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JS 44CfSONY ~v.

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PL;AINTIFF5 .

Capi"tol Records, LLC;.C'arollneR.e00rd8, loc.; ,and Vj[Eirt R¢¢ol:'~ Americ:!I.Inc.

ATTORN~yS {FIRM NAf!dE, ·AOIJiR,ESS·, AND TELEPHOt;4ENVMBER.) Cbir,lStme.Lep.e.r,i'lI. E-sq.

Russdl J. Fraciwum, Esq.

Marc-~}'et. Esq.

le"ftIey M. ·.Movit, ESq.

MHche!l Silberberg &, KnUpp LLP

] 2, .E. 49th Str-e«, 30ih 'Fbl!:, New Y Qfk, NY lOO l7

212-500--3900 - .

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ASIS OF JUfUSDICTlON '0 40NERS,m"

IF QlWRSlTY, INDlCA.TE CfflZENSHIP BELOW., (28 USC'1322_; 14411)

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New: York, NY 10011

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2:25 Piu'k A'II~llue SO~th4 ]'7th FlocJil" N~w York, NY I~

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. DEFENDANT(S} ADDRESS UNKNONN . .

REP1=tESEJlTATION IS HEREBY MAQETHlI.J',ATTHlSTIME, I HA\iE BEErY UNABLE, Willi REASONABLE'OILiGENce. TO ASCER,TAlN THE R.ESJDEN.ce ADDRESSES OF THE'FOUOW ING CEFEN:DANT-S::

DATE

12/1 !lI2OO9

ATTAN

THIS ACTION SHOULD BE ASSIGNED. TO; 0 'WHITE PLAINS (OQ. NOT check. eltMr box' If-this a" PRISONER. PETITION.)

. REC,EIPT# Magislrat.&Judgels· to ·~e designated by the Clerk of the -Court. MAG. JUDGE I FOX

MagistraM:JudgEl._· iG® ~i{:1lMl:9dr.

~ITTEDTOP [ ] NO l}.(jyEs·(,DATE AOMITI'ED MQ,a '(f.·,~ A.lto1'n:ey !3ar'Code# (;1.. 9.311

UNITED STATES mSfRiCT COURT (NEW YORK SOUTHERN)

l\m!!l1e;!1~ ~g;gIN'8I, ~ 'iMW'I'Crms~.~U1l

_____ '

"

no C\' 10101

UNITED S,TATEWsillCT COURT SOUTHERN .D1STR1Cr Of NEW'YORK

CAP1TOLRECORDS., LL~ a Delaware

- - . . - ~

limited iiiabm~y company;; CARQUNE

'RECORDS., INC.~ a New 'York CO'f]Xlration; VIRGIN RECORDS AMERlCA~ J_NC." a CalifOm1a' COfJXl'latio~:

Plaimif&,

v

VIMEO, LLC d/bla VJ:MEo.COM~ 3. Delaware Limited Lhibility, Ccnnpauy:; CONNECTED VENTURES, LLC;a Delaware.Limited Liability Company~ .' and·.DOES 1~20, inclesive,

Defendants.

CASE·NO.

COMPLAINT FOR DIRECT, CON'yRIBUTOR,Y,AND VICARIOUS (~OP¥RlGHT INFRlN!QEM.EN·T, IN.DUCEMENT TO INFRINGE COPYRIGHT, MlSAP'PROPRlATION, ANDUNF'AIR COMP,!TITION

.DEMAND ,FOP JURY Tru~L

Plairniffs~ by'their.attomeys Mnchell8.'lIberberg &,KnuppLL,P~ ~l' their Cornp]aint agaJnst Defendants Vimeo, tIC dlbIa Vjmeo,,\XH11, 'Connec-:ted Vent'~~ LLC, and Does 1:20 -(~·Defe.nd.ants~')'~ :aver~ upon knQwhxllge as to then: own acts and upon .infbrtl'lttt-ion- and .belief 88 to the actso foth.ers,. as fo now~:

PRELII\UNARY 'STATEMENT,

I, PlaintiffS Coop:LtQI Recoeds; LLC ("C:apitol"·). Carolme. Record~ Inc. C~Camline")~

and Virgin Records America; Inc. f'VRA 0') are. record coH;lpanies·. and the owners of (."Opyrights ' mid related" ex,cfusiV'~rights in sound. IetOrdmls;' PlamtiftS (all of which me compan.ie-s, affiliated with·'ErvR Music) r;::oUootivdyown some of'themost well-known and successfulsound 'recordings in the workL Plaintiffs brmS this aetion to obtain, redr-ess fur massive and. Knowing

in ftill1gement of their oopyrighte'(J: soundreootd_ by Defendanta

2·. Vim~.LLC ("Vitneo") is the owner ofthe .. w~s;ite loca:ted at the Uniform

Re.OOurc~Loca.~reURL~!) www''''llneo.cofn(the "¥imeo weibsite·~'). Vimeo is a.populae and weU-:fil.1anOOd video- and :lDllsic-~'sharingj,· w,ebsite that profits 'by using audiovisual works, including ,audiOvisual works' featuring :rlaintiffS' copyrighted recordings. Virnoo lndu·ces and enrourages Its users.te upload to the, Vimeo website these audiQ~:iSiua~ works, and Vimeo then copies, ad.apt~: publicly.perfOrms,. distrisutes .. and otherwise dis:seininah.\~ '~o the p:ublt¢ tElese: aooio,dsual :'\Nodal.; ,a,-iI of w me-hean be vjiew~d or downloade4' by anyoile with "an Internet connectiea (and a free, an.on:ymous Vimoo~mbers1tip) with a· snnp]'e mouse-click and.' then furthef'distributed vinllly throughOut the Internet. Viirioo W1~ these work$. including. those featuring. PEainUffs" oopyri,Shioo rerio:rdings~ to popu.late its commercial websitemd.to :at:1ract members. Vimoo' also ·.a.dively participates. m!cbidmg throu~ its .own staft: in. making,. seloctin&. oomme.otms en, arid- at times choosing to delete the aud~iovisual worts that comprise the VUnfjQ website. Vimeo claimstn have over two million lne:mbers (l'l'l!3IAY of whom p~.y-~ yearly $59.95 membership fee). Among the audiovisual works oop.ile4, adapted, publicly 'perfqnrted~ and distributed by Vimeo are numerous copies o'{PJain'ti.ffil) sO.W'ld recordings. Plaimiffi, .never have authorized. 'the exploitat.ion oftheir.oopyrigbtled w~rKs~y Vimeo,

1. The use ofP~:int.iffs·'·.origiIuil" copyrighted recordings on, Yii'rieo's website is nat

an accident .. Vimeo's stated poliCy (expressed by its own s.tafIm~m:ber) is thal·~'our·webs.it:e is <}h9ut. original videos, not origi;nal music" (ernpl¥tsis:added). As aresult, the Vimeo website c.Qutains a massiye-am~n'mt ofoonten:( tha.tfeatures., anddraws ll'l!Osf(ifnot aUlCl.fits appeal from, the. use- 0 f eQ~pYrightecl music~J 'Works. Indeed •. tbe use of'oop~ighted music is 'integra] to tbe sUC>OOss of the VUneo website., Among such audiovisual works on theVhneo website are official mU$~cvjdoos. videos consisting entirely ef'individuals "lip-synehing" reccrdings (also known as "Up,dubs.u a: phrase colaed by Vimeo and a practice enecueaged by Vimoo'and 'its staff),. arid videos featuring prominent musical·snundtracks·.

