For over a week, Jill Kelly Productions and companies DVD Concepts, International Video Innovation, Inc and L&M Optical have been embroiled in a messy legal battle over thousands of videos from Jill Kelly Productions.
A spokesman for Jill Kelly Productions alleges that the product is “pirated.” Meanwhile, DVD Concepts and IVI, Inc. maintain it has the “legal right” to sell the videos.
On Tuesday, all parties will go face-to-face in United States District Bankruptcy Court in Woodland Hills to argue their case.
Since Jill Kelly Productions has previously filed for Chapter 11 bankruptcy protection, any financial issues involving the production company must be heard in bankruptcy court.
Last week, a team of U.S. Marshals seized, based on a court order, videotapes from the offices of DVD Concepts, IVI and the other companies/individuals named in the temporary restraining order.
“Since joining Jell Kelly Productions last September, I have run into many, many cases of our current customers buying videos from Jill Kelly Productions at a huge discount,” said Jeff Krull, the former director of sales for JKP, who as of Monday was no longer with the company. "My customers told me that they bought new and old titles at a cheap price.
“I let my bosses know that non-authentic product was out on the streets. My bosses immediately sought legal actions."
Alon Notea, president of Chatworth-based DVD Concepts, said, “All of our Jill Kelly product is legitimate.
“The person who I bought the videos from had the legal right to sell it to me. He showed me an agreement signed by former Jill Kelly Productions CEO Bob Friedland. The document gives us that legal right."
Friedland left Jill Kelly Productions in late spring and has not been heard from since.
Chapter 11 bankruptcy allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to allow the debtor to continue business operation.
AVN.com also spoke with Zeev Lavy of International Video Innovation. He confirmed the existence of a letter from Friedland giving the right to sell the videos.
Danni Skura, consultant to L&M Optical, said, “We had nothing to do with this. ... We will find out more in court tomorrow and see just what happens.”
Skura said an attorney representing L&M Optical will be in court Tuesday.
Tomorrow’s hearing with a federal bankruptcy judge is crucial.
“We will ask the judge to return all the tapes and masters to us," Notea said. "I will show the judge the letter.
"I am confident that we will get our materials returned to us."
