Legal Question in Intellectual Property in New Jersey

As a Franchise Attorney I can say the following. All creative works (like movies) are automatically protected by copyright law, but registered works (and most movies are) receive much greater protection. Copyright law sets statutory damages (damages that do not have to be proven) for unauthorized use of images. These generally range from $1,000 up to $150,000 per infringement (each movie download, in your case). If the copyright is registered, then you can also be liable for attorney�s fees - which can be substantial. Ignoring their demand is not a good idea as they will likely get their attorney involved and the price tag will go up dramatically. Consult with a good intellectual property or franchise attorney in your area for specific advice and to help you cut the best deal possible under the circumstances.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Inaction is not a good idea. Many of these cases have legitimate origins even if many are defensible on procedural grounds. Sharing copyrighted works over services such as BitTorrent without permission or a license from the copyright owner is unlawful. That can be true for both the person who shares the work and the one who downloads it. The civil and criminal penalties are severe and the entertainment industry is highly motivated to pursue even casual infringers even if the FBI has better things to do. You can be sure that the copyright owners will pursue their claim with enough vigor so that everyone becomes convinced that sharing copyrighted works is not a good idea.

The usual pattern is that a law firm working for the copyright owner will file a suit against multiple John Doe defendants who are alleged to have infringed the copyright by downloading a copy of the work under an agreement to share it with others. The source of one of the downloads will have been identified and the firm's investigators will use the subpoena power of the court to trace the downloaded copies, perhaps through multiple levels. The downloaders are identified by their IP addresses and the Complaint is then amended to name those specific individuals. The individuals will then be served with a summons and complaint.

A lawyer experienced in matters of this type can usually tell from the filings with the court how likely you or another particular John Doe is to be named in the suit and what your defenses might be if you are named.

If you have been contacted by the firm prosecuting the matter, the the plaintiff already has information that you are one of the specifi defendant it is looking for. If you chose to ignore the matter and are eventually named in a suit, you must either present a valid defense or default and have a judgment entered against you.

That said, many of these claims have procedural defects or are brought in an improper venue. There are other possbile defenses. So, if you don't pay the settlement demand, you may want to consider hiring a lawyer to advise you on how likely you are to be able to avoid liability and whether a better settlement is possible.

I handle matters of this type. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm