MIAMI—In July, RK Netmedia, the parent company of Reality Kings, was sued by a group of Warner Music Group labels over music on the porn company’s sites that was allegedly used without permission. In late October, Reality’s King’s insurer also sued the company in a case related to the Warner suit.
According to the complaint, which was filed Oct. 19 in U.S. District Court in Miami, Darwin Select Insurance Company alleges that Reality Kings “misrepresented and concealed certain material facts concerning the content of videos produced by the RK Defendants, the RK Defendant’s practices with respect to obtaining licenses for any third party content used in its videos, prior claims made against the RK Defendants, and knowledge of circumstances that may give rise to claims.”
Darwin, which had issued a Media Liability Insurance Coverage Policy to Reality Kings for the period from Sept. 23, 2009 to Sept. 23, 2010, says it filed suit after conducting an investigation following notification of the Warner Music lawsuit, which alleged that “RK Netmedia Inc and its affiliates had, over the past seven years, infringed hundreds of musical recordings and composition copyrights by using the recordings and compositions in their videos without a license or authorization."
The complaint further states, “Had Darwin known the true facts, it would not have issued the policy on the same terms, or at all. Accordingly, Darwin brings this action seeking a final judgment of rescission declaring that the Policy is void ab initio. Prior to filing this action Darwin returned the premium.”
The Complaint can be read here.