JS44C/SDNY

REV. 12/2005
JUDGE SWAIN
CIVIL COVER SHEET
"*L 242014
The JS-44 cfvl cover sheet and the Information contained herein neither replace nor sup
pleadings orother papers as required by law, except as provided* localAbs ofci *
Judicial Conference ofthe United States in September 1974. isreiedrfrle Df the
initiating tha civil docket sheet JL ^wT
DEFENDANTS
le filing and se
tarni, approved
'ourtforthe pu
PLAINTIFFS '
Verse Music Group LLC, as successor
in interest to Bethlehem Music Co.
Collect! Music Publishers B.V.
ATTORNEYS (FIRM NAME. ADDRESS, ANDTELEPHONE NUMBER
Eisenberg Tanchum & Levy LLP
675 Third Avenue, Suite 2900
rc^T^^Jfeiir Ynrk 1QQ17 (212) 599-0777
ATTORNEYS (IFKNOWN)
UNKNOWN
CAUSE OF ACTION (crrE the u.s. civil statute under which you are funs and writeabrief statement of cause)
copyright infringement 28 U.S.C 1331 and 1338(a)
HasthisorasimnarcasebeenpreviouslyfiledinSDNYatanyflme? NoB[ Yes? D Judge PreviouslyAssigned
Ifyes.wastMscasa VoO Invol. D Dismissed. NoD Yes D If yes, give date.
(PLACEAN[x] IN ONEBOXONLY) NATURE OFSUIT
& Case No.
ACTIONS UNDERSTATUTES
FORFEtTURBPEUALTY BANKRUPTCY
[]422 APPEAL-
2B USC153
[ ]423 WITHDRAWAL
28 USC 157
PERSONAL INJURY PERSONAL INJURY
[]3S2 PERSONAL INJURY -
MED MALPRACTICE
[1365 PERSONAL INJURY
PRODUCT UABIUTY
[]368 ASBESTOS PERSONAL
INJURY PRODUCT
UABIUTY
PERSONAL PROPERTY
[]370 OTHER FRAUD
[1371 TRUTH INLENDING
[]380 OTHER PERSONAL
PROPERTY DAMAGE
[]3B5 PROPERTY DAMAGE
PRODUCT UABIUTY
[J610
[1620
[1625 []310
U315
[]320
[-133*0
AIRPLANE
AIRPLANE PRODUCT
LIABILITY
ASSAULT. LIBELS
SLANDER
FEDERAL
EMPLOYERS'
LIABILITY
MARINE
MARINE PRODUCT
LIABILITY
MOTORVEHICLE
MOTOR VEHICLE
PRODUCT LIABILITY
OTHER PERSONAL
INJURY
[1630
(1640
11650
[]B60
[]690
AGRICULTURE
FOOD 5 DRUG
DRUG RELATED
SEIZUREOF
PROPERTY
21USC8B1
LIQUORLAWS
RR STRUCK
AIRUNEREGS
OCCUPATIONAL
SAFETY/HEALTH
OTHER
PROPERTY RIGHTS
XI 820 COPYRIGHTS
[1B30 PATENT
[ 1840 TRADEMARK
CONTRACT
11110 INSURANCE
[ ] 120 MARINE
11130 MILLER ACT
f ] 140 NEGOTIABLE
INSTRUMENT
[] 150 RECOVERYOF
OVERPAYMENTS
ENFORCEMENT OF
JUDGMENT
[] 151 MEDICARE ACT
[] 152 RECOVERYOF
DEFAULTED
STUDENT LOANS
(EXCLVETERANS)
I ] 153 RECOVERYOF
OVERPAYMENT OF
VETERAN'S BENEFITS
[ 1160 STOCKHOLDERS SUITS
[ 1190 OTHERCONTRACT
[ 11B5 CONTRACT PRODUCT
LIABILITY
[ 1198 FRANCHISE
[]340
[1345
[1350
[1355
[ ]360
LABOR
[1710
[]720
SOCIAL SECURITY
[]861 MIA(1395FF)
[ 1862 BLACK LUNG (923)
[]863 DIWC (405(g))
[]863 DIWW(405(g))
[1864. SSID TITLE XVI
[J865 RSI(405(g)) .
