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Righthaven has lost an urgent appeal in 9th U.S. Circuit Court of Appeals in San Francisco to prevent its properties, including intellectual property and trademarks, to be sold in order to pay creditors.

Righthaven owns its creditors substantial amounts of money, creditors including Wayne Hoehn and his attorneys. Righthaven sued Hoehn for copyright infringement when Hoehn was found to have used portions of a newspaper article, but subsequently lost the case and now owns Hoehn and his attorneys more than $60,000 in legal fees.

Righthaven has already lots its domain name, righthaven.com, when a court appointed receiver put up the domain name for auction. The final bid was $3,300, to an as yet unknown bidder, money that will now be used to pay back Righthaven's creditors.

Hoehn's attorneys have suggested Righthaven should obtain a bond to cover any potential future claims against the first, but Righthaven say they are unable to get a bond and are out of money as well, despite still being able to pay for the legal fees associated with various appeals.