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NEWS: Funimation Provides Statement on Lawsuit with A.D. Vision


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GrilledEelHamatsu



Joined: 02 Sep 2009
Posts: 703
PostPosted: Tue Jun 12, 2012 10:05 pm Reply with quote
VORTIA wrote:
I'm still struggling to understand how "ADV" can owe Funimation 8 million dollars that they didn't owe Sojitz but that Sojitz somehow sold to Funi, and how ADV's child companies can suddenly owe Funi money when they aren't legally related and Funi didn't do anything to recover that alleged debt over the past almost a decade. It'd be like your old neighborhood library showing up and being like "Yeah, remember that book you didn't return when you were six? Well, with all incurred fines and inflation, you now owe us twelve-thousand dollars." That's abandoned debt, folks.

If you ask me, it sounds like Sojitz managed to swindle the vast majority of the American anime industry, and has now put them at each others throats, simply to cut a quick buck.

As for "Funi is a monopoly", apparently, ADV's defense plan is to go tit-for-tat with ridiculous legal claims. Certainly, driving Sentai into the dust would put Funi in virtual control of anime localization, but I don't know of any evidence linking Funi to the demise of nearly every other previous anime localization company, and I think proving that they've done so would be next to impossible.











The idiocy of the whole thing is that either way, I can't see either company winning. Both are going to spend huge sums in a legal battle that ultimately won't
make them a dime.


It looks as if there will be an eventual settlement.


ARM will also have to anwser too.


Funimation is moving the suit to Federal court because that'll make it much easier to get a settlement.
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TnKtRk



Joined: 17 Mar 2011
Posts: 183
PostPosted: Tue Jun 12, 2012 11:01 pm Reply with quote
Oh silly Funi, don't you know all your troubles began when you bought yourselves from Navarre? Maybe you should have stayed with your sugar daddy.

Oh well...time to do some shopping.
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stonehand



Joined: 06 Oct 2010
Posts: 48
PostPosted: Tue Jun 12, 2012 11:18 pm Reply with quote
Prede wrote:
Quote:
Rather, these claims were brought in a transparent attempt to gain leverage in the case because the defendants lack any defense to Funimation's original claims.


Except ADV has multiple defenses and stated them in the first case. Oh Funimation, you silly company you.

ADV's defense for those who forgot:

1) The Statue of limitations was up before Funimation filed the complaint
2) Sentai, Section 23, et al are not ADV
3) None of these companies ever entered into a contract with Funimation except for the completion of the dubs on certain ARMs titles, which did not include anything about debt or payments like this.

Lynx Amali wrote:
Eh. Gonna need my bowl of popcorn for this one.


The definition of monopoly:
Quote:
The exclusive possession or control of the supply or trade in a commodity or service.


Funi isn't a monopolist by any means of the word. Just because they have more licenses makes them a monopolist? Give me a break.

Just hoping Sentai doesn't get hit that bad by this. I tend to think of ADV and Sentai as completely different entities in my mind despite knowing that's they are essentially one and the same. After all, they release some of the titles I actually want.


Again it's not about whether or not Funimation is currently a monopoly. But rather that they (ADV's words) "engaged in anticompetitive or predatory conduct" to "maintain willfully, or to gain" an attempt on a monopoly while violating texas business and commercial codes. Pretty much what matters is not whether Funimation is a true monopoly, but rather if they tried to gain a large market share through illegal business practices and conspiring with other companies. They never say Funimation is currently a monopoly, only that it tired or is trying to become one. The final outcome is almost irrelevant. And seeing how ADV supposedly has evidence that FUNimation tried to take over ADV's debt twice, I'd say that makes their claims at least worth hearing.

Not sure why people keep being so sure things aren't going to go well for Sentai, ADV and the rest of them in these cases. How can you tell that from the information available? Honestly anything can happen still.


But, you must also remember that one of the claims that Funi is making is that ADV sold its assets, i.e. their licenses that they retained, to Sentai, and other spinoffs of ADV for way below market value. These are part of what Funi is considering as assets of ADV.
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marie1901



Joined: 31 May 2009
Posts: 24
Location: U.S
PostPosted: Tue Jun 12, 2012 11:27 pm Reply with quote
Seems like the people who're really going to pay will be us, if we're lucky it won't have such a devastating effect on either one of the companies when this is over.
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kakoishii



Joined: 16 Jul 2008
Posts: 741
PostPosted: Wed Jun 13, 2012 12:46 am Reply with quote
Why did funimation even issue a statement regarding Sentai's counterclaim to ANN? They have to know that this whole lawsuit business is not popular among their fans and the retort really comes off as juvenile as a 7 year old saying "Oh yeah? Well you're stupid" after being told his mother was ugly or something. They should've just said nothing and went forward with this whole mess that will likely end in a settlement. I'd be surprised if any clear winner is declared.
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TD912



Joined: 28 Nov 2010
Posts: 274
PostPosted: Wed Jun 13, 2012 1:31 am Reply with quote
050795 wrote:
If Crunchyroll was smart they would stay the heck out of it.

