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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
Jonathan S. Shenson (State Bar No. 184250) [email protected] Lauren N. Gans (State Bar No. 247542) [email protected] SHENSON LAW GROUP PC 1901 Avenue of the Stars, Suite 360 Los Angeles, California 90067 Telephone: 310-400-5858
Attorneys for Plaintiffs
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION
MHF ZWEITE ACADEMY FILM GMBH & CO. KG, a German limited partnership, and MHF ERSTE ACADEMY FILM GMBH & CO. PRODUKTIONS KG, a German limited partnership,
Plaintiffs,
v.
WARNER BROS. ENTERTAINMENT INC., a Delaware corporation, WB STUDIO ENTERPRISES INC., a Delaware corporation, WARNER BROS. PICTURES, INC., a Delaware corporation, WARNER BROS. INTERNATIONAL TELEVISION DISTRIBUTION INC., a Delaware corporation, WARNER BROS. TELEVISION DISTRIBUTION, INC., a Delaware corporation, WARNER BROS. HOME ENTERTAINMENT INC.,
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Case No.: 2:15-cv-663
COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
REQUEST FOR JURY TRIAL
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 1 of 18 Page ID #:1
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
A Delaware corporation, NEW LINE PRODUCTIONS, INC., a California corporation, TIME WARNER ENTERTAINMENT COMPANY, L.P., a Delaware limited partnership, NEW LINE CINEMA LLC, a Delaware limited liability company, and NEW LINE DISTRIBUTION, INC., a California corporation,
Defendants.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 2 of 18 Page ID #:2
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
Plaintiffs MHF Zweite Academy Film GmbH & Co. KG (“Zweite Academy”)
and MHF Erste Academy Film GmbH & Co. Produktions KG (“Erste Acadamy”,
and together with Zweite Academy, “MHF”), for their complaint against the above-
captioned defendants (collectively, including the corporate predecessors identified
herein, the “Defendants”) allege as follows:
OVERVIEW
1. This is a complaint seeking damages under the copyright laws of the
United States, 17 U.S.C. §§ 101 et seq., for willful copyright infringement by the
Defendants, unjust enrichment and breach of contract.
2. MHF produced and owns the copyrights to the following motion
pictures (collectively, the “Films”, and each, a “Film”): (i) “The Whole Ten Yards”;
(ii) “Laws of Attraction”; (iii) “Till Death Do Us Part” also known as “The In
Laws”; and (iv) “Ballistic: Ecks vs. Sever.”
3. As detailed below, on March 20, 2012, MHF filed a complaint against
the Defendants for copyright infringement, breach of contract and unjust enrichment
arising out of Defendants’ continuing distribution and other exploitation of the
Films without permission or license from MHF and without appropriately
compensating MHF. MHF filed the complaint, styled as MHF Zweite Academy
Film GMBH & Co. KG et al. v. Warner Bros. Entertainment Inc., et. al, case no: CV
12-2381-JFW, in the United States District Court for the Central District of
California, Western Division (the “Initial Action”). A true and correct copy of the
complaint commencing the Initial Action is attached hereto as Exhibit “A”.
4. On February 5, 2013, MHF and Defendants participated in a mediation
session resulting in a settlement memorialized in writing that same day (the
“Settlement Agreement”). A true and correct copy of the Settlement Agreement is
attached hereto as Exhibit “B”. In accordance with the Settlement Agreement, the
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 3 of 18 Page ID #:3
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
parties submitted a stipulation to dismiss the Initial Action with prejudice, and on
February 22, 2013, the Court entered an Order dismissing the case.
5. Under the Settlement Agreement, Defendants agreed to pay MHF (and
paid MHF) an amount equal to $432,578 to settle MHF’s claims for the period of
time prior to September 30, 2012. And for the period of time commencing October
1, 2012 (the period of time on and after October 1, 2012, the “Post Settlement
Period”), Defendants agreed to provide an accounting to MHF for each of the Films
in accordance with a schedule and remit any MHF Corridor (defined below in
Paragraph 28) payments due therefrom (the “Post-Settlement Obligations”).
