October 2007
Russ August & Kabat Prevails on Behalf of Giant Mobile Against Larry Flynt Publications
LOS ANGELES — (Business Wire) — Former Appellate Judge Richard C. Neal recently ruled that the owner of Hustler Magazine, Larry Flynt Productions (LFP), wrongfully terminated L.A. based Giant Mobile as its exclusive distributor of adult content for mobile telephones. Judge Neal reached his decision after an approximately two week trial.
Giant Mobile secured 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 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.”
Few companies have been brave enough to take on Larry Flynt in a legal battle. According to Ahmadi, Giant Mobile was motivated to accept this challenge because LFP had attempted to damage Giant’s reputation in the mobile industry and Giant did not want to let Larry Flynt get away with breaching the contract “just because of Flynt’s reputation as a tough guy.” Ahmadi expressed gratitude to his legal counsel, Russ August & Kabat, for putting together a great case against LFP. “The challenge,” noted Ahmadi, “was to prove that LFP simply made up its mind to get out of our Agreement when it was ready to obtain a better deal from another company. The Russ firm found former LFP employees who were willing to testify about LFP’s plan and the rest is history.”
Giant Mobile is currently distributing Digital Desire and Teravision, Inc. 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.
Giant Mobile has evolved into a worldwide distribution company and attends all of the major industry trade shows throughout the world. In addition to enhancing its distribution of Digital Desire and Teravision content, Giant Mobile is aggressively seeking to add more adult content to offer to its worldwide distribution network. For more information, contact Giant Mobile at info@giantmobile.com.