The common denominator is the obviously unhealthy power disparity between corporate giants and ordinary internet subscribers, something that is built-in and then reinforced by design. However, there is always someone bigger than the big guys and when they show up, the schadenfreude can be delicious. But before the main course, here\u2019s a small hors d\u2019oeuvre.<\/p>\n
The Power of the Limited Liability Partnership<\/h2>\n
Hatton and Berkeley (H&B) and its partners have been\u00a0demanding<\/a>\u00a0cash settlements from UK internet subscribers\u00a0for years<\/a>. Its settlement model was initially quite ordinary but when it began promoting Limited Liability Partnership (LLP) as an anti-piracy \u201cinsurance wrapper<\/a>\u201c, the projection of power was obvious.<\/p>\n The plan presented by H&B envisioned the use of LLP corporate structures to protect businesses involved in settlement campaigns, ensuring that if things went bad for them litigation-wise, any financial liability could be pre-planned and minimal.<\/p>\n In short, fortified corporate trenches should be dug to defend against financially insecure and legally-unaware members of the public. H&B Administration LLP was ready to step up a gear but what followed next was perhaps more surprising.<\/p>\n In September 2019, FACT Worldwide Limited \u2013 a company operated by Federation Against Copyright Theft chief Kieron Sharp \u2013\u00a0became a member<\/a>\u00a0of H&B Administration LLP. Even to admiring critics, that came as a big disappointment.<\/p>\n Due to its very nature, FACT\u2019s work has at times been controversial but its solid reputation is built on decades of painstaking work in complex and high-profile commercial-scale piracy cases. Cash settlement models targeting the public with expensive \u2018speeding tickets\u2019 seemed a particularly poor fit.<\/p>\n Nevertheless, in 2020 Sharp also joined the LLP as a named member and in 2021, H&B Administration LLP\u00a0changed its name<\/a>\u00a0to FACT Administration LLP. It soon\u00a0began pressuring<\/a>\u00a0internet subscribers for cash settlements on behalf of its movie company members and later added a\u00a0scary payment portal<\/a>\u00a0warning of potential criminal action, as well as civil.<\/p>\n But while LLPs might have protective qualities, they aren\u2019t encased in a lawless bubble. Operating an LLP triggers responsibilities including statutory reporting requirements. These are laid down by the government and when ignored, escalating levels of otherwise avoidable trouble can lie ahead.<\/p>\n For example, should an LLP fail to submit its confirmation statement on time, the government doesn\u2019t get immediately upset. If we use the document below as an example, the statement date is April 11, 2022, and it\u2019s completely acceptable to submit one before April 25.<\/p>\n Taking longer, however, means the addition of big red text on a previously clean record.<\/p>\n <\/p>\n Of course, it\u2019s human to forget things so the government is very good these days in that it can send a reminder before the statement is actually due \u2013 a friendly \u2018pre-infringement notice\u2019 of sorts. It\u2019s a very reasonable way to remind people that legal obligations aren\u2019t being met.<\/p>\n But even that isn\u2019t enough to get some corporations going. Before they have time to shout \u201cprotective wrapper\u201d and demand \u00a3800, several months have passed and perhaps the most basic and cheap of all company filings still hasn\u2019t been done.<\/p>\n Quite why that\u2019s the case here is anyone\u2019s guess. Anti-piracy groups always seem so particular about the law when it comes to the actions of other people. When alleging infringement, for example, they sometimes suggest that internet subscribers who aren\u2019t the infringer failed in their \u201cduty of care\u201d by not anticipating what someone else might privately do on their connection, at some indeterminable point in the future.<\/p>\n If they\u2019d had the luxury of an official reminder in advance, detailing specific dates and legal requirements, and that was followed by several polite warnings after, you could probably see their point. But for settlement targets, that never happens. No warnings, no chances. Give us money.<\/p>\n Thankfully, people who run LLPs do get polite reminders and then warnings about their failure to comply with their legal obligations. Earlier this week a notice appeared on the FACT Administration LLP page on\u00a0Companies House<\/a>, announcing that if it persists with its non-compliance, things could get very serious indeed.<\/p>\n \u201cThe Registrar of Companies gives notice that, unless cause is shown to the contrary, the Limited Liability Partnership will be struck off the register and dissolved not less than 2 months from the date shown above [28\/06\/2022],\u201d it reads.