And um I'm a little confused as to why you think CR is conspiring with Sentai to get shows licensed, I mean how exactly does it benefited CR get if a show is licensed anyways? Do they get some part of the money or something? Maybe Justin will cover that in one of his future articles.


When Funimation+NicoNico suddenly teamed up, CR was left with not many shows that season. Funico licensed C^3, Haganai, Future Diary, Guilty Crown, Maken-Ki, and Shana III. Plus Last Exile: Fam, but that series was announced a while ago.

CR then partnered up with Sentai, which quickly licensed a few shows to them, such as Horizon on the Middle of Nowhere, Majikoi Oh! Samurai Girls, and Mashiroiro Symphony. Then next season Sentai quickly announced they licensed Ano Natsu, Another, Bodacious Space Pirates, Inu x Boku, and PapaKiki almost exactly right after CR announced they were streaming them.

It's not really a conspiracy, but there is some sort of loose partnership going on. Whenever Funimation licenses a show, it usually ends up getting removed from CR. This could be because Funi bought exclusive streaming rights or something.

Kinda offtopic, but it seems like the Funico partnership kind of slowly died, or at least went silent. I wonder what's going to happen, as NicoNico doesn't seem to be streaming any new anime, and there hasn't really been any announcement about it either.

In any case, I don't think anybody here is an actual intellectual property rights lawyer, so all this finger pointing is just speculation right now. I guess we'll see what happens in a few months...
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050795



Joined: 27 Mar 2009
Posts: 230
PostPosted: Wed Jun 13, 2012 1:40 am Reply with quote
dragonrider_cody wrote:

Saying it's a conspiracy is a bit much, but there does seem to be some sort of relationship between Crunchyroll and Sentai. The benefit to CR is that it allows it to compete with Funico, which was suppose to shake up the entire industry but has pretty much done nothing but botch a few simulcasts up until now. It would make sense that the Japanese would prefer to license a simulcast to a company that would guarantee, or at least strongly indicate, that there would be a physical release (and perhaps mechandising) at some point.

Working with Sentai would give CR a better chance at scoring titles that would have gone to Funimation otherwise, and benefits Sentai as well. Since they aren't springing for the entire cost of the digital rights, and simulcast, they are likely saving money. It also allows them to offer things that Funimation can't or wont and give them a leg up in negotiating.

So far, Sentai has only simulcast shows, whether on TAN or CR, that it has licensed full rights to. Funimation often only licenses simulcast and streaming rights. Since Sentai is willing to release some series sub-only, it gives them a bit of an advantage as they can guarantee a release for just about everything, while Funi cannot.


Ok I can kind of see what you mean although I don't think the whole Funico this was ever supposed to "shake up the entire industry" I think fans just over reacted and made it sound like a bigger deal then it really was (I didn't really listen to Funimations announcement so maybe they did some of that building too?) but really I never thought it would change anything, except maybe nico nico would actually improve their anime website (which was poorly designed and just plain ugly) and it did that. Plus CR has been streaming in North America longer and has already established a good working relationship with anime companies in Japan; I think that has more to do with the fact that companies are willing to let them stream their shows then this "partnership" CR has with Sentai.

Also I think Funiamtion is playing it safe by holding off on licensing the DVD/Blu-ray rights to shows until they are sure there is a wide enough audience to make money; unlike Sentai who is licensing anything and everything before or shortly after the first episode airs with no guarantee they are going to make that money back (not an expect but I would think you lose more money licensing, producing, and marketing a physical release of a show that bombs, then just streaming it). Also the sub only releases do save money, but you also alienate a lot of potential buyers who will only buy something that has a dub (then the question if you had dubbed would you have make more money, even with the increase production cost? That is something I wonder about.... well um...probaly not).
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_V_



Joined: 13 Apr 2009
Posts: 619
PostPosted: Wed Jun 13, 2012 2:06 am Reply with quote
.

Hitler hears that FUNimation and ADV are suing each other

http://www.youtube.com/watch?v=bagaUNWz8Sc

.
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yuna49



Joined: 27 Aug 2008
Posts: 3804
PostPosted: Wed Jun 13, 2012 8:48 am Reply with quote
There seems to be a lot of wild speculation in this thread.

As far as I know, Crunchyroll licenses series directly from the Japanese production committees and, according to various reports, makes a bid to carry most every show released each season. Having TV Tokyo as a major partner certainly must help. I don't see how either TVT or Crunchy's other investors would benefit from some shady dealings with Sentai. The "Funico" deal seems largely defensive, an attempt by Funimation to compete for streaming rights by securing its own Japanese partner.

As for the validity of Funimation's claims, that clearly will depend on the documentation they present to the court. The reorganization of ADV seemed suspicious when it took place, and it's certainly plausible that Ledford and ADV's other investors were trying to get out from under the debt they owed Sojitz by corporate dissolution.

