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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 1 of 12

1 COMP
Marquis & Aurbach
2 Jay Young, Esq.
Nevada Bar No. 5562
3 David T. Duncan, Esq.
Nevada Bar No. 9546
4 10001 Park Run Drive
Las Vegas, Nevada 89145
5 Telephone: (702) 382-0711
Facsimile: (702) 382-5816
6 j@marquisaurbach.com
dduncan@marquisaurbach.com
7 Attorneys for Plaintiff

8
UNITED STATES DISTRICT COURT
9
DISTRICT OF NEVADA
10
ULTRA INTERNET MEDIA, S.A., a company
11 organized under the laws of Nevis, West Indies,
Case No.
12
Plaintiff,
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
Las Vegas, Nevada 89145

14 vs.
10001 Park Run Drive

15
HARRAHS LICENSE COMPANY, LLC, a
16 Nevada limited liability company,

17
Defendant.
18
COMPLAINT
19
Plaintiff Ultra Internet Media, S.A., a company organized under the laws of Nevis, West
20
Indies, by and through the law firm of Marquis & Aurbach, hereby complains against Defendant
21
Harrahs License Company, LLC, a Nevada limited liability company, as follows:
22
SUMMARY OF THE COMPLAINT
23
This is an action for a temporary restraining order and preliminary injunction, breach of
24
contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and
25
declaratory relief arising from Defendants ongoing material breaches of an exclusive
26
promotional advertising contract related to the World Series of Poker.
27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 2 of 12

1 THE PARTIES
2 1. Plaintiff Ultra Internet Media, S.A., a company organized under the laws of
3 Nevis, West Indies, with its registered agents office at c/o Veira Grant & Associates, Chambers,
4 #10 Solomon Arcade, Charlestown, Nevis, West Indies (hereinafter UIM).
5 2. Defendant Harrahs License Company, LLC (hereinafter Harrahs), is a Nevada
6 limited liability company with a principal place of business in Las Vegas, Nevada.
7 JURISDICTION AND VENUE
8 3. This court has jurisdiction pursuant to 28 U.S.C. 1332 based upon diversity of
9 citizenship.
10 4. UIM is a company organized under the laws of Nevis, West Indies, with its
11 registered agents office at c/o Veira Grant & Associates, Chambers, #10 Solomon Arcade,
12 Charlestown, Nevis, West Indies.
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 5. Harrahs is a Nevada limited liability company with a principal place of business


Las Vegas, Nevada 89145

14 in Las Vegas, Nevada.


10001 Park Run Drive

15 6. The amount in controversy, exclusive of interest and costs, exceeds $75,000.00.


16 7. Venue is proper in this district under 28 U.S.C. 1391(a) because Harrahs
17 resides in Las Vegas, Nevada.
18 ALLEGATIONS RELEVANT TO ALL COUNTS
19 UIM AND THE WORLD SERIES OF POKER
20 8. UIM owns the world famous Everest Poker name, brand, logo, and websites.

21 9. UIM does not generate gaming revenues or profits in the United States by way of

22 the internet or telephone; rather, UIMs largest source of revenue and profit is from customers in

23 France.

24 10. The World Series of Poker (hereinafter WSOP) is an annual poker tournament

25 held in Las Vegas, Nevada.

26

27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 3 of 12

1 11. In 2004, Harrahs acquired the rights to the WSOP.1

2 12. The 2008 WSOP and 2009 WSOP were hosted by Harrahs at the Rio All-Suite

3 Hotel and Casino.

4 13. The 2010 WSOP is scheduled to begin in May, 2010 and will be held at the Rio

5 All-Suite Hotel and Casino.2

6 THE PROMOTIONAL AGREEMENT AND UIMS MULTIMILLION DOLLAR


PAYMENTS FOR EXCLUSIVE ADVERTISING RIGHTS
7
14. On February 24, 2008, UIM and Harrahs entered into a Promotional Agreement
8
(hereinafter the Agreement).
9
15. Pursuant to Section 4.1 of the Agreement, the term of the Agreement commenced
10
upon execution and delivery and ended (unless earlier terminated by the parties) on July 31, 2010
11
(or if later than July 31, 2010, on the day after the completion after the first airing of the last
12
program of the television broadcast of the full series broadcast of the 2010 WSOP event on
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
ESPN).
Las Vegas, Nevada 89145

