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Righthaven may have to file for bankruptcy

And MediaNews won’t renew its contract

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Righthaven’s woes continue to mount: after last week denying that its business model was in trouble, the litigation outsourcing outfit has asked a judge to stay an order granting legal fees to one of its targets.

According to this report in Vegas Inc, the request for a stay in granting more than $US34,000 in fees to successful defendant Wayne Hoehn was made as an “emergency request”. It is also appealing the order in the 9th District US Circuit Court of Appeals.

It is also appealing the ruling that it lacked standing to sue Hoehn and that Hoehn’s posting of a Les Vegas Review-Journal column on a Web forum was protected by “fair use”.

The problem of standing has arisen frequently in Righthaven’s suits, since the contract under which it works doesn’t assign the company copyright over its client’s articles, but merely the right to sue infringers.

In another blow, the CEO of Denver Post publisher MediaNews said it won’t be renewing its contract with Righthaven. The news was announced in a brief post on the newspaper’s Website, after John Paton replaced previous CEO Dean Singleton. ®

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