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Fighting Back

What about people who don't have any dispute with soundchoice, ie haven't been sued, but wish to have their library audited simply for the fact that they want to prove they are legit *ie have something they can show potential gigs. What should they do?

I can see where someone who signed the above agreement would certainly be seen as guilty.

Especially clause 2

"EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting. In
summary, you have been accused of playing karaoke accompaniment tracks that include a display of Sound Choice
trademarks, without owning a legal CD+G disc containing that track for each system on which you store that track."

I would also have a problem with someone marking my discs. Recipts from stores DO fade rather quickly because of the cheap paper they use it has nothing to do with the ink.

The only way i'd be ok with it, is if there was some kind of agreement before hand that if I want to sell my discs, I could contact soundchoice and then they would note the number or whatever marking they left and allow it to be transfered to another KJ with an accompanied bill of sale *so everyone would have a copy*

I certainly have no issues with showing ANYONE who asks me my collection.

However given all that, for me PERSONALLY i know i would not pass an audit under the above conditions/agreement.

Here's why.

1. I have downloaded karaoke tracks I have not bought cd+gs for. Usually it was to evalute whether i wanted to bother buying the disc or not. I always deleted the track after deciding not to buy the disc.

I have also downloaded tracks that i do own to save a bit of time from ripping my discs AND to obtain uncorrupted graphic files for the songs that I own *ie my discs were damaged enough that a clean rip was no longer possible*

2. I have no reciepts for any of my collection prior to becoming a karaoke host. Also, after i file my taxes, i usually throw everything out because I have a problem organizing things due to my disability.

3. I have bought numerous digital download tracks from websites such as Tricerasoft *including top hits monthly before I knew that they never autherized any such use of their tracks*, SBI in the UK and Zoom and Sunfly directly. I do have email copies/reciepts for these sales tho.




Now that i am better informed on how piracy affects the industry, and me personally I will be a lot more strict on how I conduct my business affairs and I will no longer be downloading anything, unless its directly from the producer.

I seriously doubt that the music publishers will be coming after me any time soon, but i do acknowledge that it is possible.

-James
 
Thunder said:
Joe,

To sum it all up neither do you! That would make it all supposition on both our parts!

At this time, I can't be wrong and you can't be wrong, the only thing that we both know as an absolute is neither one of us knows what the outcome will!

Kinda right, and I'm tempted to agree just to kill the thread.

However, me being me I have to add that though I have at least presented some EVIDENCE that you may be incorrect, no one has done the reverse so far..

Sorry, I had to do that. It's not meant as a dig of any sort, but only to solidify my point.

Thanks for tolerating my rants. If Mikey V were still around he probably would have done a better job than I did.
 
This is sort of off the "fight" subject but maybe more toward the original "fighting back" topic. I was just thinking of a statement made by a long-time legit host who said, "I don't buy new music anymore. If someone can't find something to sing among 2000 songs then there is something wrong with them." This person also has used the venue's little juke box speakers rather than lug his own as it is "good enough for here."

That got me to reading the on line reviews (for what they are worth) of other established hosts in the area. On-line reviews are a bit suspect but a common theme was, "Host is a great person but the sound sucks and the selection is poor. Had fun anyway."

So then I wondered, if a legit host isn't offering a better product than a swashbuckler, why NOT pay the swashbuckler less for more songs? So aren't the legit hosts who have gotten burned out or lazy also contributing to the problem by setting up a situation where the swashbucklers look like a good deal?

Just offering a better product isn't enough in this situation--no one is used to anything different. It will take a lot of PR work to break through to get the chance to prove better will necessarily bring in more people.
 
Possum,

I buy new music every month, I make sure that I have the best possible sound for each venue I am in!

I recently had a group come to one of my shows (just passing through) from the Boston area who said they were all big Karaoke fans and they had never been to any place in boston that had as good of a sound and/or mix than I did. They asked where my show was the next night because they thought they would stay in C-ville an extra night just to go to karaoke again!

If a Host is laying down because what he has is good enough then he should be pushed out of the way!

Sorry Joe, but you didn't have any evidence either!
 
jclaydon said:
I can see where someone who signed the above agreement would certainly be seen as guilty.

