Court slaps down bankruptcy as a shield for piracy fines

[grimm]

A bankruptcy court in Florida has ruled that Amit Bhalla, a retailer of IPTV streaming devices with unauthorised channels, cannot use a bankruptcy case to shield himself from monetary liability for copyright infringement.

In 2016, the US District Court for the Central District of California issued a permanent injunction halting the unlawful distribution of television content from programmers CCTV and TVB on TVpad devices. DISH Network, which has exclusive rights to distribute much of CCTV’s and TVB’s content in the United States (including through its Sling TV OTT service), and CICC, an affiliate of CCTV, were also plaintiffs in that underlying lawsuit, which began in 2015. The plaintiffs alleged that the manufacturers and distributors of the TVpad device set up a pirate broadcasting network designed to stream CCTV and TVB channels without authorisation.

The court ordered manufacturers and distributors of TVpad to pay $55 million in damages to DISH, TVB, CCTV and CICC, and the injunction prohibited retailers from distributing, advertising, marketing or promoting TVpad and comparable devices that deliver CCTV’s or TVB’s copyrighted content.

Amit Bhalla chose to file for bankruptcy in an attempt to avoid being held financially accountable. The plaintiffs filed a motion for summary judgment in the US Bankruptcy Court for the Middle District of Florida. The court granted the motion, and Bhalla must now pay plaintiffs $4.4 million for copyright and trademark infringement.

“This ruling sends an important message to retailers who think they can get away with profiting off pirated content: you will eventually be held accountable, and a bankruptcy filing will not protect you,” said Samuel Tsang, vice president of operations for TVB USA. “Our hope is that, as a result of this ruling, retailers will stop selling content obtained through illegal means and instead serve their customers with legal, reliable content and devices.”