The Philip DeFranco Show - PDS 5.13 Insane $50 Million Ethan Klein, Frenemies, H3 Podcast Lawsuit, Pokemon Ban & More

Episode Date: May 13, 2021

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So I don't know how many of y'all here follow me on TikTok, but yesterday I had a near death experience. Just a reminder that it's okay for relationships to end. Not ours though. You think you have a way out of this? I saw my life flash before my eyes, people. But since I still have this life, I'm excited to welcome you back

to a Thursday Philip DeFranco show. It is May 13th, 2021. Hit that like button, definitely subscribe. A brand new subscriber for the month of May will be getting $5,000 at the end of the month. And let's just jump into it. And the first thing that we should definitely talk about today are these massive updates

regarding the Triller lawsuit, or rather now lawsuits. Because depending on a few key things here, this may have huge implications, not just for the people involved, but for content creators everywhere. Where we last left off, you had a judge last week, dropping the majority of the defendants in that lawsuit, including YouTube's own H3 production.

Though notably, as I said at that time, important note here, Triller could refile everything as individual lawsuits later on. And that is exactly what happened because Triller is now suing the H3 podcast directly and specifically for $50 million, alleging that they unlawfully broadcast

the Jake Paul versus Ben Askren fight. Specifically in the latest complaint that they filed this week against H3, Triller accused them of copyright infringement, conversion, violations of the Federal Communications Act, and violations of the Computer Fraud and Abuse Act. And saying that H3 quote, "'Acted knowingly, willfully, unlawfully,

"'and with blatant disregard to plaintiff's copyright in the broadcast by uploading the fight to YouTube. Adding the trailer never authorized its respective copying, downloading, uploading, public display, and or distribution of the broadcast, and claiming that the defendant continues to engage in unjustly benefit from its infringing conduct.

And then claiming that all of this quote, reprehensible infringement, theft, and other unlawful acts committed in knowing violation of the law has resulted in damages suffered by plaintiff in excess of $50 million by stealing and diverting upwards of 1 million unique viewers of the illegal

and unauthorized viewings of the broadcast. Now, looking into this, the complaint doesn't appear to specify when and where the fight was aired by H3, but around a week after the fight on an April 22nd episode of the H3 podcast, Ethan Klein did play the knockout and then gave commentary. By no means does it appear that he aired the whole event

or live streamed it while it was happening. Now with all this, we did see a Triller spokesperson give a statement to Insider saying, "'We are confident H3 will be settling "'and paying a substantial penalty in the millions "'in order to avoid the $50 million plus liability. "'People can try to joke about it, "'but it is stealing, no ifs, ands, or buts about it.

Now, all that said, we reached out to Ethan Klein for comment and he said, "'It's fair use. Read their complaint. "'It's $1 million times $50 per view. "'It's literally a fair use lawsuit "'and anything else is just a distortion. "'It's a huge media company trying to suppress fair use "'and undo everything we worked for with the Matt Haas case.'"

Which if you're unfamiliar, was a massive case back in 2017, Ethan and Hila Klein were sued by Matt Haas. Because the Klein's there refused to settle, they fought this, it ended up actually being a landmark fair use case. You can actually find it on copyright.gov. Noting there that the issue at hand was whether the defendant's reaction video

showing a large portion of the plaintiff's copyrighted video constitutes fair use. The outcome in that situation was that fair use was found. With the court finding there that their use of clips was plainly necessary and reasonable to accomplish the transformative purpose of critical commentary. So just to give you some background and context of what he's referencing there, Ethan actually also addressing this live on his podcast right before we uploaded this video. If we settle this, this gives litigious pieces of media companies the green light to shake down

anyone they want with some bulls**t shoddily researched and written complaint okay you know what I'm saying if we fight it like we did last time we strengthen the

we strengthen the case for fair use on YouTube. And these big media companies need to understand that they can't just come f*** with us because I'm not Disney. You know what I mean? They expect us just to be like, I'm sorry Chiller. You're so scary. Just take whatever it is and oh by the way, they want me to sign a... Did I mention that? I don't think you can mention that stuff yet. Oh, well there's also other conditions to the settlement,

which I'll probably talk about later, that are ludicrous, that will never happen in a million years. But yeah, I mean, that is ultimately where we are right now. And I do want to pass the question off to you. Are you in the camp that this is a massive company with massive dollars behind it, trying to suppress fair use and essentially kind of exploit a situation to attack someone that's been critical

of one of their investors? Whether it be Jake Paul and the allegations of him, and now there's this other Bryce Hall situation, or no, are you in the other camp? You're your backing trailer here. You think that Ethan Klein was in the wrong. Yes, no, maybe so. Why or why not?

