Prenda Law Must Pay Sanctions — Appeals Court

CHICAGO — The 7th U.S. Circuit Court of Appeals on Thursday affirmed a lower court decision levying contempt sanctions against three attorneys who filed a copyright infringement case on behalf of adult operator Lightspeed Media Corp.

In consolidated appeals, the three-judge panel held that an original order calling for $261,000 in sanctions, as well as finding Prenda Law's principals — attorneys John Steele, Paul Hansmeier and Paul Duffy — in civil contempt, were appropriate.

Prenda Law for years has been prolific in exacting payments from porn piracy defendants through court-approved subpoenas.

The appeal acted on Thursday stemmed from a case against a man named Anthony Smith, who was alleged to have been the ringleader of a hacking gang involving 6,600 users who obtained stolen passwords to break into about 40 Lightspeed Media porn sites.

At the behest of Lightspeed Media, Prenda Law made additional claims against corporate executives at AT&T and Comcast Cable Communications that they aided, abetted and conspired with the hackers to steal content because they refused to comply with subpoenas and turn over subscriber data based on IP addresses.

Prenda Law later told the court in a motion that Lightspeed Media intended to drop the suit. That motion spurred defendants into action with requests for reimbursement of attorneys fees because the suit was based on "frivolous claims," which the lower court later affirmed.

The lower court ordered Lightspeed Media's attorneys to pay sanctions for Smith ($72,000), AT&T ($120,000) and Comcast ($69,000).

After missing deadlines to pay the $261,000 in sanctions, a lower court ordered the firm to pay 10 percent more as a fine.

Prenda Law attorneys Duffy, Steele and Hansmeier appealed; however, on Thursday the 7th Circuit rejected contentions that the sanctions were not appropriate, as well as their appeal holding them in civil contempt and imposing the fine.

The attorneys offered a litany of reasons why their two appeals should stand, including that they didn't receive proper notice for the motion for sanctions, that they were never given opportunity to be heard on the motion and opposing counsel fee itemization and that the merits of ordering the imposition of attorneys fees were lacking.

But the 7th Circuit panel was not convinced with Prenda Law attorneys' arguments.

"Lightspeed raised baseless claims and pressed for a meritless 'emergency' discovery hearing. The district court found that the litigation 'smacked of bully pretense,'" the panel wrote. "At the Nov. 13, 2013, hearing on fees, the court could not have been more clear: it stated that appellants were engaged in 'abusive litigation simply filing a lawsuit to do discovery to find out if you can sue somebody. That's just utter non sense.'

"We see no need to belabor the point. The record amply supports the district court's conclusions, as our discussion of the case thus far demonstrates. There was no abuse of discretion in the court's decision to grant either the ISPs or Smith fees for the entire case."

The case is Lightspeed Media Corp. vs. Anthony Smith, Nos. 13-3801 and 14-1682.

  

View ruling

Related:  

Copyright © 2026 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

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Holly Randall Soft Launches 'Wet Ink' Magazine

Holly Randall has officially soft-launched the creator-focused publication Wet Ink Magazine.

Virginia 'Porn Tax' Bill Delayed Until 2027

A Virginia House of Delegates subcommittee on Monday voted to postpone until next year consideration of a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Elizabeth Skylar Launches Production Banner on VRPorn.com

Elizabeth Skylar has launched her own virtual reality production banner on VRPorn.com.

CrakRevenue Introduces 'Trend Explorer' Feature for Affiliates

CrakRevenue has debuted the new Trend Explorer feature for its affiliates.

Tube Sites Submitter Adds AI Video Description Generator

Tube Sites Submitter has introduced a new AI video description generator.

Pineapple Support Releases End of Year Review for 2025

Pineapple Support has released its End of Year Review for 2025, detailing the organization's achievements, challenges, and new initiatives.

Show More