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

Seoul Authorities Force Cancellation of Adult Expo for 'Distorting Perceptions of Sex'

Seoul authorities repeatedly prevented 2024 KXF The Fashion — a popular Korean adult industry expo featuring Japanese AV performers — scheduled for this week from finding a suitable venue, leading organizers to cancel the event.

FSC to Hold Discussion on Adult Industry Rights With Congressional Candidate Joe Cohn

Free Speech Coalition will hold a virtual discussion with Joe Cohn, a strong advocate for the adult industry’s rights who is running for Congress in November.

Sophie Dee, Ricky Johnson to Deliver 'XBIZ Talks' at Miami Conference

XBIZ is pleased to announce that Sophie Dee and Ricky Johnson will each deliver an “XBIZ Talk” at next month’s XBIZ Miami conference

FSC to Host Webinar on Derisking and the Adult Industry

The Free Speech Coalition (FSC) is hosting a webinar on derisking, titled "Derisking: Examining Its Impact on the Adult Industry's Access to Banking," on April 24 at 11 a.m. (PDT).

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has debuted.

Atlanta Authorities Renew Attack on Adult Boutique Tokyo Valentino

The saga of beleaguered Georgia adult boutique Tokyo Valentino continues with a renewed attempt by authorities to shut down another of its locations.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Show More