97 Las Vegas Karaoke Locations Sued By 'Righthaven Of Trademarks' Demanding $500 Million
from the why-not-copyright? dept
Steve Green, who was the absolute best reporter covering the Righthaven saga, recently wrote about the fact that 97 Las Vegas karaoke providers were recently sued by a company called Slep-Tone Entertainment Corp., which apparently mainly does business as "Sound Choice," selling various karaoke content -- music and videos. Green notes that someone familiar with Slep-Tone has called it the "Righthaven of trademark infringement," though there are clearly some differences. First, though, the similarities: like many intellectual property "troll" operations, it appears that the goal of these efforts is to pressure companies into settlements, rather than actually get a judgment from the court. This has become an unfortunately common business model, where companies with a claim over some IP sue a ton of others at once mainly just to put pressure on them to "settle" for some amount -- often significantly less than what it threatens in the letter. And, it appears that Slep-Tone has at least some history of filing these kinds of mass lawsuits against a ton of defendants at once.Of course, there are also lots of differences with Slep-Tone, in that it actually makes a product -- even if it's a somewhat silly and potentially obsolete product. I was a bit confused by the original article, because it never made clear what the actual trademark in question was -- and reading through some other lawsuits, it appears to be on the "Sound Choice" name and possibly logo, which is often displayed on the karaoke videos it produces. The other thing that confused me for a bit was why this was a trademark dispute, rather than a copyright dispute. After all, the key claim is that these karaoke locations were copying the content -- the music and the videos -- for use in karaoke machines, so shouldn't there be a copyright claim? But then it hit me: this is karaoke -- meaning that Slep-Tone probably doesn't hold the copyrights to the music in question in the first place. While it likely licenses the music for its karaoke productions, that license wouldn't necessarily give it the right to pursue others for copyright infringement on the music. Not knowing where it gets the videos from, I have no idea if there's a copyright issue there too, but it doesn't look like the lawsuits make any kind of copyright claim at all. Instead, they seem to focus on the use of the logo in the video to suggest trademark infringement -- which seems like an interesting way to get around the lack of copyright for copied content.
That said, again reading through some previous efforts -- and rulings (pdf) -- lends credence to the idea that these are questionable "trollish" claims in the first place. For example, in that ruling, linked above, the judge grants a summary judgment against Slep-Tone for failing to show any real evidence that its trademark was actually infringed on in the case. Instead, the company seems to rely on some very vague statements to claim infringement where none may exist:
While the Court sympathizes with Slep-Tone's claim that counterfeiting is a rampant problem that has devastated the karaoke industry, Slep-Tone has failed to direct the Court's attention to any evidence in the record tending to show either unauthorized use of the SOUND CHOICE marks, or that any of the allegedly infringing material originated with Defendants. In its response... Slep-Tone relies exclusively for evidence of unauthorized evidence of unauthorized use by Defendants on the affidavits of [two former employees of the defendant and one "purported expert"]... [None of these affidavits] establish any such facts. Instead, they provide vague and conclusory statements without foundation.Whether or not Slep-Tone has a legitimate claim, it seems like we're seeing more and more of these kinds of cases -- using patents, copyrights and trademarks to bring mass lawsuits against a number of companies who may or may not infringe, where the goal often appears to be to push for settlements for a few thousand dollars (often cheaper than defending the lawsuit). It seems like this is a form of abuse of the judicial system, effectively relying on the threat of an expensive trial as a weapon to pressure companies (and, in some cases, though not in the above cases, individuals) into settling and just paying up to avoid the hassle and expense.
I'm not sure what the solution is to these kinds of lawsuits, but it seems worth calling out just how common these kinds of activities are becoming. IP holders using the "threat" of a lawsuit as a key component of a business model seems like a serious problem both for defendants in those lawsuits, as well as the public, which funds the courts through taxes. I'd be interested in ideas for ways to prevent this kind of abuse of the judicial system, where the key role of the courts is merely to act as "the heavy" in a "business model." That feels a little too much like a traditional protection racket.
