Many of its early lawsuits targeted websites for comments and forum posts by the site’s readers. The plan hit a major snag in June, however, when Chief U.S. District Judge Roger Hunt of Nevada threw out a copyright lawsuit against the Democratic Underground blog for allegedly clipping four paragraphs from a 34-paragraph story published by the
Las Vegas Review-Journal,
Stephens Media’s flagship paper.
The issue in that case, and most others since, is Righthaven’s legal standing to sue over Stephens Media copyrights.
It turns out Righthaven didn’t own the copyrights it was filing suit over. Instead, Stephens Media granted Righthaven permission to sue over the newspaper chain’s content in exchange for a 50 percent cut of all the settlements and jury awards: the agreement did not grant Righthaven license to use the content in any other way. The EFF called it a “
sham.” Judge Hunt agreed, ruling that a “
copyright owner cannot assign a bare right to sue.” (.pdf)