Andersen v. Atlantic Recording Corporation et al
Filing
14
Attachment 1
Memorandum in Support
of Motion to Dismiss Plaintiff's First Amended Complaint. Filed by Settlement Support Center, LLC, Atlantic Recording Corporation, Priority Records, LLC, Capitol Records, Inc., UMG Recordings, Inc., BMG Music, Recording Industry Association of America. (Related document(s): Motion to Dismiss,
13.) (Attachments: #
1 Exhibit A#
2 Exhibit B#
3 Exhibit C#
4 Exhibit D-F#
5 Exhibit G-H#
6 Exhibit I) (Patton, William)
Andersen v. Atlantic Recording Corporation et al
Doc. 14 Att. 1
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Lory R. Lybeck Lybeck M1fhy, LLP 7525 SE 24 Street, Ste. 500
Mercer Island, W A 98040-2334
206-230-4255/phone 206-230-7791 If ax
Lybeck -lrl§lybeckmurphy .com
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Lybeck - OSB #83276 Attorney for defendant
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UNTED STATES DISTRCT COURT
DISTRCT OF OREGON AT PORTLAND
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Atlantic Recording Corporation, a 12 Delaware corporation; Priority Records, LLC, a California limited liabilty 13 company; Capitol Records, Inc., a Delaware corporation; UMG Recordings,
14 Inc., a Delaware corporation; and BMG
No. CV 05-933 AS
Defendant's Answer, Affnnative
Defenses and Counterclaims
Music, a New York general partership,
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Plaintiffs,
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v.
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FOR JUY TRIL
AN DEMA
Tanya Andersen,
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Defendant.
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1.
I.
ANSWER
Answering paragraphs 1-12 and 14 of the Complaint, Ms. Andersen admits that
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she is a resident of Oregon and that jurisdiction and venue are proper. She specifically denies
she downloaded or distributed any music or that any acts of infringement occurred. Ms.
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Andersen has no abilty to detennine the accuracy of plaintiffs' claimed corporate forms,
principle locations, interest in copyrighted materials and publication of notices of copyright,
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Defendant's Answer, Affrmative
Defenses and Counterclaims - i
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EXHIBIT A-PAGE.LOF i~
Dockets.Justia.com
1 and on that basis denies these allegations.
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the remainder of the allegations of
2.
Ms. Andersen denies the allegations contained in paragraphs 13 and 15- I 7 and
plaintiffs' complaint.
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II.
AFFITIVE DEFENSES
Ms. Andersen hereby asserts the following Affrmative Defenses in this case:
i.
2.
Plaintiffs
are not entitled to equitable relief
under the doctrine of
unclean hands.
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Some or all of
plaintiffs' claims are barred by the statutes of
limitations.
3.
Plaintiffs have failed to comply with filing requirements.
4. Plaintiffs have failed to state a claim upon which relief can be granted.
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5.
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Plaintiffs have failed to join necessary' and indispensable parties.
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6.
The action is barred by the doctrine of laches.
7.
Plaintiffs' claims are not supported by fact or warranted by law.
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m. RESERVATION
Ms. Andersen reserves the right to assert third part claims should discovery so indicate.
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iV.
COUNTERCLAIS
Factual Backl!round
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A.
1.
The Record Companies' "John Doe" Lawsnits
For a number of years, a group of large, multinational, multi-bilion dollar
26 record companies, including these plaintiffs, have been abusing the federal court judicial
Defendant's Answer, Affrmative Defenses and Counterclaims - 2
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system for the purpose of
waging a public relations and public threat campaign targeting digital
retained MediaSentry
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fie sharing activities. As part of this campaign, these record companies
to invade private home computers and collect personal infonnation. Based on private
information allegedly extracted from these personal home
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computers, the record companies
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have reportedly :fed lawsuits against more than 13,500 anonymous "John Does."
2.
The anonymous "John Doe" lawsuits are fied for the sole purpose of
8 information farming and specifically to harest personal internet protocol addresses from
9 internet service providers.
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3.
After an individual's personal information is harvested, it is given to the record
companies' representatives and the anonymous "John Doe" infonnation farming suits are then
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typically dismissed.
4.
Center, which engages
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The record companies provide the personal infonnation to Settlement Support
in prohibited and deceptive debt collection activities and other ilegal
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conduct to extract money from the people allegedly identified from the secret lawsuits. Most
of the people subjected to these secret suits do not learn that they have been "sued" until
demand is made for payment by the record companies' lawyers or Settlement Support Center.
