Hartford Business Journal

8 Hartford Business Journal • May 29, 2017 www.HartfordBusiness.com from page 1 allows for sizable financial penalties against businesses found to have willfully displayed an illegal broadcast for commercial gain — such as bringing in more customers, sometimes for a cover charge. J & J has filed more than 3,000 lawsuits in federal courts across the country since 2007, legal records show. Connecticut businesses named in the recent spate of suits include Cloud Coffee & Martini Lounge, Lala's La Mirage Cafe and Mi Imperio Bar & Grill, all in Hartford, as well as Savores Restaurant in Wallingford. The latter three establishments did not return messages seek- ing comment for this story, while Cloud, located on Congress Street, appears to have closed. Its owner could not be reached. Three of the four area bars are alleged to have shown a May 3, 2014 welterweight championship bout between Floyd Mayweather and Marcos Rene Maidana, while Mi Imperio is alleged to have shown a June 7, 2014 middleweight championship fight between Miguel Cotto and Sergio Martinez. Attorneys familiar with J & J and cable piracy laws say the suits often follow sev- eral demand letters asking for money for an unauthorized broadcast and can be difficult to defend. Many businesses settle for undis- closed amounts, often without ever entering an attorney into the court record. "It's rare that anyone gets out of a TV sig- nal piracy lawsuit without shelling out some amount of money to resolve it, unfortunate- ly," said Shawn Cohen, a partner at New York law firm Charles Pascal Cohen, which counts television piracy defense among its niches. For those subpoenaed to appear in court, it's rarely difficult for J & J to prove its allegations. Similar to the tactics of music rights' owners, J & J — which has filed nearly 50 suits in Con- necticut federal court since 2007 — has been known to send plain-clothed representatives to bars and restaurants on the night of pay-per- view matches. Later, they file affidavits in court attesting to what they witnessed. "It potentially puts [lawsuit targets] in a tough spot," said Stephen O. Clancy, an attorney at Robinson + Cole who defended a Hartford bar against J & J in 2008. "To be successful, you just have to show that the establishment showed the fight and wasn't one of your sublicensees." While any lawsuit target can choose to fight allegations in court, the potential stakes are high. "You're certainly facing some stiff statu- tory penalties if you're unsuccessful," Clancy said. In addition, Clancy said federal law also allows for the recovery of attorneys' fees and other costs. "There's not a lot of risk on the part of the plaintiffs to bring these lawsuits," he said. "It can almost become a revenue stream, in addi- tion to an enforcement procedure." J & J did not respond to a request for com- ment for this story. While J & J often demands six-figure penal- ties, court records show the company doesn't always get the full amount it wants. Of the nearly 50 suits filed in Connecticut since Feb. 2007, the majority have settled for undis- closed amounts or were dismissed, court records show. Of the several area judgements that have been made public, the largest was for $27,900 in 2009 against a Waterbury bar. The smallest judgement was $4,800 against a Bridgeport market. Clancy said he understands J & J is trying to protect its distribution rights and those of its sublicensees who pay full price. Boxing and its pay-per-view model have also been facing new challenges, such as illicit internet streams, that have eaten into revenues. But even smaller settlements and judge- ments could be enough to put a business out of operation. Standard commercial insur- ance policies are unlikely to cover such law- suit penalties, Clancy said. Confusion, errors Cohen said he has seen instances in which bar or restaurant owners paid for a fight through their cable provider, but didn't realize their subscription was registered as a residential account. Others simply may not have realized commercial use has a far different and higher-stakes set of rules than simply view- ing at home. "Businesses are at a huge disadvantage, especially small businesses," he said. Some establishments might even think a legal demand letter seeking money for an unauthorized broadcast is a scam and throw it in the trash, he added. However, ignorance isn't a good defense. "There is no mental component or 'I made a mistake' component," Cohen said. "It's 'did you show it in a businesses establishment or not?' " Cohen said cable service