SET TV, which stands accused of selling pirate IPTV subscriptions, has stopped responding in the lawsuit filed against the company by several Hollywood studios, Amazon, and Netflix. The company's lawyer has also withdrawn from the case due to a lack of payments and the company is now in default, facing hefty damages.
Last year the Alliance for Creativity and Entertainment, the global anti-piracy alliance featuring several Hollywood studios, Amazon, Netflix, and other entertainment companies, sued Florida-based SET Broadcast, LLC.
The company offered a popular software-based IPTV service and also sold pre-loaded set-top boxes.
While it was marketed as a legal service, according to the ACE members, Set TV’ssoftware was little more than a pirate tool, allowing buyers to stream copyright-infringing content.
“Defendants market and sell subscriptions to ‘Setvnow,’ a software application that Defendants urge their customers to use as a tool for the mass infringement of Plaintiffs’ copyrighted motion pictures and television shows,” the complaint read.
The ACE members were not the only rightsholders that complained. June last year Dish Network tagged on with another copyright infringement lawsuit against the company, and soon after, the IPTV service went offline.
This was a blow to SET TV’s more than 180,000 subscribers and the company itself was hit hard as well. Last November it reached a settlement with Dish, agreeing to pay more than $90 million in damages and sign over its domain name.
The case against ACE is not over yet though. Over the past months, it moved into the discovery phase and the copyright holders requested to depose owner SET TV owner Jason Labossiere and its employee Nelson Johnson, who are both listed as defendants.
However, both parties failed to respond, as did SET TV as a company. Meanwhile, the relationship with their attorney Joseph Shapiro also went south. Outstanding invoices were left unpaid which prompted Shapiro to withdraw from the case.
“Defendants have not paid invoices for attorney fees for more than five months and are unwilling to make any payment at this time or to commit to any payment plan,” the court was informed.
“Additionally, relations between Defendants and Mr. Shapiro have degraded such that it is no longer feasible for Mr. Shapiro to represent Defendants in this case.”
In April the court agreed to remove the attorney from the case, instructing SET TV to find new counsel. Despite this clear instruction from the court, none of the defendants responded.
This left the ACE members with few other options than to request an entry of defaultagainst Set Broadcast. This was entered by a court clerk a few days ago, and if the company remains dark, it will likely lose the case.
Now that the company is in default the copyright holders will likely submit a motion for a default judgment, proposing what they believe is an appropriate damages amount. This will likely amount to millions of dollars.
Considering the earlier $90 million settlement with Dish, it’s doubtful that there is any money left to take.