6. On June 29, 2013, four months after the parties settled, Defendants
were in material breach of their Post-Settlement Obligations by failing to provide
statements “accompanied by payments of the amounts due thereupon” to MHF
“with regard to Ballistics: Ecks vs. Sever and Till Death Do Us Part (aka The In-
Laws)…within ninety (90) days after March 31”. On September 28, 2013, and
December 29, 2013, Defendants defaulted on like obligations with regard to Laws of
Attraction and The Whole Ten Yards, respectively. On June 29, 2014, for a second
year, Defendants defaulted on their obligations to provide accountings and payments
to MHF for “Ballistics: Ecks vs. Sever” and “Till Death Do Us Part (aka The In-
Law).” And on September 28, 2014, Defendants were again in default on their
accounting and payment obligations to MHF for the “Laws of Attraction”.
7. On August 8, 2014, MHF filed a motion, pursuant to Federal Rule of
Civil Procedure 60(b), for entry of an order vacating the dismissal and settlement
and reinstating the Initial Action. On August 25, 2014, Defendants filed an
opposition to MHF’s motion to vacate and sent accountings and a payment for
$39,459, the aggregate amount Defendants alleged was due (or past due) to MHF
for the Films other than “Laws of Attraction”. In their opposition, Defendants also
contended the Settlement Agreement did not obligate them to pay the MHF Corridor
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 4 of 18 Page ID #:4
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
on “Laws of Attraction”. In their reply, MHF disputed Defendants contention. On
September 12, 2014, the Court denied MHF’s motion to vacate.
8. As detailed below, Zweite Academy is the producer of “Laws of
Attraction” and is the registered owner of the copyright for the Film. As part of the
Settlement Agreement, Defendants expressly acknowledged and agreed that MHF
Zweite Academy is the producer and owns the copyrights to “Laws of Attraction”
subject to a 1% interest in the legal title in favor of Franchise Pictures, LLC or one
of its special purpose entities. Nevertheless, despite failing to provide Zweite
Academy with any accounting or payments due to MHF during the Post-Settlement
Period, Defendants continue to distribute and otherwise exploit the “Laws of
Attraction” and/or facilitate the distribution and exploitation thereof.
9. Defendants have also breached and continue to be in breach of their
obligations under the Settlement Agreement by failing to make timely payments to
MHF in accordance with terms provided in the Settlement Agreement.
JURISDICTION AND VENUE
10. This Court has exclusive jurisdiction over this action under 28 U.S.C.
§§ 1331, 1332, and 1338 in that this action involves claims and causes of action
arising under the United States Copyright Laws. And this Court has supplemental
jurisdiction over any causes of action arising under state law or contract law
pursuant to 28 U.S.C. § 1367.
11. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391 and 1400
in that each of the Defendants transacts business in Los Angeles County, California.
PARTIES
12. Plaintiff MHF Zweite Academy Film GmbH & Co. KG (defined above
as, “Zweite Academy”) is a Kommanditgesellshaft, a form of limited partnership
existing under the laws of Germany. Zweite Academy is engaged in the production,
acquisition and distribution of motion pictures for theatrical exhibition and home
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 5 of 18 Page ID #:5
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
entertainment and other forms of distribution. Zweite Academy’s principal place of
business is Munich, Germany, though it has produced films for distribution
throughout the world.
13. Plaintiff MHF Erste Academy Film GmbH & Co. Produktions KG
(defined above as, “Erste Academy”) is also a Kommanditgesellshaft, a form of
limited partnership existing under the laws of Germany. Erste Academy is also
engaged in the production, acquisition and distribution of motion pictures for
theatrical exhibition and home entertainment and other forms of distribution. Erste
Academy’s principal place of business is Munich, Germany, though it has also
produced films for distribution throughout the world.
14. On information and belief, MHF alleges that Defendant Warner Bros.
Entertainment Inc. is a Delaware corporation with its principal place of business in
Burbank, California. Warner Bros. Entertainment Inc. is the corporate successor to
Warner Bros. Inc.
