"I didn't bother to read it" is not a defence.
I can't agree with this. Whether or not there is a contractual relationship between the provider and Kickstarter does not negate the contractual relationship between donor and provider. As per section 4 of their terms...
"Kickstarter provides a funding platform for creative projects. When a creator posts a project on Kickstarter, they’re inviting other people to form a contract with them. Anyone who backs a project is accepting the creator’s offer, and forming that contract.
Kickstarter is not a part of this contract — the contract is a direct legal agreement between creators and their backers."
The contract between provider and donor is a classic type of contract. The donors are giving consideration in exchange for something. To claim that isn't a contract is bizarre. Donors don't fund Kickstarter or expect any kind of return from them. They do it with the providers.
Again, anything between Kickstarter and the rights holder is separate from Peters and the donors, as is it's relationship with Peters as a platform. At most they can be said to have acted for an agent for Peters. But that doesn't mean that Kickstarter somehow acts as a barrier between donor and provider, as that's simply not true. Whatever relationship Kickstarter has with either the donors or Peters, it doesn't mean that it prevents a contract existing between donor and provider.
Wrong, for the reasons I have stated above.
Why should they be vetting projects? If you agree to their terms of service and then they find themselves sued because of your actions they can then seek an indemnity from you on the basis that you lied to them about having consent to use the IP....and that being so doesn't somehow wash away any separate agreement between Peters and donor.
You have a situation here where Peters has specifically agreed to the Kickstarter terms of business. Those terms of business state:-
"You won’t submit stuff you don’t hold the copyright for (unless you have permission)."
Peters agreed to those terms knowingly without having permission. What's more he continued to seek and receive funds after specifically being told by CBS/Paramount that permission wasn't given in a press statement, and failing to secure explicit permission in a meeting with them in person. He intentionally used the service when he knew he had no permission from the IP holder and simply pointing to other fan films that were also doing it, as he has done, is not good enough excuse for using Kickstarter in the absence of those permissions in my opinion.
Peters use of the service and his promotion of the project through it is done on the basis that he has the IP holder's permission. When a donor signs up to Kickstarter they are presented with the terms and asked to agree. Saying "they might not bother to read them" is not an excuse given that they indicate they accept them in order to use the service.. Think of Kickstarter as a shop window. When you buy something from a shop you don't contract with the shop window, or any other form of advertising, do you? You contract with the person insider selling the goods. What if the person advertises those goods in the window as genuine and a customer buys them only to discover they are counterfeit? Who are you going to complain to? The person who sold you the goods or the window? Kickstarter is an advertising and promotion platform. It bring contracting parties together for a commission, in much the same way as an employment agent or a real estate agent might.
Like I say, I am extending nothing. I am saying that it is entirely possible for the donors to have a contract with Peters entirely separate from any relationship or claim that either might have against Kickstarter.
And? That doesn't mean he hasn't still breach the KS terms of service. Not all donors will read "campaign documents". They will however all be required to accept the KS terms of service. How many small sum donators do you think read the "campaign documents"? How many do you think just watched the video and though "I want more of that"? Plus, I'd argue that while Peters did not say he had permission he effectively made the case that he had implied permission by pointing towards toleration of other fan films as evidence for being able to do his. What's more from August 2015 the question of permission was explicitly clear and no lounger ambiguous, and he carried on using Kickstarter to raise funds anyway. Hell, he continued to crowd fund even after the law suit. So even if you argue there was no breach when he started using KS (which I would disagree with), one certainly had occurred by August 2015.
Like I say, Peters basically made the case he had implied permission....and no that would not "trump" the KS terms of service for the reasons I said above. If he didn't have permission he should not have used the KS platform full stop. He didn't have permission but then proceeded to use a service that required him to have it, knew he needed to have it to use that service and then accepted money from people. If anything the "campaign documents" show he knowingly used the service without the required permission. You can't simply sit there and say "oh well, it's Kickstarter's problem for not checking" when Peters himself told them he had permission when he clicked "I agree to your terms"!!
Well, I'd say that the issues we are discussing aren't too much of a problem for the donors because of the contract that exists between them and Peters. They paid him in return for a completed movie. If the litigation makes that impossible then he has failed to fulfil that contract and they are entitled to their money back on the basis of breach. Criminality, etc doesn't reality matter where that's concerned and the failure to deliver is a straightforward and less complex breach. In order to claim their money back they only need show such a breach...and it is likely that this litigation will create just that situation. I think misrepresentation, fraud and criminality only really come into play on a practical level if the breach of contract is not as cut and dried. But, like I say, I think the reality is that the donors won't even need to explore that, even if it has been found to occur, because they only need to demonstrate his failure to deliver to legally be entitled to their money back, which the outcome of the trial will likely give them if they are patient until next year (unless by some miracle he still gets to make the film).
Of course, whether Peters has the money to repay all donors is another matter entirely.......