2

4. Vime(:i' not .oruyjs aware of'the 'oo:P:yright in,'~ent takIng place-on ii~ ·.system,.

but activeJy·p.mmotes and induces that'infringement; including by showcasin,g.8ud:iovisuaJ.woiks containing PLaind fJS~ oop)'Tighted r,eoordingsl by encoaraging users to en~dy oopyrighted recordings in. tluHr works, by provid,mg users with [he tools_to perfarrn and diss.emm.ate oopyr,ighted recordings, by providing. commeotary and feedback'on uploaded videos feat·uring

. COpyrig):lted reoordiQgs" and byre~fu,g' to· filter or·bl,oc~. videos U:Sjng copyrightoo recordings. As one Vimeo st.8ffn~mb~ ,ad,,'1:8OO. users: "You C~. use the lUliSic,j fher:ea-re·toa~s [sic] of vi-ooo,s"on' here with tnusiC!'

5·. The teprodJ;l.ction, adaptatiol1j, public perfurnmnoo, ami, distributinn of p'lamtiffs"

'recordings by Vimec are p'l'~isely the types of commercial 'Uses', licensed by .P]aintif'i; to t fur example, television shows and other Internet services, However. unlike those Ucefu~ed U!5.~, Vime(jhasneyer.abtained the·.CQru!!f,ttt of PlaintiffS ·to use their-works ,o.r paid·p.lam.tiffli arty compensation.

6. By filing tbjs Jaw~u.t~ Plaintiffs 8reuot seeking tq'stifle cr~t.hdty.orpmcLude~

members of the··publk from creatIngot.gil;l:a~ lawful audiovisual works. Rather;tbis la:wsuitis abeuta ool~ercia1" 'for-profi.~ vent~re that has, built a business, by teprodll,CuIg, adapting~ performi~g, and d istribq;lling works thatitknows eenrainPlaintiffs' oopyrightedn:ro:rdin;gs~ am:! , then, kno w.in81~i pimfit.i:ng from the dI,3;W c.rea:ted b:y ·.making 'these works waUable fOI"~ee to niUio'os ~f its users.

,JtT:R.I8DICTION AND VENUE,

'1. This is acivil action seeldng.damnges and injuIlcHve relief fOf copyright

Ul:lhng.ement under-the Copyright Act, 17 U.s.c. ,§ J 01 .et s,eg~:, and tor ·.misappropriation and unlJ.lir 9O.mp~tiUOj:l under-the laW$.oft~ State-ufNew York ..

. ~

K This (;ourt has subiectnmtter jurisdIction over Plamti ffs , claims for copyriglrt·

infringement. pursuantto 2~:U,S~C. §§ 1331·.and 1338(,a). Pursuant to 28 us.c. § 1367, this, _CoWl- bas supp]ememal jl;lr.lsdiCtion ove:tPlamtifIs' state law claims fOr :misappropriation and unfair compet.itiQ'n-m. that theyare' so :rebted to PlaintiffS' claims under the C.opyright Act as to be part efthe same case or controv.ersy.

{). This Cowt ha~ pernonal'jurisd:iction over Defe-nd ants:.u. that.' among other' things.,

Defeoo!3lnts have their prmcipal place oJbl,lSiness in, and are 'd'omg busmeS$ in, tbe State oiNew

. ..."'. -

York and in this DOO:rict. ~s sudl,. Deffendsl1ts are .oo,gag«i. intortious ronduc:twithin the State of New Y:Ork~in:cludmg by 'oopy:iri& adapting, puhlidy :pedforming~'~and distdbutkg Plaintiffs' copyrighted, r.:ecordings,. Add:it~ktnaUy •. Defen.dants' conduct causes '~jury to P1ainUffs· and their intellectual propertY'wiU1W, the State.of'New York, and.Defendants '(a)fltlgJu1arly do or solic-it business in the State of New Y or1~ (b) etlg~gein a pereistent eourse of conduct in Ute State of New York, (c) derive substantial revenue from·goOOs 1.l5~QI se,rvic~ provide<!. to ccnsumers lOcated In the State of New York, .(d) ~pe~ QJ' shqqld ·re,asonably· ~X:P,e.ct their acts to have consequences in the State ofN'ew York, and (e) ~~ve substantia' teve.nu_~ from interstste.

cemmerce .

.1.0. Venue}s prope,t' inthis DistriQt·pursu~t to 28 UJlC. ,§§ 1J9l(c-)'and 14OO{a)~ in

that Defendants.are.scbject to personal jurisdlction and maybe found in this District.

THE PARTIES

II. Capitol is a ccrporstion duly organized aM. e'xi~ti~ uniledne lawsofthe.State of

Delaware, with its principd. place' ofbnsiness in. New York .. New York,

12. Caroline is a OOl:POfat.iantJuly organized, and existing under tbe laws 'Of the State

'ufNew y ork, with its principaL place ofbusiaess in New York. New: York.

, 4.

I 3".. VRA ~.3, corpo[,ation duly ,organized.and, existing und~ dIe J,awS: of the' S'tat~· of'

CaHfQmia, .witll its principal place.ofbllg~nes$ in. New York, New yark.

l4. Capj~Q'l~ Carolffi.e,. and'VRA (oonectively" !i.P1aintiffg'~) are eagsged fu. the

busmess of producing souoorepordlli.gs and distributing, ~Uing,W1dtor Uoonsm,~' the :rep'.mductio~. djstributiCln~ '$~l~md. performance of their sound recordings iIp Phont'lreoor.ds (as defined ill. 17 U.S,c. § 1(1), 'm audioVIsual works" and fot streaming (i&.~ perfomllng)·Qnd downloading over the Internet. Pbintiffs mves't .substantial money; .time., efful1, ,and .creative taiM!' in disooveriog and deselo p ing ~rtling ,fUtists.· and rn cre.aiing, advertising, pmmdng; selling, and lieensing sound ·reco'.rdin.gs egloody.mg too·pcermmw.tiees of'thew exclusive [ecoro.mg. ertists and their unique and vAluable SOllRd recordings,

15; PJamtiffS own lcopyrights ari.d/or exclusive rights in and to their sound recordings

<the.~'C.opyrigb,tedReOOrding~··)~. mc1uding·.many of'the most popular SQ.und·'reoordin,gs in. the world, A rePresent.ative sample ·0 f Plaintiffs ~ Copyrighted RecordilJ.gs are the recerdings identified on Scltedule A hereto, incorporated herein by reference. Pfuintiffs ~a.v~ obtained or appiied, for Certificates ofCopytigbt Registration:ln each of the C:opyright~, Recotdm,gs~ includ~ but not limited tn those identified. on .Sch.edule A.. As t~e owner o f copyrights in the Copyrig.hted Reoordings,:P1~.intiffi possess-the exehisive rights) among; other things; to reproduce the Copyrigbte4 Reeoalings. in CopieS or· phenorecords, to a.d~pt 'the Copyrighted. Recordings~to. distribute copies or phoooreeords of the Copyrlghted'Recordjngs to the pubH«. to perform the Coopyrighted. Recordings publicly by means -. ofa digital audio transmission, and. to ,license these exclusive 'lights; including entelevision and over the Internet