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Filed Under: karaoke, sound choice, trademark
Companies: righthaven, slep-tone
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Example of job creation
/sarcasm
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the ultimate solution, however, is for the old copyright/trademark rules to be scraped and new, sensible, 21st century laws to be written and implemented, that also deal with false claims/legal-like extortion that are happening atm.
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FTFY.
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It appears that part of "Sound Choice"'s lawsuits are being driven by fear of the RIAA, or at least leaving that impression.
They don't have the rights to have their materials on anything other than CD+G, so when someone moves them to a hard drive something "illegal" happened.
They aren't so worried about that however, as long as the target can show them the original discs.
The downside is there are reports of "Sound Choice" investigators telling venues that KJ's are being sued and they could be sued if they book them. (This would also explain the motion by State Farm in the linked ruling, if your gonna sue sue big). The principal of this cluster has often told people its best to speak to his people BEFORE talking to a lawyer, to keep costs down. This is the same advice copyright trolls are using is listen to what we say, pay us and don't "waste" money on a lawyer.
While I am sure there are some evil types actively hurting their market by commercial copyright infringement (duplicating 1 copy onto multiple hard drives and selling them), I think this is also a cash grab to shakedown people hoping to find someone who lost a disc or receipt. (Shades of BSA)
They make them sign an agreement for an "audit" that requires them to give up rights before they can even attempt to prove themselves innocent.
At least 1 of these audits is reported to have taken place via Skype, and they only had to hold up a few of the discs. They were then dropped from the lawsuit, but the damage to their reputation had already been done.
This is a legacy gatekeeper desperate to stay on top of the game. They focus on how much it cost them to create what they have, justifying high prices and ignoring the lowered costs tech advances brought them. They have failed to adapt to market changes, and blame their failure on people "stealing" from them. They found a way to get more money, and are going full speed ahead even if it ruins their customers. What future sales should you expect from the KJ's you threatened this way? 0. Then you can complain about them not buying from you and finding new resources, and try to get a law passed to stop that.
Protip: If you sell something, then sue everyone who bought from you, your accelerating your demise. People will look for your competitors, even if they offer a crappier service - because they aren't suing wildly.
Once again it becomes clear that this is the fault of the idea that Intellectual Property is our greatest asset.
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Who owns the copyright?
For their own collections, they actually hired a studio to create their own recordings. So, while they wouldn't inherently own any song copyrights, they would own the copyrights to the recording of the song.
I remember being told that this guys production company played him the original and the new recording side by side and they were indistinguishable.
All that said, I don't know if that is a consideration in this case.
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Parasites
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Re: Parasites
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Re: Parasites
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So what's new?
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Re: So what's new?
There are the rights for the music.
There are the rights for the performers.
There are probably rights for the artist that made it famous.
Then there are a series of rights that extract a little for various groups protecting "artists".
With everything going digital, they merely needed to adapt their business model. Instead they are using Trademark enforcement to avoid looking like copyright trolls.
They are filing mass suits with little to no evidence of any wrongdoing. The goal is to extract payments rather than protect their "property". This lets them save costs on naming each person, and get the right to search for wrong doing.
They are pissed that a KJ business might buy 1 set of discs, but then have 4 people working for them. They might only be using certain discs at certain sites, but because they KJ business loaded the hard drives with copies they feel they need to get paid.
It is very similar to the logic of the **AA's, where if I buy a DVD I'm not allowed to rip it to my home theatre system and my smart phone. I need to pay each time I want to shift the format, even though I can only use 1 copy at any given time.
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If you want to see their latest complaint, it's here: http://ia700808.us.archive.org/3/items/gov.uscourts.nvd.85925/gov.uscourts.nvd.85925.1.0.pdf
I know you're ready to just call them a "troll" and take the other side, but maybe, just maybe, they are actually a victim and deserve to have their rights vindicated. It worries me that pirates can operate by the thousand-fold against one victim, but then if that victim goes after even a portion of the pirates, they get labeled all sorts of bad things by you and others. Why aren't you focusing on whether the defendants deserve to be called bad things too?
