Guardaley | X-Art

Malibu Media/X-Art has settled to avoid discovery

The title says it all. It was rather unexpected, yet this ordeal over for Jeff and his family, and I’m happy for them. It would be hypocritical not to admit some sadness: everyone hoped for the inevitable (and absolute) victory that would send its healing ways across the country. As a matter of fact, it is a victory to a certain extent. Fantalises advanced further than any other pro se (and not only) defendant and did a Herculean job organizing existing defense ideas and coming up with novel ones. Everyone here thinks they are heroes. And a neat library of examples, ideas and templates does not go anywhere.

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Featured comment

AC on 2012/11/16 at 10:59 am:

Wow! I never saw this coming after the heated week or so of filings from both Kotzker and Fantalis! Simply amazing, to say the least. I have been following this case since the beginning with great interest, read every filing in its entirety, so I am very happy to see this kind of ending.

To be clear, despite not being privy to the terms of the settlement, we can know with 100% certainty they were very favorable to Jeff Fantalis.

Let’s take a look at the facts of the last week and see who was sweating:

Malibu Media was ordered to begin production of documents on November 9 to be completed by November 26, 2012. This includes:

  • Any documents describing flaws of deficiencies the company uses to identify IP addresses.
  • ALL communications between Mailbu Media and Lipscomb.
  • ALL communications between Malibu Media and any “enforcement” trolls.
  • Retainer agreement between Kotzker and Malibu Media.
  • Any agreements between Malibu Media, IPP, Tobias Fieser, Brigham Field and Colette Leah. Remember the judge said if it is a contingency agreement, then there will be a problem. Guess what: It’s probably a contingency agreement!

Also remember that the judge ordered Kotzker to send the fee agreement between Kotzker/Lipscomb/Malibu Media to his personal chambers for him to review. Want to guess if there’s something they don’t want the judge to see in there?

Oh yeah, and what about Colette Leah making obviously, provably false statements in a sworn document. I’m betting she never even read the document, signed it, and it was a big shock to her when Lipscomb/Kotzker informed her that she was about to be brought in on perjury charges. Maybe this was the point Malibu Media decided to settle?

Finally, remember that Kotzker admitted he could no longer take on any more cases in CO because litigating this one single case was taking too much of his time. Thus the troll extortion operation in Colorado effectively was about to grind to a halt due to a single doe fighting back.

Or how about Fantalis’ most recent filing, which accuses Malibu Media of double dipping in recovery by collecting more than the maximum statutory limits? Want to guess that they have already been made whole through settlements, and they would like to continue extorting money for the same films which they have already been compensated for?

It’s quite clear that Malibu Media was completely fucked in this case before trial even began. Even though we didn’t get to see this go to trial, we still learned a great deal about Malibu Media and their operation, and how far they are willing to go to prevent ANY trial from EVER reaching discovery, let alone a jury, despite the fact that they demand a jury trial in every single one of their complaints.

Most importantly, when a defender says “The trolls never want to go to trial” the Troll can no longer point to Fantalis’ case and say “Look, this one’s moving along.” Now this is more ammo for the defender who can now say “They had the chance to go to trial, and right when they were forced to produce discovery, they settled. Any claims that they want to litigate these cases are complete lies.”

So I guess our next best hope to see something like this go to trial is the PA Bellwether. Here’s hoping we actually see some discovery there before they settle and dismiss, as we can all expect will happen.

Another commenter adds an important bullet point:

You forgot the comment the judge said where if a jury found any of the films obscene they would not be copyrightable. IMHO, this was huge. Can you imagine if this actually went to trial and the result was they were not copyrightable (what are the chances the jury wouldn’t find them obscene)!? That would be used in every defense going forward. […]

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Discussion

70 responses to ‘Malibu Media/X-Art has settled to avoid discovery

  1. Regardless, it’s been an exciting ride and SJD, thanks for keeping us all up to date throughout the process. This case is a perfect example of the weak case(at best) that the trolls have and what can happen it you choose to stand up and fight instead of rolling over like they expect you to. I wish Jeff and his family the very best!

  2. Bravo Jeff! You fought the good fight and never once lost your composure and dignity while shining a bright light on the “business model”. Wishing you and yours nothing but the very best moving forward.