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B.
5.
Tanya Andersen has Never Downloaded Music Tanya Andersen is a 42-year-old single mother of an eight-year-old daughter
22 living in Tualatin, Oregon. Ms. Andersen is disabled and has a limited income from Social
23 Security.
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infringed on any of
6.
Ms. Andersen has never downloaded or distributed music online. She has not
plaintiffs' alleged copyrighted interest.
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Defendant's Answer, Affrmative Defenses and Counterclaims - 3
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C.
7.
Tanya Andersen was Secretly Sued
Ms. Andersen has, however, been the victim of the record companies' public
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threat campaign. The threats started when the record companies falsely claimed that Ms.
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Andersen had been an "unnamed" defendant who was being sued in federal court in the District
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of Columbia. She was never named in that lawsuit and never received service of a summons
and complaint.
8.
Neither did Ms.
Andersen receive any timely notice that the suit even existed.
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That anonymous suit was fied in mid-2004. Ms. Andersen first learned that she was being
"sued" when she received a letter dated February 2, 2005, from the Los Angeles, California,
law firm Mitchell Silverberg & Knupp, LLP. The LA finn falsely claimed that Ms. Andersen
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had downloaded music, infringed undisclosed copyrights and owed hundreds of thousands of
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dollars. Ms. Andersen was understandably shocked, fearful, and upset.
D.
Record Companies Demand that Tanya Andersen Pay them Thousands of Dollars
After receiving the Februar 2, 2005 letter, Ms. Andersen contacted the record
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companies' "representative," which turned out to be Settlement Support Center, LLC. This
company was formed by the record companies for the sole purpose of coercing payments from
people who had been identified as targets in the anonymous infonnation fanning suits.
Settlement Support Center is a Washington State phone solicitation company which engages in
debt collection activities across the country.
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10.
When Ms. Andersen contacted Settlement Support Center, she was advised that
25 her personal home computer had been secretly entered by the record companies' agents,
26 MediaSentr.
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11.
Settlement Support Center also falsely claimed that Ms. Andersen had "been
2 viewed" by MediaSentry downloading "gangster rap" music at 4:24 a.m. Settlement Support
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Center also falsely claimed that Ms. Andersen had used the login name
"gotenkito§kazaa.com." Ms. Andersen does not like "gangster rap," does not recognize the
name "gotenkito," is not awake at 4:24 a.m. and has never downloaded music.
12.
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Settlement Support Center threatened that if Ms. Andersen did not immediately
8 pay them, the record companies would bring an expensive and disruptive federal lawsuit using
9 her actual name and they would get ajudgment for hundreds of thousands of
dollars.
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E.
The Record Companies Refused to Investigate the False Claim Of
Debt
13. Ms. Andersen explained to Settlement Support Center that she had never
downloaded music, she had no interest in "gangster rap," and that she had no idea who
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"gotenkito" was.
14.
Ms. Andersen wrote Settlement Support Center and even asked it to inspect her
16 computer to prove that the claims made against her were false.
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15.
An employee of Settlement Support Center admitted to Ms. Andersen that he
believed that she had not downloaded any music. He explained, however, 'that Settlement
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Support Center and the record companies would not quit their debt collection activities because
to do so would encourage other people to defend themselves against the record companies'
claims.
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Instead of investigating, the record company plaintiffs :fed suit this against Ms.
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Andersen.
F. The Record Companies have no Proof of Infringement.
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17. Despite making false representations to Ms. Andersen that they had evidence of
Defendant's Answer, Affrmative Defenses and Counterclaims - 5
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infringement and evidence of
Ms. Andersen's identity,
plaintiffs knew that they had no factual
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support for their claims.
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No downloading or distribution activity was ever actually observed. None ever
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occurred. Regardless, the record companies actively continued their coercive and deceptive
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debt collection actions against her. Ms. Andersen was falsely, recklessly, shamefully, and
publicly accused of ilegal activities in which she was never involved.
Count i
Electronic Trespass
19.
Defendant realleges and incorporates herein by reference each of
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the allegations
set forth above.
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Entering a person's personal computer without their authorization to snoop
the common law prohibition against
around, steal information, or remove fies is a violation of
trespass to chattels.
21.