It's disturbing how you jump right to this being an abuse of the legal system, with no care whatsoever for the abuse of the plaintiffs' rights that started the whole thing to begin with. Can you see my point, Mike? Do you see why it bothers me that you always side with the defendants, especially when it's the defendants who are the ones violating someone else's rights?
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We saw what we assumed were people using copies of our stuff, now make them pay us.
We saw what we are sure are counterfeit copies being used, except how can you make that determination from simply seeing a track played back on stage?
They have to be guilty they advertise having 200,000 tracks and we don't have billions of dollars so they have to have gotten them from our materials!
Our last 5 releases sucked really hard and no one bought them, so they failed because of piracy!
And this entire filing seems to be based on THEY SHOWED OUR TRADEMARK MAKE THEM PAY US.
They offer no proof beyond we said so that the discs are fake. They try to make them look like they all worked on concert to destroy the company by showing their logo on the tracks making consumers think they supported the shows.
They want $2,000,000 per trademark infringed, per Defendant.
Order the seizure of all computer disks, drives, or other media belonging to any of the Defendants, which media contain illegal counterfeits of registered trademarks.
Except they have offered NO PROOF that these are counterfeits.
One of the lawyers bringing suit can't prove he is allowed to practice in the state where he brought the suit.
This is a failing company lashing out at everyone to get some money. They haven't proven their case in their filing - they make some claims but offer NO EVIDENCE.
Could this be they purchased items unaware they were counterfeits?
Could this be they hired an outside firm to run the show, and that firm has all legit stuff?
Could this be they hired an outside firm and they were hoodwinked by them?
This is suing the people with the deep pockets, in a mass suit that is nearly identical to the copyright troll suits.
When you want to make a point about pirates sticking together and stuff... maybe you should make sure you pick a case that isn't obviously flawed.
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Mike was trying to tell me the other day that he's just like the ACLU defending the First Amendment rights of the KKK. That's not all what I see. I see Mike defending the wrongdoers, not the victims. And without knowing any facts other than that a plaintiff sued a defendant for infringement, I can tell you whose side Mike will take--the defendants. That's nothing like the ACLU, Mike. Sorry.
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They offer nothing to support that position.
They are more than willing to entertain "settlement" negotiations.
This is part and parcel of the copyright troll mass lawsuit pattern.
By all means link any evidence they submitted to the court, I'm willing to entertain the idea they have been wronged, but demanding 2 million for each time their name appeared on a screen seems to be using Trademark to wring cash out of people.
See I don't claim legal knowledge, but I've bested copyright trolls. Its not always required, and while a Judge might not dump this case suing 97 unconnected people all of whom might have different defenses seems poor form.
Using a lawyer not cleared to appear as the main name on the case, seems fishy.
There is no way defendants expect the court to hold all 97 named parties and representation.
Other than the claims of the defendant, can you offer anything that actually supports their claims? Evidence... maybe you've heard of it. Because we said so is not a legal argument that stands up.
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I looked on PACER and they have about 80 lawsuits filed in the past 15 years. I'm not going to debate the merits and/or demerits of each. If you want to point to the complaint I linked to and explain why it's insufficient, go ahead. I doubt you understand how notice pleading works, so there's probably little point in having that conversation.
I agree that there's probably no good reason for the defendants to be joined in one suit. But I'm also sympathetic to the huge problem victims like this plaintiff have with pirates violating their rights on a huge scale. Don't forget who the wrongdoers are. You guys seem all too happy to defend the pirates who team up against one innocent victim, but then you demand that the victim fight an expensive fight against each and every wrongdoer separately. Frankly, I think that's wrong.
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They claim that these people displayed their trademark and this results in them being owed $2 Mil each time it happened.
It fails on the simple premise of we observed. Even the copyright trolling firms have an "expert" statement attached claiming their super sekrit tech is infallible and how it was gathered.
