Lawyer to Qtrax: “We’re Not Going To Take This Anymore!”

New Media Law founder Ian Penman

The business practices of Qtrax and its CEO Allan Klepfisz have created a long paper trail in the US courts. Among the many lawsuits and judgments that have lodged against the company and the CEO personally is a famously $1.8 million check that was bounced on Oracle. Now that takes chutzpah!

However there are numerous other people and services that have been stiffed by the company who have not sued, mainly due to the belief that the company had no funds and even if the complainants did win in court collecting is always a different matter. Court records of past suits against Qtrax show that CEO Klepfisz has indeed written settlement checks that have bounced, requiring the plaintiffs to initiate the same legal proceedings all over again.

Now it appears as though Qtrax’s business practices have extended beyond the shores of America and into the boundaries of the British Empire. Today New Media Law founder Ian Penman wrote a scathing post on his firm’s website calling out Qtrax and Klepfisz for stiffing him for 20,000GBP. Here’s what Penman said:

Qtrax back on its feet?

March 10th, 2011

Oh good!

Qtrax/BLLN (its holding company) has owed my firm £19,210.22 for legal services rendered [we created their first rights licensing deals - which were the first of their kind in the world, so far as we are aware] since September 2008 (despite its CEO shaking my hand in at POPKOMM in October 2008 and promising “imminent payment in full”).

Suffice it to say that the debt still remains outstanding (plus what now amounts to more than 2 years’ interest!), and the only reason that we haven’t sued before now is that we expected that the company was totally insolvent (notably after Oracle sued and got judgment for $1.9m) – http://www.themusicvoid.com/2010/09/qtrax-to-oracle-%E2%80%9Cthe-dog-ate-my-homework%E2%80%9D/

I am DELIGHTED to hear that they are now up and running again – apparently without bothering to settle Oracle’s judgment – such that we can now look forward to getting paid at long last!

I suspect that ours will not be the only new writ that they will now receive!!

Ian Penman

Partner

New Media Law LLP

London

Now that the major record labels seem to think that they have a chance of getting what they’ve been owed by Qtrax for years, others who have yet to sue may try to collect as well. Penman assures me that a writ is imminent. He said that it’s no longer about the money but the principle.

Furthermore, former Qtrax head of licensing Rick Riccobono, who left the company several years ago, now works very closely with New Media Law. My guess is that it’s only a matter of time before Riccobono, a well-respected music publishing veteran, decides to publicly weigh in with some interesting Qtrax shenanigans.

By the way, in UK courts the loser pays the winner’s legal expenses. Keep an eye on this one. I’m sure there’s more to come.

Related Posts:

Can Record Labels Really Quantify The Damage From Limewire Downloads?

Music Lawsuits Move Beyond Music, Targeting Merchandising Cash Cows

Qtrax & Warner Music: Something Fishy In The Air

Supreme Court: Record Labels Must Face Digital Music Antitrust Suit

Is Google Too Large To Be Convicted Of Profiting From Copyright Infringement?

Qtrax Relaunching? What About all the Lawsuits it is Facing? TMV Drills Down on Qtrax

Warner Music To See Digital Changes?

Qtrax to Oracle: “The Dog Ate My Homework”

Related posts:

1. Qtrax & Warner Music: Something Fishy In The Air
2. QTRAX: Retraction
3. Qtrax Relaunching? What About all the Lawsuits it is Facing? TMV Drills Down on Qtrax
4. Qtrax CEO Tells The Truth Or At Least The Courts Do
5. Qtrax to Oracle: “The Dog Ate My Homework”

Posted by Wayne Rosso on Mar 10 2011. Filed under Digital, featured, Wide Angle. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.