I'd love to know any and all thoughts you have on this in those comments down below. And then let's talk about the dark side of Pokemon cards. Was that dramatic enough? So if you're not aware, Pokemon cards have always kind of been relatively popular, but they have become increasingly popular right now.

Sales are up. Third-party sellers are getting tons of money for cards. There's a ton of Pokemon card content. Right, and the showcasing and the unboxing content, it had been there, but then you got some of the biggest names online joining in on the showcasing and the unboxing content, it had been there, but then you got some of the biggest names online joining in on the hype as well. People like Logan Paul, of course,

doing his huge unboxing of what he said was $2 million worth of cards. And in fact, I mentioned Logan there specifically because there's this report that the market actually took off as Logan entered it with John McDonald, senior VP of product at TCG Player, saying Paul definitely influenced the prices of the higher end stuff.

You know, I will say, you can say what you want about Logan Paul if kind of this redemption arc has been very legitimate or not, but he's very smart about his influence. Like he really understands the impact he can have on a space, whether it be here with Pokemon cards, what he did with NFTs,

getting in very early before it got really, really saturated. But with this story today with Pokemon cards, specifically, it appears that the hype may be too much for some. Right, as Pokemon cards, and actually trading cards in general, have become more popular, you have places like Target having to deal with the increased demand,

limit how many packs that people can buy, try to get people not to camp outside the store to get them, things like that. And in fact, things at times get violent. For example, last week in Wisconsin, a fight actually broke out in the Target parking lot. And before anyone tries to make this a generational thing, a kids these days thing, it wasn't kids.

It was four men between the ages of 23 and 35, physically assaulting another 35 year old man over sports trading cards. Reportedly, he was leaving the store with some cards. He ended up getting attacked, but he did have a valid concealed carry permit. He pulled out his gun. The attackers ended up running off.

No shots were fired. All four men ended up being taken into custody later. In fact, the stores in the area even had to go into lockdowns because of this. And so now the big update that we're seeing is that Target is saying, "'No, thank you. I don't want in on this.'" With the company giving a statement to Bleeding Cool saying,

"'The safety of our guests and our team is our top priority. Out of an abundance of caution, we've decided to temporarily suspend the sale of MLB, NFL, NBA, and Pokemon trading cards within our stores effective May 14th. But no day and guests can continue to shop these cards online at target.com.

And it appears that they may not be alone and they may not be the last one, right? This comes over a week after Bleeding Cool reported that Walmart allegedly ordered trading cards to not be stocked for the foreseeable future because of what they referred to as inappropriate customer behavior. From that, I want to take a quick second

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And then let's talk about the situation with Bitcoin, Tesla and Elon Musk. Right, and while as of recording everything is fluctuating over the last 24 hours, Bitcoin crashed from a high of nearly $57,000 to a low of $46,000. Right, so we're talking about a 20% drop in value. And while Bitcoin is no stranger to volatility, the reason that we're seeing this massive sell-off

in particular appears to be in response to this tweet from Elon Musk, reading, Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which is the worst emissions of any fuel. Adding cryptocurrency is a good idea on many levels, and we believe it has a promising future,

but this cannot come at great cost to the environment. And that was very notable for a few reasons, right? This policy update comes after Tesla reported buying $1.5 billion in Bitcoin back in February, then in March accepting Bitcoin as a payment for their vehicles. With Tesla being a notable big part of kind of these established companies

and institutions embracing Bitcoin. But now you have Elon and Tesla kind of pumping the brakes, though notably saying Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. But also something that was concerning to people that were holding Bitcoin, saying we are looking at other cryptocurrencies

that use less than 1% of Bitcoin's energy slash transaction. With Musk actually tweeting this morning, a graph that shows Bitcoin's increasing energy use since 2016. And actually looking a little bit further into that, though, the researchers behind that graph reported back in March that Bitcoin's energy consumption had jumped 80% since the beginning of 2020.