There are no wrongdoers here yet, you really really want to put the cart before the merits of the case are decided. In a prior case making similar claims they were tossed out because they failed to make their case. They made all sorts of arguments to cloud the issue, but failed to prove their claim. They added in an insurance company to the filing to try and get money from a deeper pocket.
It is fun seeing you trying to paint them as these poor innocent people being ripped off, when you can't prove they are being ripped off. You can't offer any proof these "pirates" got together and did anything to them. They could have just made the case against Caesars and then gotten settlements from the others proving their case.
You want to confuse the issue by calling them pirates, because that connotation implies they are evildoers. You portray people concerned about overreach of the legal process to obtain money they might not actually be entitled to as pirate supporters. You completely ignore the issue that this is becoming a new business model to threaten lawsuits to scare people into settling because putting on a defense to even baseless charges could destroy their business.
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Which word was it that tripped you up? If and or the?
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I made clear points, but because they don't support the narrative in your head you decided they were babbling.
You have yet to actually deal with the real issues I raised instead just throwing out rehashes of the same things you've said all along.
Your fishing trying to get Mike to make some sort of comment you can use to support your idea that he supports pirates and such, and its just not working for you.
Seriously you can't get past the issues I raise, while I think of myself highly I'm not the best and brightest here, so I doubt you will manage to get Mike to bother with you while you keep making loaded statements over and over and refuse to engage in actual debate on the merits of using the courts as an enforcer of a questionable business model.
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This is a failing of my brain, sorry. I typo and transpose words from time to time, I do my best to correct them when I am rechecking my posts, but sometimes I miss them.
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Also, they are filing for trademark infringement (showing the logo that appears on every track. Yet, they ask the defendants to prove they aren't pirating AND pay a large amount of money in order to be removed from the suit. It isn't a settlement. Its blackmail. What they ask for to be removed has NOTHING to do with the lawsuit itself.
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Awesome.. what is your address and the address of everyone in your field. I want to send threatening letters demanding payment for something that you haven't clearly got the rights to, and neither does anyone else in your field, and I am going to offer you a settlement that is much less than the cost of a lawsuit.
You don't have a problem with that.
Right?
Since you have no problem with this company doing it, you wouldn't mind being on the receiving end of it.
Right?
Can you see the point?
Do you see why it bothers us that you always side with the lawsuit trollers? Especially when they are using taxpayer dollars to get their settlements.
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How do you figure that this plaintiff is suing for something it doesn't have the rights to? I suspect you're just making that up.
The way you all jump to defend the wrongdoers, without a care in the world for the victim, is really despicable. Unfortunately, that appears to be the norm on Techdirt.
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Your "victim" seems to have failed, so far, to prove that it is actually a victim. And yet, you assume that the "others" are the wrongdoers. And to top it off, you accuse us of being despicable.
Nice going scumbag.
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If you're just going to call me names, I'll see no reason in chatting with you. Typical Techdirt response to anyone who says something that goes against the herd-think.
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"The way you all jump to defend the wrongdoers, without a care in the world for the victim..."
This seems to presume that there is actually a victim and a set of wrongdoers. Guilty until proven innocent and all that. You conveniently also ignore the fact that your alleged victim has not been able to prove that it is a victim at all.
So, yeah, you're a scumbag.
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I hope Mike will chime in since my comments are directed towards him. You guys just add nothing to the conversation. Sorry.
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Now, someone has asked you multiple times to link to evidence, and you have failed to do so. Point of fact, you have ignored this request as though it were never made. I suspect you will do so, again.
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My point stands though. Mike sides with the defendants, and he cares not about the plaintiff who is the actual victim. I just don't get it. And for him to pretend like he's just sticking up for what's right like the ACLU does is laughable. You don't see the ACLU defending every single thing the KKK does.
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You just can't hear us.
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I said the defendants "clearly" didn't have the rights. Which was part of the sarcasm. Which you didn't even respond to correctly. (I even state everyone else in your field, which would be the other 96 potential defendants)
I suspect you are the one making stuff up about what I said.
