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XPT is Gone; Caballero Suit Settled

> at first it seemed like a grim joke with all the farewell postings Friday but the reality is clear, XPT is down and in its place are book burning pictures with the comment, “Enjoy life without XPT. Brought to you by the Republican Party.”

Gene sez: But the story I heard is that there was some Chicago lawyer who went after them for “libelous” postings regarding one of his female clients.

> from Attorneys for Rodax Distributors, which operates as Caballero Home Video, told Friday that it has settled the lawsuit it filed against Sunshine Films over alleged copyright infringement. The case went before Judge Dean D. Pregerson in an Encino, Calif., courtroom.

Both Eugene M. Salute, who represented Sunshine Films and Odyssey Video Group in the case, and Stanley Stone, an attorney representing Rodax, were adamant about the details of the settlement being strictly confidential.

“The only information we are permitted to give is that the case has been settled,” Stone said.

Salute additionally said that he thought his clients were happy with the settlement.

At issue was whether Sunshine had the rights to distribute Caballero’s Swedish Erotica line in videocassette and DVD formats. Caballero contended that it has licensing rights from Caballero Control Corporation Ltd., a separate entity, for distribution of its content.

Sunshine, along with fellow defendants Odyssey Video Group and Sunshine Operations Manager Joseph Shemesh and Rita Shemesh Duak, an officer with the company, said in court documents that Rodax had rights that covered only one-hour videocassettes and film and not DVD, since that format was not outlined in its 1993 contract with Caballero Control.

The DVD format did not exist at the time.

According to its response to the lawsuit, Sunshine and Odyssey claim they had reached a licensing agreement with Caballero in 1992 or about a year before Rodax signed its distribution deal with Caballero to distribute its Swedish Erotica Hard titles.

Rodax was seeking undetermined compensatory and punitive damages in addition to recovering attorney’s fees and court-related costs.

> posts: It’s the battle of the talent agents with Rob getting back into the agenting game after nine years away.

Derek’s has been on top of the heap for about three years now.

Rob argues that Derek has achieved his success by bullying the girls and doing things that are illegal.

I bet Rob’s gone to the feds and the LAPD about Derek. While such informing has been common in the porn industry since its inception, it’s rare that pornographers will cop to helping law enforcement knock off a competitor.

Rob calls me Oct 27: “I did not go to the feds or to the cops. The cops came to me because I was shooting without a permit. I’m on my way to court now. You know me better than that. I’m tired of you busting my balls. I would never go to the cops or the feds on anyone. I am not a rat.”

Derek gets many of his top girls from overseas. Some of them get stopped at LAX and sent back to their country of origin, banned from returning to the U.S. for at least five years. It seems that ICE (Immigration and Custom Enforcement) knows Derek and some of his girls and they’re are on the lookout for foreigners who come to the U.S. to work in the sex industry.

Rob says that many of Derek’s foreign girls have IDs allowing them to the work in the U.S. despite the 2257 regulations which all trace to the same apartment in Oregon.

None of the other talent agents will represent foreigners who do not have U.S. citizenship or greencards allowing them to work in the U.S.

Rob is confident that law enforcement will shut down Derek, though this may not happen for years.

If Derek is the licensed and bonded agent that he claims, says Rob, then Derek can not collect money from the girls as well as the companies they work for. Agents are limited to taking no more than 10% of the fees their talent collect. Managers however have much more freedom to collect from both talent and producers.

Derek’s critics argue that he has many conflicts of interest — he represents and collects from talent, he performs, directs, and takes a cut from producers.

It seems that at least half of the hookers on are or have been LA Direct Models girls. If Derek is procuring for this prostitution service, as several porners have alleged to me, then he is breaking various laws.

Derek does not give a direct answer when asked if he procures for

California labor code 1700.35 reads: “No talent agency shall knowingly permit any persons of bad character, prostitutes, gamblers, intoxicated persons, or procurers to frequent, or be employed in, the place of business of the talent agency.”

> friend of Spallone calls me: “I’ve been following the Rob Spallone and Derek Hay feud and it seems like no one’s talked about the fact that Derek can’t go back to England.

“Besides,” says FOS, “there’s a rumor out there that Derek was allegedly arrested for pimping and that Rob Spallone has the police report. And Rob is really going after Derek, he just doesn’t care. Derek cannot go back to Englnd. He fucked up big time with some bad asses. There’s a high ranking cop who will fuck him up if he steps over there. And he fucked with this cop’s personal life. That’s why he doesn’t have his English citizenship any more. He was pimping [allegedly] in England and there are a few people who’d like to break his legs.”

> the word’s out there is that World Modeling is for sale and that Jim South is retiring. But the story on the street is that Rob Spallone is taking it over and moving the operation to Chatsworth.


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