Several points I think that are important to remember.
First, innuendos, to the best of my knowledge, have not been successfully used as a case for libel. And truth is always an absolute defense in libel cases. Many of IL's points of contention invlove supposed innuendos, but again, innuendos are difficult to use. For example, a typical defense would go like this:
"Is it true, Timothy Roberts, that your posted resume stated you worked for MCI Worldcom from X date to X date?"
"Yes"
"Is it true, Timothy Roberts, that MCI Worldcom filed for bankruptcy on X date?"
"Yes"
"Does it say anywhere outside of the 'Thoughts and Opinions' section that you caused the bankruptcy of MCI Worldcom?"
"No"
Now, you can argue innuendos until you are blue in the face, but regarding his work history, the statements made were entirely true. Kyle never says that Roberts caused the bankruptcies outside the 'Thoughts and Opinions' section.
Again, to reiterate this first point: Kyle never states in the body of the article that, for instance, Roberts caused the bankruptcy of Worldcom, he simply provides you the dates of Roberts' employment, and the date of Worldcom's bankruptcy. He leaves it up to you, the reader, to take from it what you will. And remember, it is not the law that you have to write an unbiased article so long as the statements in it are true.
Second, IL claims they offered Kyle a trip to see their office. Whether this is true or not, I do not know. However, I am a bit skeptical of anything that comes out of IL's mouth. This is a company that claimed to have no business ties with texas, even though they had an office in Richardson as of January, and still lease the space. This is a company that claimed to have 12 developers at one point, only to find out it was actually 1. This is a company that has claimed no fewer than 6 separate dates for release or beta, only to have each of them pass with nothing happening. I could continue, but I will stop there. I am not saying that the claim of offering Kyle an all-expenses paid trip is false, I am simply cautioning agains believing everything that comes from IL as the gospel truth.
Third, most libel cases require 3 things to be proven. First, you have to prove that what was said is actually false (and no, as I have shown above, to this point, innuendos do not count). Second, you have to prove malice or gross negligence. Malice being defined as knowing what you are stating is false, and gross negligence being defined as not caring enough to find out. Third, you must prove that damages were actually done. It is not enough to say that you think they were, you have to prove it. One other thing about libel as specifically applied to this case: anything under the 'Thoughts and Opinions' section cannot be libel, as opinions cannot be used in libel cases. Libel cases are quite difficult to win, and even if you do win, 75% of those cases are overturned on appeal to a higher court.
Fourth, you are correct that many startup companies take a while to get going. However, most startup companies do not miss self-created deadlines without giving some sort of explanation. IL has been in business for over 18 months now, and all they have been able to show is a working computer that I could build in a few hours. There has been no information on the network or the games. It would seem to me that it should not take 18 months to get a computer to work.
Fifth, going back to IL's credibility. IL has been involved in 3 lawsuits already involving lack of payment to employees or contractors. It should also be noted that, according to Bunnie Huang himself (www.whereisphantom.com), he has not been paid in full for his work he did over a year ago. And, according to Kevin Bachus, IL makes it sound like Huang is still working for them, which he is not. He did one white paper on security, did not get paid in full for it, and has long since moved on to other things. It should also be noted that, according to Huang's knowledge, they did not implement any of his suggestions.
Sixth, Kyle is not getting lawyers pro bono. He is already gone through a significant amount of money to fight this. I have seen [H] print corrections and retractions before, so consuming your savings over a case that he could not win would be downright stupid, and I do not think Kyle is stupid.
Seventh, your statement that Tim Roberts was not in the public eye is silly. Tim Roberts and IL were marketing this product in several trade shows before the article was printed. Tim Roberts and IL were fully in the realm of the public eye before the article in question was printed. On that note, libel is much much harder to prove for 'public' citizens and comapnies, than it is for private ones, and I doubt you will see the argument being made that Roberts and IL were 'private.' After all, there are negative things said about Bill Gates all of the time.
Eighth, SEC filings are public documents, and you are correct that their basic purpose is to inform investors. However, while not doing anything 'wrong,' there certainly are warning signs invloved. A reverse merger to become publically traded, two stock splits before you even release a product, a net worth of -1.7 million. It is up for the investor to decide if it is worth the risk. Remember, to be a venture capitalist, you do not have to be smart, you just have to have money and be willing to risk losing it. To be a successful VC, you have to be smart, but VC involves a lot of hit and miss anyway.
I think your take on the 'retraction' is a logical interpretation, but I disagree with you. I think that Kyle believed there were only 5 things that needed addressing, while the rest were simply an attempt to get him to remove information that was potentially damaging to IL, however true it was.
Let's recap. IL has little to no credibility at the moment. From being involved in numerous lawsuits over not paying employees or contractors, to claiming they had no ties to the state of Texas, to claiming they would release a product on this date, or start the beta on that date, etc. It has taken them quite a while to get a computer running, and essentially, at this point in time, that is all they have: a working computer. Regardless, remember that we are talking about a company that still has no product and has spent more money on litigation than on R&D, according to their SEC filing. Trying to find the truth in their talk is like walking through a room filled with mousetraps.
I agree with some of your points. [H] making a call for help is a bit puzzling, and there are still issues of contention with the article itself, however, things are not as cut and dried as your post seems to imply.