Which is no less despicable than what you purport.
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I know it was in the middle of the first paragraph, and you likely skimmed over it, but there was this, "First, though, the similarities: like many intellectual property "troll" operations, it appears that the goal of these efforts is to pressure companies into settlements, rather than actually get a judgment from the court."
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Obvious solution? RICO.
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A possible solution
Of course, the person filing the settlement papers is the one who pays the court fees.
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How about this?
These kinds of suits should be open and shut, quick and easy to defend against. Of course, they aren't, and that cost is enough to put someone out of business.
I really think we need a law that the loser pays *ALL* costs and fees in a case, and that the bench be given power to levy a civil penalty of up to 100% of those costs onto any plaintiff whose suit they dismiss as trivial or otherwise lacking in any reason to exist.
This would make these idiots think twice about wasting MY tax money adjudicating silly suits. Legal action should be
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Basic Tort reform
1. Limiting joint and/or several liability rules to proportionality instead (Not all US states have done this in civil suits)
2. Make joining parties that should never be joined a Rule 11 breach.
3. Follow the common sense and 'English rule' of LOSER PAYS be it fully or equitable dependant on whether the Plaintiff or respondent fully or partly lose. And yes I know the USA has Rule 11, but it's a paper tiger and only for attorneys and then really only for frivolous and ethically dubious suits.
In other words basic tort reform (without talking about limits on damages) is needed in the USA. Especially in the areas of Contract, Neg, and IP Law.
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http://karaokeusa.forumotion.com/
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http://karaokeusa.forumotion.com/
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A legal working KJ's point of veiw
I have always bought all of the products that I use. However, through the nineties and beyond the piracy problem proliferated until dozens of american karaoke manufacturers were forced out of business. Now only a handful of these companies are still in business.
The problem is that when a new karaoke disk is produced and sold, it has become a matter of weeks before the music is being copied and distributed illegitimately. Within weeks their are far more illegitimate copies of the music in circulation and use than were ever sold legitimately.
This situation stopped Sound Choice from producing music in the common CD+G format years ago. They continue to produce the music now on a different format that is more controlled and protected from piracy. But that doesn't correct the damage that has already been done.
Sound Choice was once the largest producer of karaoke music in the industry. In order to survive, they were forced to reduce their operation to a handful of employees. As a result many dozens of PEOPLE LOST THEIR JOBS!
If I were Sound Choice, I would have done exactly what they have done. First attact the first half of the problem. Try to put the people out of business who are copying the music and distributing it without permission. Second, make the commercial karaoke operators who use the music without paying for it pay up. The latter has required many more suits to be filed to make a dent in that part of the problem.
If there was a different legal remedy for the damage done to Sound Choice, I think they would persue it. Unfortunately, I don't see any other remedy.
In conclusion, all indications show that karaoke is still a viable form of entertainment that is enjoyed by more fans than ever. This is certainly not a "silly" or "obsolete" industry.
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Re: A legal working KJ's point of veiw
https://www.facebook.com/SuperAwesomeJenn/posts/1080681111966466:0
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I came into the karaoke hosting business knowing that I was going to do it legally and purchase discs/licences for every single rig I use. I knew I would be competing against hosts that may have a library of 1000 or more discs that they actually paid for, but ripped them down to use on 2,3 even 7 different rigs. There are many hosters that never paid a penny and run multiple rigs using tracks that weren't paid for at all. It makes it difficult to know i am investing more in getting one rig up and running legally than they have getting 7 rigs up and running.
People may disagree with HOW Sound Choice is defending the karaoke industry, but it is hard to deny that they have reason to preotect it. WHY they are doing it is what more people should focus on. Instead, there are many that get mired down in the whoel copyright/trademark/shotgun approach aspects and completely ignore that something has to be done. Period.
-Chris
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Slep Tone - Sound choice
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Re: Slep Tone - Sound choice
Has Sound Choice filed a lawsuit against you? Me neither!