Hi PlaintiffS also possess exclusive ownership fights in sound te;oordings o:fmusieal

peeformanoes that. initially were ·'fixed·~·(i&.~ recorded} prior to February 15, 1972 (the'<{Pre-

1. 9.72 Reoo'l'd.illa:s;~~ Congress exp:ressly hasrecogntzed that ~he ,states provide extensive

.5

prot~ioil throughvarious state Jaw doctrines to recordings "fixed" before February l5. 19'2~ and that the federal CopyrLght Act cannetbeusedto ·~nn\ll[J or limit[J'" thQserights unti] Feb:nj:~ty15. 2067/~ 17 u.s.c § 3'Oi(c). Suc;hovrnership:d,gbtsareJlroteoted .. underNew York law, Among the Pre- 1972 Reo:u .. dmgso,wn,ed by Pl~tiffs ~: those idendfied.on Schedu:~e, B hereto~moorpOl:~ted' herein by reference, (the ''Copyr-iglltw' ~ecordingS"" and the "Pre-l 972 Recordings" collectively are referred. to as the "Record:iflgs"· or '~Plaintiffs~ Reoonling-s:I;)

17.' Vime(l is a Um.it.oo .. Ua'bility Comp,ooy o:rgHni~e(f aria existingunder the raws' .0 f

theState of'Delaware, with ltspiinctpru,p1ace:o[business. in New yqrk; New York. Plaintiffs are.inibrmed. mid 'believe, alld on th;Itbasis a:ver~-thaCVimeo:is the successor-m-interestto Connected'VenWl1es LLC, aDelaware Limited UabilityCompany. with respect 'to t4e Vimeo website.. andboih have engaged inibe acts and eonduet he.rein set forth. (Rejer~Dce hereinto "'Vimoo"'i:lldudes~, as appropriate, its predece&SQr"'in~1nte:wst.) VirtlOO' purport~ to be 3 v14oo,sharing network and, Internet hoommlltlity/,'bu:t in fact it- isa oommer~jal business that enco.urages and assists USL!Sern to Il:Wket,uploaU~ download; distribute, m)d.view a variety of

audiovisual works,induding works that feature orcom;alnPla.int iffs ~ Reoordin_g$. In doing 00"

. . -. .

V.imoo, iunctng l~thera,cti~'ities" oopies the aqdj.ovisud:W9rb (oontRi;ning P]aintHJs~ ReoOlumgs) to .lts own server, nmkesl additional cO,pies- of'works to facilitate/its .pedorrrum.ce and distribution, and. publicJ:y peifunns and. d.i_~hibut~s the' audiovisualworks.

18. The true nam§ and. capacities. wl1fiher indi'lf~d'ual> corporate, asseeiate, or

efherwlse, of ddendants' sued herein as. Does l fltrough.20. inclusive, are mili:now,n, to Pla.mtlffs~ which sue said' defendants, by such fictitiou$ names (:thfl''Doe Defendants"), ~fnecessary" Plaintiffs. wiU seek leave fo amend this complaiet to state their true names and ~apa.citl~~. Plaintiffs are uffurmed and. believe, and on that basisever; diatthe·,poeil)e'fiemdants· are liable-to P1ainUffs as a result loftheirparticipatiofi in all 01 $0 mee f the acts -, ·.na:eina;fi;er s(;lt forth. (VKUOO and. the Doe Defendants ccllectivelyare referred to, as ."'Defendants. nJ

.6

19" Plaintiffi are' Informed and 'beJi.e.v~ and on that basis fiver. that at .all 'times

meerioned in this Clllmplanu,;' each 'oft1;w' DefeiId-an.t$, was the- agent of each. of the other D~fendants' and~in doing the tmngs.·ayerredm tuis cODlplamt. was, acting withintbe course and scope ·of.such agency,

FACTS4fPUCABLE TO·ALL C.Lt\lMS

20. As·'an integrel pari: oftbe bnslness and commercial appeal oftbe Vjmeowebsire;

Vimeo oop:i~s •. adapts, publicly perfonns, dis~dbutes. and pmvicl.eslecfmology Hlid serVi.'ces· that 'md~'and enable others to copy, adapt; pUbliclypmorm, and di$(rlbute, video-and audio eentent, mo.l\lding music.. over the Ioreenet, Vim.eQ aggregates this content, incladlng - J11aindffi ~ Reeordings, and p.~rms and/or dis-:tributes· this oontent yia" til commercial web-site to any member of die public with an. Internet OO1'l11eCtial1. Virueoprofits fi';pm these a,ctivit.i,es.by.pmm~ thatvid eo eantent with advert.~em.~nts"} by c.~i~· users fot "premium" membmhips:~ and by s~Uing merchQndjse".toi.t.:;' users.

21. ,. Vimeo typ-icaUy makesat.least twe copies, ef'eaeb uploaded audiovi'sual work;

inclild.iJlg··.those embodying complete Of vlri"ua]]y complete copies ofP1amtiffs' R~r:d". The fllS.~ copy contains the work fIiS u,ploaded'~ the second, oopy comaias the same work. "transeoded" seas to be more accessible and easily performed or diStrilmtooto ·and' byjt~, users, The audiovisual work then is indexed h)' V'm:uro and. made. avaUabl~e to 'the public. On dem:a;ntl visitors ·to the V imeo website may access sucbaudiovisual works, which are puhbcly-perm.!;',rned by Vimeo 'by means of'a "stre;a:min.s" tl1~m1;ss:ion. Vimeoal,so enables members ef'thepnblic to "share" {via. e-mail) these a~iovisua] worksand ,sembed,'~ these works. (via 'an "in-line" link) on.a,thirdparti website. In. Qddition:, to 11:5 regist:eJ;ed users, Vimeo makes availahl:e, and distributes by dQwnload, (from the Vlmeo_ server)oompiete t-opics of audiovisual works uploacltXl. to' Vimeo, which then may be e-matled, distributed on peer-to-peer networks, or otberw~(je virslly disseminated ,throu,ghout '{he Internet, Representativ,e samples Q f Plaintiffi.·; ReCQrdm~ that.

1

Vimoo has' unlawfully ·.-oopicid; pubHdy performed, aiKl· distributed via these: audiovisual work$ are those identified unSchedules A and B.

