Porn Copyright Trolling Law Firm Loses $230K Sanction Appeal

Porn Copyright Trolling Law Firm Loses $230K Sanction Appeal

PASADENA, Calif. — The 9th U.S. Circuit Court of Appeals on Friday upheld more than $230,000 in sanctions against the attorneys who for years operated the porn copyright trolling law firm Prenda Law.

Attorneys John Steele and Paul Hansmeier, as well as the deceased lawyer Paul Duffy, created a “scheme,” the 9th Circuit said in its 12-page decision, that started to unravel when they faced U.S. District Judge Otis Wright, who levied sanctions against them in 2013.

Friday’s decision defends Wright's sanction and didn’t move forward the argument that the Prenda Law attorneys' due process rights were violated. Prenda Law’s appellate attorney last year sought for the sanctions to be tossed or, alternatively, a separate hearing on the sanctions to be held.

The 9th Circuit, in its description of Prenda Law’s method of operation, said the attorneys filed mass lawsuits against thousands of defendants, accusing them of illegally downloading porn movies.

“The Prenda principals, through their law firm, Prenda Law Inc., set up a number of shell companies, including Ingenuity 13 LLC and AF Holdings LLC, which purchased copyrights to pornographic movies,” the 9th Circuit wrote. “When one of those movies was illegally downloaded, the shell company (via Prenda Law or a local attorney hired by Prenda Law) filed a complaint against John Doe in federal or state court for copyright infringement and used early discovery mechanisms to determine the identities of the persons it alleged illegally downloaded the film.”

The court said that the shell company would then mail the typical John Does a letter threatening to sue unless the individual paid roughly $4,000 to “settle” the case.

“Out of embarrassment and for economic reasons, many John Does settled, regardless of whether they, or another family member, friend, or guest, infringed the copyright. When the John Does settled, Prenda Law would voluntarily dismiss the case; Prenda Law never litigated a single copyright infringement case through to a merits judgment.

By misusing the subpoena power of the court, the court said, Prenda Law made millions of dollars from suing hundreds to thousands of John Does across the country.

Things started to unravel for the law firm after courts nationwide started catching on to the its real business of copyright trolling, the court said.

"Prenda principals were found contradicting themselves, evading questioning and possibly committing identity theft and fraud on the courts," the 9th Circuit said.

Before Steele, Hansmeier and Duffy’s hearing was allowed to proceed with the appeal of sanctions, Wright ordered that the firm pay two bonds totaling more than $230,000.

The first bond consisted of the full $81,000 sanction, multiplied by 125 percent to account for interest. The second bond was $135,000, the estimated legal costs of John Doe’s defense attorney, Morgan Pietz.

The 9th Circuit on Friday held that the three Prenda lawyers, despite their arguments to the contrary, received due process for civil sanctions requiring notice, an opportunity to be heard and a finding of bad faith.

“[I]t was not an abuse of discretion for Judge Wright to find that the Prenda principals were indeed the leaders and decision-makers behind Prenda Law’s national trolling scheme,” the 9th Circuit said.

Further, "They have lied to other courts about their ability to pay sanctions. They also failed to pay their own attorney’s fees in this case."

A 2015 video of oral arguments in the appeal before the 9th Circuit can be accessed here.

View Friday's 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

Australian eSafety Commissioner Demands Stricter Child Protection Codes

Australia’s online safety regulator, eSafety, is once again reviewing a “final” draft of industry codes to protect children from pornography and other age-inappropriate content, after eSafety Commissioner Julie Inman Grant rejected the previously announced “final” codes as insufficiently stringent.

Liz Flynt Debuts 'Hustler: 50 Years of Freedom' Book

Liz Flynt has released her new retrospective book, “Hustler: 50 Years of Freedom.”

Nerdgasm: A Look at the Naughty Side of Pop Culture Geekdom

From “Call of Duty” to cosplay, from tabletop dice rolls to dungeon-inspired dirty talk, the worlds of geek fandom and fantasy are no longer confined to the basement. They’ve kicked down the door, shed the “Firefly” tee and gone full frontal.

Kyrgyzstan Parliament Moves to Outlaw Internet Pornography

A parliamentary committee of the Supreme Council of Kyrgyzstan on Tuesday approved a measure to outlaw online adult content in the country.

Sweden Bans Purchase of 'Remote' Sexual Services

The Riksdag, Sweden’s parliament, has approved a proposal to criminalize purchasing sexual services performed remotely by streamers and custom content creators.

Asa Akira to Deliver XBIZ Talk at Miami Conference

XBIZ is pleased to announce that decorated performer, Pornhub brand ambassador, and author Asa Akira is set to deliver an exclusive talk at XBIZ Miami.

JustFor.fans Launches 'Fentanyl Test Strip' Initiative

JustFor.fans (JFF) has launched a test strip initiative to combat the nationwide fentanyl crisis.

2025 XBIZ Miami Speaker Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ Miami, the latest edition of the adult industry’s premier summer conference, set to take place May 19-22 at the Nautilus Sonesta Miami Beach hotel in South Beach.

AV Bulletin: Arizona's About-Face, What New Laws Mean for Adult

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the United States. In the meantime, state legislatures continue to weigh and pass AV bills, the U.K. and the EU are moving ahead with their own AV mandates and strategies, and legal challenges continue to play out in U.S. courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Million Billion Media Launches New Website

Management and PR agency Million Billion Media (MBM) has launched a new website.

Show More