  3. While I am disappointed I am not at all surprised. Everyone knew that Fantalis was not backing down so I can only assume Kotzker and “Lipscum” cried uncle. Unfortunately, I don’t see another one going the distance any time soon. I’m not sure if we’ll ever see discovery because if it gets to the point this case did, the troll will make them an offer thay can’t refuse. I congratulate Jeff on not giving in like so many others. This just proves the trolls’ cases are built on lies and they don’t really want to try their cases on the merits.

  4. I think we all know how Jeff felt. How trying it is to be falsely accused and potentially driven into bankruptcy. This truly is a broken system… pornography as intellectual property. As if it is a cure for cancer or chronic ailment.

    God bless him and his family!

  5. Gotta give him credit for being the first person in the country to propound discovery on Malibu and get a response.

    For whatever it’s worth, I’m glad the whole thing is behind him one way or another. Litigation sucks. For me as a lawyer, sometimes it’s easy to forget that a person’s livelihood is at stake in these things, and they’re not just my chess pieces to make arguments.

    Actually, it was you, SJD, who reminded me of that last month.

    • Mr. Rushie, I wish some of your wisdom would run off on some of the other trolls, especially Steele. I’m not saying some of these accusations aren’t valid, but to a lot of trolls it’s a game to see how miserable they can make the lives of some Does.

      If they were truly interested in stopping piracy or their methods were above reproach, they would handle these cases in a completely different manner. In this case, the troll would gladly have produced discovery and welcomed the chance to inspect Fantalis’ hard drive (like he offered on many occasions).

      • Uuuuugh . . . I didn’t mean to imply you’re a troll. I should have said “rub off on some of these trolls”. Apologies.

        • @ Jordan – For what it is worth, from the get go both SJD and myself felt you had a good heart. Glad to see you have finally picked up the cutlass. My rum punches, your place?

  6. it was inevitable. and though i am happy for fantalis as he seems like a person who would not have settled without the offer making HIM happy. I am still saddened to see this case close as it was very rapidly turning into a true troll killer. congrats jeff and may all your further endeavors in life be as successful as this one was for you.

  7. My hope is that the upshot of all this is that Judge Hegarty will begin to take a more jaundiced view of Troll Kotzker and his actual motives: extortive settlements, not protection of questionable copyrights. CO Judge Martinez has seen behind this cruel facade. I would love to point Judge Hegarty to the example of DMD Chief Justice Chasenow who bravely admitted her error and helped put an abrupt end to trolling in MD.

  8. I still can’t believe, well I can I guess but it annoys me, that there was still no discovery in this case. For either party.

    It is disappointing that despite all of these cases and all of these defendants that no one who has been accused has given a hard drive without a copy of the movie to say “See, your technology sucks,” or any of these trolls having to give up their evidence.

    The fact that none of these cases have ever gone through a trial and the only “success” stories they have are default judgements is annoying, to say the least.

  9. I’m torn.
    I am happy that Mr. Fantalis can close this unhappy chapter, but I am sad we don’t know the terms.
    But then I enjoy seeing trolls suffer, but not at the expense of a Doe.

    It is helpful to have on the record evidence of the lengths trolls will go to avoid discovering if the account holder is the infringer, and how much effort they put into keeping their super secret methods super secret.

      • One can make a very clear case they do not make any good faith efforts, and have no interest in the pursuit of “evildoers” beyond getting names and demanding payment from parties who might be totally innocent… they can’t say one way or another.

        I expect to see this case cited often, along with MM being detonated and the long running fraud in these types of cases.

  10. Brigham Field and Colette Pelissier should be in prison for their millions of obscene video clips on the internet freely viewable (without warning) by minors. Used to be that even Playboy had to be sent covered. Now there are little boys jerking off at the Public Library to this stuff, instead of being inspired to be astronauts, scientists, etc. Delinquency of minors! You want to be a brainless millionaire, be a pornographer.

    Everything about these people is predatory. All about money, greed. How to make money preying on the innocent and naive. Even the young models are preyed on and have his/her life destroyed. Many porn actors commit suicide, trying to ease the pain of a worthless life with drugs and alcohol.

  11. Wow! I never saw this coming after the heated week or so of filings from both Kotzker and Fantalis! Simply amazing, to say the least. I have been following this case since the beginning with great interest, read every filing in its entirety, so I am very happy to see this kind of ending.

