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Another Insurer Refuses to Defend Reality Kings

Another Insurer Refuses to Defend Reality Kings
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Nov 3, 2010 12:00 PM PDT    Text size: 
MIAMI — Another insurer is attempting to cut ties from Reality Kings in the multimillion-dollar copyright infringement claim made by 26 recording company plaintiffs.

Darwin Select Insurance Co. of Farmington, Conn., has filed suit in Miami, claiming Reality Kings operators concealed and misrepresented material facts when they signed a media liability insurance policy with them last year.

Specifically, Darwin alleges that Reality Kings falsely answered questions about previous litigation on its application.

Darwin points out in the suit that Reality Kings did not disclose it was involved in two lawsuits: One involving adult performer Flower Tucci, who alleged that the adult company unlawfully registered websites using her stage name, and another involving a CAN-SPAM claim brought on by the U.S. government.

Darwin also claims that Reality Kings representatives answered "no" to a question on the policy's application whether it would use unoriginal recordings with productions. The insurer further said that Reality Kings wrongfully said in the application that it receives consents from all performers, artists and musicians relative to scheduled productions.

XBIZ was unable to receive comment from attorneys from either of the parties; however, Darwin's claim, filed at U.S. District Court in Miami, asks the court for a rescission of the policy and to declare that it has no obligation to pay potential loss or defense expenses incurred by Reality Kings.

"The misrepresentations were material because had [Reality Kings] provided accurate information to Darwin, Darwin would have declined to issue the policy on the same terms, if at all," the suit said.

Another Reality Kings insurer, American Safety Indemnity Company, also has refused to defend the Miami adult company.

Reality Kings' parent, RK Netmedia, filed suit in September against American Safety because it refused to defend and indemnify the company in the record company suit.

Since mid summer, Reality Kings has been defending itself in federal court over the use of recorded music used in connection with 195 Reality Kings videos.

The recording companies say in the suit filed at U.S. District Court in Los Angeles that Reality Kings poached the most-popular recordings from Madonna, Flo Rida, Gnarls Barkley, Sean Paul, Katy Perry, Bubba Sparxxx and David Guetta. It also said it stole musical compositions written or co-written by Michael Jackson, T.I., Katy Perry, Timbaland, Dr. Dre, Lil Wayne, Sisqo, Kelly Clarkson, Sean "Puffy" Combs, Notorious B.I.G. and Usher.

The recording industry suit seeks $150,000 for each alleged infringement. .

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