CECash Cuts Ties With Homegrown Video

CHATSWORTH, Calif. – CECash (Trade News Corporation, N.V.) announced Wednesday that it has terminated its promotional and marketing relationship with affiliate website Homegrownvideo.com.

CECash's move follows a lawsuit filed by New Destiny Internet Group (Homegrown Video) and Xplor Media in February against CECash parent company Trade News Corp., a Netherlands Antilles Corp., and subsidiaries Voice Media Inc. and Internet Business Services LLC.

The lawsuit, filed in the U.S. District Court for the Central District of California, alleged copyright and trademark infringement and sought injunctive relief from a contractual agreement with CECash.

The crux of the allegations against the defendants is that the Trade News website, Cybererotica.com/CECash, contributed to infringement by making a copy of the “Homegrown Video Website Tour” available online without permission from New Destiny Internet Group, and that Trade News and Voice Media overbilled and repeat-billed numerous Homegrown end users in an "egregious" manner.

Spike Goldberg of Homegrown Video/New Destiny claims to have entered the reseller agreement with only Voice Media, and not Trade News, which Goldberg claims sold its licensing rights to Trade News and Internet Business Services of Anaheim, Calif.

Goldberg claims in his lawsuit that New Destiny never authorized Trade News and Internet Business to link and gain access to the Homegrown website.

The case was sent to arbitration last month and a separate lawsuit filed by Xplor Media against CECash is currently in limbo, however U.S. District Judge Consuelo B. Marshall's arbitration order in June stated that Xplor Media was entitled to return to federal court when the New Destiny arbitration is completed.

CECash issued a statement Tuesday to all webmasters in its affiliate program:

"As a CECash affiliate and pursuant to paragraph 3 of the affiliate agreement between you and CECash you must therefore immediately remove all CECash 'homegrown' program materials, including any banners and text links that advertise the homegownvideo.com website via any CECash affiliate program."

CECash attorney Ira Rothkin of San Rafael, Calif., told XBiz that New Destiny's allegations are false and that his client intends to counter sue New Destiny Internet Group for breach of contract with CECash and "failure to pay monies owed and act appropriately in the agreement."

CECash and Homegrown entered into a "Website Reseller and Marketing Agreement" in January 2000, giving CECash the power to operate Homegrown's official affiliate program for purposes of marketing, promotion, and ecommerce processing.

"New Destiny had the responsibility to share revenues with the CECash defendants and they haven't been doing that since the fourth quarter of 2003," said Rothkin. "Now that CECash has been successful at getting the case to arbitration, it is going to assert its own rights in a counter claim against New Destiny."

Rothkin added that the purpose behind the notice is that CECash is no longer interested in doing business with Homegrown, particularly since they claim they are no longer obligated under the original agreement.

According to New Destiny's attorney, David S. Olson, the news that CECash has terminated the affiliate program is good news for his client.

"Our first principal objective in this litigation was to stop the copyright and trademark infringement and minimize the wrongful billing practices," Olson told XBiz. "And it sounds like this is a pretty good step in that direction."

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

Kendra Sunderland, Blake Blossom Team Up in New Slayed Scene

Kendra Sunderland and Blake Blossom co-star in a new scene for Slayed.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has launched.

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.

Streamate Exec Liz Rek Joins FSC Board

The Free Speech Coalition board of directors has tapped Streamate executive Liz Rek as its newest member, effective immediately.

2024 XBIZ Creator Awards Nominees Announced; Voting Now Live

XBIZ is pleased to announce the nominees for the 2024 XBIZ Creator Awards, presented by Fansly.

Severe Sex Films Names Vanessa Vega 1st 'Fetish Star of the Month'

Severe Sex Films is debuting a "Fetish Star of the Month" promotion, and has named Vanessa Vega as the first honoree to hold the title.

Christy White Stars in Latest From Blacked

Vixen Media Group exclusives Christy White and Jason Luv star in the latest release from studio imprint Blacked.

Destiny Mira Stars in New B/B/G From Ricky's Room

Destiny Mira stars with Dan Damage and Hollywood Cash in the latest release from Ricky's Room.

Tahlia Paris Crowned 2023 Penthouse 'Pet of the Year'

Penthouse has announced that model, DJ and influencer Tahlia Paris has been named its 2023 Pet of the Year.

Adult Site Broker Talk's Bruce Friedman Reflects on Podcast Success

The 200th episode of “Adult Site Broker Talk” will air next week, with 2023 XBIZ Performer of the Year Cherie DeVille as the featured guest.

Show More