    To be clear, despite not being privy to the terms of the settlement, we can know with 100% certainty they were very favorable to Jeff Fantalis.

    Let’s take a look at the facts of the last week and see who was sweating:

    Malibu Media was ordered to begin production of documents on November 9 to be completed by November 26, 2012. This includes:

    Any documents describing flaws of deficiencies the company uses to identify IP addresses.

    ALL communications between Mailbu Media and Lipscomb

    ALL communications between Malibu Media and any “enforcement” trolls.

    Retainer agreement between Kotzker and Malibu Media.

    Any agreements between Malibu Media, IPP, Tobias Fieser, Brigham Field and Colette Leah. Remember the judge said if it is a contingency agreement, then there will be a problem. Guess what: It’s probably a contingency agreement!

    Also remember that the judge ordered Kotzker to send the fee agreement between Kotzker/Lipscomb/Malibu Media to his personal chambers for him to review. Want to guess if there’s something they don’t want the judge to see in there?

    Oh yeah, and what about Collette Leah making obviously, provably false statements in a sworn document. I’m betting she never even read the document, signed it, and it was a big shock to her when Lipscomb/Kotzker informed her that she was about to be brought in on perjury charges. Maybe this was the point Malibu Media decided to settle?

    Finally, remember that Kotzker admitted he could no longer take on any more cases in CO because litigating this one single case was taking too much of his time. Thus the troll extortion operation in Colorado effectively was about to grind to a halt due to a single doe fighting back.

    Or how about Fantalis’ most recent filing, which accuses Malibu Media of double dipping in recovery by collecting more than the maximum statutory limits? Want to guess that they have already been made whole through settlements, and they would like to continue extorting money for the same films which they have already been compensated for?

    It’s quite clear that Malibu Media was completely fucked in this case before trial even began. Even though we didn’t get to see this go to trial, we still learned a great deal about Malibu Media and their operation, and how far they are willing to go to prevent ANY trial from EVER reaching discovery, let alone a jury, despite the fact that they demand a jury trial in every single one of their complaints.

    Most importantly, when a defender says “The trolls never want to go to trial” the Troll can no longer point to Fantalis’ case and say “Look, this one’s moving along.” Now this is more ammo for the defender who can now say “They had the chance to go to trial, and right when they were forced to produce discovery, they settled. Any claims that they want to litigate these cases are complete lies.”

    So I guess our next best hope to see something like this go to trial is the PA Bellwether. Here’s hoping we actually see some discovery there before they settle and dismiss, as we can all expect will happen.

      • Thanks SJD! At the very minimum the conclusion of the Fantalis story provides one more certainty for those who come here looking for guidance. It seems pretty clear now that if your name comes up on the Troll radar, you have three options:

        1) Settle.
        2) Ignore and hope they go away.
        3) Fight and in a few months they will settle with you. This is proving to be a certainty.

        So far, of the few who have fought back, none have come to regret it, and each has dealt huge blows to the troll business model. The more Does fight, the less time and money trolls have to sue. The more trolls have to pay to get does to go away, the more expensive the business model becomes.

        The tables are turning, and now TROLLS are paying DOES to go away!

        Long live Jeff Fantalis, Troll Slayer!

        • And note that not a single doe who has fought has had their hard drive scanned for files even. The trolls have done nothing but bark.

    • Somebody got PAYED!!!! I just wish he would have dragged these shit bags down to where they belong. They lost, either way. Additional the trolls dont want to get in front of a jury and say a smut company is sueing an American citizen. Jenius!! The emotional jury sometimes does not look at the technical facts that sombody allegedly downloaded there crappy porn movie.

    • You forgot the comment the judge said where if a jury found any of the films obscene they would not be copyrightable. IMHO, this was huge. Can you imagine if this actually went to trial and the result was they were not copyrightable (what are the chances the jury wouldn’t find them obscene)!? That would be used in every defense going forward.

      Unfortunately, now the troll suit assembly line continues until another case like this comes along. All the while the trolls have time to modify, falsify, or change existing agreements, documents, etc. Make no mistake: both sides learned a great deal from this and the trolls (especially “Lipscum”) are adapting as I write this.

      • Oh yeah, that is a huge one! Can’t believe I forgot it.

