PR: Bodog Goes to Battle with Patent Trolls

[Casinomeister]

Bodog Goes to Battle with Patent Trolls


For Immediate Release

October 11, 2007

Roughly seven weeks after the Bodog businesses lost control of their previous domain names as a result of an improperly-obtained default judgment, the attempt by 1st Technology LLC to extort close to $49 million has been challenged with disappointing results for international fairness.

Equipped with gripping evidence and a focused legal team, Bodog Entertainment Group, S.A. had its day in court with patent troll 1st Technology and its associate legal team; headed, Bodog believes, by Niro, Scavone, Haller & Niro.

In today's hearing held in Las Vegas, Nev. in the U.S. District Court for the District of Nevada, 1st Technology's request for a permanent injunction to halt all Bodog business in the U.S. was denied, as was a more recent "emergency" request to stop any redirection of Internet traffic to BodogLife.com. The U.S. federal judge found that 1st Technology's motions for a permanent injunction were faulty and requested inappropriate relief. In its minute order issued today, the court wrote that 1st Technology "failed to satisfy the requirements for permanent injunctive relief and in the Court's view, is requesting relief beyond this Court's power to grant." In any event, the entity named as a defendant in the lawsuit - Bodog Entertainment Group, S.A. -- does not have the legal ability to affect any of the relief which 1st Technology sought, so 1st Technology's two motions for permanent injunctions were in many ways moot.

Confident as ever, Bodog Founder Calvin Ayre states on his blog, "Look, the bottom line is this: The Costa Rican company they sued, Bodog Entertainment Group, S.A., does not itself provide online services nor did it ever operate or own any websites. It's not even directly part of the Bodog Group of Companies, as it was structured as a third party service provider, and it was shut down operationally a year ago (end of September 2006). It merely provided some call center data entry and domain management services for various entities that use the Bodog name or provide online entertainment services for Bodog. It was our intention to get the various Bodog domain names back from this company and we were in the process of this when they were hijacked."

Ayre continues, adding, "A company has to be running websites to even potentially infringe a patent that 1st Technology claims to cover websites. Though 1st Technology and its lawyer bosses are classic patent trolls, this has never been a patent case; it has always just been a legal system "stick up" where the objective was always to grab the domain names and try to force a monetary settlement, the legal equivalent of a back alley mugging. Bad luck for them that they tried to mug Bodog. We won the war immediately when we moved to BodogLife.com so effortlessly and we will always be BodogLife.com going forward, but we do want to protect the various Bodog trademarks by getting back control of some of the heisted domain names."

The judge also denied Bodog Entertainment Group, S.A.'s motion to set aside the default judgment, so the judgment remains in effect. The company plans to appeal that ruling. Bodog Founder Calvin Ayre sees this case as pivotal to the area of law related to what, if any, rights international companies not operating in the U.S. have over ownership and control of domain names on the global internet. "We regret that the judge in this case decided not to let us open these legal issues, so in addition to the inevitable appeal, we are also intending to open up new legal fronts to ensure that this important issue is given proper judicial review in the U.S.. This is the first time of which we are aware that a non-U.S. company, with zero operations or assets in the U.S. has had its domain names seized with no prior notice simply because it was using a U.S-based domain name registrar. We do not believe that domain names should be allowed to be defined as assets to be seized for purposes of collecting on a judgment."

Ayre concludes his blog post with, "The real good news is that this company has zero assets in it, being formally wound up under Costa Rican law over a year ago, so our friends in C.R. are not going to have to worry about losing anything in this no matter how this unfolds."

Legal papers relating to the lawsuit can be found on www.calvinayrelife.com.

