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Copyright Trolls

A new business model for newspapers?  From Wired (HT: Kevin Ohlhausen):

Steve Gibson has a plan to save the media world?s financial crisis ? and it?s not the iPad.  Borrowing a page from patent trolls, the CEO of fledgling Las Vegas-based Righthaven has begun buying out the copyrights to newspaper content for the sole purpose of suing blogs and websites that re-post those articles without permission. And he says he?s making money.

?We believe it?s the best solution out there,? Gibson says. ?Media companies? assets are very much their copyrights. These companies need to understand and appreciate that those assets have value more than merely the present advertising revenues.?

Gibson?s vision is to monetize news content on the backend, by scouring the internet for infringing copies of his client?s articles, then suing and relying on the harsh penalties in the Copyright Act ? up to $150,000 for a single infringement ? to compel quick settlements. Since Righthaven?s formation in March, the company has filed at least 80 federal lawsuits against website operators and individual bloggers who?ve re-posted articles from the Las Vegas Review-Journal, his first client.

Now he?s talking expansion. The Review-Journal?s publisher, Stephens Media in Las Vegas, runs over 70 other newspapers in nine states, and Gibson says he already has an agreement to expand his practice to cover those properties. (Stephens Media declined comment, and referred inquiries to Gibson.) Hundreds of lawsuits, he says, are already in the works by year?s end. ?We perceive there to be millions, if not billions, of infringements out there,? he says.

The story goes on to note that the primary challenge facing Gibson’s company, Righthaven, is generating sufficient volume because the suits are based on a single or small number of infringements.  Here’s an example of a complaint against the National Organization for the Reform of Marijuana laws (NORML) and here’s another.

Filed under: blogging, business, copyright, economics, intellectual property

Full post as published by Truth on the Market on July 23, 2010 (boomark / email).