21. Vimeo offers anonymeus memi~ersh~ for 'free: to ·.its website and 'online seevlces.

Vimeo ·alsQ offers paiii premium mei!lber~b~.pg to its website (known as. ~"Vimoo Plus") for

$59. 95. per Y~,ru:'. Bvenwithout registermg •. ~y Visitor to 'the Vbnoo website em view and: listen to mosfo.ft:he.up]oaded audiovIsual works in their entwety, including.those eQintnining pbinti1Is~ Reoorcl1.qgs. Qooe a usercreates a m~rsb.ip ,u'ooolilnt with V imeo (free O.T paid)! that user then may. engage in a variety 0 f additional actIvities, including uploading 'dig[lal media files to the'

V imeo. server and websit.l\ ceeating or ~~ubSiCribin$ to" (be. , receiving re~ular update-s "from) '"Gtoups}~ and "Channels" ded1catoo tncertain types of ,audiovisual wD;rk!f lanP mu$ic)~ dowo]oading from. "\nmoo servers aUdiovisual works_created by o_tber US«$j, dis.triblj.ting··tlmse works viraUy over the.Internet, design..ating certuin uploaded werks as "privere" or pasS1.\!on;i p:rotect·ed~ ,aJ.1d. posting comments. a.od m.eSs.!:liges to 'the. V imeo message boardsand discUssIon

groups,

2:1. Vimeo differs from certain other so-caned "vjd.oo-sharin:g~;' websites, including b)'

talcingan active and. perv~s:iv¢ role jn its user'·oommunit)'.~' .Among (It her things,.. Vtmeo

. ~ploys. staff llle1llbem' whose to le is. to. act as community Iiaisoas, In that rol~ Vimeo slart~ membeni (!rlemified on theVimeo website as ·'S~a:.ff')~. pl'O-vjde·tbetr-oyarvideos (inc~udingtho~ oontain:~. PfaintHfs' Recordings)~ contribute to oo'mmunlty d'!scUsswns, review and eemmeet on' ~posted.videos (indud'ing by ·taggic~g certain videos as "likes"], select videos to be featutoo n:nd sboweoooo as .. Sta:ffPlcks; .. v cr-e-ate "GfOillpS"'and nCb.anne.ls,·~ assist users wtth technical and. creative issu.es,and decide to delete ce1;'~aurvidoos. The: Vimeo \voosite.is-·much morethan a place tor users.to store audiovisual works, As,on.e: ofthe Vjm'eo, ·staff.elqJIained. '''we're n:pta Iiosting .1ie'l1'ice.; we're a sharing .service.... We want users who w-in :f{lfitrlbute to Virnoo and our rom:mulli~y, not-just use our serviee to 1w:st'tbeir vldwsforfre.e·'· (e'mpi:msis added).

·8

g4. Wlln~ Vimeo's materials tou~ its' oonnnitltlent to ···{)rigmar~ oontef!,t, Itsview of

what is '~riginar~ i;!l narrow and. se]f-~vin.g.. Wbi1e Vimoo. ',dl):ims to have nQ tolerance fur the posting (I fpreexistingV'jdOOOO1'ltellt~ it ootonly freely ·andre.adi~·Y· p¢rltl~ts; but actively errcQ~ages.. ltsusets·.topOst a'udiovisu~l works that'feat~ oootftio. or even consist entirelY'of preexisting m:uS6al. worb .. , including' P.]aintiffs· Recordings, These mclude, among other thmg;s, audiovisual wotkswmcb'use cop.yr:~ghted. musical works in the roreground. of the werk, or synchronized with lma~e·s such as animatjon, pbotograPM~ drawing,s. or other video.' footege. In. all 0 f these .aud1ovisual 'Works, the '[nus~ is not 'En~idental; it g~erany is c>o.mprised of the ent.irety of a recording deliberately and care:fu,U}' synchronized into (lie video in order to provide a focal pp int .. and appeal fot the cootellt. Many o f these videos are eqliivalent to television .programs or independernfilms, w.itb 'recPrdings s:ynchronjz~ with the. dialPg or the visual material, Others are simply an -entir« recording ""mputh,oo'" (L e., lip- ~y.nched.) by the individuals in-the video. Others are the equiv;:dent (I[music videos, in which the entire audiovisual work is focUSed .on the recording, (Villloo even has pro.vided P'laintiffil' .Reeordiogs bypetfurmina videos that Consist of not bing more thana "'Tee-cord piayer".playing a eopyuf'one of Plaintiffs':

. '. . . .

.Recordings .. )

25. One of the most prevalentend pop~]artype.s oJ::audkwi~lUd works ,pmvid«l by the

Vimeo .Website isthe so-called "Up dub" video, PlaintifjS are infunned ,and. believa and on that basis i:lVef. \hat. "Up dub" is a term eotned 'by Vimeo's. found:et·~ Jakob Lodwick, who. has himself creeted, and eucpurag~ the creat lOin o:f~ "]ip-dub~" that: in.fii.,ge. copyr~gbted. 'recordings ~ A nlip dub" video . is a video. that is-comprised of rnot!lg~ of an individual (orind.ividua.1s) "'1ipsynehing" the en.t:i!rety of a popular I·etOidwg. - V moo staff'has made and up]o aded. to the.' Vimeo Website H]ip dub" videosthat infringe PlaintiffS,' Reoordinga,.·.ana have even promoted and aided in the copying effbe entirety ofune ofP~ail1tiffs:' enormously popu1ar.alfJ'um6'~ Vlmeo otherwise f;lf.lOOumges and indu·ce,s the making and u:p,load:ing of~'Hp d.llhs.·~Vimoo bas.advised its users,

". .. '

including: on its home page, to mak.e·~lip dubs" by dlgitaUy inserting. and. synchronizwg . 9

commercial r~ootdIDgs into. video·fo,ot~ge·.during editing. (fug." "'shoot yourself mouthing ,along., to a Song. Then. sYnc ·it with a high quality copy of the song in an. editing, program,"] ihis ensures that the .muSic fhatacoompanies the .~1ip dub'~ video, whiehvirtually always is copied directly fiom a commercial 'recording .• is hig:h-qtmlitY'. 'of ~bstaf}tial'VohJme, md is 'the to.c·al point of the ~UdIDV1s,uaJ.wQrk.

26. Vimeo has extensiveknowledge·ofthe use of'copyrighted recordings-on 11s

w'eb.&ite; ,and Vaneo Mrol1mge$' ,ar,d tuduces itt 'users" ttl ,ropy. adapt.-,am! upload 'oopYl'igh'ted teOOrdings~ iacludhtg: P]aintiJIs'·ReC(lrdlngs. It does 00 in a.flumber of:w~ys, including:

(~), VUntlo' $.ta,ffitselfhas created and disseminated audiovisual works embod)'ing

Piaintiffs ~ Recqmings.

(bJ V imeo showcases certain 'audiovisual works oontam.mg copyrighted recordings,

~duding ·PlainUft's·~ Recurdings1 by in~luding them cnnong. its "Staff Picks" or"Featur~," '\i"kfuns,. Further •.. V 0000 Staff' frequeutly review and oomnteitt on. audiovisual w-:ltks upload«l by Vimoo members, ineludmg audiovisnal w.orb ooutainittg oop:yrigbted.r~cordhtgs. PIa.inti ffs are iilfurmed. and believe; '.and. on~tbat basis ~ver,·tha!t Vimoo Sta,ff.alj~.O·1mJlitor Vimeo discussion gf()Up-~~ ccmrramicate &eq'llendy w·it:h Vimeo users, and' inWlicidy or' explicitly encourage and: autoo,rize Vimoo users to include and provide to Vimeo preexisting recordings Intbeir ,;Iucliovisual warks., including by eqgnglng in ~~grou:p~"':pr"O;ject$ organized by' Vimoo.