15. On information and belief, MHF alleges that Defendant WB Studio
Enterprises Inc. is a Delaware corporation with its principal place of business in
Burbank, California.
16. On information and belief, MHF alleges that Defendant Warner Bros.
Pictures, Inc. is a Delaware corporation with its principal place of business in
Burbank, California.
17. On information and belief, MHF alleges that Defendant Warner Bros.
International Television Distribution Inc. is a Delaware corporation with its
principal place of business in Burbank, California.
18. On information and belief, MHF alleges that Defendant Warner Bros.
Television Distribution, Inc. is a Delaware corporation with its principal place of
business in Burbank, California.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 6 of 18 Page ID #:6
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
19. On information and belief, MHF alleges that Defendant Warner Bros.
Home Entertainment Inc. is a Delaware corporation with its principal place of
business in Burbank, California. Warner Bros. Home Entertainment Inc. is the
corporate successor to Warner Home Video Inc.
20. On information and belief, MHF alleges that Defendant New Line
Productions, Inc. is a California corporation with its principal place of business in
Los Angeles, California.
21. On information and belief, MHF alleges that Defendant New Line
Cinema LLC is a Delaware limited liability company with its principal place of
business in Los Angeles, California.
22. On information and belief, MHF alleges that Defendant New Line
Distribution, Inc. is a California corporation with its principal place of business in
Los Angeles, California.
23. On information and belief, MHF alleges that Defendant Time Warner
Entertainment Company, L.P. is a Delaware limited partnership with its principal
place of business in New York, New York.
THE PROTECTED WORKS
24. “The Whole Ten Yards” is a comedy motion picture starring Bruce
Willis, Matthew Perry, Amanda Peet, and Kevin Pollak, which cost over $40 million
to produce. Zweite Academy is the producer of “The Whole Ten Yards” and owns
the copyright to it. “The Whole Ten Yards” is registered with the U.S. Copyright
Office, registration no. PA 1-242-530. Attached hereto as Exhibit “1” to Exhibit
“A” is a true and correct copy of said registration, which reflects that Zweite
Academy is the sole author and copyright claimant for “The Whole Ten Yards.”
25. “Laws of Attraction” is a romantic comedy motion picture starring
Pierce Brosnan and Julianne Moore, which cost over $32 million to produce.
Zweite Academy is the producer of “Laws of Attraction” and owns the copyright to
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 7 of 18 Page ID #:7
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it. “Laws of Attraction” is registered with the U.S. Copyright Office, registration
no. PA 1-255-628. Attached hereto as Exhibit “2” to Exhibit “A” is a true and
correct copy of said registration, which reflects that Zweite Academy is the sole
author and copyright claimant for “Laws of Attraction.”
26. “The In Laws” (a/k/a “Til Death Do Us Part”) is a romantic comedy
motion picture starring Michael Douglas and Albert Brooks, which cost over $40
million to produce. Erste Academy is the producer of “The In Laws” and owns the
copyright to it. “The In Laws” is registered with the U.S. Copyright Office,
registration no. PA 1-148-567. Attached hereto as Exhibit “3” to Exhibit “A” is a
true and correct copy of said registration, which reflects that Erste Academy is the
sole author and copyright claimant for “The In Laws.”
27. “Ballistic: Ecks vs. Sever” is an action motion picture starring Antonio
Banderas and Lucy Liu, which cost over $70 million to produce. Erste Academy is
the producer of “Ballistic: Ecks vs. Sever” and owns the copyright to it. “Ballistic:
Ecks vs. Sever” is registered with the U.S. Copyright Office, registration no. PA 1-
060-732. Attached hereto as Exhibit “4” to Exhibit “A” is a true and correct copy of
said registration, which reflects that Erste Academy is the sole author and copyright
claimant for “Ballistic: Ecks vs. Sever.”