About Bodog

Bodog, with its head office located in Antigua, is licensed in the United Kingdom and Antigua. Bodog Entertainment International Founder Calvin Ayre, recognized as a world authority on branding in digital entertainment, was featured on the cover of Forbes magazine's best-selling 2006 "Billionaires" issue. The various Bodog businesses offers a host of entertainment services, comprising: online gaming which includes Poker, Casino and a host of other gaming products; an international record label, Bodog Music; a million-dollar band search competition and accompanying TV series, Bodog Battle; a publishing division (with an online magazine, Bodog Nation, and blog, Bodog Beat; and an international television division, Bodog TV which produces reality series, such as Bodog Fight and Calvin Ayre Wild Card Poker. For more information, contact Media Relations at pr@bodoglife.com. BODOG is a registered trademark. The Bodog brand is operated for gaming in North America by Morris Mohawk Gaming Group under license.

[lojo]

For the first time we read something by Ayre that semi-denies he is infringing on another's intellectual property rights, but he squiggles and says, <sic> 'it isn't a website' (meaning it's a casino?)

Sounds like hot slick air to me.

[NASHVEGAS]

Originally Posted by lojo

For the first time we read something by Ayre that semi-denies he is infringing on another's intellectual property rights, but he squiggles and says, <sic> 'it isn't a website' (meaning it's a casino?)

Sounds like hot slick air to me.

Regardless, his personal creditibility based on his continual course of actions is destroyed in most minds. I gotta feeling he will not be writing the final chapter of his blog// I know I am really sticking my head out on the limb...........Speaking of limbs,as Calvin would say " I'm just sayin' "

[jetset]

This result sounds pretty much like a draw to me, with neither side getting what they really wanted, and that $49 million claim still in contention, with Bodog's confiscated brands still unavailable to Ayre.

This assessment is how Bodog sees the result - the other side's view will be interesting, too imo.

And the appeal will be chewing on some really important and fundamental Internet principles.

[Mousey]

This is only very obliquely related to the Bodog/domain subject, but I thought it interesting...

U.S. Government Seeks To Deny The Internet To Its Enemies

....
One measure of that is the frequency with which word "Internet" appears in the two national security plans. In the 2002 guidelines, "Internet" appears five times; in this year's version, it appears nine times.

The new guidelines acknowledge the need to better secure cyberspace; they also suggest that defensive actions will be accompanied by offensive measures.

"The Internet has become a training ground, with terrorists acquiring instruction once possible only through physical training camps," the document explains. "In addition to discrediting their terrorist propaganda on the Internet with the promotion of truthful messages, we will seek to deny the Internet to our terrorist enemies as an effective safe haven for their recruitment, fund-raising, training, and operational planning."

Exactly how the government expects to deny the Internet to terrorists isn't spelled out. One possible way might be through the United State's de facto control of the Domain Name System, though it's unlikely that card would be played outside of a confrontation with a major world power.
....

[jetset]

NEW LEGAL TACTIC FROM 1ST TECHNOLOGY IN BODOG CASE

Can Bodog's founder risk a personal appearance in the Unites States?

1st Technologies LLC is apparently not content to let matters rest as a perceived draw in its $49 million patents scrap with the Bodog online gambling group (see previous InfoPowa reports) New legal tactics appear to have been deployed with the objective of getting Bodog founder Calvin Ayre to make a US appearance - clearly a risky business given the aggressive mood of the US federal authorities when it comes to online gambling executives.

In a statement headed "Federal Judge Lifts Stay for Bodog CEO Ayre’s Order to Appear: Must Appear in US Court November 2 or face arrest" this week, 1st Technologies announced an expansion of its legal campaign.

The statement revealed that following a recent U.S. Federal Court decision "...lifting the previously stayed Federal Court order for the personal appearance of CEO and founder Mr. Calvin Ayre as a debtor in the 1st Technology judgment," the Bodog founder will be required to appear under oath in 1st Technology’s Las Vegas Nevada lawyers’ law offices on November 2, 2007 and that failure to appear, according to the signed order, “... will result in a bench warrant being issued for the arrest of Calvin Ayre….”

The 1st Technologies statement claims that the Court debtor order stemmed from 1st Technology’s notice to the Bodog entities and Mr. Ayre for production of documents, including bank records, check registers, copies of income tax returns for the past five years, as well as the Bodog entities U.S. customer, sponsor, and affiliate lists, and records of payments.