14
10001 Park Run Drive

16. In consideration for exclusive name, logo, and website promotional rights and
15
benefits, UIM agreed to pay Harrahs Twenty Two Million Five Hundred Thousand United
16
States Dollars ($22,500,000.00), payable in annual payments as follows:
17
2008 WSOP Event: $6,200,000.00
18
2009 WSOP Event $7,900,000.00
19
2010 WSOP Event: $8,400,000.00
20
17. UIM honored its obligation to pay Harrahs in 2008 and 2009.
21
18. Pursuant to Section 2.1.1.2 of the Agreement, the 2010 annual payment is due in
22
three equal installments as follows:
23
$2,800,000.00 on or before January 2, 2010
24
1
25 See Nolan Dalla, WSOP History - From Moss to Gold: A Brief History of the WSOP (available at
http://www.wsop.com/wsop/history.asp (article linked to the Harrahs website outlining the history of the
26 World Series of Poker)).
2
27 See http://www.wsop.com/tourney/tourneydetails.asp?groupID=764 (schedule for2010 World Series of
Poker linked to Harrahs website).
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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 4 of 12

1 $2,800,000.00 on or before April 2, 2010


2 $2,800,000.00 on or before the tenth business day following the first ESPN television
3 airing of the WSOP event of the relevant year.
4 UIMS EXCLUSIVE PROMOTIONAL AND ADVERTISING RIGHTS AT WSOP
EVENTS
5
19. Pursuant to Section 1.1 of the Agreement, Affiliates or Affiliate meant, with
6
respect to a Person, a Person directly or indirectly controlled by or under common control with
7
such a Person.
8
20. Pursuant to Section 1.6 of the Agreement, Person is defined as any person or
9
entity.
10
21. In consideration for UIMs multimillion dollar payments to Harrahs, Harrahs
11
agreed to grant UIM exclusive promotional and advertising rights featuring the Everest name,
12
logo, and website address during broadcasts and transmissions of WSOP events.
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
22. Harrahs agreed to feature the Everest name, logo, and website address on the
Las Vegas, Nevada 89145

14
10001 Park Run Drive

inner rung of the primary featured center stage television poker table that is used as part of
15
ESPN television (and other) broadcast or transmission of the WSOP event.
16
23. Harrahs agreed to feature the Everest name, logo, and website address below the
17
flop on all WSOP event tournament poker tables, including the primary featured center stage
18
television poker table that is used as part of ESPN television (and other) broadcast or
19
transmission of the WSOP event.
20
24. Harrahs promised to cause its Affiliates to not grant any Person the name and
21
logo placement rights exclusively granted to UIM unless otherwise agreed to in advance in
22
writing by UIM.
23
25. Harrahs promised to cause its Affiliates to not grant any competitor of UIM
24
(identified in Exhibit F of the Agreement) any name and logo placement rights on any WSOP
25
poker table unless otherwise agreed to in advance in writing by UIM.
26
/ /
27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 5 of 12

1 THE ESPN CONTRACT AND ESPN AFFILIATION WITH HARRAHS


2 26. Section 6.2.5 included a representation and warranty from Harrahs that Harrahs
3 was a party to a valid and enforceable agreement with ESPN, Inc. through December 31, 2010
4 pursuant to which ESPN, Inc. has acquired the rights to broadcast or transmit the WSOP Event
5 on the ESPN network and non-ESPN-branded television channels throughout the world.
6 27. Harrahs thus knew at the time it entered into the Agreement with UIM that
7 Harrahs would not be directly broadcasting or transmitting the WSOP event and that Harrahs
8 would need to exercise control over its affiliates, including ESPN, in order to honor the
9 Agreement.
10 28. UIM reasonably relied upon Harrahs representation that Harrahs had a
11 contractual right and ability to control its affiliates (such as ESPN) for purposes of honoring the
12 Agreement.
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 THE MATERIAL BREACHES OF THE AGREEMENT AND IRREPARABLE INJURY


Las Vegas, Nevada 89145

14 29. In January 2009, UIM became aware of at least 8 instances of material breaches
10001 Park Run Drive

15 of the Agreement related to the airing of the 2008 WSOP.

16 30. A January 2009 broadcast of a WSOP event into France reflected virtual signage

17 of WSOP 2008 covering substantially all of the Everest name and logo on the poker table in

18 violation of the Agreement.

19 31. The same January 2009 broadcast included an unobstructed, prominent feature of

20 the name and logo of Full Tilt Poker, a major competitor of UIM specifically identified and

21 excluded within Exhibit F of the Agreement.

