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While the reason for this hiatus is unknown, we can now confirm that at least one of the companies hasn't halted its efforts at all. Instead, it changed the venue, which isn't without controversy.
In the US, copyright-related court cases are exclusively a matter of federal law, which is something every first-year law student knows. You can't bring a copyright suit in state court, period. However, that's exactly where Strike 3 has moved. After filing over 1,000 cases in federal courts earlier this year, the adult entertainment company moved its activities to a Florida state court. In recent weeks, it has filed more than a dozen new cases.
Although these cases relate to copyright infringement, Strike 3 submits them as a complaint for "a pure bill discovery." This essentially means that it asks the court to give it the right to figure out who the defendants are. In this case, this means a subpoena directed at ISPs to identify the account holder that's linked to the allegedly infringing IP-addresses. This tactic provides the same result as going through a federal court and allows Strike 3 to demand settlements as well.
While the number of cases in state court is relatively modest, these cases target a substantially higher number of defendants per case. That's also one of the main advantages. By filing a single case with dozens or hundreds of defendants, the filing fee per defendant is very low. In federal court, the company generally targets one defendant per complaint, which is far more expensive. And while Strike 3 mentions that it is requesting the information for a subsequent copyright lawsuit, it will likely try to get a settlement first.
Another advantage is that the company doesn't have to deal with the federal courts that are increasingly reluctant to grant discovery. Just a few weeks ago, Strike 3 was denied a subpoena, for example. The question is whether this shortcut is appropriate. While we have seen it being used in Florida a few years ago, it certainly isn't common. And this time there is pushback as well.
TorrentFreak spoke to several attorneys who represent defendants in these cases. They believe that Strike 3 is wrong to use the state court for this purpose. However, in several cases, the Miami-Dade County Court has already granted subpoenas against a variety of ISPs, including AT&T and Comcast.
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