        True, that trolls will adapt, but so will defenders, and one thing the Trolls cannot change is that if the defendant is innocent, no amount of strategy will save their case.

        Our next great hope is already here: the PA Bellwether. And I think the conclusion of this case will have great consequences for that one. One, It will be VERY expensive for Malibu Media to wiggle out of the Bellwether, as they would have to settle with 5 defendants at once, rather than a single defendant.

        Further, while the resolve and stamina of defendants before might have been weak, they might now realize that fighting means a big payday in the end. Honestly, while I was being pursued by trolls I went back and forth about settling or fighting. Jeff Fantalis has made up my mind that if the Trolls ever come back, I’m fighting 100%.

      • I think that’s something that should be consistently brought up in defences. Copyright trolls are heavily banking on the fact that pornography is something most people would not want to be associated with in order to coerce them into settling; ergo, pornography can widely be considered to be at least objectionable to a degree. Defendants should now be able to point out that this threat is largely toothless, since if the film in question is obscene, there’s no copyright to infringe.

        By the way, good going Colette. You think that people downloading your stuff makes you lose money? Good luck recovering from this. You might have pulled out but what reputation you might have had is deep down the shitter.

  12. Very busy but just want to say “Congrats” Jeff (& family) and thank you for all your efforts. I would also like to thank your friends and any attorneys out there that gave you advice/assistamce in taking this on. Your hard work has paid off and you have much to be proud of. We may never find out the terms of the settlement, but your startegy worked and the attorneys will use it to further go after Malibu Media and other Plaintiffs stupid enough not to run away.

    DTD 🙂

  13. Well, Malibu may have settled with Fantalis but they’re not out of the game. I see two more suits today. One more in Indiana (this time in SD) against 5 does and one in Jersey against 10.

    http://www.rfcexpress.com/lawsuits/copyright-lawsuits/indiana-southern-district-court/119865/malibu-media-llc-v-john-does-1-5/summary/

    http://www.rfcexpress.com/lawsuits/copyright-lawsuits/new-jersey-district-court/119858/malibu-media-llc-v-john-does-1-10/summary/

    • One needs only look to see if the recorded time was before or after MM existed. If its before, and there is no new paperwork transferring rights… someone might want to inform the Judge of that tiny itty bitty flaw… That the case is brought by someone without standing to bring this case, that the lawyers knew this and still filed… *whistles innocently*

  14. (I realize I’ve been off the grid for some time, to say that I’ve been busy as hell is a mild understatement). I would’ve preferred to see Fantalis air MM and its counsel’s dirty laundry in public but I’m not the defendant in this case, I have no skin in the game so I cannot criticize. That being said, congratulations Fantalis for resolving this case and for standing up to these scumbags.

  15. Congrats to Fantalis!!! Major blow to the Trolls game. So close to exposing the ‘closet’ that there is no surprise Kotzker settled. This is just the beginning everyone!!! The day is coming where the unfortunate Troll will have to divulge secret info, and that is when the house of cards starts to fall, one card at a time.

    Run to your bridge Trolls….. Can you see the movement in the trees…. Fate is coming….. Hide…. Hide real good!

    • There are people who settle for good reasons. The loss of your job, home, etc. are really good reasons. Much like allegations of sexual misconduct can destroy someones life (everyone remembers the allegation not that they were found to be baseless) there are people who even a whiff of scandal can derail their lives.

      I do not agree with settling with trolls, but I have dealt with several Does who made the final call to settle and I can not judge them for their decision. The decision is always the Does, and no one else is in their shoes.

      • Having been sexually molested as a child, I learned that you never appease a predator because other victims will follow. The entire gang are predators starting with Brigham Field, his wife and their lying thieving lawyers.

        No one should be embarrassed about accusations, not in this day and age, and not given the internet. Everyone knows simple web-surfing can result in spam, viruses, worms, spoofing, etc. The majority of wireless routers even when secure, can be hacked in a few hours. Over 30% of people say they use their neighbors internet services. There is an official looking IRS publication link that launches over a dozen porn sites.

        If one Googles Malibu Media’s “X-art”, it returns over a billion links around the world.

        Just like with Penn States’ Jerry Sandusky, the right thing to do, is to fight these bastards, at all times. You return their fire ten fold as hard.

