Zero Tolerance Wins $15M in Piracy Settlement

Ericka Jensen
LOS ANGELES — Zero Tolerance Entertainment’s piracy lawsuit against DVD rental site Movixo Inc., and its principal Joseph Cecilia, has been settled out of court for $15 million.

Court documents obtained by XBIZ revealed that the United States District Court of Southern District of Florida issued an order granting the plaintiff’s motion to “enforce settlement and to dismiss action with prejudice” on April 30.

According to Zero Tolerance attorney Clyde Dewitt, who also represented sister companies Third Degree Films and Black Ice Ltd.,the action should be a message to anyone involved in piracy activities affecting his clients.

“Zero Tolerance is going for the throat,” Dewitt told XBIZ. “As we speak Zero Tolerance has other defendants in its sight. This is a message to anyone who thinks they can knock off these companies’ movies.”

DeWitt added that Zero Tolerance maintains a system of scouring the Internet and elsewhere looking for potentional DVD pirates.

“Zero Tolerance has good relationships with its customers. If someone sees an alleged piracy, they will go after the target,” DeWitt added.

“The most important thing about this lawsuit is that it drove Movixo out of business,” Zero Tolerance President Greg Alves said. “Hopefully, this will send a message to other pirates that we will do whatever it takes to have them prosecuted to the fullest extent of the law.”

The lawsuit, filed June 26, 2006, alleged that Movixo violated copyright laws by illegally pirating 172 of its titles.

At press time, neither the plaintiff nor defendant could me reached for comment.

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