First, innuendos, to the best of my knowledge, have not been successfully used as a case for libel. And truth is always an absolute defense in libel cases. Many of IL's points of contention invlove supposed innuendos, but again, innuendos are difficult to use. For example, a typical defense would go like this:
"Is it true, Timothy Roberts, that your posted resume stated you worked for MCI Worldcom from X date to X date?"
"Yes"
"Is it true, Timothy Roberts, that MCI Worldcom filed for bankruptcy on X date?"
"Yes"
"Does it say anywhere outside of the 'Thoughts and Opinions' section that you caused the bankruptcy of MCI Worldcom?"
"No"
Now, you can argue innuendos until you are blue in the face, but regarding his work history, the statements made were entirely true. Kyle never says that Roberts caused the bankruptcies outside the 'Thoughts and Opinions' section.
Again, to reiterate this first point: Kyle never states in the body of the article that, for instance, Roberts caused the bankruptcy of Worldcom, he simply provides you the dates of Roberts' employment, and the date of Worldcom's bankruptcy. He leaves it up to you, the reader, to take from it what you will. And remember, it is not the law that you have to write an unbiased article so long as the statements in it are true.
Second, IL claims they offered Kyle a trip to see their office. Whether this is true or not, I do not know. However, I am a bit skeptical of anything that comes out of IL's mouth. This is a company that claimed to have no business ties with texas, even though they had an office in Richardson as of January, and still lease the space. This is a company that claimed to have 12 developers at one point, only to find out it was actually 1. This is a company that has claimed no fewer than 6 separate dates for release or beta, only to have each of them pass with nothing happening. I could continue, but I will stop there. I am not saying that the claim of offering Kyle an all-expenses paid trip is false, I am simply cautioning agains believing everything that comes from IL as the gospel truth.
Third, most libel cases require 3 things to be proven. First, you have to prove that what was said is actually false (and no, as I have shown above, to this point, innuendos do not count). Second, you have to prove malice or gross negligence. Malice being defined as knowing what you are stating is false, and gross negligence being defined as not caring enough to find out. Third, you must prove that damages were actually done. It is not enough to say that you think they were, you have to prove it. One other thing about libel as specifically applied to this case: anything under the 'Thoughts and Opinions' section cannot be libel, as opinions cannot be used in libel cases. Libel cases are quite difficult to win, and even if you do win, 75% of those cases are overturned on appeal to a higher court.
Fourth, you are correct that many startup companies take a while to get going. However, most startup companies do not miss self-created deadlines without giving some sort of explanation. IL has been in business for over 18 months now, and all they have been able to show is a working computer that I could build in a few hours. There has been no information on the network or the games. It would seem to me that it should not take 18 months to get a computer to work.
Fifth, going back to IL's credibility. IL has been involved in 3 lawsuits already involving lack of payment to employees or contractors. It should also be noted that, according to Bunnie Huang himself (www.whereisphantom.com), he has not been paid in full for his work he did over a year ago. And, according to Kevin Bachus, IL makes it sound like Huang is still working for them, which he is not. He did one white paper on security, did not get paid in full for it, and has long since moved on to other things. It should also be noted that, according to Huang's knowledge, they did not implement any of his suggestions.
Sixth, Kyle is not getting lawyers pro bono. He is already gone through a significant amount of money to fight this. I have seen [H] print corrections and retractions before, so consuming your savings over a case that he could not win would be downright stupid, and I do not think Kyle is stupid.
Seventh, your statement that Tim Roberts was not in the public eye is silly. Tim Roberts and IL were marketing this product in several trade shows before the article was printed. Tim Roberts and IL were fully in the realm of the public eye before the article in question was printed. On that note, libel is much much harder to prove for 'public' citizens and comapnies, than it is for private ones, and I doubt you will see the argument being made that Roberts and IL were 'private.' After all, there are negative things said about Bill Gates all of the time.
Eighth, SEC filings are public documents, and you are correct that their basic purpose is to inform investors. However, while not doing anything 'wrong,' there certainly are warning signs invloved. A reverse merger to become publically traded, two stock splits before you even release a product, a net worth of -1.7 million. It is up for the investor to decide if it is worth the risk. Remember, to be a venture capitalist, you do not have to be smart, you just have to have money and be willing to risk losing it. To be a successful VC, you have to be smart, but VC involves a lot of hit and miss anyway.
I think your take on the 'retraction' is a logical interpretation, but I disagree with you. I think that Kyle believed there were only 5 things that needed addressing, while the rest were simply an attempt to get him to remove information that was potentially damaging to IL, however true it was.
Let's recap. IL has little to no credibility at the moment. From being involved in numerous lawsuits over not paying employees or contractors, to claiming they had no ties to the state of Texas, to claiming they would release a product on this date, or start the beta on that date, etc. It has taken them quite a while to get a computer running, and essentially, at this point in time, that is all they have: a working computer. Regardless, remember that we are talking about a company that still has no product and has spent more money on litigation than on R&D, according to their SEC filing. Trying to find the truth in their talk is like walking through a room filled with mousetraps.
I agree with some of your points. [H] making a call for help is a bit puzzling, and there are still issues of contention with the article itself, however, things are not as cut and dried as your post seems to imply.