But I do want to note there that that's not some sort of revelation. Like it is news that we've seen an 80% jump. Right, Bitcoin's potential impact on the environment has long been a subject of debate since mining takes a lot of electricity. Hell, I mean, just a few days ago, you had Ars Technica reporting that a defunct coal plant

in upstate New York has been restarted to mine Bitcoin. Back in January, you had Iranian officials partly blaming Bitcoin for massive blackouts in the country. But also, I do want to note, there are a lot of people that think that narrative is kind of complete bullshit. Companies like Square even putting out a white paper titled "'Bitcoin is Key to an Abundant Clean Energy Future,'

arguing that the Bitcoin network functions as a unique energy buyer that could enable society to deploy substantially more solar and wind generation capacity. But I mean, to properly dive into the energy debate, I mean, that's a video in its own right. Maybe we even do that in the future. This is more about the market and the social reaction to it, because with Musk making the announcement that he did, the response was not a ton of people cheering him on for this.

People like Dave Portnoy speak. There are very few things that you can be certain of in life. But you can always be sure the sun will rise each morning. You can bet your bottom dollar that you'll always need air to breathe and water to drink. And, of course, you can rest assured that with Public Mobile's 5G subscription phone plans, you'll pay the same thing every month. With all of the mysteries that life has to offer, a few certainties can really go a long way. Subscribe today for the peace of mind you've been searching for. Public Mobile. Different is calling.

Wendy's most important deal of the day has a fresh lineup. Pick any two breakfast items for $4. New four-piece French toast sticks, bacon or sausage wrap, biscuit or English muffin sandwiches, small hot coffee, and more. Limited time only at participating Wendy's Taxes Extra. The same guy's been pulling the levers like the wizard of oz on crypto and everyone following his every move he's sending dogecoin up he's sending bitcoin down this is Elon you have responsibility when one second you say to buy something and the next second you don't that's playing with people's futures their fortunes so i'm making similar

statements about trying to manipulate the market essentially arguing that there's no world where and the next second you don't, that's playing with people's futures, their fortunes. Some making similar statements about trying to manipulate the market, essentially arguing that there's no world where a guy as smart as Elon, who is invested in the space as he is, didn't know about the potential energy issues with it, that this is just him manipulating the market. Though some saying, because this was kind of

in a notes app apology format, instead of the meme lords format that he's kind of adopted, some thinking that maybe he was pressured into this move. Who really knows? And that is kind of where we are with this story. Almost all of the market, as far as crypto market is down right now. What I would say, especially to the people that are like,

Phil, what advice do you have on this space? I have no advice. I put an amount of money that I'm comfortable with losing if it all goes to zero into a thing. And then I just leave it there. I just don't have the emotional strength to be buying and selling with the volatility of the market. I just, I will miss out on things

that would give me exponential gains, but no, too much emotional bandwidth, baby. I'm barely functioning as is. Then when talking about COVID-19 vaccinations, one of the really interesting things has been kind of what companies and people are doing to incentivize people to get the vaccine. Because apparently the last year was not enough

of a nudge for some people. And so we've seen some offering a hundred dollars savings, bonds, $50 prepaid cards, even free alcohol. But now Ohio's Republican governor, Mike DeWine, took a step further on Wednesday, launching a weekly lottery program called Ohio Vax-a-Million, saying that five people in his state will win $1 million each for getting vaccinated.