22 32. UIMs exclusive promotional name and logo rights (for which it paid many

23 millions of dollars) prohibited virtual signage which covered up, altered, or obscured the Everest

24 name and logo, and explicitly prohibited placement of any competitor names and/or logos on any

25 WSOP poker tables during WSOP events unless otherwise agreed to in advance in writing by

26 UIM.

27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 6 of 12

1 33. UIM never agreed, orally or in writing, to permit any competitor name and/or

2 logo rights on any poker tables during WSOP events.

3 HARRAHS CONFIRMS ITS CONTROL OVER ESPN AND ASSURES UIM IT WILL
SEEK IMMEDIATE REMEDY
4
34. UIM promptly notified Harrahs in writing concerning the material breaches of
5
the Agreement in January 2009.
6
35. Harrahs authorized agent assured UIM in writing that Harrahs would
7
investigate immediately and that Harrahs agreement with ESPN does not allow for
8
modifications to the master program or virtual signage without our permission. Rest assured we
9
take this seriously and would seek immediate remedy upon verification.
10
36. In February 2009, representatives of UIM, Harrahs, and ESPN met in Bristol,
11
Connecticut to discuss the material breaches of the Agreement (hereinafter the Bristol
12
Meeting).
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
37. During the Bristol Meeting, Harrahs and ESPN agreed that covering the Everest
Las Vegas, Nevada 89145

14
10001 Park Run Drive

name and logo with virtual signage and introducing the Full Tilt advertising onto the poker table
15
violated the Agreement and warranted restitution and better controls going forward.
16
38. During the Bristol Meeting, Harrahs and ESPN agreed to control their affiliate,
17
RTL9, and require RTL9 to cease causing violations of the Agreement during its broadcasts and
18
transmissions into France.
19
39. UIM discovered approximately sixty-nine (69) episodes of WSOP broadcasts into
20
France in material breach of the Agreement.
21
40. As recently as February 14, 2010, the Agreement was materially breached by the
22
display of the Full Tilt name and logo during a broadcast of a WSOP event into France by
23
Harrahs and ESPNs affiliate, RTL9, without UIMs prior authorization in writing.
24
41. On April 1, 2010, UIM gave Harrahs written notice of termination of the
25
Agreement pursuant to Sections 4.2.2 and 4.2.6 for Harrahs failure to honor its obligations
26
under the Agreement.
27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 7 of 12

1 42. Every material breach of the Agreement represents lost potential future profits,

2 erosion of goodwill, and compromise of UIMs international business reputation.

3 43. The material breaches of the Agreement are continuing and represent a direct,

4 immediate, and ongoing injury to UIM for which there is no adequate remedy at law.

5 44. UIM seeks a declaration by this Court that: 1) the Agreement is terminated as of

6 April 1, 2010; 2) UIM is entitled to a refund of its initial 2010 fee payment of 2.8MM; 3) UIM

7 has no further obligation to pay Harrahs under the Agreement; and 4) Harrahs owes UIM a

8 refund of its 2008 and 2009 payments under the Agreement as damages for its multiple,

9 egregious breaches.

10 COUNT 1
(Breach of Contract)
11
45. UIM realleges and incorporates for this reference each and every allegation
12
contained above, inclusive, as if fully set forth herein.
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
46. UIM entered into the Agreement with Harrahs.
Las Vegas, Nevada 89145

14
10001 Park Run Drive

47. All conditions precedent and subsequent have been fulfilled.


15
48. Harrahs materially breached the Agreement by failing to cause its affiliates to
16
honor UIMs exclusive name and logo rights under the Agreement.
17
49. UIM has been damaged in excess of $75,000, exclusive of interest and costs, in an
18
amount to be determined at trial as the direct and proximate cause of Harrahs material breach of
19
the Agreement.
20
50. UIM has been forced to retain the services of an attorney to prosecute this matter
21
and is entitled to recover reasonable costs and attorney fees incurred herein as special damages.
22
COUNT 2
23 (Breach of the Implied Covenant of Good Faith and Fair Dealing)

24 51. UIM realleges and incorporates for this reference each and every allegation

25 contained above, inclusive, as if fully set forth herein.

26 52. Each and every contract in the State of Nevada carries an implied covenant of

27 good faith and fair dealing.

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 8 of 12

1 53. Harrahs breached its duty to deal with UIM in good faith.

2 54. UIM has been damaged in excess of $75,000, exclusive of interest and costs, in an

3 amount to be determined at trial as the direct and proximate cause of Harrahs material breach of

4 the Agreement.

