"Justice prevails" is often said when a trial ends in honor of a system that produces the correct result. Law, however, is not always fair. The judicial system is facing enormous costs that accompany dispute or situation can occur when a company is sued for a deep pocket applicant is successful, but must close because the cost of litigation has exhausted their financial capital .



Last month, in a unanimous decision, the Ninth Circuit affirmed, once again, a ruling in favor of Veoh Networks in the case of copyright very often led to six years by Universal Music Group. Veoh, the court held, was entitled to rely on the safe areas of the Digital Millennium Copyright Act, and was not responsible for the violation of the copyright for the videos uploaded by a user called Universal contained its author, an important precedent that the benefits of YouTube and others. Veoh, I joined the company in the early stages of the revolution of digital video in 2006, which launched sites display time form the content generated by the user, and was the first site to offer content networks is more important than quality ABC and CBS, there are some more to enjoy his victory. Three years ago, a few months after the victory of Veoh in the district court, his leadership, the company has inspected the war-torn, injured by a battle of litigation designed to inflict the same damage that the application had been there asked to price the victory and decided to sell the assets and close the door. Universal Music has lost the case but won the victory, closing an innovative company that threatened their static business model.



Since the beginning of the case, Universal Music Group Veoh suffer financially secure. They issued numerous requests for discovery, make every effort to ensure Veoh spend money to defend themselves. Smart applicants know how to put pressure by exploiting the liberal rules of our justice system about the discovery. In this regard, technological advances have produced economic returns. Millions of documents and informal conversations are stored on computers, easy access. These petabytes of data must be prepared and reviewed by attorneys before being produced in response to a discovery request. lawyers bill increases rapidly when an army of lawyers spend all this data review. Because most of the documents and discovery often falls to the defendant, the plaintiffs can inflict maximum financial pain of the accused, while themselves some documents. This field asymmetric game gives plaintiffs an unfair advantage. For Veoh, legal fees only to discover they were huge, compounded by the decision of the judge to force the company at his own expense to store all the videos we offer in our system, and even produce Skype conversations. Who suffers? Defendant. The call? No.

The company quickly recognized the economic litigation and the absence of the benefit to be continued and offered a deal. However, Veoh never had major settlement discussions, Veoh does not have the money to pay the amount requested universal. The company had no choice but to plead, and spend money.



To counter the countdown and recording, Veoh expect a quick resolution to lift the dark cloud was universal in society that was handcuffed to raise additional funds to the company needed to expand. The case, however, has not been resolved by the district court for more than two years, and now approach the sixth anniversary.


defendants need an option to just play defense and wait. It has been well documented for Veoh that Universal has never sent a notice of withdrawal to the contents and was equally undeniable that whenever Veoh received notification removing all other content owners Veoh took the content down . Universal could have achieved its goal of your course content removed Veoh Web site with just send a letter to the company. Our judicial system gave Universal the right to sue.

Veoh should have no right or remedy, especially when a simple letter could have avoided a whole suit?



Unfortunately, the only option available for Veoh was to file a motion to recover costs, after winning event, even if the road was too little too late, the damage was inflicted and fatal. Six years of fighting litigation can not be completely offset by the recovery of legal costs. However, the standard for the recovery rate is very high and Veoh has failed. Despite the favorable decision on the merits, the Ninth Circuit dismissed the charge price Veoh, instead referred to the District Court to consider granting its low cost court Veoh much. The decision of the Ninth Circuit on this point does not further weaken an option for companies that are already poor innocents.

Our judicial system needs a solution to correct the devastation baseless litigation ultimately makes companies proven otherwise. The courts must take into account the new company and pay tribute to the scales of justice when a deep pocket plaintiff going after a financially weaker opponent. Institute "loser pays" concept in commercial litigation in appropriate situations improves the chances of the accused, and could reduce litigation unfounded. Although this concept has been discussed for decades, need another rule to be introduced, which is resistant to plaintiffs and their lawyers equally responsible. Plaintiffs lawyers should be required to pay "loser pays" fees with their clients. In a world where the plaintiffs' lawyers share the colonies of billions of dollars, it just seems that if they lose a case must pay. This will force the lawyers think twice about the merits of their clients, unlike Strong Arm delaying can be used to obtain a settlement if the lawyers are responsible for their -. and your customer - Shares in a manner never applied, we see that we all want:. strong decrease in the number of cases in the judicial system can even adopt a three strikes policy and law firms and their clients twelve-month ban if found guilty of such behavior abuse by more than twice. How refreshing it would be.
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