Dr. Scott Lewis, CEO of 1st Technology, took the opportunity afforded by the statement to announce that a portion of the judgment proceeds from the Bodog case [if successful] will be ear-marked for charity and educational concerns.

“We have devoted our life’s effort to creating and commercializing new technology, in this journey we have stood up for American inventor’s rights, and the rule of U.S. law for, and applicable to, all of those who participate in America’s bounty – it is only proper that we should give back as we continue to build new technologies and expand the base of intellectual property in America,” he said.

1st Technology indicated that the charitable contributions will be distributed to a number of charities including: The Twin Towers Orphan Fund, The National Counsel on Problem Gambling, and a variety of American inventor educational and non-profit organizations.

When InfoPowa went to press this week there had not yet been a response from Bodog to the 1st Technology statement, but there can be little doubt that the legal confrontation between the two companies is likely to continue.

[Mousey]

The statement revealed that following a recent U.S. Federal Court decision "...lifting the previously stayed Federal Court order for the personal appearance of CEO and founder Mr. Calvin Ayre as a debtor in the 1st Technology judgment," the Bodog founder will be required to appear under oath in 1st Technology’s Las Vegas Nevada lawyers’ law offices on November 2, 2007 and that failure to appear, according to the signed order, “... will result in a bench warrant being issued for the arrest of Calvin Ayre….”

Wellllll.... isn't that a surprise? -- Not! Anyone want to take bets that the DoJ/FBI and other alphabet law enforcement agencies wouldn't be all over Mr. Ayre when he stepped off the plane?

[Casinomeister]

Originally Posted by Mousey

Wellllll.... isn't that a surprise? -- Not! Anyone want to take bets that the DoJ/FBI and other alphabet law enforcement agencies wouldn't be all over Mr. Ayre when he stepped off the plane?

Actually, I spoke with Mr. Arye a couple of weeks ago in Barcelona. He said he's already been to the States this past year without a problem.

[Mousey]

Originally Posted by Casinomeister

Actually, I spoke with Mr. Arye a couple of weeks ago in Barcelona. He said he's already been to the States this past year without a problem.

That's amazing. I'd have thought that the US already had fifty-eleven 'sealed' indictments for Ayre -- just in case they needed one when he entered the country. If that isn't the case, maybe he can fight (or settle) this dispute.

[jetset]

BODOG BOSS IN BOXING MOOD

Another bizarre development in the Bodog vs. 1st Technology patent dispute

The weekend saw Bodog boss Calvin Ayre again taking an unusual path in his expensive confrontation with 1st Technology LLC and its head honcho Dr. Scott Lewis (see previous InfoPowa reports) Good to his word that Bodog would extract maximum publicity from the contentious patents and domains affair, Ayre was again active on his blog, this time challenging his legal opponent to a good old fashioned, knockdown fight.

"I, Calvin Ayre, am challenging 1st Tech's Scott Lewis to a 3-round Bodog Fight rules MMA face pounding," he wrote. "Think he'll go for it? I've got a million bucks that says even if he does-and wins the fight-I'll still come out on top."

Ayre may have been reacting to 1st Technology's latest legal broadside - a statement that claims Ayre will be required to make an appearance in U.S. court or face a warrant for his arrest.

Ayre again blasted Lewis in his blog calling him an "…unethical thieving Patent Troll," who steals money from a legitimate product that is favoured by the consumer's market.

Ayre proposed a $1 million trust fund with a lawyer. The fight would be scheduled for three-rounds with Bodog fight rules in a jurisdiction in which the company is licensed. If Lewis wins he gets $1 million from Ayre but if Ayre wins Lewis would return the Bodog domains.

With a default judgement of $49 million already granted, and possession of the Bodog domains, it is unlikely that Dr. Lewis will respond.

Never one to mince words, in this latest bizarre challenge Ayre wrote: "Scott Lewis: you want money. I want to hit you… repeatedly. In a lawful way, of course. Three rounds. What do you say?"