Redbox, which has been facing significant challenges, may have found a potential buyer for some of its corporate parent’s assets, specifically those belonging to Chicken Soup for the Soul Entertainment. A recent court filing indicates that Grove Street Partners has made a $100 million offer for the “IP Litigation Assets” associated with Chicken Soup for the Soul and its subsidiaries. These assets include rights related to pursuing legal action against copyright infringement under the Digital Millennium Copyright Act (DMCA) for various media titles.
Grove Street Partners, formerly known as Grove Street Funding, specializes in assisting intellectual property holders in financing and managing litigation for copyright infringement, particularly focusing on actions involving Internet Service Providers (ISPs). The company has adopted a strategy to hold ISPs accountable for copyright violations linked to their users’ illegal file sharing. This was detailed by CEO Tom Murphy in previous presentations, which highlighted the significant financial implications for ISPs due to piracy activities.
The proposed transaction requires Grove Street to make the $100 million payment over five annual installments. Murphy indicated that arrangements have been made for litigation funding to cover legal expenses, including documentation of piracy incidents and DMCA notices.
Increasingly, rights holders have initiated lawsuits against ISPs, contending that these companies are not sufficiently addressing piracy. A prominent case involved a $1 billion verdict against Cox Communications for similar claims, which was later overturned and is now under review by the Supreme Court.
Despite the growing trend of litigation against ISPs, not all cases yield favorable outcomes. Previous actions taken by Chicken Soup for the Soul’s subsidiary, Screen Media Ventures, against various ISPs have experienced long delays, and some have been withdrawn, indicating potential challenges in such legal pursuits.
Meanwhile, the bankruptcy proceedings for Redbox and Chicken Soup for the Soul Entertainment continue, with additional lawsuits against the company’s leadership alleging corporate mismanagement, claims that have been denied by former executives.
Source: https://www.theverge.com/tech/791013/redbox-chicken-soup-piracy-lawsuits-ip-sale-grove-street