,(c) Vimeo bas created (or encouraged its users to create) 4<Chann.el~"·llfld.'4!Oro:up~~·

dedicated. to showcasing musi(;\ddiWS~ :inc[ud'ing those oonta:iniJis PlaintiffS' Reoo.rdings". Vim.eo users ha,v.f) created Channels spedncaUy ded'ka.t-e~l to smrwcaSing videos . .see to the recordings of part.tCuiarartrs[.S., Sev:era.lpmminem. Cha.nnel:s ate dedicated, 'enttrely to "lip ~ub~' videos, whi~h: by definition irreolve theexact copying 'OJ pre~llxisUng recordings .. Vinteo has selected certain'

If)

mesic-based chsnnels, including channels devoted to "lip dubs" 0 f copyrighted reoo.rdin~, among its·~Fea[ured Channebt' {oometimes also referred to as channels '~We Like" or "Vimeo Obsessians"), Moreover, .Plaintiffs are infofmro ~nd believe, and on that basis ,aver; that many ofthe~e.Chann.el.s arevisited: by Vimeo Staff or l'Umnmnity .moder,HQis.

(d) 'Many videos and, Channels are readily identifiable as oontairting PI~mtiffs'

Recordings. TypicaJIYiM least. one (and ft-equently several) ofthe fuUowing is present: (.l) the Htle oftll.e recording oodlot name oftherwordll1g ,artigt is ·used. ··as the. title Qfthe v:Idoo··file; "(:Z) tht;l' description of the file includes information ide!]tify~ng the fecor-fJil1g andlor recording artist ~ (J) the file has .:been designated with ~1te:y\Vtrrds" that specUicaUy reference the ru:tist, song title, and/or copyri,ghf.owner(e .. g., i'Cap"itur'); and/or (4).too videniS.·displayed with a ·'thu:mbnair~ im~~ oonsisting efascreenshot that deailydispJay,s that"-lhe vidaToomains P:1ain'ttfll{ Reeor~mgs., These include famcusrecordings known to the pubtic,geJ;li.eran¥~ and Vimeo specifically ~ to' be owned by record rompames. i.ncluding. Plaintitfs, However; Vimoo has expressed to its ~1Db¢.rS that it willnotremcve videoS" oontain'ing oopyright.ed musical-works W)1~s$ it .receives a fu.rmalhik!Xlown request (ity which time the infting~g' work bas been, made available to all Vimeo users and fur oo,pyii!;g and :furtber distribution by a1,1 Viu~oo :11WI.nb~). Even.a,fter receivll\g notice, Vimeo does nothing to remove. other copies of:t~ same r'~rd.ing$ or to prevent them from ooin~ replaced. oopli.oo on Vtmeo' s servers, and ~ade' available. to its users .. In 00 doing, Vim~.C(inveys to its users that it tol,erates the use ofO;l:pyright:etireoordings and wm I)'ot engage in poljcing, of its ~te.m; 'Ii\i'fth, respect tonrusic (as opposed to the regular p.olicing itclaims to- engage in w"lth"respec:t to otbertwes.:ofOOntefit).

(e.) Vimeo is well'aware & f the nature of OO:P}TIgbls generally, purports to obtain

~jHcenses;;:from. it'S :melnb!!ni to copy, ',e:rtbr~ and distribute ,audiovisuai works, and takes: steps to protect its own. ~ritenec{ua] property rights. Vimeo specli'tcaUy is aware 0 f the :~ct that

. Plaintiffs own copyrights in. recordings and 'that sucb tights must he licensed or . authorized by the n

oQpyrigi,d: owners for the-precise uses m~de by Vim.eo without license or authorizaHofl. Ma~vef"~ VimOO'$ ~t eo,mpanY1 lAC (anQ jt:ssubsidiary. Mindspark lnteractiv'e Network, Inc., Whieh.,owus· Vimeo), (I'Wn. and manage' numet,ousoolnpOOtes engaged. in the exploitatian of inteUectual :propert,y~ suCh as dating w.eb,sit·e. M,a;tch.oom~ the onliD.,e Uvirtual woildut.w:i.nky~ web ~'persona.izalion"! 'Site U.Webfett~" online greeting card .. sitesMyFunCards,com and CardBoiled.cotti, and· ID3l1Y' other. "Internet website!;· and online businesses,

1,7. Altha:ugh. P hmtt.iffi; ·.bave l1Qtified V imeo of a~'~~ent3tive S:f1n~pb .. : 'of P latmtUfs' .

Recordings that. wef,e bein,g inftm.gOOj additional copies () f many· of the. same works com:inVlc to be made availehle on andbyVimeo .. Vimeo claims to take active stepS to filter and, remove 'content that- it views as profess:ionalJy created "Of that 'is CQmtl,rised of preexMmg works (e.g, ~ movies, tel~visionp~ogrruns). On tbe otherhand, Vimoo rerus.t:S to. implement and. use avaIlable simple measures, including; available filte:rmg·tedmology~ foa.void. tire oont.muedand ongpmg infringement ofP]amtiffs;' Recordings,

2.8~ ViiJJ:eo direct:iyfinaneiaUy iilenet'it:s from it~ infrin.ging .conduct, Vimoo. earns

revenue frumvacious forms of advertising. This includes "banner" 'lind. ~'~sponsor~ link" ad.vertising· i·Jnll is placed on Virum webpages containing infriri,gjngrecortimg:s.SQme advertisem,entsuseil .~. Vimoo alsO are'keyYlitird driven ,rmd.·l:argetei.l t~~he music used. Vimeo also beaefits financially frqm the sale of premiam 'Vu.neri 'Plus memberships and from the sale of merchandise, Piaally, Vhueo fulancially ber.lefits, from the. overall increase in usertrefflc and tomn:i:eroi«l value of its J:;usiness arising from the "draw' Q ftheava:UablUty on' its webs.jte of VIdeos, containing oo:pydgbted focor-dmg,s.

29. 'Vimeobas the legal r~t and ability to control and limit-the fufringing acd~lt:iefi

on its website. AU members of Vim eo ,agree to· be bound. by "l'errnsof.Service," w~icb" ,among other things, ~ermit Vimee to terminate auser's access to its'webslte, Vimeo at all times.

12'

pessesses mo Jute ~mitr61 with respect to access to the Vimeo webs:jte, Vimeo alsO 'has the' practical ability tJO corntro;l and Umitthe content on its website, AU contenrcontained on the. Vlfueo website is copied .and indexed by Vimoo and stored on a server centrolled by Vimeo. Vimeo claims it routinely monito:rsthe videos; uploaded to' its website to- ensure that such v,jdeos -are-comprised ofarnaleur.ofuse:r~made consent, donot contain potru)gr~phic content, ~ .

. oompJy with otbe4' "'o;nmn~nity guidelines," and remo V~. those videOs tha;t do oo~ co.mply= Vimeo staffa:lSI) review ·Uie·3udiovi.sual worts to select their ~·S.ta:ffPickst which :include \\'orks,

. .. .

e.Dlb!J.dyingJl'laint.ftfs~ Recordings. However. Vitneo deliberately dOe$ not i~ruoveor delete audiovisual work; that if knows contain ~p.yr,jghtoo. recoedings. 1'0 the CO,m-mry1' Vimoo (and its Staft) openly encourage 3;nd/or tolerate.the useof copyrighted music by Vimee users" thereby conveying. thal t:he Vfmoo. website is a '':safe haven" . fur sum material and, allewtng the pro.liferatKm ofiDfrmgiQg'worlcs 'Ott website.

