"We care about protecting fans and the integrity of our business. We are doing exactly what we have repeatedly said we do: stand up for the fans who use our site in the proper manner."
—--Ticketmaster statement

THE SCALPING WARS: TICKETMASTER SUES 21 FOR TICKET FRAUD AND MORE

NYT Says Suit, Filed 4/30 in L.A., Charges Shalom, Associates With Using Bots and More to Buy Mondo Tix
Ticketmaster has filed suit at the U.S. District Court in Los Angeles against 21 individuals, alleging they've committed fraud and breach of copyright by using bots and other illicit means to buy large batches of tickets for resale, The New York Times reports.

The story says the lawsuit, filed on 4/30, accuses New York-based event producer Joseph Shalom and 20 others of using "bots," software programs designed to circumvent online safeguards (such as anti-bot app Captcha) that limit how many tickets can be bought at once, so that large numbers can be obtained and then unloaded at a profit via resale sites like eBay-owned StubHub.

According to the suit, Shalom and his associates gamed the online system to request as many as 200,000 tickets per day. By substantially reducing ticket inventory, it is further charged, the botmasters have damaged Ticketmaster's reputation with fans.

"We care about protecting fans and the integrity of our business," reads a statement from Ticketmaster quoted in the Times piece. "We are doing exactly what we have repeatedly said we do: stand up for the fans who use our site in the proper manner."

Meanwhile, The Hollywood Reporter ventured, "Ticketmaster is asserting copyright claims based on the circumvention of its security system."

Some insiders familiar with available technology say the accused may also have made use of programs that enable them to "sit" on tickets, keeping them in reserve and circumventing software that enforces a time window for purchases. They could then engage in what's known as "speculative posting" at resale sites to gauge interest, risk-free, before actually purchasing those tickets.

Bots have been a bone of contention throughout the biz, and tussling over their use has extended to 14 statehouses across the country--including California, where Live Nation-owned Ticketmaster and StubHub have addressed state assembly members considering anti-bot bill AB 329.

On the day this suit was filed, John Potter of the Fan Freedom Project, an outreach organization founded by StubHub, claimed to oppose bots in his assembly testimony. But, he groused, "Concert promoters and the ticketing partners like Ticketmaster who have the firsthand knowledge of scalpers who use bots to jump ahead of the fans in line have reportedly never compiled the evidence or filed a single complaint of bot purchasing with the State Attorney General or District Attorney." It's probably safe to say the latest suit qualifies as a complaint, but the fight will likely continue at the political level as well .

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