Netherlands

United States v. Megaupload Limited

Date: 

01/05/2012

Threat Type: 

Criminal Charge

Party Receiving Legal Threat: 

Megaupload Limited, Vestor Limited, Kim Dotcom, Finn Batato, Julius Bencko, Sven Echternach, Mathias Ortmann, Andrus Nomm, and Bram van der Kolk

Type of Party: 

Government

Type of Party: 

Organization

Court Type: 

Federal

Court Name: 

United States District Court, Eastern District of Virginia

Legal Counsel: 

Ira Rothkin (counsel for defendant Megaupload Limited), Paul Davison Q.C. (counsel for defendant Dotcom), Guyon Foley, Barrister (counsel for defendant Dotcom)

Publication Medium: 

Website

Relevant Documents: 

Status: 

Pending

Description: 

On January 5, 2012, a grand jury convened in the United States District Court for the Eastern District of Virginia issued an indictment against Megaupload Limited, its affiliate Vestor Limited, and principals Kim Dotcom (a resident of New Zealand and Hong Kong, and a citizen of Finland and Germany), Finn Batato (a citizen of Germany), Julius Bencko (a citizen of Slovakia), Sven Echternach (a citizen of Germany), Mathias Ortmann (a citizen of Germany and a resident of Hong Kong), Adrus Nomm (a citizen of Estonia), and Bram van der Kolk (a citizen of the Netherlands and New Zealand).

The indictment alleges that the organization and its principals were engaged in a systematic conspiracy to commit and profit from copyright infringement, through operation of the megaupload.com domain name and its affiliates, including megavideo.com.  According to the indictment, before its seizure, Megaupload operated as a "cyberlocker" or file hosting service website, where users were able to upload content to Megaupload servers and receive a unique URL which identified where the file could be downloaded later. Megaupload did not charge users for the basic service, and offered a premium subscription that featured faster bandwidth and fewer limitations on accessing the content stored. The website also featured an "Uploader Rewards" program, which gave monetary compensation for users that uploaded especially popular files to the system. Specific allegations are made stating that the defendants directly copied material without permission, helped others commit copyright infringement, received a direct financial benefit from infringement, and induced others to commit copyright infringement.

The indictment lists five criminal counts, all related to the underlying allegation of criminal copyright infringement. In addition to criminal copyright infringement (17 U.S.C. §506 and 18 U.S.C. § 2319), the indictment alleges conspiracy to commit racketeering (18 U.S.C. § 1962) by being engaged in an enterprise to commit criminal copyright infringement, conspiracy to commit money laundering (18 U.S.C. § 1956) by transferring money that constituted the proceeds of criminal copyright infringement, and aiding and abetting criminal copyright infringement (18 U.S.C. § 2). The indictment alleges that Megaupload did not designate a copyright agent, as is required under the  "safe harbor" of the Digital Millennium Copyright Act (17 U.S.C. § 512), and that Megaupload would deliberately avoid taking down an allegedly infringing file based on a infringement notice, opting instead to only delete the link to the file on which the complaint was based.

According to the New Zealand Herald, Dotcom, Batato, van der Kolk, and Ortmann were arrested on January 19, 2012. On January 27, 2012, the Department of Justice filed a letter informing the defendants and the court that the DOJ had conducted a search of Megaupload service providers Carpathia Hosting, Inc. and Cogent Communications, Inc. in Virginia and the District of Columbia. The DOJ had copied the files from servers licensed to Megaupload, and informed the court that the hosting companies may begin deleting the contents of those servers beginning on February 2nd. On February 1, 2012, the Electronic Frontier Foundation filed a letter to the parties and the court on behalf of an undisclosed client, asking the court to preserve the material stored by Megaupload at the direction of the website's users, noting that many individuals had relied on the service for innocent, noninfringing storage of content. According to a Twitter post made by Megaupload Limited's attorney, the hosting services have agreed to temporarily preserve the servers until an agreement can be reached on how to preserve the material stored at the direction of innocent users.

The extradition process is currently underway for defendants arrested in New Zealand. According to BBC News, Mr. Dotcom was denied bail based on flight risk concerns.

Jurisdiction: 

Content Type: 

Subject Area: 

Threat Source: 

Court Filings
RSS

CMLP Notes: 

1/25 AFS began skeleto, filled out 2/6.