With DeWine saying that the lottery will be open to residents 18 and older who receive at least one dose, the drawings start May 26th and the winners will be pulled from the state's voter registration database. And while the Ohio lottery will be conducting, the drawings of money will reportedly be coming

from the existing federal coronavirus relief funds. Also, as far as the younger folks, right, because vaccine eligibility is opening up to people as young as 12 years old, DeWine said that five vaccinated people between the ages of 12 and 17 will receive a full four year scholarship to one of the state's public universities

under a similar lottery program. And the reactions to these giveaways has been mixed. Some like state representative, Amelia Sykes, the top house Democrats saying, "'Using millions of dollars in relief funds in a drawing "'is a grave misuse of money "'that could be going to respond to this ongoing crisis.'" But you also have DeWine who appears

to have anticipated pushback like this tweeting, "'I know that some may say DeWine, you're crazy. This million dollar drawing idea of yours is a waste of money. But truly the real waste at this point in the pandemic when the vaccine is readily available to anyone who wants it is a life lost to COVID-19." And personally, I'm kind of for it.

Right, 36% of Ohio has been fully vaccinated, which is just slightly above the national average of 35%. Right, because the concerning truth of the matter is that the number of people seeking vaccines has dropped in recent weeks. Right, last week, the average was about 16,500 people starting the process, which is down from figures above 80,000 from April.

The question though, of course, is how effective of an incentive will this lottery be for people that are maybe more on the fence? Right, and I focus on them compared to the, there is a microchip in it, people. Yeah, we'll see. And worst case with it just being Ohio, it'll be a very interesting test case.

Also, since we're talking about money, we should definitely talk about jobless claims falling to a new pandemic low for the fifth straight week, dropping to 473,000, which is generally good news to see, especially considering the disappointing April jobs numbers that came out last week. But this new report also comes as a growing number of GOP led states are calling for federally increased unemployment benefits to end. In fact, that

number is now up to 16 states, and if extended benefits are pulled in all of them, that could affect nearly 1.9 million people, which would lead to about 550,000 of those people only being able to collect what their state's unemployment programs gave out prior to the pandemic, which unfortunately in some cases is actually well below the poverty line. And in some states, about 860,000 workers such as out of work Uber drivers or self-employed workers could be set to lose all of their benefits. With another 513,000 also potentially set to lose

all of their benefits because they've hit their state's yearly individual insurance cap. Right, and ultimately this comes down to a debate that we've talked about previously. We have a group of people including many Republicans saying that since the April jobs report was so bad, we're seeing that people are choosing not to go back to work and instead just stay on those enhanced benefits. But you have others in reports saying that since the April jobs report was so bad, we're seeing that people are choosing not to go back to work and instead just stay

on those enhanced benefits. But you have others in reports saying that the situation, the reality here is more complicated. They're saying that the slowdown isn't about laziness, but it's likely due in part to workers' concerns about their safety, difficulties in obtaining childcare, as well as just some jobs being shit, wages being too low, treatment being garbage,

finding suitable positions in hard hit industries is very hard. Like I'm a former server in a privileged position. When I'm going to restaurants, I'm either tipping 100% of what I ordered or $100. Not everyone's gonna do that, but how are you gonna call someone lazy for like not wanting to go back into the server industry

where they can pay you barely anything because you get tips in the United States, but the foot traffic is still not anywhere near where it was in a lot of places, right? And that's not to say that there aren't, of course, some moochers in the system. Whenever you have anything, there are gonna be moochers, people who exploit something.

But I also think for the greater majority, it's important we look at these situations and maybe try and learn and grow from it and change and evolve. But also in other news, that foot traffic may be changing soon because we saw the White House announcing today, big news from the CDC,

if you're fully vaccinated, you do not need to wear a mask indoors or outdoors in most settings. But ultimately with this story and honestly, anything else that stood out to you today, I'd love to know your thoughts in those comments down below because this is the end of today's show. As always, thank you for watching, liking, subscribing,

being a part of the DeFranco fam, I appreciate you. Also, if you're looking for more to watch right now, I got you covered right here with a regular news video. And actually, if you haven't yet, I'd love if you watch the YouTube short. I want any and all critiques or kind of things that you would like to see with it. It's essentially me testing it in public,

essentially workshopping it with you helping along the way. But with that said, of course, as always, my name's Philip DeFranco. You've just been filled in. I love yo faces and I'll see you next time.