platform.

BBWXXXAdventures Relaunches Through Grooby's Blue.xxx

Paysite BBWXXXAdventures has relaunched under Grooby's new website management company Blue.xxx.

Flirt4Free Announces 'Tease the Season' Holiday Contest

Flirt4Free has announced its Tease the Season promo and model contest, which will run Dec. 21-25.The competition is led by the return of the Snowflake Contest, where models can be gifted digital snowflakes by their fans. The models who collect the most snowflakes by 11:59 a.m. on Christmas Day will win cash prizes.

SWR Data Publishes 2024 'Top Creator Platforms' Report

Adult industry market research firm SWR Data has published a report on the Top Creator Platforms of 2024.

MintStars Joins Pineapple Support as Supporter-Level Sponsor

Content platform MintStars has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Politicians Aim to Study Effects of FOSTA-SESTA on Sex Workers

In an encouraging sign for sex workers, California State Representative Ro Khanna and U.S. Senator Elizabeth Warren of Massachusetts have reintroduced the SAFE SEX Workers Study Act, which aims to study the effects of FOSTA-SESTA.

Pornhub to Shut Down Access in Florida Over Age Verification

Aylo will geoblock Pornhub across Florida starting Jan. 1, when HB 3, the state's age verification law, goes into effect.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

Show More