Williams v. Advertising Sex, LLC

Date: 

03/18/2005

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

Advertising Sex, LLC; Raymond Williams; Palmbeach-Online.Com, Inc.; Kenneth M. Boyd; Steve Bryant ; G.A.M.E.; Nicholas Cain; Cain Web Design, Inc.; Charlie Hintz; Mental Shed, LLC; Chris Hartmann; XOTECK, LLC; VIDBIDNESS, INC.; Eric Ridley; Performan

Type of Party: 

Individual

Type of Party: 

Individual
Organization

Court Type: 

Federal

Court Name: 

U.S. District Court for the Northern District of West Virginia

Case Number: 

1:05CV51

Legal Counsel: 

Robert R. Waters (for Vitigliano and Xoteck, LLC); John W. Dozier (for Chris Hartmann & Xoteck); Stephen P. Goodwin, Alexander D. Pencu, Joseph L. Clasen, William J. Kelleher, III & Raymond S Franks, II (for Castle Co. Pty Ltd, The Moles Trust, Russe

Publication Medium: 

Website

Relevant Documents: 

Status: 

Pending

Disposition: 

Dismissed (partial)

Description: 

Former Miss West Virginia, Allison Williams, filed a lawsuit against approximately sixty defendants, including Joseph Vitagliano, who operates Taxi Driver, a website that focuses on celebrity gossip and regularly features nude or semi-nude photographs of female celebrities. Williams alleges that Vitagliano defamed her by posting an advertisement on his website that falsely indicated that she, as Miss West Virginia, participated in a pornographic video that was available for download. 

Williams' complaint alleges defamation, false light invasion of privacy, misappropriation of name and likeness, and violation of the right of publicity. Williams seeks permanent injunctive relief.

According to filings in the case, Vitigliano's website contained advertisments for pornographic websites, including an advertisement for a site that allegedly offered to sell a pornographic video described as depicting "Allison Williams, Miss West Virginia."  Williams avers that she never appeared in the sex tape advertised on Taxi Driver, and has never appeared in any other pornographic video.

On August 31, 2007, the Court held that it lacked personal jurisdiction over Vitigliano because he had not purposefully availed himself of contacts in West Virginia.  The suit continues as to a number of the other defendants.

The case is also noteworthy because the court allowed plaintiff to serve litigation documents on one of the foreign defendants by email (see Internet Cases blog on this).

Jurisdiction: 

Content Type: 

Subject Area: 

Batzel v. Smith

Date: 

09/07/2000

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

Robert Smith; Netherlands Museums Association; Ton Cremers; Mosler, Inc.; Does 1-50

Type of Party: 

Individual

Type of Party: 

Individual
Organization

Court Type: 

Federal

Court Name: 

U.S. District Court for Central District of California; U.S. Court of Appeals for the Ninth Circuit; United States District Court for the Western District of North Carolina

Case Number: 

2:00-cv-09590 (California trial); 01-56556 (California appeals)

Legal Counsel: 

Robert Smith, Pro se; David D. Johnson, Eric D. Brown, Pamela S. Palmer, Steven T. Chinowsky - Latham & Watkins LLP, Stephen J. Newman - Stroock & Stroock & Lavan LLP (for Cremers); Robert P. Long - Kinkle Rodiger & Spriggs (for Mosler, Inc.)

Publication Medium: 

Email

Relevant Documents: 

Status: 

Concluded

Disposition: 

Dismissed (partial)

Description: 

In September 2000, Ellen Batzel, a California attorney, sued Robert Smith, Ton Cremers, the Netherlands Museums Association ("NMA"), and Mosler, Inc. for defamation after Cremers published on an international email list an email, written by Smith, in which Smith accused Batzel of owning art stolen by the Nazis and being a descendant of Heinrich Himmler. Batzel filed identical lawsuits in both California federal court and North Carolina federal court.

In the summer of 1999, Smith contacted Cremers, who operated the Museum Security Network ("MSN") website, to notify him about his suspicions regarding Batzel, for whom Smith worked as a handyman at the time.  Smith apparently intended the email to be a private communication, and was unaware of the MSN mailing list that Cremers edited and published.  Cremers posted Smith's email to the MSN list, which is distributed via email and also posted on the MSN site, without notifying Smith that he was doing so.

Batzel became aware of the MSN list posting about her and contacted Cremers within a few months. Cremers in turn contacted Smith for clarification about his statements.  Smith affirmed his statements, but told Cremers that he would never have sent Cremers the email had he known it would appear on the MSN list. Batzel denied Smith's accusations, and in turn accused Smith of trying to defame her because she refused to help him find contacts regarding a screenplay he wrote.

Batzel filed lawsuits in both California and North Carolina in September 2000.  Smith and Mosler, Inc., a sponsor of the MSN list, both filed an answer in California, and Batzel dropped them from the North Carolina lawsuit.  The NMA did not file an answer in either suit, and the California court granted default judgment against it. 