PLAINTIFFS’ EXCLUSIVE LICENSE TO FRANCHISE PICTURES
28. In 2001 and 2002, MHF, on the one hand, and Franchise Pictures, LLC
and certain of its wholly-owned and/or controlled special purpose entities (the
“Franchise SPEs”), on the other hand, entered into Motion Picture Distribution
Agreements for the Films (collectively, the “Distribution Agreements” and, each, a
“Distribution Agreement”), pursuant to which MHF granted certain Franchise SPEs
certain distribution rights in the Films and MHF would be entitled to receive a
“minimum guaranty” and a portion of certain “gross receipts” from the distribution
and other exploitation of the Films earmarked for MHF (the “Exploitation
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 8 of 18 Page ID #:8
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7COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
Receipts”) including, without limitation, half of the “Payment Corridor” for each of
the Films (the “MHF Corridor”), an amount equal to 10% of the “Domestic Gross
Receipts” remaining after payment of a 15% distribution fee.
29. To ensure the Exploitation Receipts were remitted to MHF, the
Distribution Agreements provided, in pertinent part, that “Distributor shall
irrevocably instruct all sub-distributors and all other entities exploiting the Picture
[i.e., the Defendants] to pay all amounts from the exploitation of the Picture … to
Fintage House, Netherlands, pursuant to the term of the Disbursement Agreement to
which reference is made hereby.” The payment to Fintage House, Netherlands was
to accounts for the benefit of MHF. The Distribution Agreements also conditioned
any sale or assignment of MHF’s copyrights (which would include a license) on the
proposed assignee expressly assuming Franchise’s obligations thereunder.
30. With respect to “Laws of Attraction”, by way of illustration, under the
Distribution Agreement, Zweite Academy granted to Lake Distribution, Inc. (one of
the Franchise SPEs) a license to “distribute, sub-distribute, exhibit, license, market,
broadcast, advertise, publicize and otherwise exploit” “Laws of Attraction” for a
term of 16 years in a defined territory. In consideration for these rights, among
other things, Zweite Academy was entitled to a “minimum guaranty” amount as
well as certain amounts set forth on the Recoupment Schedule (attached to the
subject Distribution Agreement) including the MHF Corridor. Like the Distribution
Agreements for the other Films; the Distribution Agreement for “Laws of
Attraction” (i) required these monies be remitted by sub-distributors, like New Line,
to an MHF account and (ii) conditioned any sale or assignment of MHF’s copyrights
(which would include a license) on the proposed assignee expressly assuming Lake
Distribution, Inc.’s obligations to thereunder.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 9 of 18 Page ID #:9
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8COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
WARNER BROTHERS AND SUB-DISTRIBUTION AGREEMENTS
31. Franchise Pictures LLC and the Franchise SPEs (collectively,
“Franchise”) entered into various sub-distribution agreements with certain of the
Defendants with respect to the Films and other motion pictures (the “WB
Agreements”). On information and belief, MHF alleges that some or all of the
Defendants (thorough their officers, agents, and/or employees) reviewed the
Distribution Agreements and were aware of the obligation of sub-distributors to
remit Exploitation Receipts (including the MHF Corridor) to an MHF account via
Fintage House, Netherlands. Not only was the Distribution Agreement a critical
link in the Film’s chain of title, but also, MHF’s assignment of a 1% legal interest in
the subject copyright was made expressly subject to the terms and conditions of the
Distribution Agreement. Indeed, during the Franchise Pictures bankruptcy cases
(discussed next), Defendants conceded they were directly liable for remitting such
amounts to MHF and others owed similar corridor payments.
FRANCHISE BANKRUPTCY, PURPORTED TRANSFERS &
DEFENDANTS DISTRIBUTION AND COPYRIGHT INFRINGEMENT
32. On August 18, 2004, August 23, 2004, March 11, 2005, November 21,
2005, and December 1, 2005, Franchise Pictures LLC and many of its affiliated
entities, including certain of the Franchise SPEs (the “Franchise Debtors”), filed for
chapter 11 bankruptcy (the “Franchise Cases”).
