Hartford Business Journal

HARTFORDBUSINESS.COM | AUGUST 5, 2024 11 lawsuit against another Connecticut cigar bar that didn't show up to court, a judge awarded Joe Hand Promo- tions a $10,322 award, federal court records show. "The Communications Act provides a huge club, or a weapon, against infringers to deter this kind of conduct," said attorney Patrick M. Fahey, a partner at Hartford law firm Shipman & Goodwin who focuses on intel- lectual property litiga- tion, but is not involved in the Joe Hand Promo- tions lawsuit. "Not a lot of people are aware of the extent of the penalties. They think, 'I'll have to pay for what I would have had to pay for a license to begin with.' Unfortu- nately, that's the wrong way to look at it, because the Communications Act provides so much more than just having to pay what you would have paid otherwise." 'Strict liability crime' Although Joe Hand Promotions is a prolific lawsuits filer, the cases that go to court represent a small percentage of commercial broadcast thefts that occur. Typically, Joe Hand's national counsel, Ryan Janis, of Philadel- phia-based Jekielek & Janis, will send multiple demand letters to establishments suspected of pirating their content. The demand letters give potential defendants the ability to settle out of court. Often, the demand letters are ignored. When that happens, Joe Hand doesn't disappear — it doubles down, Janis said. After a period of time, Janis will refer a case to a local attorney who files a lawsuit in a U.S. District Court located in the violator's home state. While a small restaurant or bar circumventing the payment of fees to a national distributor might seem like a victimless crime, Joe Hand Promotions' livelihood is actually at stake, Janis said. "When defendants finally get a lawsuit filed against them, they want to claim that they're getting picked on, or this is a heavy-handed approach and things of that nature," Janis said. "But the bottom line is, my client is a sales business. And this is how they survive." While courts can impose hefty penalties on defendants, most cases settle before going to trial. That's because defendants quickly realize the law isn't on their side, and their costs will increase the longer the case continues, Janis said. 'Widespread' problem The lawsuit against Gentlemen's Aroma Cigar & Lounge names three owners and/or operators of the venue. An attorney has not yet entered an appearance on their behalf. The venue did not respond to a message seeking comment, and a phone call to the establishment was not answered. Chambers said lack of knowledge about the law is not a defense. "It's a strict liability crime," Cham- bers said. "So, if you've shown it, you don't have a defense, and attorney fees are literally part of the statute. It doesn't behoove anyone to contest it." Also, by the time a lawsuit is filed, Joe Hand has gathered plenty of evidence to support its claim. Typically, a private investigator already attended the unlicensed public broadcast in question, and has documented it. Janis said UFC events even feature prominent warnings during the broadcast. Joe Hand doesn't directly profit from the lawsuits, as the costs of monitoring venues and prosecuting violators tend to offset monetary awards, Janis said. And despite an aggressive legal strategy, the pirating of pay-per-view content doesn't appear to be slowing. A 2019 study by the U.S. Chamber of Commerce Global Innovation Policy Center found that global online piracy costs the U.S. economy at least $29.2 billion in lost revenue each year. As technology evolves, more sophisticated ways of pirating content emerge, and the law tends to lag behind, said Fahey, the Shipman & Goodwin attorney. "I think the volume of cases that are filed is a good indication of how widespread the problem is," Fahey said. "But, you've got to bear in mind that the cases that are found just represent a fraction of the infringing that's actually going on. There are a lot of people who don't hit the radar, and they get away with it." A copy of the complaint filed by Joe Hand Promotions against Gentlemen's Aroma Cigar & Lounge in Wethersfield. Patrick M. Fahey PRESENTED BY Join us as we recognize and honor outstanding young professionals who are excelling in their respective industries and making significant impacts. FOR EVENT TICKETS GO TO: HartfordBusiness.com/HBJ-Events or scan the QR CODE MAJOR SPONSOR SUPPORTING SPONSORS AQUA TURF CLUB SEPTEMBER 19, 2024

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