Cybernet Expo Litigation, Plans Revealed

Cybernet Expo organizers, today, have revealed pending legal action against this year’s venue, the Kona Kai Resort on Shelter Island, and plan to move the show from the city in 2007.

No doubt, you could tell there was something a little off with last week’s event. It wasn’t a bad show by any stretch of the imagination, but there was a constant presence of heavy security and there seemed to be a general unwelcoming attitude in the air from most of the hotel staff.

During the event, it was revealed that hotel ownership did indeed not want an adult show on their premises, despite the success of the previous year’s Cybernet Expo at the same venue.

In March, resort owners, Atlas Hotels, sent a letter to Cybernet organizers (Fay Sharp, Dave Gould and Jay Kopita) canceling its contract for this year’s event, citing the potential loss of their liquor license. Cybernet reacted by suing, obtaining a preliminary injunction against Atlas, allowing the show to proceed as planned, and following through with mediation and arbitration.

Organizers released a statement about the litigation today, which reads, in part, “[Atlas’] “cancellation” came much too late for us to turn back. On short notice it was not feasible to find another hotel that would give Cybernet the majority use of its property at a reasonable rate. We were left with no choice but to contact our attorney and initiate legal action.

“Atlas Hotels was simply speculating that an adult-related event would by its nature place the hotel’s liquor license in jeopardy. Even though this particular event had never proved problematic for any of its host venues throughout its long history, Atlas nonetheless made a reckless decision that threatened to destroy Cybernet Expo.”

Atlas Hotels purchased the resort from previous ownership in October 2005. As part of that purchase they inherited a contract for this year’s Cybernet Expo, which was signed in August of last year.

When attendees showed up this year, one of the things they received was a lengthy list of rules for the property, which included a no-nudity clause. Security was stationed a just about every entrance throughout the show and their numbers seemed to grow larger as the evening went on.

Cybernet organizers have also revealed plans to move the event out of San Diego in 2007, with a location being announced later this summer.

Although the event may have had a few underlying problems, it still proved to be successful, especially with events like the well-attended Corridor Cruisin’, NichePay’s volleyball tournament and D-Money’s Player’s Gathering.

“We can’t even begin to express to you how grateful we are to the loyal sponsors and fantastic attendees who supported Cybernet Expo this year. The fact that this event even happened was a victory for Cybernet Expo, but to get the kind of support we got from the show’s participants is what truly makes this fight with Atlas Hotels worthwhile,” the statement read.