TeenRevenue Sues RedTube for $40M

[EmporerEJ]

Originally Posted by Toby

TeenRevenue Founder Slaps RedTube With $40M Suit

LOS ANGELES — Kevin Cammarata’s $40 million lawsuit against operators of RedTube may have legs.

The online adult entrepreneur, who is founder of numerous websites and affiliate programs, including TeenRevenue, claims in a suit filed last month that streaming video site RedTube has unlawfully offered free movies as loss leaders in an attempt to crush the competion.
full article - http://www.xbiz.com/news/106980

This part is worth special mention:

The suit, filed at Los Angeles Superior Court, also names as defendants Choopa, which hosts RedTube from Sayreville, N.J., as well as numerous blue-chip adult companies that advertise on the tube site.

Those advertisers that also are named include Bangbros.com; Utherverse, which owns RedLightCenter; Generation Financial, which owns Videosz.com; Fling.com; Stallion.com FSC Limited,which owns SexSearch; Lalib Limitada, which owns LiveJasmin.com; FriendFinder Networks and Brazzers.

An interesting legal strategy. About time someone formally called these bastards out.

They'll never win.
Nice try though.

[Toby]

Originally Posted by EmporerEJ

They'll never win.
Nice try though.

This suit was filed in California Superior Court, not US Federal Court. California has a formidable Unfair Business Practices statute. This may have a far better chance than many people think at first glance.

[Forest]

Originally Posted by EmporerEJ

They'll never win.
Nice try though.

i pretty sure he knows he wont win the suit

BUT if he can effect the money flow from the advertisers then he Does win

[Paul Markham]

Originally Posted by Forest

i pretty sure he knows he wont win the suit

BUT if he can effect the money flow from the advertisers then he Does win

Spot on. It's all about going after the advertisers who as RawAlex points out are in clear breach of their own rules.

But don't expect it to change the fortunes in our industry.

If this case is successful and it stops Tubes using content they don't own or don't have the rights to, there will be some customers returning. But not as many as we lost.

There's nothing to stop anyone with content opening a Tube site with content they own, giving it away for free, buying traffic and living off the profits from the adverts. The companies advertising on illegal Tubes will be looking for legal sites to advertise on.

Same goes for people like Brazzers. Or anyone with a lot of content that's not making money. Like content providers. So as the industry buys less content it's an option for content providers.

Then there are also the Tube sites with 3-6 minute clips, sometimes hosted by the sponsors. These sites will get content so they can sell dating and cam sites. All backed up by sponsors looking for the easy route, even if it kills the business in the long run.

There is only one way to get customers to buy. That's give them something they want to buy. In adult it's even more important, because porn customers are repeat buyers. Customers who buy repeatedly have a habit of learning

And customers will decide the future of this industry.