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The record company plaintiffs employed MediaSentry as their agent to break
(and those of tens of thousands of other people) to
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into Ms. Andersen's personal computer
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secretly spy on and steal infonnation or remove :fes. MediaSentry did not have Ms.
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Andersen's permission to inspect, copy, or remove private computer files. If MediaSentr
accessed her private computer, it did so ilegally and secretly. In fact, Ms. Andersen was
unaware that the trespass occurred until well after she was anonymously sued.
22.
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According to the record companies, the agent, Settlement Support Center used
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the stolen private information allegedly removed from her home computer in their attempt to
threaten and coerce Ms. Anderson into paying thousands of dollars.
23. The record companies' conduct resulted in significant damages, including har
Defendant's Answer, Affrmative Defenses and Counterclaims - 6
Lybeck+Murhy w
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206-230-4255 Fax 206-230-7791
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to Ms. Andersen's health, in amounts which wil to be proven at triaL.
Count 2
Computer Fraud and
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Abuse Act
the allegations
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24. Defendant realleges and incorporates herein by reference each of
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set forth above.
25.
Under the provisions of
the Computer Fraud and Abuse Act (18 U.S.C. § 1030)
8 it is ilegal to break into another person's private computer to spy, steal or remove private
9 infonnation, damage propert, or cause other hann.
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26.
Ms. Andersen regularly used her personal computer to communicate with
friends and family across the country and for interstate e-commerce. Ms. Andersen had
password protection and security in place to protect her computer and personal fies from
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access by others.
27.
The record company plaintiffs employed MediaSentry as their agent to bypass
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Ms. Andersen's computer security systems and break into her personal computer to secretly
spy and steal or remove private infonnation. MediaSentry did not have her pennission to
inspect, copy, or remove her private computer :fes. It gained access secretly and ilegally.
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28.
According to the record companit:s' agent, Settlement Support Center, used this
stolen private information in their attempt to threaten and coerce Ms. Andersen into paying
thousands of dollars.
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29.
The record companies' conduct resulted in direct and consequential damages
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and harm to Ms. Andersen in excess of$5,000.
11/
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1/1
Defendant's Answer, Affrmative Defenses and Counterclaims-7
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Count 3
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Invasion of Privacy
30.
Defendant realleges and incorporates herein by reference each of the allegations
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set forth above.
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31.
According to the record companies, Ms. Andersen's personal computer was
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invaded by MediaSentry after she was identified with a nine digit code (an Internet Protocol
Address ("IPA")) obtained from the anonymous information farming lawsuits. MediaSentry
did not have permission to inspect Ms. Andersen's private computer :fes. It gained access
only by ilegal acts of subterfuge.
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32. The record companies' agent has falsely represented that information obtained
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in this invasive and secret manner is proof of Ms. Andersen's alleged downloading. Ms.
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Andersen never downloaded music but has been subjected to public derision and
embarrassment associated with plaintiffs' claims and public relations campaign.
33.
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The record companies have used this derogatory, hannful infonnation to
recklessly and shamefully publicly accuse Ms. Andersen of ilegal activities without even
taking the opportnity offered by Ms. Andersen to inspect her computer.
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34.
The record companies' conduct resulted in damages including harm to her
21 health and propert in an amount to be specifically proven at triaL.
22 Count Process 4 23 Abnse of Legal
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35.
Defendant realleges and incorporates herein by reference each of the allegations
set forth above.
36. Despite knowing that infringing activity was not observed, the record companies
Lybeck+Murhy w
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used the threat of expensive and intrusive litigation as a tool to coerce Ms. Andersen to pay
many thousands of dollars for an obligation she did not owe. The record companies pursued
their collection activities and this lawsuit for the primar purpose of threatening Ms. Andersen
(and many others) as part ofits public relations campaign targeting electronic file sharing.
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37.
The record companies have falsely represented and pleaded that information
7 obtained in this invasive and secret manner is proof of Ms. Andersen's alleged downloading
8 and distribution of copyrighted audio recordings. Ms. Andersen never downloaded
music but
9 has been subjected to public derision and embarrassment.
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38.
The record companies' conduct resulted in damages and har to Ms. Andersen
and her propert in an amount to be specifically proven at triaL.
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Count 5
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Fraud and Negligent Misrepresentation
39.
Defendant realleges and incorporates herein by reference each of the allegations
16 set forth above.
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40.
The record companies knowingly represented materially false information to
Ms. Andersen in an attempt to extort money from her.
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41.