I suspect that a Funimation victory in this suit would be the deathknell for Sentai and the other ADV derivatives. Maybe they could offer to transfer some of their properties to Funimation rather than come up with millions of dollars in cash. I wonder what the market value for ADV's licenses might be, though, especially given the disputed status of Evangelion. They are probably worth more than $8 million, but maybe not a lot more. Most of Section23's licenses are pretty old and unlikely to still be all that valuable.
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dengart



Joined: 10 Oct 2010
Posts: 16
PostPosted: Wed Jun 13, 2012 11:03 am Reply with quote
GrilledEelHamatsu wrote:

Funimation is moving the suit to Federal court because that'll make it much easier to get a settlement.


Actually only the defendants can remove the case to Federal Court, not the plaintiffs. So this was Sentai/ADV's decision.
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Mikeski



Joined: 24 Sep 2009
Posts: 608
Location: Minneapolis, MN
PostPosted: Wed Jun 13, 2012 11:08 am Reply with quote
marie1901 wrote:
Seems like the people who're really going to pay will be us, if we're lucky it won't have such a devastating effect on either one of the companies when this is over.

And that's exactly the problem. Funi and Sentai have a certain amount of money to spend. They can spend that money in a number of ways (salaries, licensing, advertising, etc.) The one way that's guaranteed NOT to make more anime for us to watch is to give it to lawyers to fight over crap like this.

As anime fans, no matter who is "right", no matter who "wins", we all lose.
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GrilledEelHamatsu



Joined: 02 Sep 2009
Posts: 703
PostPosted: Wed Jun 13, 2012 11:30 am Reply with quote
dengart wrote:
GrilledEelHamatsu wrote:

Funimation is moving the suit to Federal court because that'll make it much easier to get a settlement.


Actually only the defendants can remove the case to Federal Court, not the plaintiffs. So this was Sentai/ADV's decision.



If it was A.D. Vision's decision to move the suit to Federal court,then its so ADV can argue that ARM was unethitical to both them and convince a Federal judge that ADV & Funimation can go forward with a lawsuit against ARM for "Breach-of-Contract" and "Ehtics Violation". Federal means a foreign investor can be taken to court.

For a Plantiff,let alone a small business company, Federal is usually unfavorible. A Settlement is the best option.

And everyone, ignore the trolls saying Funimation will win and Section23 will go.under.

The case is now Federal. Meaning ARM(the not-so-nice-people who started this mess) can now be supeoned to appear in Federal Court and that Funimation could vouch for a settlement.
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dragonrider_cody



Joined: 14 Jun 2008
Posts: 2541
PostPosted: Wed Jun 13, 2012 1:34 pm Reply with quote
GrilledEelHamatsu wrote:
dengart wrote:
GrilledEelHamatsu wrote:

Funimation is moving the suit to Federal court because that'll make it much easier to get a settlement.


Actually only the defendants can remove the case to Federal Court, not the plaintiffs. So this was Sentai/ADV's decision.



If it was A.D. Vision's decision to move the suit to Federal court,then its so ADV can argue that ARM was unethitical to both them and convince a Federal judge that ADV & Funimation can go forward with a lawsuit against ARM for "Breach-of-Contract" and "Ehtics Violation". Federal means a foreign investor can be taken to court.

For a Plantiff,let alone a small business company, Federal is usually unfavorible. A Settlement is the best option.

And everyone, ignore the trolls saying Funimation will win and Section23 will go.under.

The case is now Federal. Meaning ARM(the not-so-nice-people who started this mess) can now be supeoned to appear in Federal Court and that Funimation could vouch for a settlement.


If you read take the time to read the documents, you will we that it was in fact Funimation that moved the trial to federal court. It's possible that they knew ADV was moving ahead with the anti-trust lawsuit and don't want to fight two different cases at two different court levels.
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Mohawk52



Joined: 16 Oct 2003
Posts: 8202
Location: England, UK
PostPosted: Wed Jun 13, 2012 1:53 pm Reply with quote
larinon wrote:
Based on the way that the other companies manage their money and license and release shows, it's like Funimation is going to be the last man standing rather than simply a monopoly.
This x 10. This counter suet is like most, an act of deperation. Seeing as they're both in Texas, it's like a duel at high noon. (thinks of Bronson and Fonda in "Once Upon a Time In The West.") My favourite Western ever. Wink
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GrilledEelHamatsu



Joined: 02 Sep 2009
Posts: 703
PostPosted: Wed Jun 13, 2012 2:13 pm Reply with quote
@Dragonrider. In that case then I reinterate what I said earlier. Each side sees Federal as win-win for them. For Funimation, taking the case Federal means they don't have to waste investors money dragging the suit and can quickly reach a settlement. For A.D. Vision, its the loophole they've been praying for. Federal Court now means that they can force ARM into it. They're hoping that they convince Funimation to drop the suits between both of them and that both sides can now legally file lawsuits against ARM.

So that ADV and Funimation can now team up against the investor that screwed the both of them.
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