Especially clause 2

"EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting. In
summary, you have been accused of playing karaoke accompaniment tracks that include a display of Sound Choice
trademarks, without owning a legal CD+G disc containing that track for each system on which you store that track."


-James

This is not by any means stating that you agree that you have been found to be operating illegally... see the bolden word.... "Accused"....

Being accused of something and the accusation being proven true are two different things..... I can accuse you of farting. That doesn't mean it was you.... until I've collected enough evidence to prove my accusation. How I go about collecting that evidence is up to me but, without it the fart could have eminated from the dog sitting under your chair.

Same with Sound Choice... they can accuse you of trademark infringement all they want... but, in the end they have to prove it. Saying it's true doesn't make it so. So they employ library audits as a method of proving their case, or disproving it.

All you are acknowleging is that you are accused of something and as a means to an ends you are giveing Sound Choice permission to investigate your library via an audit.

Even if they do find a discrepency at the audit you are still not guilty of any wrong doing until they present the evidence and you present yours and the judge decides who's evidence is better and makes a ruleing.... if it goes to court instead of you reaching a settlement with Sound Choice ahead of it.
 
Thunder said:
Sorry Joe, but you didn't have any evidence either!


Sorry Steve, but you skipped what you didn't like- Again. But hey, I don't mind re-posting:


Here's what I have shown, using your own words.....

1) You stated that Dan is a pirate, without any disclaimers ( "in my opinion" or "I think", etc....) without any proof, and I quote you: - " ..because DanDan chose to run karaoke illegally That is as simple as it can be made!"
- AND you stated that you would be willing to undergo SC's audit, which includes an admission of guilt.

This is EVIDENCE that your knowledge of the law is not quite as solid as you claim.


2) Your statements regarding Dan have given credence to mine regarding damage to a reputation though PROOF of guilt has yet to be shown. EVIDENCE that my statements in this regard are correct.


3) Several people have mentioned that there was only a SINGLE case of a mistake- the one where the host was actually disc based ( 'cause he's smart..), but what about the one where SC claimed to have had investigators at a specific venue on a specific day and date, where they allegedly saw a specific host displaying their logo improperly.

Don't remember that one? It ended up that not only was that specific KJ NOT THERE at the time, he wasn't even EMPLOYED there then. Apparently they got the name from an old web site.

Either SC was untruthful about investigating, or the investigators fabricated results. ( Personall, I think it was the first.) There's no way around that. Someone LIED.

EVIDENCE that SC does not always work in a truthful manner. That being established, things they allege in regard to KJs must be taken with a grain of salt.

BTW- Just because SC mistakes may not all be publicized ( and if SC were smart, I'm sure they would keep that from happening as much as possible) doesn't mean others don't exist.

4) There has been a side debate here ( which I haven't been involved in) about the legality of "John Doe" suits.

The fact is that legality is the smaller issue. If SC were actually INVESTIGATING, why would "John Doe" suits be neccesary at all? If they were investigating they would KNOW the names of the alleged offenders, would they not?

EVIDENCE that SC is NOT performing proper investigations prior to their actions.

Note use of the word "evidence", not "proof". However, the evidence of my statements IS there.
 
jokerswild said:
This is not by any means stating that you agree that you have been found to be operating illegally...
All you are acknowleging is that you are accused of something and as a means to an ends you are giveing Sound Choice permission to investigate your library via an audit.

No. If you sign an acknowledgement that includes the following...

""EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting"

Then you acknowledge that the above is true, whether it is or not. You acknowledge and agree that:

1) An SC rep has visited your show. ( maybe, but not from what I've seen).

2) Evidence has been collected ( Photos, Song lists, and other info) that shows a high probability that you have committed trademark infringment. This is almost certainly untrue, even if you ARE guilty. Think about it:

An investigation is by definition a fact finding mission, right? Well, if there really WAS an investigation wouldn't one of the basic facts an investigator needs is who they are investigating- right???? This is kinda common sense. ( EVIDENCE of non-investigation, Thunder)Since the use of "John Doe" suits has been shown, this means that there probably has been NO "investigation" at all, so no evidence of wrong doing has probably ever been found. Yet the Audit Acknowledgement, if signed by a foolish host, is an agreement that they DID find evidence, and incriminates the host.
 
