As a distributor of pay-per-view (PPV) sporting events like boxing and MMA matches, Joe Hand Promotions holds exclusive rights to license these events to commercial venues, including bars, restaurants, and nightclubs. The company actively pursues legal action against businesses that show these events without proper commercial licensing, primarily through Federal Communications Act (FCA) violations, specifically sections 605 and 553. Often, a settlement with Joe Hand Promotions can be reached
Legal Background The FCA contains two relevant sections:
- Section 605 addresses unauthorized interception of radio communications, which extends to satellite PPV broadcasts
- Section 553 covers unauthorized cable broadcasts
A core issue is the distinction between residential and commercial licensing. While home viewers pay lower fees, businesses must purchase more expensive commercial licenses since they can generate revenue through increased customer traffic and sales during events. This is often reflected in the outcome of a Joe Hand settlement.
Enforcement Methods The company deploys investigators to monitor businesses during event broadcasts. These agents document unauthorized showings by:
- Taking photographs
- Recording video
- Documenting patron counts
- Noting the number of televisions displaying the event
Legal Process When filing lawsuits, Joe Hand Promotions typically:
- Claims FCA violations under sections 605 and/or 553
- Seeks statutory damages ranging from $1,000 to $10,000 per violation
- Can pursue increased damages up to $100,000 for willful violations
- Often requests attorney fees and legal costs
The company generally argues violations are willful since businesses rarely intercept PPV events accidentally. Common unauthorized methods include using residential accounts, pirate streams, or other illegal access methods. A typical Joe Hand settlement might involve a substantial sum, aimed at compensating for these willful violations.
Resolution Options Defendants typically choose between:
- Settlement: Usually ranging from $2,500 to $25,000, based on violation severity and business size
- Litigation: Requires defendants to prove proper licensing or lack of willful violation, which is often challenging given investigator documentation
Industry Impact While effective at preventing unauthorized broadcasts, this enforcement approach has faced criticism. Small businesses particularly struggle with costly settlements, even for unintentional violations. Critics argue that damage amounts often exceed actual losses and serve primarily as deterrents rather than fair compensation, contributing to the debate surrounding each Joe Hand settlement.
Case Example In Joe Hand Promotions, Inc. v. AIH Alamo Ice House, LLC (2017), the company pursued action over unauthorized showing of the Miguel Cotto v. Canelo Alvarez fight. The company had exclusive rights to distribute the satellite-broadcast program to commercial establishments in Texas, having invested significantly in marketing and transmission services.