        • @No Appeasement – I had to sit and think how to respond to you.
          For every Jerry Sandusky how many McMartain Preschool’s are there?
          Even after the allegations were proven false in every possible way, it still took a long time for someone to be released from jail. People are still trying to dig up the basement of the former daycare to finally “find” the tunnel down to the Satanic altar. There are still people claiming they had to have abused the children, and used witchcraft to escape the law.

          While the trolls claims are often lies, the damage they cause is very real and there is no recourse for Does in these cases. How much money can compensate someone for having their reputation destroyed? Some people are in positions where they are vulnerable to the mere hint of improper behavior, and while it is not right they are paying to hush up allegations it is less than what destroying their life would cost.

          It isn’t right, it isn’t fair, and it isn’t our place to judge someone who reaches that decision.

          Does have to decide for themselves what is best, all we can do is give them all of the information for a complete picture and support their choice, even if it would not be our choice.

    • Right, here it is:

      Joinder or no joinder? Can’t have both

      “Fantalis argues that Malibu Media is not allowed to collect twice for the same infringement. The default on Bruce Dunn was ordered at $2,500 in statutory damages + $739.26 in attorney’s fees, for a total of $3,239.26 (which is funny on 2 counts. 1) it’s significantly less than the $30,000 they were requesting and 2) it’s less than the typical $3400 Prenda asks for settlement. I believe Malibu Media settles for between $7000 and $10000 for these multiple infringement suits. In this case, not even answering the summons is more economical than settling).”

      • The $ 2500 fine is insane. These things are worthless, obscene, and few would pay even 25 cents to watch. These are 3 minutes videos of lesbian sex, masturbation, girls licking butt plugs, with no plot or audio. Plus the young actors do not look to be 18 yr olds. Where is the science and/or useful art? How would anyone know these are copyright protected (supposedly) and not just free promotional advertisements to lure customers to their pay for membership website?

        This is just another example of a broken legal system and corrupt politicians.

        Now we have 11 yr old boys masturbating in the public library to this stuff instead of doing school home work and the librarian saying she/he can’t do anything about it because it is free speech. 30 years ago the producers of this stuff would be made bankrupt and be serving a decade of hard imprisonment for violation of fede4ral obscenity laws and contributing to the delinquency of minors.

        Do the judges even bother to look at these before they pass judgement? I was trying to get my lady judge to at least view one of these things before she allowed the extortionist to get their next hit list from the ISPs. But it seems the judges haven’t considered seriously obscene works and copyright law for about 40 years. And when they did long ago, the court did not consider the negative impact porn has on people, children, and society. And so now the internet is full of porn, obscene material, and all of our children are exposed to it.

  16. We definitely need to start a thread for this new pro se defendant that Raul tweeted, Jared Nelson. He already references Fantalis and in general seems to have a great grasp on the current state of the troll machine’s disrepair. He even claims he can prove he wasn’t home during the infringement and his computer was not usable anyway… very good to know.

    Here’s hoping that he picks up where Fantalis left off and pushed the envelope even further.

  17. Fantalis did exactly what I said he would do months ago. He was bought off, plain and simple. LMC did exactly what I said he would do months ago: He found an end-around and will keep going around until he hits the home run. I am quite positive Fantalis did not get any where near what he could have if he pushed the matter. It’s amazing what some people will settle for when someone waves a 10k or 20 k bill in their face, and I would be surprised if they went over 50. In this matter I wouldnt piss for 50k. If they come after me, I go all the way, on principle alone. The money isnt important.

  18. So, in one of the exhibits of his case, I saw a figure of 600k for a federal case litigation fees. Is that right? Meaning, that would jeff hire an attorney, it would have cost him $600000 to get to the same point?

    That amount is too much, I am not sure if I can just template his defense without knowing how US system works.

    • Usually lawyers ask for a retainer up front of $40,000-100,000. A retainer covers the cost of hourly billing from the lawyer, which can run $200-500 or more. So if your lawyer costs $300 an hour and asks for a $50,000 retainer to work your case, that means they are estimating that *at minimum* they will be able to bill 166 hours to you by working on your case.

      $600,000 divided by $250/hour would be 2400 billable hours. I’m just guessing, but I suspect that would be high for how much labor a lawyer would have put in on Fantalis’ case.