Last post on this subject until such time as there has been a trial on the matter between Sound Choice and someone! Because everything has already been pretty well covered and nothing is going to change until the above happens!

JoeChartreuse said:
Sorry Steve, but you skipped what you didn't like- Again. But hey, I don't mind re-posting:


Here's what I have shown, using your own words.....

1) You stated that Dan is a pirate, without any disclaimers ( "in my opinion" or "I think", etc....) without any proof, and I quote you: - " ..because DanDan chose to run karaoke illegally That is as simple as it can be made!"

I simply repeated what was alledged in the Sound Choice suit, two different things!


- AND you stated that you would be willing to undergo SC's audit, which includes an admission of guilt.

I stated and still do that i would be willing for Sound Choice to audit my library, there is a big difference!

This is EVIDENCE that your knowledge of the law is not quite as solid as you claim.

No! That is evidence that that you aren't very aware as to what a libel is! Repeating what is in a Court Document is not and can not be libel on my part!


2) Your statements regarding Dan have given credence to mine regarding damage to a reputation though PROOF of guilt has yet to be shown. EVIDENCE that my statements in this regard are correct.

For a reputation to be damaged it has to directly reflect loss of income or the ability to get a job for which you were qualified or that it affects your standing with your peers! But you are correct on one point here "PROOF of guilt has yet to be shown"!


3) Several people have mentioned that there was only a SINGLE case of a mistake- the one where the host was actually disc based ( 'cause he's smart..), but what about the one where SC claimed to have had investigators at a specific venue on a specific day and date, where they allegedly saw a specific host displaying their logo improperly.

Don't remember that one? It ended up that not only was that specific KJ NOT THERE at the time, he wasn't even EMPLOYED there then. Apparently they got the name from an old web site.

Show me!

Either SC was untruthful about investigating, or the investigators fabricated results. ( Personall, I think it was the first.) There's no way around that. Someone LIED.

Or is lying!

EVIDENCE that SC does not always work in a truthful manner. That being established, things they allege in regard to KJs must be taken with a grain of salt.

As well as taking what some KJ who has been charged with a violation tells you with a grain of salt!

BTW- Just because SC mistakes may not all be publicized ( and if SC were smart, I'm sure they would keep that from happening as much as possible) doesn't mean others don't exist.

Just as some of the mistakes claimed by KJs may very well not exist!

4) There has been a side debate here ( which I haven't been involved in) about the legality of "John Doe" suits.

John Doe Suits are used all the time by the Federal, State, and Local Governments, I would say that if their use were a legality issue the people discussing it should probably start looking there!

The fact is that legality is the smaller issue. If SC were actually INVESTIGATING, why would "John Doe" suits be neccesary at all? If they were investigating they would KNOW the names of the alleged offenders, would they not?

You are right there shouldn't be any need for a John Doe suit or warrant, yet you want the biggest users of John Doe complaints to be in charge of investigating Karaoke!

EVIDENCE that SC is NOT performing proper investigations prior to their actions.

Note use of the word "evidence", not "proof". However, the evidence of my statements IS there.

I still haven't seen any evidence from you that supports your position, that hasn't easily been countered!
 
JoeChartreuse said:
No. If you sign an acknowledgement that includes the following...

""EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting"

Then you acknowledge that the above is true, whether it is or not. You acknowledge and agree that:

1) An SC rep has visited your show. ( maybe, but not from what I've seen).

2) Evidence has been collected ( Photos, Song lists, and other info) that shows a high probability that you have committed trademark infringment. This is almost certainly untrue, even if you ARE guilty. Think about it:

An investigation is by definition a fact finding mission, right? Well, if there really WAS an investigation wouldn't one of the basic facts an investigator needs is who they are investigating- right???? This is kinda common sense. ( EVIDENCE of non-investigation, Thunder)Since the use of "John Doe" suits has been shown, this means that there probably has been NO "investigation" at all, so no evidence of wrong doing has probably ever been found. Yet the Audit Acknowledgement, if signed by a foolish host, is an agreement that they DID find evidence, and incriminates the host.

I disagree....

