Promoters' sleuths keep eye on businesses ordering fight

Last night was fight night, with the rematch between Manny Pacquiao and Timothy Bradley broadcast on big screens across the nation.

As thousands of fans traipsed into bars and restaurants to catch the big fight, a small army of corporate detectives lurked in the background, hoping to catch something else.

Paid by the promoters of the closed-circuit televised event, these sleuths were on the lookout for bar owners who show the Pacquiao-Bradley fight without paying the commercial rate, which dwarfs the fee to watch in your living room.

The fees are steep. Businesses are charged based on size; the more seats, the higher the fees. Those with up to 50 seats must pay $1,600 for the Pacquiao-Bradley fight; those with 51 to 100 seats will be charged $2,200.

Pay-per-view promoters go to great lengths to punish piracy by business owners. They have filed thousands of lawsuits against bars, restaurants, taquerias and barbershops for illegally airing boxing and Ultimate Fighting Championship matches to large audiences.

The consequences can be severe. Loren Minnis said it contributed to the downfall of his business.

After investigators found that his Lake Elsinore, Calif., bar showed a Floyd Mayweather Jr. fight without paying the commercial rate, the closed-circuit promoters sued. Minnis said his brother, a co-owner, paid $23,000 to settle the lawsuit, then closed the bar. "You're in the first year with the bar, and all of a sudden you get this astronomical setback," he said.

Last night, investigators from J & J Sports Productions Inc. will be on patrol. The company, the same one that sued Minnis, owns the commercial broadcast rights to the rematch between Pacquiao and Bradley.

Since 2010, J & J -- based in Campbell, Calif. -- has filed more than 1,600 lawsuits against small-business owners for showing boxing matches without paying commercial rates. The lawsuits often seek more than $100,000 in damages.

Joseph Gagliardi, president of J & J Sports Productions, defends the company's aggressive tack. He sent out 500 investigators last night to help him build evidence for the next batch of lawsuits. "I'm not in business to sue people," he said. "But I've got to do it for one reason: to protect the clientele who are doing it right." The aggressive litigation extends to other sectors of the sports and entertainment industry.

Anthony R. Caruso, a New Jersey sports and entertainment attorney, said companies have to zealously protect their copyrights. But the rules are simple, Gagliardi said: Before playing the event, any business that's open to the public must pay the promoter that bought the commercial rights.