Websites focused on Baylor sports at odds over royalty payments
BaylorFans.com filed a lawsuit alleging breach of contract and fraud against the owners of SicEm365.com
WACO, Texas (KWTX) - Two websites focused on Baylor University sports are at odds over royalty payments from a licensing agreement when the two sites merged in July 2017.
The owners of BaylorFans.com filed a lawsuit last week alleging breach of contract and fraud against the owners of SicEm365.com. The suit, filed in Waco’s 170th State District Court, seeks damages of more than $250,000 but less than $1 million.
Waco attorney Mason Dunnam, who represents BaylorFans.com, declined comment on the pending litigation.
Sean Urich, a Dallas attorney who represents SicEm365.com directed KWTX to a statement owners Ashley Hodge and Colt Barber issued Monday about the lawsuit. They said their company has “acted in good faith to comply with the contract and strongly denies all of BaylorFans’ claims.”
“We are confident that we have handled our dealings with Baylorfans.com with integrity, and we are disappointed and surprised that its owner Jason Stewart never approached us to discuss his complaint before retaining legal counsel and taking legal action,” the statement says. “While SicEm365 is confident in our position, we would prefer to reach an amicable resolution with Baylorfans.com rather than remain in a dispute.”
According to the lawsuit, the two websites entered into a licensing agreement in 2017 that defines the database of users of the BaylorFans.com site as “licensed good.”
“The license agreement provides that Defendant is permitted by plaintiff to use the licensed good in order to build defendant’s database of users and subscribers to the website owned and operated by Defendant called ‘SicEm365.com.’”
The agreement also called for BaylorFans.com to redirect web traffic from it’s website to SicEm365, support it with “consulting services” and granted SicEm365 exclusive right to use the license good worldwide, the suit alleges.
In exchange, SicEm365 agreed to pay BaylorFans a percentage of monthly gross revenues generated from third-party advertising.
“Defendant has failed to remit royalties on multiple local sponsorships and barter arrangements, including but not limited to Brazos Parking, Baylor Club, Barrow Law and StartUp Waco,” the lawsuit claims.
“Defendant has received value in exchange for said sponsorships without compensation to Plaintiff claiming no value was received by Defendant. Under the licensing agreement, royalties are based on gross revenue, not net profit. Defendant’s failure to pay constitutes a material breach.”
The lawsuit also alleges SicEm365 “has intentionally concealed revenues, misclassified sponsorships and made false representations about advertising income and accounting” to avoid paying BaylorFans.
“Defendant has failed to cure defaults despite notice of the same,” according to the lawsuit.
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