Has Sound Choice asked you to purchase 4800 songs from them for $8500? Me neither!
Yep, I did two contest with Sound Choice back in the day and part of what I paid for was a set of disc for each contest (which I used for giveaways during the contest).
If Sound Choice hasn't filed a lawsuit against you and hasn't threatened doing so and you own the disc for each song on your hard drive (then you are only guilty of technical infringement and that can be cleared up with a simple audit) then what are you concerned about?
I can understand the pirates being angry because they got into this for little to no money and they are used to beer tab pay, and I can understand the "angry little man" KJs who started out as legal KJs but with the advent of computer Karaoke rushed to increase their profits by running multiple systems off the same set of disc, having to drop several systems meant a large revenue drop for him and he is angry. The pirates are angry because if they get caught they are going to have to actually purchase the product they have been using. What I don't understand is anyone who makes the claim that they actually own the disc for the product that they use being scared and angry it just doesn't compute!
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INFRINGING ON LOGOS AND COMPANY MARKS
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karaoke; sound choice, & the day the music died...........
If I can offer any words of advise to would be KJ's, incorporate , get an LLC, that way if you are sued, theycan have the business; walk away, and protect your personal assets. If this clown wants to make it about money, then don't make it worth his while.
This used to scare me, not anymore, since I have a great lawyer, note how they don't try this in the Northeast, where there is one lawyer to every 100 people. bring it on Slepp.
:P
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SoundChoice
Sound Choice doesn't sue for copyright because they don't own the copyright to the original song or lyrics or even timing on the synchronization. All they have left is trademark and that's what the use as a "hook" to drag these hosts to court. They have been known to sue karaoke hosts using their ORIGINAL DISCS in shows and even suing karaoke hosts who play a PATRON'S ORIGINAL DISC. They've refused to guarantee that if a host uses the original discs they purchased that they won't be sued for it. How ridiculous.
They are "trolls" in the worst way.... Just look up how many times Sound Choice has been sued in the past by publishers for the very same piracy they are now claiming to be fighting.
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For those that were stupid enough (like the "angry little man" here) to make 6 or 7 copies of their owned library plus add in several thousand more pirated songs then they wouldn't have had to dismantle or hide 6 systems. Yes people are angry about the situation they now find themselves in but it isn't about what Sound Choice is doing, it is about them being caught with their hand in the cookie jar.
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Slep-tone Lawsuit Development
http://soundchoicelasvegaslawsuit.com/los-angeles-court-orders-slep-tone-to-pay-suganos-attorneys- fees-by-a-date-certain/
Other parts of the blog reveal that Slep-tone has sued its investigator APS and Steve Brophy and provided as an exhibit to the complaint its agreement with them contemplating suits of 1000's of defendants.
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Re: Slep-tone Lawsuit Development
How could anyone find credibility on such a blog?
Look for yourself utilizing the links below.
http://www.nvbar.org/lawyer-detail/4480
Read the Order To The Courts here:
http://www.pdf-archive.com/2013/06/18/kossack-suspension-13-16905/
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Alice why burn them now ?
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Another interesting turn of events: many of the "certified" KJ's that have been the most outspoken in favor of sound choice – have turned tables and are now jumping ship one by one. They have finally come to the realization that these manufacturers are not out to help their own customers – or to help reduce piracy – but only out to help themselves.
It looks like their little castle is crumbling.
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Response to: c. staley on Aug 30th, 2013 @ 1:55pm
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Re: Response to: c. staley on Aug 30th, 2013 @ 1:55pm
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Is there a light in sight?!!
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Looks like the credibility of Kossack, Staley, & McLaughlin are in the toilet if the blog where they got all their info has disappeared!
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Kossack's Blog Is Dead, But Orders Are Not
http://www.scribd.com/doc/120734609/Federal-Court-Awards-Attorneys-Fees-to-Defendants-Findin g-Slep-tone-Karaoke-Lawsuit-Was-A-Shakedown
Craig McLaughlin
www.smartpropertylaw.com
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Sound Choice
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