providers should do a better job educating business customers and ensuring they don't inadvertently break piracy laws. Both Cohen and Clancy agree that busi- nesses with television screens should do their homework. "Make sure you have gone through the process properly," Clancy said. "You certainly don't want to end up in a situation two years down the road facing one of these lawsuits." Music lawsuits Broadcasting rights may be a minefield for small businesses. But it's not just about what's displayed on flatscreens. What comes through the speakers can be costly too. Over the years, many Connecticut businesses have been sued by entities that own the rights to recorded music, including Broadcast Music International (BMI) and The American Society of Composers, Authors and Publishers. Many suits are ongoing, including a May 16 BMI suit against a Wallingford bowling alley. The federal laws governing broadcasts and recorded music are different, but the legal strategy is similar. Plain-clothed representa- tives visit establishments without commercial rights licenses to snoop for potential violations, and demand letters often precede lawsuits. Finally, most settle for undisclosed amounts. One notable recent suit involved Wallingford- based Brothers Restaurant. Last March, BMI won a $35,000 default judgement against the 33-year-old eatery, which closed earlier this year. A 2014 BMI suit against Bristol's Bleachers Sports Bar & Restaurant settled early last year for $16,000, according to court records. n Illicit TV broadcasts prove costly Number of J&J lawsuits filed against CT bars or restaurants J & J lawsuits have come in sporadic batches over the years and are typically tied to one or two previously broadcasted fights. 0 2 4 6 8 10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3 8 8 6 10 9 1 0 0 1 1 * 2 0 1 7 I S Y T D A S O F M A Y 1 5 S O U R C E : H B J A N A L Y S I S O F F E D E R A L C O U R T R E C O R D S Stephen O. Clancy, attor- ney, Robinson + Cole Solar jobs growing 17 times faster than U.S. economy By Matt Egan CNNMoney P resident Trump may be focused on sav- ing coal miners, but solar continues to be the hot spot in today's jobs market. Solar employment expanded last year 17 times faster than the total U.S. economy, according to a new International Renewable Energy Agency report. Overall, more than 260,000 people work in the solar industry, up by 24 percent from 2015. The solar business has benefited from the falling cost of solar energy and generous federal tax credits that make it more affordable for busi- nesses and homeowners to install solar panels. "It seems to be one of the few areas of high- paying, blue-collar jobs — and you don't have to learn to code," said Bryan Birsic, CEO of Wun- der Capital, a fintech company that allows inves- tors to help finance solar panel installations. Awareness is also up as Americans con- cerned about climate change look for clean- er energy options. Elon Musk has helped add to the solar buzz. Musk's Tesla recently started taking orders for solar roofs made of shingles to ease concerns that solar panels are ugly. Most solar workers are in the installation business, the IREA report showed. Other lead- ing jobs include manufacturing, project develop- ment, sales and research and development. Men have most of the jobs in solar, but that is starting to change, especially in the sales busi- ness. Women now hold 28 percent of solar jobs, up from 19 percent in 2013, IREA said. By com- parison, women make up just under half of the U.S. workforce. Solar isn't the only hot part of the clean energy job market — wind jobs grew by 28 percent. About one-quarter of the roughly 102,000 jobs in the wind business are in manufacturing. Both solar and wind scored a big victory in Dec. 2015 when Congress decided to extend renewable tax credits that were set to expire. Besides being better for the environment, the solar industry is considered to be fairly labor intensive. Wunder Capital's Birsic said that's because unlike fossil fuels, solar energy in the form of sunlight is available in many environments naturally. That allows for more costs to go towards paying workers to install, manufacture and sell solar panels. "Sunshine is free. You don't have to bring sunshine out there in the desert," said Birsic. Solar costs have also come down dramati- cally. Birsic estimates that solar energy was 50 percent more expensive just five years ago. "It's showing no signs of stopping," he said. n More than 260,000 people work in the solar industry, up by 24% from 2015. P H O T O | C N N

• Cover