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Sharman Networks Drops p2pnet.net Case
July 13, 2006
It would appear that editor of p2pnet.net Jon Newton has resolved a portion of his legal problems. In a surprise move, Sharman Networks and CEO Nikki Hemming have both dropped varying degrees of their libel and defamation lawsuit against Jon Newton and his co-defendants.On May 10 in British Columbia Supreme Court, Sharman Networks and CEO Nikki Hemming filed a libel and defamation complaint against numerous defendants associated with p2pnet. These individuals are Jon Newton, editor of p2pnet, Interserver, Inc. (p2pnet’s Internet Service Provider), John Doe, and Jane Doe, Richard Roe and Jane Roe (“anonymous” forum posters.) The lawsuit precipitated from an article published earlier in that month titled “Nikki Hemming’s Money Mansion.”
The initial portion of the article simply republishes an Associated Press, which drew limited ire from Sharman Networks and Nikki Hemming. The latter half however quotes an anonymous individual who charges serious and unsubstantiated claims of money laundering on the part of Nikki Hemming; in addition to several personal attacks against her. As such, Jon Newton was sued as a publisher rather than the actual author of the material in question.
“The libels were so gratuitously offensive, personal and unnecessary that Miss Hemming had little choice but to respond by asserting her rights through legal action after attempts to remedy the matter without litigation failed,” a Sharman Networks representative told Slyck.com in May. “The libelous story and postings complained of in the writ were so significantly beyond anything relevant to any business matters in the P2P market that Sharman Networks Limited and Ms. Hemming felt they had no option but to take action.”
In a recent update to the complaint, portions of the lawsuit that are of lesser significance, specifically “reader’s write” comments made in reaction to the article, have been dropped from the lawsuit. Also, Sharman Networks has completely withdrawn from the complaint – thus dropping its lawsuit against Jon Newton, Interserver, Inc., and the unnamed defendants.
“TAKE NOTICE that the Plaintiff, Sharman Networks Limited, wholly discontinues this proceeding against the Defendants John Newton, Interserver Inc., John Doe, Jane Doe, Richard Roe and Jane Roe.”
However CEO Nikki Hemming still appears to have an axe to grind with Jon Newton, Richard Roe and Interserver, Inc. Notably, Ms. Hemming has dropped the portion of the lawsuit that targets three of the four anonymous defendants.
“TAKE NOTICE that the Plaintiff, Nikki Hemming, wholly discontinues this proceeding against the Defendants John Doe, Jane Doe, and Jane Roe.”
In the updated lawsuit, CEO Nikki Hemming contends the three defendants “…published, or caused to be published, and/or continued to publish, the defamatory expression.” Additionally, p2pnet has published updated information that expresses a level of frustration on the part of the plaintiffs, specifically Jon Newton’s decision to widely publicize the litigation.
“Instead of simply removing the defamatory expression at issue from his P2P Website, the Defendant Newton elected to draw global attention to his P2P Website, which generates income for him based on the number of 'hits' from website visitors.”
The updated lawsuit also kicks the rhetoric up a notch, and challenges p2pnet’s non-entrepreneurial contention.
“Falsely representing that his P2P Website does not log visitors and that IP addresses are not available to him, well knowing that his income from the P2P Website requires him to permit his advertisers to audit the number of visitors to his website and to verify the authenticity of those visit, and, calculating that the increased revenue that he will earn by increasing the volume of visitors to his P2P Website in consequence of the controversy generated by this libel action will substantially exceed his pecuniary liability to the Plaintiff, thereby generating a net profit and ensuring the permanent success of his P2P Website.”
Jon Newton dismissed these claims, stating he charges a flat rate for his advertisements – which has remained unchanged since prior to the lawsuit. In other words, even if his traffic increased 10 fold, his income would remain unchanged. While the elimination of Sharman Networks appears advantageous, Hemming’s latest move likely consolidates her resources in an effort to focus on the most substantial target.
In the updated lawsuit, CEO Nikki Hemming contends the three defendants “…published, or caused to be published, and/or continued to publish, the defamatory expression.” Additionally, p2pnet has published updated information that expresses a level of frustration on the part of the plaintiffs, specifically Jon Newton’s decision to widely publicize the litigation.
“Instead of simply removing the defamatory expression at issue from his P2P Website, the Defendant Newton elected to draw global attention to his P2P Website, which generates income for him based on the number of 'hits' from website visitors.”
The updated lawsuit also kicks the rhetoric up a notch, and challenges p2pnet’s non-entrepreneurial contention.
“Falsely representing that his P2P Website does not log visitors and that IP addresses are not available to him, well knowing that his income from the P2P Website requires him to permit his advertisers to audit the number of visitors to his website and to verify the authenticity of those visit, and, calculating that the increased revenue that he will earn by increasing the volume of visitors to his P2P Website in consequence of the controversy generated by this libel action will substantially exceed his pecuniary liability to the Plaintiff, thereby generating a net profit and ensuring the permanent success of his P2P Website.”
Jon Newton dismissed these claims, stating he charges a flat rate for his advertisements – which has remained unchanged since prior to the lawsuit. In other words, even if his traffic increased 10 fold, his income would remain unchanged. While the elimination of Sharman Networks appears advantageous, Hemming’s latest move likely consolidates her resources in an effort to focus on the most substantial target.
This story is filed in these Slyck News categories
P2P Clients :: FastTrack
Legal/Courtroom :: Other Lawsuits
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