Tuesday, December 11, 2007

Porn Producers Fight Back

Has it really come to this? Has the Internet spawned so much piracy and so many copyright violations that even the core business of on-line profitability must turn to the courts for relief?

From today's Los Angeles Times:

A major porn producer filed a lawsuit Monday against an X-rated knockoff of YouTube, alleging that it profited from piracy by allowing its users to post videos that include copyrighted material.

Vivid Entertainment Group filed the lawsuit in Los Angeles federal court against PornoTube and its parent, Data Conversions Inc., which does business in Charlotte, N.C., as AEBN Inc.

The suit is apparently the first of its kind in the adult film industry, which has done a better job than the major Hollywood studios in finding ways to profit from putting entertainment products on the Internet.

But in the last year or so, the rapid increase in consumption of all manner of videos on the Web has in some ways hurt the porn producers more than the mainstream companies because consumers of adult fare often get what they are looking for in clips of five minutes or less. Free short clips are easy to find on the Web, undercutting the established porn producers, which earn most of their money from long-form videos.

"We've decided to take a stand and say 'no more,' " Vivid co-Chairman Steven Hirsch said. "We will go after all the free sites."
But wait! There's more:
The suit accuses PornoTube of hosting excerpts of tapes that include such Vivid titles as "Night Nurses," "Where the Boys Aren't 7" and the private work of TV personality Kim Kardashian. The suit seeks damages of $150,000 per infringed work.

Other porn companies also are upset by the explosion in Web video sites, many of which rely on user submissions that borrow heavily from copyrighted material.

"What's happening in the industry is an unacceptable amount of theft," said Jon B., a vice president at Red Light District who asked that his full name not be used because family members don't know what he does.

He said Internet piracy might be reducing his company's profit 35%.
I think the LA Times has come up with a way to make the business pages more -- well, "vivid" is an adjective that comes to mind. Here's the story's conclusion:
Piracy has always existed, but it's more detrimental for the company as it tries to sell more of its content over the Web, Hirsch said. Competing with free Internet videos is bad enough, but competing with free versions of Vivid's material is maddening, he said.

Industry revenue as a whole is up, but it is getting split into more pieces, said Farley Cahen, publisher of Adult Video News Online magazine.

"In the past, it was peer-to-peer networks" that took a modest amount of technical ability to use, Cahen said. "Now, there's PornoTube, XTube, RedTube -- any kind of -Tube you can think of."

"There are longer and longer clips that are free, and the companies are at a loss over what to do."
I just can't wait for this lawsuit to reach the U.S. Supreme Court. That is one case where I'll want to be present for oral arguments.

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