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Judge Reveals Secret Righthaven Copyright Contract

Hugh Pickens writes "Judge Roger Hunt has unsealed the confidential agreement between Righthaven and the Las Vegas Review-Journal that has allowed Righthaven to sue over more than 250 charities, impoverished hobby bloggers, reporters, and the newspaper's own sources, for $150,000 each in damages and forfeiture of the sites' domain names, and the contents of the agreement could end up being ruinous for Righthaven's campaign of copyright lawsuits. The problem is that Stephens Media, the company that owns the Las Vegas Review-Journal, didn't actually assign any of the rights related to copyright to Righthaven except the right to sue — and that has been found in Silvers vs. Sony Pictures to be illegal under case law. In other words, none of the important things that come with a copyright — such as the right to make copies of a work, or distribute it, or make 'derivative works' — were handed off to Righthaven. Only the right to sue was given, and that makes the copyright transfer bogus, argue lawyers for the Democratic Underground, which is being sued for one of its website users posting the first four paragraphs of a 34 paragraph story."

26 of 130 comments (clear)

  1. Can this judge reverse all previous cases? (IANAL) by mfarah · · Score: 2

    If the summary is true, could all the aggravated parties become part of the same suit, or parts of a class action suit or something?

    What I'm asking is: what are the required steps now to undo Righthaven's damages?

    --
    "Trust me - I know what I'm doing."
    - Sledge Hammer
  2. Why was the contract unsealed? by mfarah · · Score: 3, Interesting

    "Angered at Righthaven’s behavior, a Las Vegas federal judge unsealed the company’s heretofore confidential agreement [...]"

    Not that I'm complaining, but... what did Righthaven do to anger the judge? Were their lawyers being dicks? Was the contract itself what angered the judge? Truly, I'd like to know.

    --
    "Trust me - I know what I'm doing."
    - Sledge Hammer
    1. Re:Why was the contract unsealed? by Anonymous Coward · · Score: 2, Informative

      what did Righthaven do to anger the judge? Were their lawyers being dicks? Was the contract itself what angered the judge? Truly, I'd like to know.

      Well, let's see now. Perhaps he...

      RTFA!

    2. Re:Why was the contract unsealed? by Gaygirlie · · Score: 4, Insightful

      "Angered at Righthaven’s behavior, a Las Vegas federal judge unsealed the company’s heretofore confidential agreement [...]"

      Not that I'm complaining, but... what did Righthaven do to anger the judge? Were their lawyers being dicks? Was the contract itself what angered the judge? Truly, I'd like to know.

      The whole point of trying to run a business with the sole purpose of making income by suing people is probably quite angering to judges. After all, courts are not meant to be used for business, they're meant for solving actual real problems.

    3. Re:Why was the contract unsealed? by ciaran.mchale · · Score: 5, Informative

      "Angered at Righthaven’s behavior, a Las Vegas federal judge unsealed the company’s heretofore confidential agreement [...]"

      Not that I'm complaining, but... what did Righthaven do to anger the judge? Were their lawyers being dicks? Was the contract itself what angered the judge? Truly, I'd like to know.

      You can find the answer to your question in the final two paragraphs of the first link in the /. summary. I'd like to quote those two paragraphs for your convenience. But then, according to the thrust of the article, I might be sued for copyright infringement.

    4. Re:Why was the contract unsealed? by Haedrian · · Score: 2, Funny

      After all, courts are not meant to be used for business, they're meant for solving actual real problems.

      You're not from around these parts are you?

    5. Re:Why was the contract unsealed? by arth1 · · Score: 4, Interesting

      The whole point of trying to run a business with the sole purpose of making income by suing people is probably quite angering to judges. After all, courts are not meant to be used for business

      Indeed, judges wants judges and lawyers to have monopoly on making money on lawsuits.

      I have no problems with barring others from using the judicial system as a source of good income, but I do have an issue with how the golden business of lawyers makes a farce out of the blindness of the law by selling out to the highest bidder.
      How about... The sides in a court case are allowed to pitch in as much money as they want, but half of it will go to your opponent, to allow him to buy exactly as good legal advice as you do.

    6. Re:Why was the contract unsealed? by DarkVader · · Score: 2

      How about... The sides in a court case are allowed to pitch in as much money as they want, but half of it will go to your opponent, to allow him to buy exactly as good legal advice as you do.

      I think you may have just hit upon a solution to the whole issue of tort reform.

      It's absolutely brilliant. All parties to a dispute would be going in with exactly equal footing for legal representation, no matter how much either side was willing or able to spend on legal fees. It could result in an opening of access to the courts for the poor, and at the same time put a serious smackdown on SLAPP suits.

      All tort "reform" to this point has concentrated on reducing the size of awards, which isn't always a good thing. This would just put the man on the street on an equal legal footing with the largest corporation.

      Now, all we need to do is come up with about $100 million to buy some senators, and it'll be passed.

    7. Re:Why was the contract unsealed? by UnknowingFool · · Score: 3, Insightful

      The whole point of trying to run a business with the sole purpose of making income by suing people is probably quite angering to judges. After all, courts are not meant to be used for business, they're meant for solving actual real problems.

      No, what has angered judges in the Righthaven cases has been the conduct of Righthaven. Specifically in the Colorado case, the Judge did not like the Righthaven method of suing first then asking questions later. Righthaven sued all the defendants without notifying them of possible copyright material or giving them a chance to remove the material. That did not sit well with the judge. Righthaven apparently angered the judge by then asking for more time which he denied explaining: " . . . the courts are not merely tools for encouraging and exacting settlements from Defendants cowed by the potential costs of litigation and liability." In other words, courts are to resolve legal disputes when no settlement can be reached by the parties. By suing first Righthaven was abusing the court system. It's the conduct of Righthaven not the intent.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    8. Re:Why was the contract unsealed? by v1 · · Score: 4, Interesting

      There was one quote from the judge that basically said the judge felt the plaintiffs proceeded with litigation while knowing that neither the facts nor the law were on their side. THAT will land you squarely in "frivolous lawsuit land" and piss off the judge real quick.

      Basically, cavalierly wasting the court and judge's time is a very bad legal strategy.

      --
      I work for the Department of Redundancy Department.
    9. Re:Why was the contract unsealed? by geminidomino · · Score: 2

      [The Judge said] " . . . the courts are not merely tools for encouraging and exacting settlements from Defendants cowed by the potential costs of litigation and liability."

      Looks like someone was cranky because he didn't get his RIAA care package that month...

    10. Re:Why was the contract unsealed? by gonzo67 · · Score: 3, Insightful

      She received the damages because McDonald's was found to have been purposefully negligent. That is they knew prior to this incident that the coffee was too hot (and had similar complaints/claims/lawsuits in the past), yet determined that the cost savings to them was less than the potential costs of medical bills (because the coffee was too hot to drink when initially given to you) than having to throw out and remake the coffee more frequently. THAT is what cost them, as the jury wished to send a message to the company that their profit margins mean less than the potential to injure.

      The woman was parked (not driving), and was trying to remove the lid to add creamer and sugar when it spilled. If the coffee had been served at the LEGAL temp, no burns would have been caused, and if any had, McD's would have not been liable. The victim initially only asked for her medical bills to be paid, but was told to go away by McD's....which meant she had to sue to get recompense. And, McD's attitude cost them the large sum of money as a result.

    11. Re:Why was the contract unsealed? by NecroPuppy · · Score: 2

      Initially, that's all she asked for.

      She wanted $20k to cover past and future medical bills. $10,500 for what she'd already incurred, $2500 for future costs, and $5000 for loss of income. The other 2k, I'm guessing, covers pain and suffering.

      McDonalds refused to pay out more than $800.