You are not admiting to anything or acknowleging anything to be true and actual... remember at that point you are only accused not convicted.

For that "evidence" they say they have collected to be used against you it has to be presented to you in a court of law or in arbitration until then it's just evidence that is neither for or against you.

I have read that document as presented here and I read no statements that state that by signing this you are admiting guilt in anything. It is mearly a consent to audit (ie search).

You most certainly can refuse and then that forces SC to obtain court ordered warrents, for lack of a better word, to audit your library thereby in the end if in fact you are in violation of their trademark will end up costing you more money then if you had submitted to their earlier, and voluntary, audit.

Whether or not you agree with the method or not submitting to this voluntarily to prove that you in fact are operating in a legal, or as legal as possible with a 1:1 of disc to song, is entirely up to the accused individual.

If, knowing I was fully legal according to the constraints of the audit I would have zero problem signing the consent and submit my library for inspection. Why? Because I know that once done I will be removed from their list of defendants. Done.

Again, I don't read any admission of guilt into them stating that they think they have evidence against me.... that is simply a statement to boister their need to inspect and fortify their supposed evidence because wthout that solid proof of which they apparently don't have other than photo's of your video screen and copies of book, until they have solid proof that you in fact have their music either on burned disc or pc file but no original disc they have exactly squat and would have to take it to court and force you to prove it costing more money to them and you if you are in fact in trademark violation.
 
SC would have to PROVE you bootlegged their product.

Having a drive filled with BILLIONS of tracks does not prove they were pirated.
 
Admission of Guilt?? Where?

Thunder said:
Joe!

You have requested that your karaoke library be audited in order to have this information considered as one of the factors in
resolving a dispute between you and Sound Choice Studios, Inc., and Slep-Tone Entertainment Corp. (together, “Sound Choice”).
Your signature below indicates your acknowledgement of the following terms for this audit:


Did any of you guys even bother reading what is in this document?

Where in there did you find anything thing that say if you sign it you are saying you are quilty of anything?

Who is to say that SC isn't doing just that type of investigation right now! Do you know that they are not?

BTW, there is nothing you can do on this subject that will get a rise out of me Joe!:sqwink:

Lone Wolf,

Old News Buddy but still didn't cover the point, "Show me where anyone has stated that it has damaged them (ie: lost gigs, lost patrons, lost revenue) without an actual damage then any suit would be baseless!

Lone Wolf, thank you for posting (again) the Sound Choice Audit Procedure. As Thunder pointed out - WHERE IN THE DOCUMENT IS THERE AN ADMISSION OF GUILT?? Yes, the terms of audit are strict, but to be honest, the tough terms are there as a warning to those PIRATES who think that they can "escape" by trying to fool or cheat us via some trickery during or before the audit. NOTE I said "pirates" - those who are in 1:1 compliance are not considered "pirates" and don't have to worry about the terms and conditions, because we actually have not been as strict (at our option and sole discretion) in the few audits we have done. Of the few who have requested an audit, none have failed. BUT LET ME SAY HERE that some of those audits were people NOT named in any suit, but they wanted to undergo a voluntary audit in advance and obtain a letter from us that they could take to their venues showing that they were legal. We have actually "toned down" the language of the audit since this was first posted to acknowledge an occasional missing disc.

Instead of an "admission of guilt" if someone signs our audit terms letter, we feel it is a strong "protest of innocence", given the escalating penalties if the audit is failed. And if someone named in our suit really is completely "innocent" (or let's cut them some slack and say 95%+ 1:1 ) then why would they not want to quickly go through the process to get the suit dropped?
 
Sound Choice is harassing DJ's in order to raise awareness. The music industry pulled the same stun when they filed suits against 9 year old girls. Do we allow Ford to pull us over to verify our car is not stolen?

I suggest they get with the times and offer $1.99 downloads for new songs and $1.00 for old ones before we get together and oppose SC. How many KJ's would be willing to stop buying SC because of what they are are doing to our friends?

People with thousands of dollars invested in SC should not have to worry about SC coming to them with a law suit simply because SC can find no other way to raise awareness.
 
Streaker said:
Sound Choice is harassing DJ's in order to raise awareness. The music industry pulled the same stun when they filed suits against 9 year old girls. Do we allow Ford to pull us over to verify our car is not stolen?