For example, between February and March 2005, the record companies, through
their collection agent Settlement Support Center, falsely claimed that they had proof that Ms.
Andersen's IPA had been "viewed" downloading and distributing over 1,000 audio :fes for
which it sought to collect hundreds of thousands of dollars. This statement was materially
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false. Ms. Andersen never downloaded or distributed any audio fies nor did the record
companies or any of their agents ever observe any such activity associated with her personal
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home computer.
Defendant's Answer, Affrmative Defenses and Counterclaims - 9
andersen\answer,cc,final
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1
42.
The record companies intended that Ms. Andersen believe their false statements
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and rely on their omissions so that she would be frightened and coerced into paying them
thousands of dollars.
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43. Ms. Andersen had no access to the information that the record companies falsely
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claimed to have received from MediaSentry. Ms. Andersen had no way of knowing that the
record companies were withholding and omitting information from her, on which they intended
she rely.
44.
The record companies had a duty to conduct a reasonable investigation into the
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infonnation that it was representing as tre. The record companies breached that duty.
45. The record companies' conduct resulted in damages and harm to her health and
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propert in an amount to be specifically proven at triaL.
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Count 6
Outrage
46.
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Defendant realleges and incorporates herein by reference each of the allegations
set forth above.
47. The record companies' outrageous conduct, including threats, intimidate, and
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coercion, was intended to and actually caused Ms. Andersen extreme emotional distress.
48.
The record companies' conduct was without any reasonable basis and reckless
22 in that it did not investigate its claims.
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49.
Despite having never observed any downloading or distribution associated with
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Ms. Andersen's personal home computer and despite refusing Ms. Andersen's offer to allow an
inspection of her own computer, the record companies wrongfully continued their improper
debt collection activities against her.
Defendant's Answer, Affrmative Defenses and Counterclaims - 10
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7525 SE 24" Stree~ Ste, 500
Mercerlsland. W A 9804~2334
206-230-4255 Fax 206-230-7791
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50.
The record companies pursued debt collection activities for the inappropriate
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purpose of ilegally threatening Ms. Andersen and many thousands of others. This tortious
abuse was motivated by and was a central par of a public relations campaign targeting
electronic fie sharing.
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51.
An employee of Settlement Support Center admitted to Ms. Andersen that he
believed that she had not downloaded any music. He explained that Settlement Support Center
and the record companies would not quit the debt collection activity against her because to do
so would encourage other people to defend themselves against the record companies' claims.
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52.
The record companies were aware of Ms. Andersen's disabilties and her serious
health issues. Settlement Support Center knew that its conduct would cause extreme distress in
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Ms. Andersen. As a result of defendant's conduct, Ms. Andersen suffered severe physical and
emotional distress and health problems.
53.
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The record companies' conduct resulted in damages, including harm to Ms.
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Andersen's health and propert in an amount to be specifically proven at triaL.
Count 7
Deceptive Business Practices
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54.
Defendant realleges and incorporates herein by reference each of the allegations
set forth above.
55.
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Oregon's Unlawful Trade Practices Act prohibits those in trade or commerce
from engaging in unfair or deceptive practices in the course of business with consumers. ORS
646.605 et seq.
56. The record companies' agent, Settlement Support Center, is a company doing
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business in Washington which was established to engage in debt collection activities in many
Defendant's Answer, Affirmative Defenses and Counterclaims - i i
andersen\anwer,cc,final
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states, including Washington and Oregon.
~
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57.
Settlement Support Center acting as the record companies' agent made false and
deceptive statements to Ms. Andersen in an attempt to mislead, threaten, and coerce her into
paying thousands of dollars.
58.
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5
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Settlement Support Center acting as the record companies' agent has made
7 similar false and deceptive statements to many other residents of Washington and Oregon, and
8 across the countr. The public interest has been and continues to be directly impacted by
9 plaintiffs' deceptive practices.
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59.
The record companies' conduct resulted in damages and hann to Ms. Andersen
and her propert in an ámount to be specifically proven at triaL.
12
Count 8
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Oregon Racketeer Influenced and Corrupt Organization Act
60.
Defendant realleges and incorporates herein by reference each of the allegations
16 set forth above.
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61.
The Oregon Racketeer Influenced and Corrupt Organization Act prohibits
companies from engaging in organized racketeering or criminal activities. ORS 166;715 et seq.
62.
