Malibu Media Ordered to Pay Sanctions

MILWAUKEE — Attorneys for Malibu Media were sanctioned yesterday by a federal judge, who said penalties would act as a deterrence over abusive attempts to coerce porn-piracy defendants into settlements.

Malibu Media produces and distributes content mostly through X-Art.com and has become one of the most prolific companies when it comes to consumer piracy litigation.

Yesterday, U.S. District Judge Rudolph Randa said he followed the lead of two other Wisconsin federal jurists who earlier this year directed Malibu Media to show cause as to why it shouldn't be sanctioned for attaching exhibits that help paint pictures of alleged infringers still identified as John Does.

In the present consolidated case involving three piracy defendants, Malibu Media vigorously defended its decision to attach such exhibits to its complaints, Randa said.

The exhibits included form entries from alleged porn-piracy defendants over questions about authorized household users and the distance from defendant residences to closest neighbors, among others.

Malibu Media explained that it hired a company called IPP International to "expand the universe of .torrent files that are scanned" as part of Malibu Media’s pre-suit investigation.

The results were the exhibits that were used as a cross-reference tool to help identify alleged infringers of its own films and other movies — even some that  Malibu Media doesn't hold copyrights to.  

But Randa said that even if the exhibits were somehow relevant or useful in this game of “whodunit,” there would be no legitimate justification for Malibu Media to attach the exhibit to its complaints.

"This is simply an additional form of coercion," Randa said. "The subscriber might attempt to shift blame to someone else, but the subscriber would still feel substantial pressure to accept the blame, especially if the actual infringer is a family member or other close relation.

"Either way, the choice between outing yourself or one of your relatives as an alleged connoisseur of extreme pornography isn’t a very appealing scenario."

Randa yesterday ordered Malibu Media attorneys to pay up $600 in sanctions to the court as "a measure of deterrence" for improper conduct.

Records obtained by XBIZ show the studio has waged 1,548 copyright infringement lawsuits in the past two years. Its earliest cases last year typically listed swarms of defendants, but because of numerous dismissals by jurists the cases now are mostly targeting solo defendants.

"Obviously, the use of [the exhibits] is, or was, part of an overall pattern of abusive litigation practices," Randa said. "Malibu Media is a sophisticated litigant, so it should not be allowed to avoid sanctions simply by adapting its tactics after being questioned by multiple federal judges.

"Malibu Media and its counsel should not be allowed to abuse the legal system in this manner without being called to account for it."

Randa yesterday also granted the technology-rights group Electronic Frontier Foundation's friend-of-the-court brief in support of sanctions in the case.

Kurt Opsahl, a staff attorney at EFF, told XBIZ that the group is pleases that Randa accepted its amicus brief and agreed that Malibu Media abused the legal system. 

"The salacious but irrelevant titles on Malibu’s [exhibit list] served no legitimate purpose in a complaint," Ophahl said. "Their only purpose is to coerce defendants to settle, based not on the merits of the case but on the reputational harm of being publicly associated with hardcore pornography — a purpose of harassment and embarrassment forbidden by the federal court's rules. While copyright owners have a right to enforce their copyrights, they must follow the same rules and observe the same standards of conduct as all other federal litigants.

"While $200 [per each of the three defendants] is not a particularly high penalty, the case sets the third precedent establishing this behavior is abusive. This serves a a strong warning to others who might consider following this path, and later judges may well issue sanctions substantially higher."

View order for sanctions

Related:  

Copyright © 2025 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

Brazilian Adult Industry Association ABIPEA Launches

Brazilian Association of the Adult Entertainment Industry and Professionals (ABIPEA) has officially launched its organization.

New Adult Social Media Platform 'Havven' Opens Beta Phase

Havven, a new adult social media platform, has opened its beta phase and will officially launch Oct. 5.

Former Backpage CEO Carl Ferrer Sentenced to 3 Years Probation, $40,000 Fine

Former Backpage.com CEO Carl Ferrer was sentenced in federal court today to three years' probation and a $40,000 restitution fine for a conspiracy conviction related to money laundering through the defunct website.

Pineapple Support to Launch 'Wellbeing by PS' Initiative

Pineapple Support has announced its Wellbeing by PS initiative, naming new team member Amber Madden to head the project.

Playboy Wins $81 Million Judgment in Chinese Licensing Arbitration

Playboy Inc. was awarded $81 million in damages on Monday by the Hong Kong International Arbitration Centre, in a licensing dispute with former partner New Handong Investment (Guangdong) Co. Ltd.

GirlsDoPorn Owner Michael Pratt Sentenced to 27 Years

Michael Pratt, former owner of the website GirlsDoPorn, has been sentenced to 27 years in federal prison.

TrustyFans Introduces New Blog

Creator directory TrustyFans has introduced an official blog to its site, titled "From Hidden to Hype."

JustFor.fans' Dominic Ford Featured in Wired Magazine

JustFor.fans Founder and CEO Dominic Ford is featured in a new article in Wired Magazine, titled "The Internet Revolutionized Porn. Age Verification Could Upend Everything."

Dr. Charlotte Gaydos Joins ProDx Health Advisory Board

Dr. Charlotte Gaydos has joined the Advisory Board of ProDx Health.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

Show More