Unaware of the North Carolina lawsuit, Cremers filed an answer in California and moved to dismiss Batzel's case under California's anti-SLAPP statute (Cal. Code Civ. Proc. § 425.16).  In July 2001, the district court denied Cremer's motion, ruling that Batzel had shown sufficient probability of prevailing on her claims to survive an anti-SLAPP motion. The court dismissed Batzel's claims against Mosler, Inc., finding that sponsorship of the MSN list was not sufficient to impose liability.

Batzel and Cremers both appealed.  In June 2003, the Ninth Circuit Court of Appeals affirmed the Mosler dismissal and vacated the district court's ruling on Cremers' anti-SLAPP motion.  While the court of appeals agreed that Batzel had shown a likelihood of prevailing in her defamation claim, it ruled that section 230 of the Communications Decency Act ("CDA 230") controlled the case.  The court held that, if Cremers had reasonably believed that Smith provided the email to be published on the MSN list, then CDA 230 protected him from defamation liability for publishing the content of Smith's email. Because the facts were not clear from the record, the court remanded the case to district court to determine whether Cremers had a reasonable belief that Smith had provided his email for publication.

Batzel petitioned the U.S. Supreme Court to hear the case, but the Court denied her petition. Meanwhile, Cremers became aware of Batzel's lawsuit in North Carolina, for which he had never been served. The North Carolina court dismissed Batzel's lawsuit with prejudice in April 2001 for failure to prosecute. Cremers moved for summary judgment in California in November 2004, arguing that the doctrine of res judicata barred Batzel from suing Cremers in the California action. The district court granted the motion and dismissed the case against Cremers in March 2005.

It is unclear what happened regarding Batzel's claims against Smith.  According to the California district court's docket, all motions and orders mailed to Smith from 2004 on were returned for failure of delivery.

Jurisdiction: 

Content Type: 

Subject Area: 

Priority: 

1-High

Difrawi v. Henderson

Date: 

11/21/2007

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

Les Henderson; Daniel Bruce Scalf a.k.a. Frank Torelli; Jeremy Scalf; Conrad Longmore; John Doe 1 a.k.a. Klass Devries; John Doe 2 a.k.a. Dilly McGilly; John Doe 3 a.k.a. Scooper Joo; John Doe 4 a.k.a. www.easybackgroundcheck.com; John Doe 5 aka www.

Type of Party: 

Individual
Organization

Type of Party: 

Individual

Court Type: 

Federal

Court Name: 

United States District Court for the Middle District of Florida

Case Number: 

6:07-CV-1854

Legal Counsel: 

Les Henderson (pro se), Daniel Bruce Scalf (pro se)

Publication Medium: 

Blog
Website

Relevant Documents: 

Status: 

Pending

Disposition: 

Dismissed (partial)

Description: 

In November 2007, Internet Solutions Corporation and its President and Director Ayman Difrawi (a.k.a. Alec Difrawi) sued Les Henderson, Daniel Bruce Scalf, Jeremy Scalf, Conrad Longmore, and a number of anonymous defendants for defamation, false light invasion of privacy, and other torts. The plaintiffs subsequently amended the complaint, dropping Longmore from the lawsuit. Henderson and certain other defendants operate websites aimed at increasing consumer awareness about Internet scams and so-called "phishing" activities.

The complaint, filed in federal court in Florida, alleges that the defendants published false and misleading statements about Difrawi and Internet Solutions on a variety of websites and other fora, including comments to the "Money Talk" blog on Tampabay.com. According to court documents, the defendants accused Difrawai of engaging in "on-going criminal activity in the performance of his marketing and consultant business" and suggested that "[Internet Solutions Corporation's] business interests are all fraudulent based on any association or business relationship with Difrawi," among other things.

Henderson and Daniel Bruce Scalf, who are representing themselves, filed separate motions to dismiss the complaint for lack of subject-matter jurisdiction and personal jurisdiction. These motions are currently pending.

Update:

5/1/2008 - Judge ordered Difrawi to show cause why Jeremy Scalf and John Does 1-5 should not be dismissed from the lawsuit.

5/20/2008 - Judge dismissed Jeremy Scalf and John Does 1-5 without prejudice based on Difrawi's apparent lack of prosecution and failure to serve defendants in a timely fashion.

1/21/2009 - Case referred to mediation

5/28/2009 - Mediation set to begin Sept. 1, 2009.

Jurisdiction: 

Content Type: 

Subject Area: 

CMLP Notes: 

User submitted (email)

Status checked on 6/3/2008 (AAB)

Updated 1/22/09 - VAF

Updated 6/17/09 - CMF

Prince v. Prince Fan Sites

Date: 

11/06/2007

Threat Type: 

Correspondence

Party Receiving Legal Threat: 

Princefans.com, Prince.org, and Housequake.com

Type of Party: 

Individual

Type of Party: 

Organization

Publication Medium: 

Website

Status: 

Pending

Description: 

Lawyers for the musician formerly known, and now currently known, as Prince have sent cease-and-desist letters and at least one DMCA takedown notice to the three largest Prince fansites, Prince.org, Princefams.com, and Housequake.com, demanding that they remove all photographs, images, lyrics, album covers, and anything linked to Prince's likeness.

