Righthaven says it might have to file for bankruptcy

vegas.inc ^ | Sept 9, 2011 | By Steven Green

[Jim Robinson]

Despite its backing by the billionaire Warren Stephens family, Las Vegas copyright lawsuit filer Righthaven LLC warned today it may have to file for bankruptcy because of a series of setbacks in its litigation campaign.

The warning came in an emergency request by Righthaven to a federal judge in Las Vegas that he stay his order that Righthaven pay $34,045 in legal fees to attorneys who successfully defended Kentucky message board poster Wayne Hoehn against a Righthaven lawsuit.

Righthaven has already appealed U.S. District Judge Philip Pro’s fee award to the 9th U.S. Circuit Court of Appeals.

Righthaven is also appealing the underlying rulings by Pro finding Righthaven lacked standing to sue Hoehn and – even if it had standing – that Hoehn was protected by fair use in posting an entire Las Vegas Review-Journal column on a sports betting website message board.

Righthaven says its lawsuits are necessary to deter rampant online infringement of newspaper content, but attorneys for Hoehn and other defendants claim Righthaven's suits are frivolous and are based on sham copyright assignments and are merely part of a get-rich-quick scheme.

Righthaven’s bankruptcy warning came a day after MediaNews Group, the owner of the Denver Post and other newspapers, revealed it won’t renew its contract with Righthaven for copyright protection services in the form of its controversial no-warning lawsuits.

While the Righthaven bankruptcy warning may sound ominous, a bankruptcy filing wouldn’t prevent Righthaven creditors from asking the bankruptcy court for permission to seize Righthaven’s assets. Such a filing also would require Righthaven to reveal detailed financial information that so far has been secret as it's a private company.

And Righthaven copyright lawsuit defendants considering countersuing Righthaven over what they call sham copyright claims would likely target not just Righthaven, but its deep-pocketed newspaper partners...

[Zakeet]

Illegitimi non carborundum

A couple of points to discuss with your lawyer:

1. If I recall correctly, sanctions for unjust, false, and/or malicious prosecution can be (and frequently are) levied directly against the offending attorney. If applicable in your circumstances, you might consider bypassing the bankrupt Righthaven altogether and go directly to the source of the problem.

2. Again, if I recall correctly, corporations formed for unlawful purposes can be collapsed to the point where they lose their limited liability protection. If so, this might be another way to go directly to the source of your problem.

Either way, congratulations on today's announcement.

/Zak

[DeoVindiceSicSemperTyrannis]

[kidd]

A triumphant Jim Robinson Ali gloats over his prostrate opponent, Sonny Righthaven Liston

[longtermmemmory]

they THINK they can continue without the liability.

If bad faith/fraud can be shown then not even bankruptcy will protect them.

[Nevadan]

Wonderful to hear!

[RegulatorCountry]

Bob J is deeply saddened.

[goat granny]

The guys that make up the sayings that go with the pictures are pure genius....

[Fast Moving Angel]

Jim, have you considered filing a suit against Warren Stephens and Righthaven to get back the settlement FR paid to these crooks?

Either that, or check with your attorneys about filing a claim in their bankruptcy for a refund?

[TASMANIANRED]

Drive a stake through their hearts.

[greyfoxx39]

[The Cajun]

And Righthaven copyright lawsuit defendants considering countersuing Righthaven over what they call sham copyright claims would likely target not just Righthaven, but its deep-pocketed newspaper partners

Perhaps the best is yet to come.

[cracker45]

Is a possible RICO charge against Righthaven and its partners in crime for sham lawsuits/illegal takings in the offing? (Go after the deep-pocketed conspirators)

JC