      The thing is, you wouldn’t have to totally do everything Fantalis did to scare off the trolls. All you’d have to do is put up a solid fight and they would (probably) run out of there with their tail between their legs. There are many solid defense arguments emerging, some are total bombs like the “Malibu Media didn’t own exclusive copyright” bomb.

    • “TRANSCRIPT of Motion Hearing held on 11-5-12 before Magistrate Judge Hegarty. Pages: 1-200. NOTICE – REDACTION OF TRANSCRIPTS: Within seven calendar days of this filing, each party shall inform the Court, by filing a Notice of Intent to Redact, of the party’s intent to redact personal identifiers from the electronic transcript of the court proceeding. If a Notice of Intent to Redact is not filed within the allotted time, this transcript will be made electronically available after 90 days. Please see the Notice of Electronic Availability of Transcripts document at http://www.cod.uscourts.gov. Transcript may only be viewed at the court public terminal or purchased through the Court Reporter/Transcriber prior to the 90 day deadline for electronic posting on PACER. Release of Transcript Restriction set for 3/14/2013. (Avery Woods Reporting, ) (Entered: 12/11/2012)”

      • Nevermind, didn’t read the fine print. Looks like it won’t be made available until March.

        “Release of Transcript Restriction set for 3/14/2013”

  19. Please stop lying. I wrote and signed the document you mentioned. I am looking forward to attending the PA Bellwether. I will be there to share the truth! We have many amazing supporters and members of our site (we love you all). If you want to watch the videos you simply have to join. Please stop calling us trolls, stop stealing our hard work and pick on someone else. Colette

    • We will “pick on someone else” when you stop extorting and terrorizing the population, greedy scum. And, by the way, since Prenda is down in flames (and we can claim that we contributed to it significantly), expect much more coverage of your filthy abuses. And it won’t be pretty.

    • @X-Art – Colette You and Brig are the .001% pf the American population in terms of wealth and yet you want every last shekel you can extort from the parents of the children or the Joe Sixpacks who download your crap. Shame on you and Brig for your nouveau riche ways and your rapacious greed. We will continue to publicize the abuses and the excesses. See you on St. Barts next season, Arriviste.

    • What truth is that? You can make more money by shaking down the middle class than by really trying to stop piracy? If you were serious you’d send DMCA takedown notices to the sites hosting your stuff, not monitoring IPs ready to sue within two weeks of alleged infringements. You make me sick. Why not cut the bullshit and say this is all about the money. You and your fucking troll lawyer “Lipscum”. Was he bullied as a kid and now he feels all tough suing people? Is that how he gets his jollies? Such a credit to his profession. In my opinion you and your lawyers are a bunch of greedy @$$hat extortionists.

    • Colette,

      Save x-Art’s reputation while you can and stop the law suites and say publicly you are dismissing all lawsuits and switching to 6 strikes and get some positive publicity instead of negative after negative article about x-Art.

      Your amazing supporters will look elseware for porn as they hear about the extortion scheme Lipsum is running in your name and tarnishing the x-Art brand.

      Scaring bit torrent users to stop stealing your stuff with a 6-strikes letter will have the same effect as the law suites notices Lipsum is generating through ISP notices but without the bad press for x-Art and legal risk to you.

      Is the money you are getting from Lipsum’s enterprise really worth the risks? You have other options.

    • 745 Federal trolling cases, involving tens of thousands of people, in 15 months. And additional cases in state courts. You feel picked on? That’s over 7% of all copyright cases in the entire nation, listed on RFC. Really Collette, really?

      Does your “hard work” involve the original intellectual property insight that humans copulate? Or was your original useful work recording the discovery that doing the nasty can involve more than one orifice?

      Is the “hard work” of (in some cases, probably teenage) eastern European models rewarded with royalties and residuals? How many of these hard workers are salaried employees? How many receive pension plans, medical benefits, sick pay, holiday pay? What percentage of the studio’s earning does a performer get?

      If sharing “the truth” is important, open the x-art books, like your lawyer/’forensic’ group is trying to do with thousands of Does. Let’s see the percentage split of fees in the trolling cases, the commissions for the tele-trolling representatives and local lawyers, the cost of the production, the earnings for an average porn video, the reporting and tax statements for videos and collections from Does, the wages of all workers involved in video production. Really Collette, really.

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