No but Ford could and would file a lawsuit against you for copying their cars!

I suggest they get with the times and offer $1.99 downloads for new songs and $1.00 for old ones before we get together and oppose SC. How many KJ's would be willing to stop buying SC because of what they are are doing to our friends?

None, those who have always bought Sound Choice products will continue to do so, those that have never bought Sound Choice products will propable continue not buying Sound Choice products! Those who have stolen Sound Choice products will hopefully be caught and forced to pay for them!

People with thousands of dollars invested in SC should not have to worry about SC coming to them with a law suit simply because SC can find no other way to raise awareness.

People with thousands of dollars invested in SC don't have to worry about SC coming after them with a lawsuit simply because SC is filing suits against those who have pirated music from them!

**** it I had to past again to answer another uninformed poster!:sqlaugh:

(should have been post)
 
jokerswild said:
I disagree....

You are not admiting to anything or acknowleging anything to be true and actual... remember at that point you are only accused not convicted....

I have read that document as presented here and I read no statements that state that by signing this you are admiting guilt in anything. It is mearly a consent to audit (ie search).

......................................

Again, I don't read any admission of guilt into them stating that they think they have evidence against me.... that is simply a statement to boister their need to inspect and fortify their supposed evidence because wthout that solid proof of which they apparently don't have other than photo's of your video screen and copies of book, until they have solid proof that you in fact have their music either on burned disc or pc file but no original disc they have exactly squat and would have to take it to court and force you to prove it costing more money to them and you if you are in fact in trademark violation.


We'll have to disagree Rob- copying and pasting myself is bad form but:


""
""EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting"

Then you acknowledge that the above is true, whether it is or not. You acknowledge and agree that:

1) An SC rep has visited your show. ( maybe, but not from what I've seen).

2) Evidence has been collected ( Photos, Song lists, and other info) that shows a high probability that you have committed trademark infringment. This is almost certainly untrue, even if you ARE guilty. ""

In other words, if you sign this, you:

1)... acknowledge that they have gathered evidence against you, when in fact they may ( and probably haven't) not have- that's incriminating.

2) ..acknowledge that this allegedly gathered evidence presents a high probability of guilt- that's incriminating.


3) ...acknowledge first hand that an investigator actually showed up at your show, adding credence to 1 and 2- that's at best, no help.

Also, considering that"John Doe" suits alone are enough to cast huge doubts on any "investigation" at all ( hard to investigate someone if you don't know who they are...:sqerr:), The chances are that none of the above 3 things ever happened. Why sign a document that says it did? As a matter of fact, if you have no first hand knowledge at all that it did, signing it would be wrong anyway.

Also, this document, despite what Thunder edits out or skips, is part of Sound Choice's audit process- whether to "investigate" for due cause, or for a voluntary audit to show legitimacy. If you want an audit, signing this document is a part of this process.

Now, if you can get the audit done without it, fine- but it's not SC's SOP.

...And a lot of this is way off the track of my original problem with SC anyway:

Making it clean and simple: ( Again, using the word EVIDENCE, not PROOF)

I've presented evidence ( thanks to Steve) for something that's just common sense: If someone says something bad about you - even if untrue- and even one person believes it, it tarnishes and diminishes your reputation.

I have presented evidence for something else that's just common sense: My opinion that any "investigation" by SC is either minimal or nothing. The use of "John Doe" suits ( because they don't even gather the most basic fact- WHO they are investigating), errors in names, dates, equipment, etc... ( I mean, if you actually just walk into a show- without asking any questions at all- you can look at the equipment, get the name of the host off of the books, or slips, (or yes, you can also just ask), and check the date on your cell, right?

Now, to my original gripe:

If you combine the above: Make accusations, and talk about them, without proper investigation, than the businesses of INNOCENT KJs can be damaged. I find that unethical, and think it should be stopped. Of course, my ethics aren't everyone's... This can be done very easily- If SC wishes to pusue their lost profits, do so- but with the proper and professional INVESTIGATION they already CLAIM to be doing! In other words, do what you say you are-

Also, to get more cooperation regarding VOLUNTARY audits, get rid of the incriminating documentation. How hard was that??? Then ONLY the guilty would be accused, and ONLY the guilty will be asked for re-payment, and there would be no intimidation attempts on innocent KJs. SC would recoup what they are ENTITLED to. All problems solved, and everybody but the guilty happy, right?