      So it went to court. There, it came out that McDs was serving the coffee at 180-190 degrees F. Which is -way- hotter than it needs to be. That causes third degree burns in just a handful of seconds.

      McDs had hundreds of complaints about the coffee being too hot, for years.

      The punitive fine of $2.7 million was set by the jury based off of "two days coffee profit" for McDonalds.

      Yes, the judge reduced it to $640k (total), and it was eventually settled for less than that. (Sealed, but reported as "under 600k". That tells me somewhere in the neighborhood of 550-575k, otherwise they would have reported a smaller number.)

      --
      I like you, Stuart. You're not like everyone else, here, at Slashdot.
  3. Re:Can this judge reverse all previous cases? (IAN by clang_jangle · · Score: 2, Insightful

    If the summary is true...

    Oh, come on. TFS bases its conclusions on the concept of "illegal under case law" ("there a legal precedent against it, therefore it's 'illegal'"). what do you think? :)

    --
    Caveat Utilitor
  4. pounding sand by bzipitidoo · · Score: 5, Interesting

    Sounds like Righthaven is very, very wrong. So wrong that they might have to pay the defendents' legal costs. From my limited understanding of the legal system, only exceptionally unwarranted cases, cases with no legitimate basis that were only brought to scare, harrass, and damage other parties, are subject to such sanctions. Except they don't have the assets to pay those costs. Strikes me as a sneaky way to shield the real prosecutors from such an outcome. Set up a shell company to do the dirty work and to fold like a house of cards if it backfires. But it looks like that's not going to work. The judge is not going to be fooled by this cute corporate trickery to evade responsiblity, and will rope the real prosecutors into the cases.

    If the outcome is that the newspapers have to pay for the damage their sock puppet corporation caused, will that be enough to deter others from ever again trying such a heinous scheme? I doubt it. For instance, MS wasn't punished for the mess SCO made. These newspapers will conclude that Righthaven wasn't circumspect enough, and may well try again with another organization that is less obviously their sock puppet, same as SCO was a real separate party that began with no MS affiliation or support.

    --
    Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
    1. Re:pounding sand by bill_mcgonigle · · Score: 2

      The judge is not going to be fooled by this cute corporate trickery to evade responsiblity, and will rope the real prosecutors into the cases.

      Do you think any real individuals will be held to account in the end? I doubt it - corporations were designed to make this kind of skullduggerous behavior acceptable.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    2. Re:pounding sand by wvmarle · · Score: 2

      My guess is that Righthaven was set up not just to protect the news papers that supply it with material to sue about from this kind of backfire. It's a nice extra.

      It's more like an RIAA-type construction, where the company is a vehicle to absorb and distract public anger. After all when there are copyright suits regarding music sharing, it's the RIAA that takes the brunt of the anger. Even here on Slashdot. While in that case it's generally not even the RIAA themselves suing, instead their members, the record companies themselves are the ones initiating the prosecution. RIAA may help, they may lobby for laws helping their case (which is part of their charter of course), and they're a convenient vehicle to take public anger on those suits.

      The actual right holders, music companies or in this case news publishers, are not mentioned much. They don't get all the negative feed-back, the calls for boycott. Nor the artists whose work is subject of the law suits get complaints (they are often considered "good guys" even for being robbed of the last few pennies the record companies may have for them).

      This kind of constructions suck. I'm all for copyrights, but not in the current form. People should have the right to try to make a profit from their creations, and also to keep control of what happens to those creations for some period of time. Likewise these publishers surely have the right to protect their work - thought surely they also should go about it in a civilised manner. Like sending a formal notice to web sites they deem infringing their rights (that will likely solve the vast majority of cases). Like allowing "fair use" - e.g. snippets of articles with attribution and possibly link to the original. And if they find a web site is copying their articles verbatim without attribution, and the site is not answering to their notices, then it's definitely time for the publisher and rights holder to sue. That's simply their good right.