5 55. UIM has been forced to retain the services of an attorney to prosecute this matter

6 and is entitled to recover reasonable costs and attorney fees incurred herein as special damages.

7 COUNT 3
(Unjust Enrichment)
8
56. UIM realleges and incorporates for this reference each and every allegation
9
contained above, inclusive, as if fully set forth herein.
10
57. UIM paid Harrahs several million dollars under the Agreement in consideration
11
of expected exclusive promotional benefits and rights during WSOP events.
12
58. Harrahs accepted, used, and enjoyed the substantial benefit of UIMs payment
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13
for expected exclusive promotional benefits and rights during WSOP events.
Las Vegas, Nevada 89145

14
10001 Park Run Drive

59. Because Harrahs materially breached the Agreement and failed (and continues to
15
fail) to control its affiliates under the Agreement with respect to UIMs expected exclusive
16
promotional benefits and rights during WSOP events, Harrahs is unjustly enriched to the
17
detriment of UIM in excess of $75,000, exclusive of interest and costs.
18
60. UIM has been forced to retain the services of an attorney to prosecute this matter
19
and is entitled to recover reasonable costs and attorney fees incurred herein as special damages.
20
COUNT 4
21 (Declaratory Relief)

22 61. UIM realleges and incorporates for this reference each and every allegation

23 contained above, inclusive, as if fully set forth herein.

24 62. There presently exists a justiciable controversy in this matter related to the

25 Agreement and UIMs expected exclusive promotional benefits and rights during WSOP events.

26 63. UIM has a legally protectable interest in its rights under the Agreement.

27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 9 of 12

1 64. Harrahs materially breached the Agreement by failing to cause its affiliates to

2 honor UIMs exclusive name and logo rights under the Agreement.

3 65. UIM notified Harrahs in writing in January 2009 that material breaches were

4 occurring to the detriment of UIM.

5 66. Harrahs failed to cure the material breaches.

6 67. UIM has been damaged in excess of $75,000, exclusive of interest and costs, in an

7 amount to be determined at trial as the direct and proximate cause of Harrahs material breaches

8 of the Agreement.

9 68. UIM is entitled to a declaration that: (1) Harrahs materially breached the

10 Agreement; (2) UIM has been damaged in excess of $75,000, exclusive of interest and costs, in

11 an amount to be determined at trial as the direct and proximate cause of Harrahs material breach

12 of the Agreement; (3) the Agreement is terminated as of April 1, 2010; (4) UIM is entitled to a
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 full refund of its initial 2010 fee payment of 2.8MM; (5) UIM has no obligations to pay Harrahs
Las Vegas, Nevada 89145

14 any further fees under the Agreement; and (6) UIM is entitled to a full refund of the fees paid
10001 Park Run Drive

15 Harrahs for the 2008 and 2009 WSOP in light of the multiple, egregious breaches of the

16 Agreement by Harrahs.

17 69. UIM has been forced to retain the services of an attorney to prosecute this matter

18 and is entitled to recover reasonable costs and attorney fees incurred herein as special damages.

19 COUNT 5
(Injunctive Relief)
20
70. UIM realleges and incorporates for this reference each and every allegation
21
contained above, inclusive, as if fully set forth herein.
22
71. Harrahs material breaches of the Agreement and continued refusal to honor its
23
obligations to grant UIM exclusive promotional benefits and rights during WSOP events
24
constitute a threat of immediate and irreparable harm.
25
72. UIM has no adequate remedy at law and thus seeks this Courts equitable
26
intervention.
27
73. UIM enjoys a reasonable probability of success on the merits.
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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 10 of 12

1 74. UIM is entitled to a temporary restraining order and preliminary injunction

2 enjoining Harrahs and its affiliates (or any broadcasters/transmitters of the WSOP events) from:

3 (1) failing to feature Everests .net website address and Everests Logo on the inner rung of

4 the primary featured television table that is used as part of the ESPN television (and other)

5 broadcast or transmission of the WSOP ; (2) failing to feature Everests .net website address

6 and Everests Logo below the flop on all WSOP tournament poker tables (including the

7 primary featured center stage television table that is used as part of the ESPN television (and

8 other) broadcast or transmission of the WSOP; (3) granting or authorizing any individual or

9 corporate person the name and logo placement rights granted to UIM during the term of the

10 Agreement unless otherwise agreed to in advance in writing by UIM; (4) granting or authorizing

11 any competitor of UIM (as defined in the Agreement) name and logo placement rights during the