Now, if SC continues to use the same methodology as they have so far, it would be my opinion that maybe SC is looking for MORE than they are entitled to. Of course, that's just me.
 
Joe,

I hate reposting something that was just above your own post but apparently..... you missed it!:sqlaugh:

Sound Choice said:
Lone Wolf, thank you for posting (again) the Sound Choice Audit Procedure. As Thunder pointed out - WHERE IN THE DOCUMENT IS THERE AN ADMISSION OF GUILT?? Yes, the terms of audit are strict, but to be honest, the tough terms are there as a warning to those PIRATES who think that they can "escape" by trying to fool or cheat us via some trickery during or before the audit. NOTE I said "pirates" - those who are in 1:1 compliance are not considered "pirates" and don't have to worry about the terms and conditions, because we actually have not been as strict (at our option and sole discretion) in the few audits we have done. Of the few who have requested an audit, none have failed. BUT LET ME SAY HERE that some of those audits were people NOT named in any suit, but they wanted to undergo a voluntary audit in advance and obtain a letter from us that they could take to their venues showing that they were legal. We have actually "toned down" the language of the audit since this was first posted to acknowledge an occasional missing disc.

Instead of an "admission of guilt" if someone signs our audit terms letter, we feel it is a strong "protest of innocence", given the escalating penalties if the audit is failed. And if someone named in our suit really is completely "innocent" (or let's cut them some slack and say 95%+ 1:1 ) then why would they not want to quickly go through the process to get the suit dropped?
 
JoeChartreuse said:
We'll have to disagree Rob- copying and pasting myself is bad form but:


""
""EXISTING EVIDENCE. A Sound Choice representative has already visited one or more of your shows and gathered evidence,
including photographs, song lists, and other information, that based upon our experience reflects a high probability that
you have committed acts of infringement. You have been sued for trademark infringement involving counterfeiting"

Then you acknowledge that the above is true, whether it is or not. You acknowledge and agree that:

1) An SC rep has visited your show. ( maybe, but not from what I've seen).

2) Evidence has been collected ( Photos, Song lists, and other info) that shows a high probability that you have committed trademark infringment. This is almost certainly untrue, even if you ARE guilty. ""

In other words, if you sign this, you:

1)... acknowledge that they have gathered evidence against you, when in fact they may ( and probably haven't) not have- that's incriminating.

2) ..acknowledge that this allegedly gathered evidence presents a high probability of guilt- that's incriminating.


3) ...acknowledge first hand that an investigator actually showed up at your show, adding credence to one and 2- that's at best, no help.

Also, considering that"John Doe" suits alone are enough to cast huge doubts on any "investigation" at all ( hard to investigate someone if you don't know who they are...:sqerr:), The chances are that none of the above 3 things ever happened.

Also, this document, despite what Thunder edits out or skips, is part of Sound Choice's audit process- whether to "investigate" for due cause, or for a voluntary audit to show legitimacy. If you want an audit, signing this document is a part of this process.

Now, if you can get the audit done without it, fine- but it's not SC's SOP.

Joe.... tsk tsk tsk.... you have posted much of that out of context.... post the entire thing..... if you want to debate it.
 
jokerswild said:
Joe.... tsk tsk tsk.... you have posted much of that out of context.... post the entire thing..... if you want to debate it.

He might want to get a copy of the new one!:sqwink:
 
Thunder said:
He might want to get a copy of the new one!:sqwink:

The problem as I see it is that so many are reading between the lines and maybe reading more into it then what is really there... the English language is a tricky one and much of it is left up to interpretation. Joe has interpreted that paragraph to mean that you are acknowledging that everything in it is a fact but it isn't.... if you read it, it is simply stating that they believe they have evidence that points to, and here's that keyword tricky phrase, "based upon our experience reflects a high probability" but, does not in fact offer any actual proof just that they believe they may be right.

An audit is just one step in either proving their suspicions or disproving them.
 
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