Jill Kelly Releases All Rights to Copyrights

WOODLAND HILLS, Calif. — Jill Kelly Productions has submitted to the U.S. Bankruptcy Court a final list of the company’s assets that will be put up for auction on April 17 at 3 p.m. on the 3rd floor of a Woodland Hills courtroom.

Kelly also agreed in the supplemental motion that she “personally will not assert any rights with respect to any of the titles, masters, copyrights, etc., being sold…. In other words, she will release the Buyer from any claim of hers with respect to any personal rights she may have to the titles, masters, copyrights, etc.”

Aram Ordubegian, attorney for the group of unsecured creditors that got permission from the court to hold the action, told XBIZ, “Whether she has any such rights is still an open question.”

Kelly has been appointed by the court as the temporary "responsible person" or the point person for JKP. Regardless of her statement releasing claims, she may, along with other former officers and directors, have to answer for JKP’s past actions that landed the company in financial distress.

JKP lists about 85 creditors, with more than $3 million in liabilities. Its largest and only secured creditor is XGen LLC, owned by Frank and Michael Koretsky, who also own International Video Distributors, Pleasure Productions and Whipsmart Toys.

XGen will be the first creditor paid with proceeds from the auction and has been offered the first opening bid at $700,000. If no one else comes forward to overbid XGen, the Koretsky’s will take control of JKP’s primary assets.

Though it is impossible to assign a specific monetary value to the assets, the company’s substantial library of packaged DVDs represents the greatest asset.

An inventory spreadsheet shows more than 200,000 burned and packaged DVDs, with more than 500 titles ranging from a single copy of the original production “Tyler’s Crazy Horny” to 2,112 copies of “Stone of Pleasure” from European studio Blu Pictures, which had been distributed in the U.S. by JKP production arm, JK Distribution.

There are another 65 unreleased masters in various formats including Betacam, DVD and DV cam, some with multiple softcore, hardcore, X and double-X versions.

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