33. Prior to and during the Bankruptcy Cases, David Bergstein (together
with entities operated and/or controlled by him, “Bergstein”), through acquisition
vehicles (the “Bergstein Buyers”), attempted to acquire certain of the Franchise’
rights, title and interests in and to certain films and film-related assets of Franchise
and its affiliates including, without limitation, through two bankruptcy court-
approved sale transactions (the “Bergstein Sale”). The Bergstein Sale (and other
transactions involving Bergstein and Franchise) included purported transfers of the
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
Franchise Debtors’ and Franchise SPEs’ rights, title and interest in and to each of
the Films, without the consent of MHF.
34. Insofar as the Distribution Agreements were property of the Franchise
Debtors’ bankruptcy estates, the Distribution Agreements were “rejected” by the
Franchise Debtors under section 365 of title 11 of the United States Code (the
“Bankruptcy Code”) and, thus, any right Franchise may have had to distribute or
otherwise exploit the Films terminated as of August 18, 2004, the date Franchise
Pictures LLC filed bankruptcy. And because Defendants’ rights to distribute were
derivative of Franchise’s rights, the Defendants likewise had no right to distribute or
otherwise exploit the Films as of August 18, 2004. Alternatively Franchise’s failure
to obtain MHF’s consent to any assignment of rights under the Distribution
Agreements where the assignee(s) did not assume Franchise’s obligations
thereunder rendered any such attempt to assign void and of no force and effect.
35. As a consequence, in either case, without any right or license to
distribute or otherwise exploit the Films, Defendants knowingly distributed and
otherwise exploited the Films in willful violation of copyright law and/or MHF’s
contract rights, bringing in millions of dollars to Defendants.
MHF’S 2012 LAWSUIT AGAINST DEFENDANTS
36. On March 20, 2012, MHF filed a complaint against Defendants, styled
as MHF Zweite Academy Film GMBH & Co. KG et al. v. Warner Bros.
Entertainment Inc., et. al, case no: CV 12-2381-JFW, in the United States District
Court for the Central District of California, Western Division (defined above as the
“Initial Action”), for copyright infringement, breach of contract and unjust
enrichment arising out of Defendants’ continuing distribution and other exploitation
of the Films without permission or license from MHF and without appropriately
compensating MHF.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 11 of 18 Page ID #:11
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37. On February 5, 2013, MHF and Defendants participated in a mediation
session which ultimately resulted in the parties entering into the Settlement
Agreement. In accordance with the Settlement Agreement, the parties submitted a
stipulation to dismiss the Initial Action with prejudice, and on February 22, 2013,
the Court entered an Order dismissing the case.
38. Through the Settlement Agreement, the parties acknowledged and
agreed that MHF (through Zweite Academy and Erste Academy) holds the legal and
beneficial copyright interests in the Films subject, in the case of each Film, to a 1%
interest in the legal title in favor of the applicable Franchise SPE.
39. Under the Settlement Agreement, Defendants agreed to pay MHF (and
paid MHF) an amount equal to $432,578 to settle MHF’s claims for the period of
time prior to September 30, 2012. And for the period of time commencing October
1, 2012 (the period of time on and after October 1, 2012, the “Post Settlement
Period”), Defendants agreed to provide an accounting to MHF for each of the Films
in accordance with a schedule and remit any MHF Corridor (defined below in
Paragraph 28) payments due therefrom (the “Post-Settlement Obligations”).
DEFENDANTS’ BREACH OF THE SETTLEMENT AGREEMENT AND
CONTINUING COPYRIGHT INFRINGEMENT
40. Four months after the parties settled, on June 29, 2013, Defendants
were in material breach of the Settlement Agreement by failing to provide
statements “accompanied by payments of the amounts due thereupon” to MHF
“with regard to Ballistics: Ecks vs. Sever and Till Death Do Us Part (aka The In-
Laws)…within ninety (90) days after March 31”. On September 28, 2013, and
December 29, 2013, Defendants defaulted on like obligations with regard to Laws of
Attraction and The Whole Ten Yards, respectively. On June 29, 2014, for a second
year, Defendants defaulted on their obligations to provide accountings and payments
to MHF for “Ballistics: Ecks vs. Sever” and “Till Death Do Us Part (aka The In-
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 12 of 18 Page ID #:12
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Law).” And on September 28, 2014, Defendants were again in default on their
accounting and payment obligations to MHF for the “Laws of Attraction”.