REAL PROPERTY
[ 1210 LAND CONDEMNATION
[] 220 FORECLOSURE
{ J230 RENT LEASES
EJECTMENT
[1240 TORTS TO LAND
t ] 248 TORT PRODUCT
UABIUTY
(1290 ALL OTHER
REAL PROPERTY
ACTIONS UNDER STATUTES
CIVIL RIGHTS
[ 1441 VOTING
[ ]442 EMPLOYMENT
[ ]443 HOUSING
ACCOMMODATIONS
[]444 WELFARE
N445 AMERICANS WITH
DISABBJTIES-
EMPLOYMENT
[ ]44S AMERICANSWITH
DISABILITIES -OTHER
11440 OTHER CIVIL RIGHTS
Checkifdemandedinconplaint
[1730
[1740
[1790
PRISONER PETITIONS
[]S10
[1530
[1535
11540
[ 1550
[J 555
MOTIONS TO
VACATE SENTENCE
28 USC 2255
HABEAS CORPUS
DEATH PENALTY
MANDAMUS &OTHER
CTVH. RIGHTS
PRISON CONDITION
FAIR LABOR
STANDARDS ACT
LABOR/MGMT
RELATIONS
LABOR/MGMT
REPORTING &
DISCLOSURE ACT
RAILWAY LABOR ACT
OTHER LABOR
LITIGATION
[]791 EMPLRETINC
SECURITY ACT
FEDERAL TAXSUITS
[ 1870 TAXES
[1871 IRS-THIRD PARTY
20 USC 7609
OTHER STATUTES
[ 1400 STATE
REAPPORTIONMENT
[1410 ANTITRUST
[J430 BANKS & BANKING
[]450 COMMERCE/ICC
RATES/ETC
[ ]460 DEPORTATION
[ 1470 RACKETEER INFLU
ENCED &CORRUPT
ORGANIZATION ACT
(RICO)
[ ]480 CONSUMERCREDIT
[]490 CABLE/SATELLITE TV
[ ]ai0 SELECTIVESERVICE
[)B50 SECURITIES/
COMMODITIES/
EXCHANGE
[ 1875 CUSTOMER
CHALLENGE
12 USC 3410
[ 1B91 AGRICULTUREACTS
[J892 ECONOMIC
STABILIZATION ACT
[ 1893 ENVIRONMENTAL
MATTERS
[]894 ENERGY
ALLOCATION ACT
[1895 FREEDOM OF
INFORMATION ACT
[]900 APPEALOFFEE
DETERMINATION
UNDER EQUAL ACCESS
TO JUSTICE
[ ] 950 CONSTrrUTONALTTY
OF STATE STATUTES
[1890 OTHER STATUTORY
ACTIONS
CHECK IF THIS IS A CLASS ACTION
UNDER F.R.C.P. 23
DO YOU CLAIMTHIS CASE IS RELATED TO ACIVIL CASE NOW PENDING IN S.D N.Y ?
IF SO, STATE:
DEMAND $_
OTHER
Check YESonlyifdemandedin complaint
JURY DEMAND: YEsl NO
JUDGE
.DOCKET NUMBER
NOTE: Please submit atthe time offiling anexplanation ofwhy cases are deemed related.
(SEE REVERSE)
(PLACEAN x IN ONE BOX ONLY) ORIGIN " ~~
KX1 Original 2a. Removed from 3 Remanded from 4Reinstated or 5Transferred from 6 Multidistrict 7Appeal to District
Proceeding state Court Appellate Court Reopened . (Specify District) Ligation Judge from
LI 2b. Removed from State Court ...!.._.