      Copyrights and patents have been invented for a good cause, giving people more incentive to create and invent. And in many fields this surely has been the case. Hard to say what would have happened without patents and copyrights, but I'm sure it's been an incentive for many people or companies to go ahead and put that investment in, knowing that if any good comes out they would be able to profit from it.

      I hope Righthaven gets shut down for this kind of behaviour, on whatever grounds. Is it for "sue first, ask later", is it for "only right to sue, no further interest", whatever, it's bad behaviour and should be stopped.

  5. Re:Can this judge reverse all previous cases? (IAN by gr8_phk · · Score: 5, Interesting

    I thought the first thing one should do in a copyright case (as defendant) is have the plaintiff prove that they have the right to sue. That can not be given to them in a sealed document. If defendant can't see that document, there should be no case since that is the basis for the case. IANAL, but this seem pretty straight forward to me. It also makes sense that assigning the right to sue isn't enough, because that company has nothing to lose should you infringe - they haven't been harmed.

  6. Re:That's a lot by WrongSizeGlass · · Score: 2

    I thought more than 250 was a lot, but over more than 250? Now that's really a lot!

    Hmm, I guess they meant screw over more than 250.

  7. Re:Workaround by UnknowingFool · · Score: 2

    While that sounds like it could work, judges don't like it when you try to work around the law and Righthaven may have to prove actual harm and not theoretical harm. If Righthaven never actually sublicenses any work then even if they can prove infringement, they can't prove actual harm for damages. In cases where plaintiffs have to prove harm, the harm must be tangible and certain enough to calculate damages.

    If someone totals my van, I can get damages for the value of the van. I also sue for the loss of business due to my delivery business. However, if I haven't started such a business that portion will be thrown out. If I've started a business and have no customers, that is also thrown out. The only way I can get damages for lost business if I had regular customers or can prove with certainty that I would have had a customer had it not been for the vehicle's destruction. "I was to start delivering for Bill on Tuesday but since the van was destroyed on Monday, he went with a competitor."

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  8. Not the only judge they've ticked off by Fnord666 · · Score: 3, Informative
    Apparently Judge Hunt isn't the only one who is relatively fed up with them. According to an article written by joemullin on paidcontent.org, Judge John Kane slammed RH's business model, writing:

    "[W]hether or not this case settles is not my primary concern. Although Plaintiffâ(TM)s business model relies in large part upon reaching settlement agreements with a minimal investment of time and effort, the purpose of the courts is to provide a forum for the orderly, just, and timely resolution of controversies and disputes. Plaintiff's wishes to the contrary, the courts are not merely tools for encouraging and exacting settlements from Defendants cowed by the potential costs of litigation and liability."

    Since Judge Kane is presiding over all of RH's cases in Colorado, that probably does not bode well for them either.

    --
    'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
  9. Car analogy by colinrichardday · · Score: 2

    Correcting apostrophe errors on Slashdot is, in the words of Martin Sheen in Apocalypse Now, like handing out speeding tickets at the Indy 500.

  10. Public Rights by b4upoo · · Score: 2

    This is a very good reason for all contracts to be open to public inspection. Courts cost the tax payers large sums of money. If all of the suits are reversed the expense incurred by the public will be severe.
                            It is an interesting concept that a business or an individual might be able to sell the right to sue for another parties losses. For example what if a private investor were to contract with me to get all benefits from any injuries I might sustain in a traffic accident in exchange for a lump sum in hand? The possibilities seem sinister and endless.

  11. Re:Fair and balanced by gbjbaanb · · Score: 2

    They sued Arstechnica over an image they used, Ars will tell you of the legalities Righthaven got wrong.

  12. Re:Workaround by jonbryce · · Score: 2

    The question is, if you had licenced the material in question properly, would Righthaven have got any money out of it? The answer is no, so Righthaven has no capacity to sue.

  13. Cannibalization by tepples · · Score: 2

    Disney could claim that it was harmed because infringing copies of Song of the South compete in the market with lawfully made copies of its newer works.