41. On August 8, 2014, MHF filed a motion, pursuant to Federal Rule of
Civil Procedure 60(b), for entry of an order vacating the dismissal and settlement
and reinstating the litigation. On August 25, 2014, Defendants filed an opposition to
MHF’s motion to vacate. On the same day, Defendants sent accountings and a
payment for $39,459, the aggregate amount Defendants alleged was due (or past
due) to MHF for the Films other than “Laws of Attraction”. In their opposition,
Defendants also contended they had no obligation to pay the MHF Corridor. In
their reply, MHF disputed Defendants’ contention. On September 12, 2014, the
Court denied MHF’s motion to vacate.
42. Defendants have failed to provide MHF with any accounting or
payments due to MHF for “Laws of Attraction” for the Post-Settlement Period. And
yet, Defendants continue to distribute and otherwise exploit the “Laws of
Attraction” and/or facilitate the distribution and exploitation thereof (without any
compensation to MHF). This constitutes infringement of MHF’s copyrights for
which MHF seeks damages. As to all of the Films, Defendants have also breached
and continue to breach their Post-Settlement Obligations under the Settlement
Agreement by failing to make payments to MHF in accordance with the terms and
schedule provided in the Settlement Agreement.
FIRST CLAIM FOR RELIEF:
DECLARATORY JUDGMENT
43. MHF repeats and realleges paragraphs 1 through 42, as though fully set
forth herein.
44. The copyright in the Film “Laws of Attraction” is valid and owned by
Zweite Academy subject to a 1% legal interest in favor of Lake Distribution, Inc.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 13 of 18 Page ID #:13
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12COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
45. Zweite Academy’s copyright right in the Film “Laws of Attraction” has
been duly registered at the United States Copyright office.
46. An actual controversy exists between MHF and Defendants as to their
respective rights related to “Laws of Attraction” and specifically whether and to
what extent Defendants are entitled to distribute and otherwise exploit the Film.
47. MHF requests a judicial determination and declaration that (a) Zweite
Academy is the producer of “Laws of Attraction” and owns the legal and beneficial
interests in the copyright for “Laws of Attraction”, subject to a 1% interest of the
legal title in favor of Lake Distribution, Inc. and (b) the 1% interest in the legal title
of the “Laws of Attraction” copyright in favor of Lake Distribution, Inc. did not and
does not confer co-owner status on Lake Distribution, Inc. or any of the Defendants
with respect to such copyright.
SECOND CLAIM FOR RELIEF:
COPYRIGHT INFRINGEMENT
48. MHF repeats and realleges paragraphs 1 through 47, as though fully set
forth herein.
49. The copyright in the Film “Laws of Attraction” is valid and owned by
Zweite Academy as set forth above.
50. Zweite Academy’s copyright right in the Film “Laws of Attraction” has
been duly registered at the United States Copyright office.
51. The Defendants have infringed Zweite Academy’s exclusive rights in
the Film “Laws of Attraction”, by distributing it, copying it, publicly displaying it
and otherwise exploiting it.
52. As a direct and proximate result of Defendants’ conduct, Zweite
Academy is entitled to actual damages and the Defendants’ profits attributable to the
infringement, pursuant to 17 U.S.C. § 504(b).
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
53. In the alternative, MHF is entitled to the maximum statutory damages
pursuant to 17 U.S.C. § 504(c) including separate awards where Defendants are
liable with third parties (eg., sub-distributors and downstream licensees), and such
other amounts as may be proper under 17 U.S.C. § 504(c).
