Prenda Law Must Pay Sanctions — Appeals Court

CHICAGO — The 7th U.S. Circuit Court of Appeals on Thursday affirmed a lower court decision levying contempt sanctions against three attorneys who filed a copyright infringement case on behalf of adult operator Lightspeed Media Corp.

In consolidated appeals, the three-judge panel held that an original order calling for $261,000 in sanctions, as well as finding Prenda Law's principals — attorneys John Steele, Paul Hansmeier and Paul Duffy — in civil contempt, were appropriate.

Prenda Law for years has been prolific in exacting payments from porn piracy defendants through court-approved subpoenas.

The appeal acted on Thursday stemmed from a case against a man named Anthony Smith, who was alleged to have been the ringleader of a hacking gang involving 6,600 users who obtained stolen passwords to break into about 40 Lightspeed Media porn sites.

At the behest of Lightspeed Media, Prenda Law made additional claims against corporate executives at AT&T and Comcast Cable Communications that they aided, abetted and conspired with the hackers to steal content because they refused to comply with subpoenas and turn over subscriber data based on IP addresses.

Prenda Law later told the court in a motion that Lightspeed Media intended to drop the suit. That motion spurred defendants into action with requests for reimbursement of attorneys fees because the suit was based on "frivolous claims," which the lower court later affirmed.

The lower court ordered Lightspeed Media's attorneys to pay sanctions for Smith ($72,000), AT&T ($120,000) and Comcast ($69,000).

After missing deadlines to pay the $261,000 in sanctions, a lower court ordered the firm to pay 10 percent more as a fine.

Prenda Law attorneys Duffy, Steele and Hansmeier appealed; however, on Thursday the 7th Circuit rejected contentions that the sanctions were not appropriate, as well as their appeal holding them in civil contempt and imposing the fine.

The attorneys offered a litany of reasons why their two appeals should stand, including that they didn't receive proper notice for the motion for sanctions, that they were never given opportunity to be heard on the motion and opposing counsel fee itemization and that the merits of ordering the imposition of attorneys fees were lacking.

But the 7th Circuit panel was not convinced with Prenda Law attorneys' arguments.

"Lightspeed raised baseless claims and pressed for a meritless 'emergency' discovery hearing. The district court found that the litigation 'smacked of bully pretense,'" the panel wrote. "At the Nov. 13, 2013, hearing on fees, the court could not have been more clear: it stated that appellants were engaged in 'abusive litigation simply filing a lawsuit to do discovery to find out if you can sue somebody. That's just utter non sense.'

"We see no need to belabor the point. The record amply supports the district court's conclusions, as our discussion of the case thus far demonstrates. There was no abuse of discretion in the court's decision to grant either the ISPs or Smith fees for the entire case."

The case is Lightspeed Media Corp. vs. Anthony Smith, Nos. 13-3801 and 14-1682.

  

View ruling

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

New Fansly Analytics Platform 'SlyKiwi' Launches

SlyKiwi, a new analytics platform exclusively designed for Fansly content, has officially launched.

FPNCash Appoints Kimi Evans Head of Business Development

FPNCash has appointed Kimi Evans as its new head of business development.

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the list of popular searches from its straight and gay theaters by country in June and July.

Playboy to Move Global HQ to Miami Beach

Playboy announced today that it will be moving its global corporate headquarters from Los Angeles to Miami Beach.

Bellesa Plus Names Magalie Rheaut as Chief Growth Officer

Bellesa Plus has named Magalie Rheaut as its Chief Growth Officer.

PASS to Relaunch Performer Subsidy Fund

PASS has announced that it will relaunch the Performer Subsidy Fund (PSF) to cover sexually transmitted infection (STI) test panel costs for up to 10 people each month.

Pineapple Support Taps Austin Ponce as Brand Ambassador

Pineapple Support has named Austin Ponce as its newest brand ambassador.

Taylor Vixxen Stars in New DezyRed Interactive VR Game

Taylor Vixxen stars in an interactive VR game from DezyRed.

XBIZ Amsterdam's Jakarta Hotel Sold Out, Additional Hotels Announced

Guest rooms at XBIZ Amsterdam’s host conference venue, Jakarta Hotel, are now completely sold out.

Show More