12 term of the Agreement on any WSOP event tournament poker tables (including felt and inner
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 rung) and chairs (including the primary featured center stage television table of the WSOP
Las Vegas, Nevada 89145

14 event) unless otherwise agreed to in advance in writing by UIM; (5) covering up, altering,
10001 Park Run Drive

15 obscuring, or replacing (whether by virtual signage (which allows a broadcaster/transmitter to

16 insert a graphic that appears to the viewed to be on-site signage) or otherwise) the Everest Logo

17 and website address; (6) inserting any additional virtual signage not included in the on-site

18 signage in a manner that would diminish the prominence of the Everest Logo and website

19 address in relation to the other names and logos on the poker table; (7) granting any name and

20 logo placement rights to a competitor of UIM (as defined in the Agreement) for virtual signage if

21 such virtual signage is otherwise prohibited as on-site signage; and (8) diminishing the featured

22 prominence of the Everest Logo and website address in relation to the proximity, appearance,

23 size, or color of any other company advertisements pending the outcome of this litigation.

24 WHEREFORE, Plaintiff prays for judgment as follows:

25 1. For a declaration that: (1) Harrahs materially breached the Agreement; (2) UIM

26 has been damaged in excess of $75,000, exclusive of interest and costs, in an amount to be

27 determined at trial as the direct and proximate cause of Harrahs material breach of the

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 11 of 12

1 Agreement; (3) the Agreement is terminated as of April 1, 2010; (4) UIM is entitled to a full

2 refund of its initial 2010 fee payment of 2.8MM; (5) UIM has no obligations to pay Harrahs any

3 further fees under the Agreement; and (6) UIM is entitled to a full refund of the fees paid

4 Harrahs for the 2008 and 2009 WSOP in light of the multiple, egregious breaches of the

5 Agreement by Harrahs.

6 2. For a temporary restraining order and preliminary injunction enjoining Harrahs

7 and its affiliates (or any broadcasters/transmitters of the WSOP events) from: (1) failing to

8 feature Everests .net website address and Everests Logo on the inner rung of the primary

9 featured television table that is used as part of the ESPN television (and other) broadcast or

10 transmission of the WSOP ; (2) failing to feature Everests .net website address and Everests

11 Logo below the flop on all WSOP tournament poker tables (including the primary featured

12 center stage television table that is used as part of the ESPN television (and other) broadcast or
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 transmission of the WSOP; (3) granting or authorizing any individual or corporate person the
Las Vegas, Nevada 89145

14 name and logo placement rights granted to UIM during the term of the Agreement unless
10001 Park Run Drive

15 otherwise agreed to in advance in writing by UIM; (4) granting or authorizing any competitor of

16 UIM (as defined in the Agreement) name and logo placement rights during the term of the

17 Agreement on any WSOP event tournament poker tables (including felt and inner rung) and

18 chairs (including the primary featured center stage television table of the WSOP event) unless

19 otherwise agreed to in advance in writing by UIM; (5) covering up, altering, obscuring, or

20 replacing (whether by virtual signage (which allows a broadcaster/transmitter to insert a graphic

21 that appears to the viewed to be on-site signage) or otherwise) the Everest Logo and website

22 address; (6) inserting any additional virtual signage not included in the on-site signage in a

23 manner that would diminish the prominence of the Everest Logo and website address in relation

24 to the other names and logos on the poker table; (7) granting any name and logo placement rights

25 to a competitor of UIM (as defined in the Agreement) for virtual signage if such virtual signage

26 is otherwise prohibited as on-site signage; and (8) diminishing the featured prominence of the

27

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Case 2:10-cv-00455-JCM-RJJ Document 1 Filed 04/01/10 Page 12 of 12

1 Everest Logo and website address in relation to the proximity, appearance, size, or color of any

2 other company advertisements pending the outcome of this litigation.

3 3. For damages in excess of $75,000, exclusive of interest and costs;

4 4. For reasonable attorney fees, plus interest and costs incurred herein as special

5 damages; and

6 5. For such other and further relief as this Court may deem just and proper.

7 Dated this 1st day of April, 2010.

8 MARQUIS & AURBACH

10 By /s/ David T. Duncan


Jay Young, Esq.
11 Nevada Bar No. 5562
David T. Duncan, Esq.
12 Nevada Bar No. 9546
10001 Park Run Drive
MARQUIS & AURBACH

(702) 382-0711 FAX: (702) 382-5816

13 Las Vegas, Nevada 89145


Attorneys for Plaintiff
Las Vegas, Nevada 89145

14
10001 Park Run Drive

15

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