,COUNT I

DIRECT COPYRIGBlJ INFRINGEMENT

. .

30. P-lainliffs incorporate by this reference each and. everyaverment contained in

paragraphs I, tlvGy:gh 29~. inclusive,

31- Detefu:iant~ h~ve' 'lnbingw Plaintiffs,' oopyrights in the' Copyrighted Recordings

by reproducing, distributing, and/pr publicly llierfonmng the Copyrighted Reoohling,swithout a(Jthorizatron,in violation &fthe fi2',opyrig'ht Act, 17' .u.S.C. §-§ 106 ,arid 501.

32.. Each such infring~ment by Defendants of the Cop)triglited Recordings eenstitutes

3 separate and diS;tinctac,( of in.iJ,mgement.

33. tlerendams' actsofin~ing~were wmfu]~ in djm~gard. o~ and with

ifidiff~renlce to, the tig~ of'P ]amtlff$.

'1,4,. As adirect _ 'proximat~~f result of'the in,mn;gements by nererniams •. P'bliniiffS are

·entitled to damages and, to De'fendants • pralits in. ,I}'JOOWlts to' be proven at trial w h'i~b .. are not currently asoortainable .. Aitematively ~ Plaintiffs are entitled tcmaximum statwory damages of s 150,000 fur each c'opyrighfmfr:~nged~ or in sUch ot~~ amount as may be pIOPiflunder 1 '1' U.S.C,··§ S04{c).

JS. Plrtintiffs further are entitled tOI their :artomeyS' fees Imd full coats pursuantto 17

us.c § 505.

36. As a resUlt of DefendaIlts,' acts and co'ndllct~P1aimi~ have sustained and wm

ooritinu.eto sm,ialn subs.tandaJ"iirnnedia:te,. and irreparable injury forwhichthetre:isnO,adequate remedy at law. Plaintiffs are infon:ned andbelieve, and onthat. basisaver, that unless enjOined andrestreinedbythis COuri •. Defendants willeontirme to infr-ingel Plaintiffs' rights .jn n~e Copyrigbted Reoord~. Plaintiffs are entitled t.o.injunctive relieft!! restrain and enjoin Dcfendrulis' cominu.ing. infringing conduct.

consr n

eONTRIl1VT.ORY COrVRIGHT (NFRINGEME'NT

37. Plaintiffs ineorporate'by this reference each and every averment contalnedin

paragraphs ] UtrO-l,lgh 29; inelusive,

3~, The 3.fbremtntiOned activities ~Y Dekndants' usess constitute iuftingemero;g:of

Plaintift& "Copyrighted Recording~ including Plajntiffil' exclusive rights·()f reproduction,

14

ad~ptation~ distribution, and pubUc·per,furmance·.by means of'a di,gita,l audio tTWlsnUssH;in., 17 U.S,.c." §~] 06 and SOl.

~j"9. Defendants have, with knowledge, materially ,eontributed to unauthOrized

reproduetiens, adaptm.ians~. distribut IDns~ and/or· public performances 0 f the C,()ipyrighted. Recordings-by Defendants' users, including by failing and refusing. to take .simple measureste limit or:oortail such ~ging ;activity,and tbus Defendants have oontrib~ted, to or caus.ei:J the infrilgemau 0 f:P1aif:lH.ffs~ oo'p,yr:i~h.ts~

40" Each such. infringement by Defendants' \l.S~·o'fPlajntiffs' Copyrighted

Reoorrli;ngs constmtutes a s,eparate and distinct aet of~n fridgelflen:l ~

4.l. Defendarsa" ads ofjufrmgemenf. )J(ele willful. m d.isregm:d of;, and with

uldifference to, the I'".ight~ 0 f Pljlil1ti'ffs.

42. As a direct. and 'Pro~dmat{;: result of the. iufi'in,gements by Defendants, Plaintiffs/are

endtled to, damages and. to ,Det"'endanm"profits in .amounts to be proven. at trial whieh'are net cuerently.ascerteineble; A]t,emative.l.y, 'Plalnt iffi are en.titled' to .maxanam statutory da~.ges of $1 50~O(lO !br each: oopyr-i.gbt .infring~ or. in suchother-nmount as may be proper underI? U.$.:C § 504(6).

43.. P IC1l:intiffS further are entitled to their aUQmeys' fees and' ~:U eests pursuantto 17

U~ s, C,·~ ",OS,

44.. As 3: 're-sult"ofDefend,ants~ acts and conduct!, Plaintiffs have sustained, and will

continue to sustain su bstootud,,\ immediate, arm irrepa:ra:b:le iri:jury'l fOT' which there is 00· adequate

.. .. .

reriledyat Jaw. P'~amtiffs··are infOnned and believe, .and on that basis aver, that. unless. enjo.mm. 15.

and r-e.stra·ined:-by this Coutt,. Defendants will eont it'rue tommnge .Plaintiffs; rights m the ~opyrighted Reeordiogs, Plaintiffs· have' no adet) uate remedy at Jaw. Plaintiffs. art: lm~·ided tc! injuncti ve. relief'to restrain and· enjoin Defendants' continuing in.ftin,ging conduct,

CQUNT·U~

'V1CARIOUS COPYRIGHT ~!GEMEN~

45. Plaint i.ffs. mcorporate by this reference each ~nd.: every a ve.r:rrienf contained in

paragraphs 1 through. 29,. ml?lusive.

46. The :rror:e-mentioned activities by Defendants;' users constitute infringements of

Plaintiffs" o.o.pyright.s, mP..laintiffi· CopyrjghtedReootd~includingPlaintiffs exclusive tight_s Of.fqjIOdu·c.tion~ distribution, ad'ap.r.ation~. and public· performance by means of:, ~igitaJ. aud~o' transmission, '1 7 U. s c. § § 106: and. SOl ~

47. Defendants have the right and ab~Hty"to supervise :and eontrol the infrlng:il\g

conduct of their users, 'Defen4:ants have failed and refused to exercise such supcniisionand control to limit infringement to the extent requited by law: As a direct and proximate result of such refusal, _Defendants' users have infringed Plaintiffs' cnp)Tights in, the· Copyri,gfited Rec_:orrlings. indru;i:ulg ;by reprod;ucing~ ,adaptin& di$tributin&ood. publiclyperfurming, the Copyrjght~·1tecri.rd:inp'.

4'8. Derendants derive a. dirrect financial benefit 'from this infr~ement. including_:but

notlimit;e.d to, 'from advcitisingrevenlU~fr.om paid subscriptions, fmm the sale cf merchandsse through-the Vimeo websitet end.from the increased wlettraJ~c and increase lnvalueef De~dants' business arising ~trom the ~~dra.w" ofP.la,md.ffs~ Q)'p~'ight¢d Recordings.

16

4,9. Each such inJimgement by Defendants' users of'p1laintiffs" eop)irightei;l

Recordings constitutes a s~m'ate and distinct act of i:nfri[lgemen.~ ..

50. Defendants' aets of inningetnerit were '\viUful,in dis.reg;atd .o~ and. with

.indifferenCe to, the rights of P1aintiffs.