As fully set fort above, the record companies hired MediaSentry to break into
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private computers to spy, view fies, remove information, and copy images. The record
companies received and transmitted the information and images to Settlement Support Center.
As the record companies' agent, Settlement Support Center then falsely claimed that the stolen
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infonnation and images showed Ms. Andersen's downloading and distributing over 1,000
audio :fes. The record companies falsely claimed that Ms. Anderson owed hundreds of
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thousands of dollars in an attempt to coerce and extort payment from her.
Defendant's Answer, Affrmative Defenses and Counterclaims - 12
andersen\anwer,cc,final
Lybeck+Murhy W
7525 SE 24~ Stret Ste, 500
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63. The record companies directed its agents to unlawfully break into private
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computers and engage in extreme acts of unlawful coercion, extortion,' fraud, and other
criminal conduct.
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64. The record companies and their agents stood to financially benefit from these
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deceptive and unlawful acts. Proceeds from these activities are used to fund the operation of
the record companies' continued public threat campaigns.
65.
These unlawful activities were not isolated. The record companies have
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repeated these unlawful and deceptive actions with many other victims throughout the United
States.
66. The record companies' conduct resulted in damages, including hann to Ms.
12
Andersen's health and propert in an amount to be specifically proven at triaL.
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v.
WHREFORE, the plaintiff
PRAYER FOR RELIEF
prays for:
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a. Dismissal ofthe plaintiffs' claims with prejudice;
b. An order that plaintiffs shall take no relief from their complaint herein;
c. All direct and consequential damages;
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d. Declaratory and Injunctive relief; e. Statutory and punitive damages awardable under ORS 646.605 et seq and ORS
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166.715 et seq;
f. Attorneys' fees and costs awardable under ORS 646.605 et seq., ORS 166.715 et
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seq.,17 U.S.C. § 505;
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Defendant's Answer, Affrmative Defenses and Counterclaims - 13
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7525 SE 24~ Stree~ Ste, 500
Mereer Island, W A 98040-2334
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g. For post-judgment interest on the entire judgment until paid in full; and
h. For such other and further relief as the Court may deem just and equitable.
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DEMA FOR JUY TRIAL
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Respectflly submitted this 30th day of
September, 2005.
Lybeck Murphy, LLP
By: Isl Lory R. Lybeck Lory R. Lybeck (OSB #83276) Attorneys for plaintiffs
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Defendant's Answer, Affrmative Defenses and Counterclaims - 14
andersen\awer,cc,finaI
Lybeck+Mtuhy W
7525 SE 24~ Stre~ Ste, 500
Mercer Island, W A 98040-2334
206-230-4255 Fax 206.230.7791
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F.xH !Brf llJ:) i\ì(3El:iJJi"~',"!::
IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON
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AFFIDA ViT OF SERVICE
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State of
Washington
King
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County of
)
) ss, )
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I hereby certifY and declare that on the 30th day of September, 2005, I electronically fied the foregoing Defendant's Answer, Affrmative Defenses and Counterclaims with the Clerk of the Court
using the CMlCF system, which wil send notification of such filing to the following:
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Atty/Plaintiffs: Kenneth R. Davis, II Wiliam T. Patton Lane Powell PC 601 SW Second Avenue, Suite 2100 Portland, OR 97204
503-778-2 i OOlphone
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503-778-2200/fax
Email: davisk~lanepoweii.com/Davis
pattonw~lanepoweii.com /Powell
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All paries are registered as CM/ECF paricipants for electronic notification.
DATED at Mercer Island, Washington, this 30th day of
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September, 2005.
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Isl Lory R. Lybeck Lory R. Lybeck (OSB #83276) Attorneys for defendant Lybeck Murphy, LLP 7525 SE 24th Street, Ste. 500
Mercer Island, W A 98040
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(206) 230-4255 Iphone
(206) 230-7791 Ifax lr l(!lybeckmui:hy .com
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SUBSCRIBED AND SWORN TO before me this 30th day of
September, 2005.
--sl R. L. Jardine
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Print Name: R, L. Jardine
Nota Public in and for the State of
Washington, residing at Monroe. My commission expires: 5130/07
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Defendant's Answer, Affrmative Defenses and Counterclaims - 15
andersenlanwer, cC.final
Lybeck+Murhy w
7525 SE 24" Stret, Ste, 500
Mercer Island, WA 9804-2334
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206-230-255 Fax 206.230.7791
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