<\/p>\n \u201cUpon the Limited Liability Partnership\u2019s dissolution, all property and rights vested in, or held in trust for, the Limited Liability Partnership are deemed to be bona vacantia, and will belong to the Crown.\u201d<\/p>\n <\/p>\n This notice represents yet another warning to comply with the law after months and months of non-compliance. But here we are several days later and\u00a0still<\/em>\u00a0nothing has been done. Some \u2018duties of care\u2019 are less important than others, it seems.<\/p>\n As a result, this week FACT Administration LLP was featured free of charge in Britain\u2019s oldest newspaper \u2013 The Gazette. It\u2019s much less \u2018fun\u2019 than the country\u2019s tabloids but easily competes with the \u2018red tops\u2019 when it comes to scandals, even while striving for reporting accuracy.<\/p>\n <\/p>\n \u201cNot filing your confirmation statements, annual returns or accounts is a criminal offense \u2013 and directors or LLP designated members could be personally fined in the criminal courts,\u201d UK Government advice\u00a0reads<\/a>.<\/p>\n \u201cFailing to pay your late filing penalty can result in enforcement proceedings. Any criminal proceedings for not filing confirmation statements, annual returns or accounts is separate from (and in addition to) any late filing penalties issued by Companies House against the company.\u201d<\/p>\n But of course, despite all the loud words and threats of dissolving the LLP and giving the LLP\u2019s assets to the Crown, it\u2019s unlikely that anything terrible will happen. There are no immediate financial penalties for filing a late confirmation statement and no matter how badly things go, it\u2019s nearly always possible to get a company back on track eventually.<\/p>\n Another plus side is that filing a confirmation statement is both easy and ridiculously cheap \u2013 just \u00a313. However, if people can\u2019t spare 20 minutes and have money to burn (perhaps alleged pirates donated generously lately) a familiar company with an address in Mayfair, London, says it will do it\u00a0for just \u00a3125<\/a>. Probably best to send a few reminders, though, just in case.<\/p>\n Finally, reminders might also be needed in respect of US-based company TCYK LLC. Its movie \u2013 \u2018The Company You Keep\u2019 \u2013 featured in cash settlement letters initially sent out in 2015, including one sent to an\u00a082-year-old grandmother<\/a>.<\/p>\n The problem is that despite being listed as an active member of FACT Administration LLP, corporate data in the United States shows that the\u00a0company has been dissolved<\/a>\u00a0leading to the possibility that doesn\u2019t exist. Companies House doesn\u2019t appear to have been informed about that but in a few months, perhaps someone will let them know.<\/p>\n \u2014\u2014-<\/p>\n FACT Administration LLP structure facing strike off<\/a><\/em><\/p>\n Current person\/entity with significant control: Hatton & Berkeley Management Ltd (Director: Robert Croucher, 75%+ shareholder\u00a01<\/a>)<\/p>\n Members, countries of incorporation (where applicable), plus sources\/connections<\/p>\n Robert Croucher (UK)\u00a01<\/a>,2<\/a> Former member\/notable resignation:<\/p>\n Copyright Management Services Ltd (Patrick Achache<\/a>\u00a0\u2013 also\u00a0Maverickeye<\/a>\/Guardaley<\/a>)<\/em><\/p>\n Source: \u00a0FACT Administration LLP<\/h2>\n
Protective Wrappers Are Subject to the Law<\/h2>\n
![\"fact](\"https:\/\/torrentfreak.com\/images\/fact-strike-off-warning-2.png\")
<\/a><\/center> <\/p>\nMore Warnings Incoming<\/h2>\n
![\"fact-gazette](\"https:\/\/torrentfreak.com\/images\/fact-gazette-notice.png\")
<\/a><\/center> <\/p>\n![\"fact](\"https:\/\/torrentfreak.com\/images\/fact-administration-llp-strike-off.png\")
<\/a><\/center> <\/p>\n
\nKieron Sharp (UK)\u00a01<\/a>,2<\/a>
\nOliver Williams (UK)\u00a01<\/a>,2<\/a>
\nAfter 2 Movie LLC (USA)\u00a01<\/a>,2<\/a>
\nAfter 34 Nevada LLC (USA)\u00a01<\/a>,2<\/a>
\nAzil Productions LLC (USA)\u00a01<\/a>,2<\/a>
\nCinestate Run Hide Fight LLC (USA)\u00a01<\/a>,2<\/a>
\nFACT Worldwide Ltd (UK)\u00a01<\/a>,2<\/a>
\nH Films Inc. (USA)\u00a01<\/a>,2<\/a>
\nHatton & Berkeley Management Ltd (UK)\u00a01<\/a>,2<\/a>
\nIcon Film Distribution Ltd (UK)\u00a01<\/a>,2<\/a>
\nRight Angle Productions LLC (USA)\u00a01<\/a>,2<\/a>
\nTCYK LLC (USA)\u00a01<\/a>,2<\/a>\u00a0(dissolved)
\nVoltage Holdings LLC (USA)\u00a01<\/a>,2<\/a>
\nWonder One LLC (USA)\u00a01<\/a>,2<\/a><\/p>\n![\"TorrentFreak\"](\"http:\/\/worldjusticenews.com\/news\/wp-content\/uploads\/2016\/11\/torrentfreak.png\")
<\/a> TorrentFreak.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"