The suit announced Friday seeks damages estimated in the millions against Quebec-based Kaytel, which claimed it received licenses for DVD and VHS distribution in Canada by Alante International Sales. The suit also seeks injunctive relief.
Chatsworth, Calif.-based Alante for years has distributed J.M. Productions videos, also based in Chatsworth, but was excluded from Internet rights, according to attorney Allan B. Gelbard of Encino, Calif., who represents J.M. Productions in a claim filed in U.S. District Court.
In the suit, J.M. Productions said that Alante sublicensed Kaytel to a deal with 1433965 Ontario Inc., parent of Phoenix, Ariz.-based AdultBouncer, which is alleged to have broadcast infringed videos as video-on-demand content.
Five J.M. Productions videos licensed to Alante are alleged to have been sublicensed to Kaytel, including “The Violation of Aurora Snow,” “The Violation of Kiki D’Aire” and “Perverted Stories 34,” “Perverted Stories 35” and “Perverted Stories 36.”
Gelbard told XBiz that there could have been more titles where copyrights could have been infringed. “We will find out through the discovery process,” Gelbard said.
“We have already sued AdultBouncer and settled with them,” Gelbard said. “They said they had a contract from [Alain] Elmaleh giving them Internet rights.”
Gelbard told XBiz a paragraph is “curiously” missing from Kaytel’s agreement with AdultBouncer that specifically precludes Internet rights.
The court filing said that Kaytel and Elmahleh “created forged documents which were used to induce certain third parties, including but not limited to AdultBouncer, into believing that defendants had the right to grant Internet licenses to distribute plaintiff’s works.”
Gelbard said he will seek to prevent Elmaleh and Kaytel through injuctive relief from continuing to sell Internet content based on J.M. Production copyrights.
J.M. Productions, in the suit, is asking for damages of $150,000 for each infringed work, $1 million for trademark dilution and attorneys fees.