':5 ~. As -a:direct and proximate resu~Jt o.f tbeinm:ngements .by DereJi,daots~ Plaintiffs 'a~

entItled to daIIlageS and to D.e:fe.nd·ams.' profits in. amount:S to oo·p·rove.n:.at trial which arenot current~y ascertainable. i~It:~i\lel~~ Plaintiffs are··entitled tQ maximum ·8tat.utCiry datil:ag:ei'! of SI5Q; ~OO for. each oopyright infr.inge9., or in t!lu41 other ·a.mo.14fi(. ~:tnaY be: proper under ~ 7

U . .8. C, .§~0:4( c).

52. Plaintiffs further 'are entitlf4, to their atlDmeys' fees and. fun costs pursuant to 11

U .ac, § 505,"

51. As. a. result of'Defendants' aetsand ooftd:uct~.P1aintiffs have sustained and will

eontinaeto sustain subStantiaJ, imrnedjate~and' irnepm:ab]le injury, fin which. there is no adequate remedy at law. PJ.amtiffs are informed. am) bei.ri.e"e~and .on f!mt basis aver, that nnless ea1joined. and .restramedi by this Court, Defendants will continue toiafringe PIa.hlUffs " rights ]11 the Copyrl~hted Recordings. Plaint.iffShaye,no adequate~eme(fy at. Jaw, Plaintiffs are entitled to il'lJUIlictiverelieftorestrain and. einjoil1 Defendants· "ContinuIng infringing conduct.

CQUNTIV

INDUCEMENT TO INFRINGE' COPYRIGHT

54. P1aintiffS 'lnootpar:ate by tbis referenceeach and every, averment contained iII.

.paragraphS 1 :rhrougb. 29 ~ inelusi ve.

17

.. '

5S.Defeltda~lts have actively eitcouragedand. induced Vimeo users to en:gage in copyright" infringem~ntJ' inCiud:ing. amo.ng· other things, b.ypt()vlding to them tile tools to infringe" mstnrclinn.~ to fnftJnge; and. 'the ability to infringe anonymously, Add.itio~l)any, Defendants.have designed the Vimeo website and service, and promoted-the. use of'the V:imep website, tQin.fi'inge ool?yri~~ works, .includ ing .Pla:intiffg' Copyright.ed .Reoom.in,gs. Asa direct ,and prox~3te resu:lt of such mduoemoot".Deferuiants' users have infringed Plaintiffs' Copyr~g:}Ued. Recordings, including by repFoducing; adaptin.g, ·d~tribt1ting,l'Hl~ puhliclY perfOrming P-]llIintiffi:~ Gopyr~hl00 ReConiings.

56, "Eacb'sucnmmngernent by'Defendants' users cfthe Copyrighted Recordings

ecnstitutes a separate and distinct act ofin:fril.1gement.

57.. Oefefldca.ats/ acts ofmfHngement were.willful. 'in disregard of and with

ind:ifference to the rights.ofPlaIDtift's.

58. ·As a direct and .. proximate res·uU ruthe inftingem.ent~ by Defendants" Plaintiffs are

entitled to damages )m.d to :.Defendoo~s" p;r:o:fits;.in. amnunts to 00 pI'Oiven ,a.t trialwhicn are; not' currently ascertainable. AlternativeJ),., Plaintiffs are-entitled.tn maximum statutory·d.amages of St50,.OOO -, thr .each·copyright irifting,ed. orm such other amount as may be proper under 17 U.S.C

§ 5Q4(c).

:59.. P.Ja;intiifs.:fi.lrtb,er af:e .. entitledto their attcmeys" fees and full.costs pursuant to 11

u.s,e, § 50:5.

60. As a-result of Defendants' .ads and conduct, ·Plaintiffs.have sustainedanxrwUl

cootieue to sustain subs1~da~. :immediat~, andiireparab!le hljl:l;r)' ~ror whi~h there is n,~ adequate remedyat law. Plaintiffs, are infmmed and _be1iey({, andon.that basis ,aver:~ 'that unless enjoined 18

and restraIned by UIL'i Court, Defendants will continue to_ in:ti1nge pbintiffs' riGhts in the CbPyrIghh;rl Recordings_. Pla:intiff:sdlave no -ad,eq~t'e r'emedyat Iaw.P-]a,mtlffs areentitled'to inj~!l'tiv,e~reliefto restrain, and enjoin Deferidants~ continuin~-inftmskg_ro:nduct

COUNTV'

COM-MON LAW COPYlUGHT INFRINGEMENT AN.DMISAPPR:OP~IATION

61. Plaintiffi incorporate ooe·in by this reference each. and ~ety a.vernientoont~ed

in paragraphs I' through 29~ inclusive.

61. r.hc.P[6-,1912 RocQtding~'iU'-e subJett 'to common law. cop}1ightplOtection under

the laW' o,fth€: State tifNew York.., As, the o'w:-n,ers ef'eemmon :Law oo,pyrighis 'in 'and to the-Pre], ~72 Reoord~s,. Platnulffs po~sess: thtf exclusive 'right5 to manl1fuctuR!~ copy, sell, distribute, a.ndothen\riSle,e:xpl~it the .Pre-197,2·Rei:Orom-g.~.

63. .PJaintIffi-· ba.\':e net. ,:.ultbQ~d. ('If: Uoe.nS;ed .the Defendants or .any of the, it users the.

rigQ_{. tn oopy~ distribute. or otherwise :exp]o it the .Pre-191i Rooordings in. any manner,

64. '11m':'IU~htheir conduct, Defendants have' violated P1aln.tiffs' exclusive ownership

interests: in and to the Pre--I972 Recordings. D~femliIDts have Dlmappropdated •. and,oonUnue to misappropriate, fortb.eir own commercial benefit, Plajrttiffi;,;t propert.y rights jn fh.e:Poo-1972 Recordings,

65. As a direct and pr6ximat.ere.sult,ofDdendantsT ronduct in violadon ofP'laintifts~

esctusive own.ership Interests in arid 'lQfuePre-:l912 Recordings, Defendams have received prd~ds and P']aintiffs·Im,ve,heen damaged, in an amount to be proven at lria.l.

19

.6tL Defendents are guilty ofoppresskm, frau4 or malice, cmd P'JaintiffS~in·~ition to

tbeb' actual damages, are entitled, to, ::recover exemplary and. punitIve ~es, against Defendants.:.

67. Defendams' 'conduct 'is causing; and unless ~joln¢d·and re&tra.i.ood by this Court.

wiflcentinue to cause, PlaintIffs' great and. irrq1arable.mjury that cannot ·fuUybe compensated or measured inmoney~P]aintiffS have. rID adequate remedy at law .Plaintiff~are enUtl~ to: . an injw1c.tio.n prohibiting furtherviolatlnD. of their prop.uty 'rig~s 'in the· Pte-19?2 Room:ding~.

COUNTVl

IlNF AIR COMP'ETITION'

O.S. PlaIntiffs ineorporete herein by thisre-fer-el1Ce each and every a verment ooDmmed

in. p;ara,graphs 1 through 29-. inclusive,

6"9. Plaiatiffspossess exclusive ownership mtef'es1;' in and to the' Pre-I 9'12 R.e.cordmgs~

andtbese ow.nership· inteeeetsare protected under New Yo,t'k~Ofair competition .Ia,w ..

