Copyright Troll Ethics Charges
The Illinois Administrator has filed an amended complaint alleging misconduct in copyright infringement matters
In or about 2010, Respondent Steele created the law firm known as Steele Hansmeier, PLLC (“Steele Hansmeier”), with attorney Paul Hansmeier (“Hansmeier”), who was admitted to practice law in Minnesota in 2007. Between September 2010 and November 2011, Steele Hansmeier maintained an office at 161 N. Clark Street, Suite 3200, in Chicago, and concentrated its practice in copyright infringement matters filed on behalf of entities which purported to own exclusive copyrights to pornographic videos. At all times alleged in this complaint, Steele Hansmeier also maintained a registered business address at the Alpha Law Firm, 80 S. 8th Street, Suite 900, in Minneapolis.
In or about 2010, Hansmeier created the law firm known as Alpha Law Firm (“Alpha Law”) which maintained an office in Minneapolis. Alpha Law was affiliated with Steele Hansmeier, and Respondent Steele appeared in certain matters as an attorney of Alpha Law. In matters which Alpha Law handled for certain pornographers, proceeds were paid and deposited into a bank account maintained by Prenda Law, an entity further described in paragraph 4 below.
In or about November 2011, Paul Duffy, an Illinois attorney licensed in 1992 who died on August 10, 2015, and Respondent Steele agreed that they would create a successor law firm to Steele Hansmeier that would operate under the name Prenda Law, Inc. (“Prenda Law”). Paul Duffy and Respondent Steele agreed that Prenda Law would take over Steele Hansmeier’s copyright infringement practice on behalf of pornographers. Respondent Steele and Paul Duffy further agreed that Respondent Steele would continue to perform the same work for Prenda Law that he had performed for Steele Hansmeier, including filing pleadings and communicating with opposing counsel, handling the financial aspects of the firm, and managing client relationships. Respondent Steele and Paul Duffy also agreed that Hansmeier would continue to practice with Prenda Law. At all times alleged in this complaint, Prenda Law maintained its office at 161 N. Clark Street, Suite 3200, in Chicago, having assumed the office space of Steele Hansmeier. In 2012 in a Florida litigation matter, Paul Duffy held himself out to the court as a principal of Prenda Law.
In 2013, in California litigation, Respondent Steele was identified by his client’s local counsel as a decision maker of Prenda Law.
In or about November 2012, Respondent Steele and Paul Duffy created a law firm known as The Anti-Piracy Group, LLC (“Anti-Piracy Group”), as a successor law firm to Prenda Law because Prenda Law’s litigation practice was receiving negative publicity. The Anti-Piracy Group took over the copyright infringement practice of Prenda Law, and assumed Prenda Law’s office suite in Chicago.
At all times alleged in this complaint, Respondent Steele and Paul Duffy’s law firms maintained a website at wefightpiracy.com.
Among the allegations
Between 2010 and 2012, Respondent Steele and Paul Duffy represented business entities which produced pornographic movies and videos in copyright infringement matters. Beginning in or about 2012, Respondents also began representing limited liability companies organized in the Federation of St. Kitts and Nevis, West Indies. These companies purported to own the exclusive copyrights to adult entertainment videos through an assignment of copyright interests. At all times alleged in this complaint, St. Kitts and Nevis had laws preventing the recording or disclosure of corporate ownership information of any entity organized there. At various times, in litigation filed by Respondent Steele and Paul Duffy there were attempts to ascertain the ownership of the West Indian LLCs. Respondent Steele and Paul Duffy always resisted those attempts and to this date, the ownership of the LLCs is unknown to the courts.
Between September 2010 and February 2012, Respondent Steele and Paul Duffy filed 118 copyright infringement actions in various United States federal district courts on behalf of pornographers and against 15,878 John Doe defendants. As of February 2012, Respondent Steele and Paul Duffy had not served any of the John Doe defendants with service of process. During that time, Respondent Steele and Paul Duffy communicated with the John Doe defendants by letters and phone calls in which they attempted to exact monetary settlements related to allegations that the John Doe defendants had illegally downloaded pornography, and in exchange for the agreement to maintain the confidentiality of the Does’ identity by not naming them in threatened public litigation if settlement funds were received. Respondent Steele and Paul Duffy sent settlement demand letters that identified an entity that produced a pornographic work or owned a copyright to that work, the name of the movie or video, and the date of an alleged illegal download. Respondent’s settlement letters demanded an amount of money ranging from $2,500 to $4,000…
At the time Respondent Steele and Paul Duffy sent the settlement shakedown letters described in paragraph 10, above, while Respondent Steele had an IP address, he did not know the identity of the individual who had actually downloaded the pornographic work at issue, had not taken steps to determine who had “illegally” downloaded the copyrighted content, and did not have a reasonable basis to believe that the recipient of the letter was an actual “infringer.”
As of October 2012, Respondent Steele and Paul Duffy had settled approximately 5,000 copyright infringement matters, and recovered millions of dollars in settlement funds.
There are a number of case-specific allegations of misconduct in the complaint.
ARS Technica reported on the recent death of Mr. Duffy.
Earlier coverage from Abovethelaw. (Mike Frisch)