54. MHF is further entitled to its attorneys’ fees and full costs pursuant to
17 U.S.C. § 505.
THIRD CLAIM FOR RELIEF:
UNJUST ENRICHMENT
55. MHF repeats and realleges paragraphs 1 through 54, as though fully set
forth herein.
56. By virtue of its exploitation of “Laws of Attraction” without properly
paying MHF, Defendants have been unjustly enriched at the expense of MHF.
Defendants have been unjustly enriched in an amount to be determined at trial and
to which MHF is rightfully entitled.
FOURTH CLAIM FOR RELIEF:
BREACH OF CONTRACT (AS TO “LAWS OF ATTRACTION”, IN THE
ALTERNATIVE)
57. MHF repeats and realleges paragraphs 1 through 56, as though fully set
forth herein.
58. Under the Settlement Agreement, Defendants agreed, among other
things, to provide an accounting to MHF for each of the Films in accordance with a
schedule provided in the Settlement Agreement and remit to MHF any MHF
Corridor payments due therefrom.
59. Defendants’ failure to satisfy any Post-Settlement Obligations with
respect to “Laws of Attraction” constitutes, individually and collectively, a material
breach of the Settlement Agreement.
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 15 of 18 Page ID #:15
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14COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
60. Defendants’ failure to timely satisfy its Post-Settlement Obligations for
the Films constitutes, individually and collectively, a material breach of the
Settlement Agreements.
61. MHF has been damaged as a result of the Defendants breaches of the
Settlement Agreement.
PRAYER FOR RELIEF
WHEREFORE, MHF prays for judgment against Defendants as follows:
1. A judicial determination and declaration that (a) Zweite Academy is the
producer of “Laws of Attraction” and owns the legal and beneficial interests in the
copyright for “Laws of Attraction”, subject to a 1% interest of the legal title in favor
of Lake Distribution, Inc. and (b) the 1% interest in the legal title of the “Laws of
Attraction” copyright in favor of Lake Distribution, Inc. did not and does not confer
co-owner status on Lake Distribution, Inc. or any of the Defendants with respect to
such copyright.
2. An order, pursuant to 17 U.S.C. § 504, awarding MHF actual damages
and Defendants’ profits resulting from Defendants’ unlawful conduct, or maximum
statutory damages with respect to “Laws of Attraction” including separate awards
where Defendants are liable with third parties including, without limitation, sub-
distributors and downstream licensees;
3. An order awarding compensatory damages in favor of MHF for all
damages sustained as a result of Defendants’ wrongdoing, including the amount by
which Defendants were unjustly enriched and/or all Exploitation Receipts that
should have been paid to MHF on account of “Law of Attraction”, but were not, in
an amount to be proven in trial;
4. In the alternative to (2) and (3), an order awarding compensatory
damages in favor of MHF for all damages sustained as a result of Defendants’
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 16 of 18 Page ID #:16
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
breaches of contract with respect to “Laws of Attraction”, in an amount to be proven
at trial;
5. An order awarding compensatory damages in favor of MHF for all
damages sustained as a result of Defendants’ breaches of contract with respect to
Films, in an amount to be proven at trial;
6. An order awarding prejudgment interest;
7. An order requiring Defendants to pay MHF’s costs, expenses and
attorneys’ fees; and
8. An order granting MHF such other and further relief as the Court
deems just and proper.
DATED: January 28, 2015 By: /s/ Lauren N. Gans Jonathan S. Shenson Lauren N. Gans Shenson Law Group PC
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 17 of 18 Page ID #:17
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COMPLAINT FOR COPYRIGHT INFRINGEMENT, UNJUST ENRICHMENT AND BREACH OF CONTRACT
DEMAND FOR JURY TRIAL
Plaintiffs hereby demand a trial by jury on all issues triable by jury.
DATED: January 28, 2015 By: /s/ Lauren N. Gans Jonathan S. Shenson Lauren N. Gans Shenson Law Group PC
Case 2:15-cv-00663 Document 1 Filed 01/28/15 Page 18 of 18 Page ID #:18