7{t Plaintiffs are ,engAged in the business of selling, distribut.ing, andlicensieg the

.P .. e- 1912, Reoord:ings, both 'in tangjhle rorrn and di,g1tally over the Inteinet.indnding in audiovi~·ual·works. :Plaintiffi: 'expend 'large sums of.rnoney to create, produce, and ,explo,lt their rights in, and to th$l Pre- ~ 972 Recordings, PlajnHffS_'ooye the exelusiverigbtto control the use of the;]r 'P:re.-I9?2 ··~[dings,~OO to.recetve eompensetion fo:r the ex;kritation cfsuch works;

11. Defelldants' conduct constitutes unfair competition under New York. common

law.

20

72" As· ~ d:~ and. ·prOxtrn{It·e; r~'rult .0 fDefcu(b:lllts' ooIidud~ Plaintiffs .further are

entitled te recover. an, ·.p.moeedrs and .o:th~, .ooJUP'eJISa.tioo .r¢eeived or to be received by ·peferu:lMts. ·arising H'Om. fhe m.fr'fuge:rnents of the P~ro-1972 RepoJidings;

71,. As a direct .~ p:nndmat.eresu.h: ofDefendams'un'fa°lr oompei:itioll~,']a'mtiff8 have

boon ·d{tm.{i.ged -in an amount to be proven ,,_trial f9rwhich dam.age:s ,and/or: restitut~~ anti

, ,

:disgorgemeY:lt 't;lppUrpriaxe,. $U:CfH1,ama~es, andiqfrestkution and djsgQ:t:g.~entsboukl 1t.J:c.h;lde a_ declat;atlQll. 'l;Iy ,thhl' Court ,thlt D~riti:'l ,are, ¢onst:ru'Ct~vetmsooe$ for: the' benefit o:fPlalnti(f~ and an. o.rcl~rthat 'rrefena,an,ts a~W1tarid.' OOl_"i!7~y b:i piJaintitlS the. gt(Ossrec~ipt8 received ar tQ be received' by tht:om -that are attributable tel in::fring:em.ent of.Ole-,Pr~1972 Reeord.mg:.s.

74. Defendants ar-e, g1.iillY of o<ppresslon, frinmor maJire. <md. Pj~intiffs~ maditition to

their actual d.a:mag:e~, 'are ,entitled.' to recover exemplary and. p'u:nltiv.e damages 'against Defendants,

, ,

75. Dtifenda:nt~~co]:muct;..iS' e:aWiliI,~and' unless ,enjo:ined and. ,r:estraj~ bythls CoUrt

will CQntinue to ca1..ls;~p14h:i~_rns great and .irre_P!arabIe,injury lJ:fuJt Caimot fully'be oomp~~t:oo Qr' measured 'in money" Pl4jntiffs h~v~ IlO" adequate rem_edy~ law, thus erititlfug ,~he'm ~Q an ,injut;t¢tmo.prnhibiting Jiu1:her aeta of uiif'3:l:r 'C9mpet.itron,

WHERE,FQRE,J"'laintliIs 'pray'fo'rjUd,gment, a~,inst Defendams." mdeacb. oft~ jb,intJr and severa:Uy, as folloW'S;

l., On"Counts I thm:u~b.T\":. for Defendants' profits .and f~u d.amag,es in. sQc.h. 'a:nmunt

asma~ be' determined ~ ,altematJ.vely ~ "ror .l1la.IDmumst:atutorydam!l!~'es. ~m. 'the a.mount' of'SISO, Dud with re-speci t'O each 'COpyrl~.ed wctrk In,frfnged.. ('It fi?r- such other ~IDW1!as may be proper J'UfSu.ru1tlQ [7 U .s G~ §' 504( o),

21

2. On Counts 1 through'V1~ fQdnju;nctiv:e relief enjoining [)denda.nts and. each uf

them.~' their respective ag,ents~ servants, employees, .Dfficen:. .. s:u.cCe.~SOFS~ licensees and assigns, and. ,all~,mons. ac1ing.in concert otpmiei'pa,tion 1;vjth.each O,.r any of them, from: ('i) d:irecdy Of bldirectly infringing in- ilny manner .any' I) f PJain.t,ifiS.' respectivecopyrights' (whether now' in existence or hereafter created], including wttruJiul llmRation, the Recordings, l~ted on Schedule A: (ii) from causing, oontributing·to;,. participating in, ind'ucing. or ·enabling the iniingement of' any of Plaintiffs,; respective oopyrights,. including without limiteticn; the, Recordings, listed. on, Sdletlule A~ (Ui) dir'oody' orindir:ecUy yiola.t.ing, i.n ,anynu'U'm~~ Plaintifts:' 'pmpmty rigllts in Plaintiffs' Pit}-1972 Recordings. including '\li\t'ho,uf Umitation, those listed' on Sclted,_ul~ .B ~ and (iv) fto'ffi eausing, oo:ntributing to,participating,in,indueing~· or 'el18bling the r~production, _petfur-mW1~e or distribution 0 f'any of PlaintHis ~ pf:e..'19n .. Rieoordings, .. rnc.lUding without .Umitsti6:ri •. those fisted on Schedule H.

3.· On Count VI" roTan ac;eountmg., the. imposition ofa constractive trust,re.stltution

of Def~ndants' unlawfulproceed.s~and damages .a.c<:ording. to proof

4,. On. Counts V atid, \II for punitive and ex,emp1aryd'amages :in such. amount: as nlqy-

be awarded at trial.

5. For ,prejuagme.nt interest ,acocu:d.tng to law.

6.. FOol' Plaintiffs' attorneys' req. andfull costs.

22

DATED; December 101.2009 New Yo:rk, New York:

MITCHEL~ SILBERBERG & KNUPP LLP

BY:C~92'~-

12 East.49th Stred, 30th Floor New York, New Ycrk 10011 Telq'hone; ~r2) 509.a,3900 Facsimile: (212) 509.-7239

Russell J.rrackman (pro hac vice motion forthcoming)

Marc E,. Mayer (pro ,hac 'vic.!! 'motion forthcoming)

11377 'West Olympic Boulevard Los An_g,elrii. Ca1ilbl1i~a. 9(lQ64-1.6S3 Telepho.n,e: (3 l())Jl2a20QO:

Facsimile: (31~) 312-3100

Attm-neys for Plai'n:fiffo

23

,-01SX DEMAND

.. Pl~mUffs Capitol Records; L~C~ Ca.tQooe Recot,ds, Inc .. ;:and Virgm Records -. America" Inc., demand a.trial by jury.

DATED: December om. :2009

. -

New Y0~ New. York

MITCHELL SlLBEBBERG & KNUPP LLP"

By:.~-J_~

Christioe L:epeta; (eL. 9311 )1

12 East 49th stteet~ 30th Floor New .York, NewY or~ 10017· T e1e.phone: (212) 509~3 900 Facsimile; (212)1 509--7239

Russell J. Frackman (prQ hac vice motion :forthcom~)

Milrc: E. May~j-· (pro hoe vic(!. motion fQrtooomma)

11377 W,eSt OIympi~ .Boulevarc1 Los Angeles; Califumia. 90(}64~ 168:; Telephone .. (3 i Q) 3--12-2000 Facsiln.ik-: (3_] 0) 3 ~ 2<nOO

24-