Hustler Magazine Broke Mobile Content Agreement - Legal Ruling
Larry Flynt Productions (LFP), which publishes the adult magazine, Hustler has been found by a US judge to have wrongfully terminated a contract with Giant Mobile as its exclusive distributor of adult content for mobile telephones. Former Appellate Judge Richard C. Neal reached his decision after an approximately two week trial.
Giant Mobile says that it signed a long-term exclusive contract for Hustler brand adult content for mobile phones long before mainstream companies in the United States recognized the potential use of such adult content in Europe and Asia, where downloading adult fare on mobile phones is lawful. According to Giant Mobile, LFP fabricated an excuse to terminate Giant's exclusive rights so it would be free to enter a more lucrative deal with another distributor.
Giant sued and after hearing extensive evidence at trial, Judge Neal agreed that LFP had wrongfully terminated Giant's exclusive distribution contract.
Sirus Ahmadi, Giant Mobile's Chairman of the Board, stated that Judge Neal vindicated Giant Mobile's rights in a number of ways. "First," noted Ahmadi, "Judge Neal saw right through LFP's blatant attempt to fabricate excuses as to why Giant Mobile's rights were terminated. Second, Judge Neal awarded Giant Mobile a significant (but undeclared) sum of lost profits as a result of LFP's breach of the Exclusive Distribution Agreement; and third, Judge Neal's ruling supported Giant Mobile's contention that it successfully built demand for Hustler mobile content in Europe and that is was in fact one of the most pre-eminent distributors of such content in Europe and Asia."
Giant Mobile is currently distributing Digital Desire and Teravision content throughout the US, Europe, South America and Asia. In addition, Giant Mobile develops games for mobile distribution, sub-licenses content to video game publishers for use in video games, and develops mobile distribution and billing platforms for companies seeking this type of technology.
Posted to the site on 9th January 2008
