Kevin’s Video accuses 3 video stores of piracy

Kevin’s Video II sued three of its competitors in the CNMI on Wednesday, accusing Movie Station I, Movie Station II, and Hollywood Video of unfair competition.

In the lawsuit prepared by the attorney F. Matthew Smith, Kevin Video II alleges that all three video shops engage in the unauthorized, unlicensed, and illegal copying of DVDs for commercial gains in violation of the CNMI Consumer Protection Act and common law unfair competition.

In its lawsuit filed at the CNMI Superior Court, Kevin’s Video II stated that illegal DVDs for sale or rental at the three video stores’ locations include “many well-known movie titles from major entertainment companies such as Walt Disney, Paramount, Warner Brothers, 20th Century Fox, and others…”

The lawsuit accused Movie Station I, Movie Station II, and Hollywood Video of copying and commercially distributing unauthorized, unlicensed, and illegal DVDs that were copied from source DVDs such as studio-owned and distributed preview DVDs that are not yet available commercially from any legitimate source.

In addition, the lawsuit alleges that all three companies have “made it [their] regular practice” to surreptitiously rent legally purchased DVDs from Kevin’s Video, copy those DVDs rented from Kevin’s Video, and then introduce the pirated copies for commercial distribution.

Kevin’s Video II said that, based on information it obtained, it believes that the defendants have been engaged in this modus operandi “for at least the last several years.”

It said that the three video stores’ illegal practices resulted in significant damage to Kevin’s Video, “including but not limited to lost profits, lost customers, decrease in market share, and general decrease in consumer confidence in the video rental business in the Commonwealth.”

The lawsuit said that, as president of Movie Station I and Movie Station II, Suk Hyun Kim is also personally liable for the illegal commercial activity of his video stores. Ditto for Hollywood Video president Bernard C. Gaffney.

Kim owns Movie Station I through ASSA Corp. and Movie Station II through KKM Corp. Gaffney, meanwhile, has operated Hollywood Video for the past 16 years. Hollywood Video has three locations on Saipan.

Through the lawsuit, Kevin’s Video II is seeking an award of damages in an amount to be proven at trial; an award of liquidated damages in accordance with provisions of the CNMI Consumer Protection Act; an award of reasonable attorney’s fees and costs in accordance with the law; an award of the defendants’ profits; and an award of punitive damages in an amount to be proven at trial.

Kevin’s Video also wants the court to order Movie Station I, Movie Station II, and Hollywood Video to stop copying and distributing illegal DVDs; require them to destroy all illegal copies of DVDs in their possessions; and other relief as the court may find appropriate.

A staff from Kim’s company, Ronald Carreon, said the South Korean businessman does not want to comment on the complaint as he is still conferring with his lawyers on their course of action.

Gaffney, for his part, said he would have no comment as he is also awaiting guidance from his lawyers.