Unpaid Taxes Could Destroy Porn Studio Accused of Copyright Trolling

Slashdot has covered the legal hijinx of Malibu Media over the years. Now Ars Technica reports that the studio could be destroyed by unpaid taxes:Over the past decade, Malibu Media has emerged as a prominent so-called "copyright troll," suing thousands of "John Does" for allegedly torrenting adult content hosted on the porn studio's website, "X-Art." Whether defendants were guilty or not didn't seem to matter to Malibu, critics claimed, as much as winning as many settlements as possible. As courts became more familiar with Malibu, however, some judges grew suspicious of the studio's litigiousness. As early as 2012, a California judge described these lawsuits as "essentially an extortion scheme," and by 2013, a Wisconsin judge ordered sanctions, agreeing with critics who said that Malibu's tactics were designed to "harass and intimidate" defendants into paying Malibu thousands in settlements. By 2016, Malibu started losing footing in this arena - and even began fighting with its own lawyer. At that point, file-sharing lawsuits became less commonplace, with critics noting a significant reduction in Malibu's lawsuits over the next few years. Now, TorrentFreak reports that Malibu's litigation machine appears to finally be running out of steam - with its corporate status suspended in California sometime between mid-2020 and early 2021 after failing to pay taxes. Last month, a Texas court said that Malibu has until January 20 to pay what's owed in back taxes and get its corporate status reinstated. If that doesn't happen over the next few weeks, one of Malibu's last lawsuits on the books will be dismissed, potentially marking the end of Malibu's long run of alleged copyright trolling.

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