The fan sites were also requested to provide Prince's lawyers with "substantive details of the means by which you propose to compensate our clients [Paisley Park Enterprises, NPG Records and Anschutz Entertainment Group (AEG)] for damages."

The fansites formed a coalition, Prince Fans United (PFU), which has issued a press release saying that the letter campaign goes too far, effectively stifling critical commentary and impinging on freedom of speech. It does not appear that a lawsuit been initiated.

Update:

3/13/2008 - Prince Fans United reported that negotiations between the coalition and Prince were at a standstill for unknown reasons.

Jurisdiction: 

Content Type: 

Subject Area: 

CMLP Notes: 

Status updated on 6/6/2008 (AAB)

Jankovic v. International Crisis Group

Date: 

07/15/2004

Threat Type: 

Lawsuit

Party Issuing Legal Threat: 

Milan Jankovic (aka Philip Zepter); Fieldpoint B.V.; United Business Activities Holding

Party Receiving Legal Threat: 

International Crisis Group; James Lyon

Type of Party: 

Individual
Large Organization

Type of Party: 

Individual
Organization

Court Type: 

Federal

Court Name: 

United States District Court for the District of Columbia; United States Court of Appeals for the D.C. Circuit

Case Number: 

1:04 CV 01198 (RBW); No. 06-7095

Legal Counsel: 

Amy L. Neuhardt , Jonathan L. Greenblatt, Cynthia P. Abelow

Publication Medium: 

Email
Print

Relevant Documents: 

Status: 

Pending

Disposition: 

Dismissed (partial)

Description: 

Milan Jankovic, aka Philip Zepter, along with two of his businesses, Fieldpoint B.V. and United Business Activities Holding, filed suit against International Crisis Group (ICG), claiming defamation, false light invasion of privacy, and tortious interference with business expectancy. Non-profit ICG publishes newsletters, reports, and other documents aimed at influencing policymakers worldwide, apparently focusing on the prevention of armed conflict. Zepter's claims arose from ICG documents -- two reports and an e-mail -- that accused Zepter and his business ventures of improper ties to deceased Serbian president Slobodan Milosevic.

On May 1, 2006, the district court dismissed plaintiffs' claims as to the e-mail and one of the reports (“Report 141”) because the statute of limitations had run. It dismissed the claims involving the other document (“Report 145”) as to Zepter's businesses because the report did not concern them and as to Zepter himself because the disputed statements were not defamatory as a matter of law. Plaintiffs amended their complaint to remove ICG employee James Lyon, who had sent the disputed e-mail, after the District Court found that Lyon's presence in the case destroyed diversity for the purposes of jurisdiction.

On July 24, 2007, the United States Court of Appeals upheld the district court's finding that the case in its original form failed due to lack of jurisdiction over Lyons. It also upheld the dismissal of all claims relating to the e-mail and Report 141 due to the statute of limitations, as well as Zepter's businesses' claims arising from Report 145.

However, the Court of Appeals held that Zepter had established a prima facie defamation case regarding certain statements in Report 145. The opinion discussed three disputed portions of Report 145 separately. It affirmed the dismissal of the claims as to the first portion, which had implicated another Zepter venture -- Zepta Banka -- but not Zepter himself. Due to the size and scope of Zepter's business enterprises, spanning more than 50 countries on five continents, the court found that statements regarding Zepta Banka did not concern Zepter.

According to the court, the second statement in Report 145 could give the impression that Zepter was a “crony” of Milosevic and thus was sufficient to establish a prima facie case of defamation. Though the Court of Appeals did not discuss them, it revived plaintiffs' false light and tortious interference claims as to the second statement in Report 145.

The Court of Appeals affirmed the dismissal of the claims regarding the third statement in Report 145 because the statement referred to a former Zepter employee rather than Zepter himself.

The net result was that all claims against ICG were dismissed except for those involving the second statement from Report 145, which were remanded to the district court. ICG raised a number of defenses not reached by the district court or on appeal -- Opinion and Fair Comment Protection, the Fair Report Privilege, the Neutral-Reportage Doctrine -- which will be considered in the lower court.

Update:

7/24/2007 - Case remanded to district court.

5/13/2008 - ICG filed memorandum supporting its motion to dismiss first amended complaint.

5/23/2008 - Jankovic filed memorandum in opposition to ICG's motion to dismiss.

Jurisdiction: 

Content Type: 

Subject Area: 

CMLP Notes: 

Status updated on 6/5/2008 (AAB)

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