Magistrate Judge
AND at leastoneparty isa pro se litigant Judament
(^EAN x,NONEBOX ONLY) BASIS OF JURISD.CT.ON IF D,VERS,TY ,ND,CATE
D 1 U.S. PLAINTIFF 2 U.S. DEFENDANT 05 FEDERAL QUESTION Q4 DIVERSITY CITIZENSHIPBELOW.
(U.S. NOT APARTY) (28 USC 1332, 1441) '
CITIZENSHIP OF PRINCIPAL PARTIES (FOR DIVERSITY CASES ONLY)
(Place an fX) inonebox for Plaintiff and one box for Defendant)
PTF DEF PTF DEp
CITIZEN OF THIS STATE []1 [,1 CITIZEN OR SUBJECT OF A [ ]3 [J3 INCORPORATED and PRINCIPAL PLACE MS M5
FOREIGN COUNTRY OFBUSINESS IN ANOTHER STATE
CITIZEN OF ANOTHER STATE []2 []2 INCORPORATED or PRINCIPAL PLACE ]4[]4 FOREIGN NATION MS , ,.
OFBUSINESS IN THIS STATE lJ lJ
PLAINTIFF(S) ADDRESS(ES) AND COUNTY(IES)
Verse Music Group LLC, as successor
in interest to Bethlehem Music Co.
134 West 25th Street, Fifth Floor
New York, New York 10001
DEFENDANT(S) ADDRESS(ES) AND COUNTY(IES)
Collect! Music Publishers B.V.
Breullan IF 3971 Driebergen
The Netherlands
DEFENDANT(S) ADDRESS UNKNOWN
REPRESENTATION IS HEREBY MADE THAT, AT THIS TIME, IHAVE BEEN UNABLE, WITH REASONABLE DILIGENCE TO ASCERTAIN THF
RESIDENCE ADDRESSES OF THE FOLLOWING DEFENDANTS: ncMouiwn.tuiLit.tNL.fc. IO ASCERTAIN THE
Checkone: THIS ACTION SHOULD BE ASSIGNED TO: WHITE PLAINS [g^FOLEY SQUARE
(DO NOT checkeitherboxifthisa PRISONER PETITION.)
DATE rjfvi // y SIGNATURE OF ATTORNEY OF RECORD ADMITTED TO PRACTICE IN THIS DISTRICT
JJh-J /"=> > / [ ] NO
pprFIDTa /". *~ t-^Y pqXYES (DATE ADMITTED Mo. _2 Yr. 1978)
RECEIPT # Attorney BarCode# 2892
Magistrate Judge is to be designated by the Clerk of the Court.
Ml
Magistrate Judge gU**"" is so Designated.
J Michael McMahon, Clerk of Court by Deputy Clerk, DATED
UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN)
00^
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
14 CV 5642
-X
VERSE MUISC GROUP LLC, as successor
in interest to BETHLEHEM MUSIC CO., :
Plaintiffs,
-against-
CDLLECT! MUSIC PUBLISHERS B.V. cj -
Defendant.
X
Plaintiff Verse Music Group LLC., by its attorneys, Eisenberg Tanchum & Levy, for its
complaint alleges as follows:
The Parties
1. Plaintiff Verse Music Group LLC is a corporation duly organized and existing under the
laws of the State of New York and having its principal place of business at 134 West 25th
Street, Fifth Floor, New York, New York 10001 ("Verse"). Verse is the successor-in-
interest to Bethlehem Music Co. which did business under the names Salsoul Music
Publishing and Lucky Three Music. At all relevant times Bethlehem Music Co. and now
Verse were and continue to be in the business of, among other things, publishing and
otherwise commercially exploiting musical compositions.
2. Defendant Collect! Music Publishers B.V. is, upon information and belief, a corporation
duly organized and existing under the laws of the Netherlands and having its principal
place of business at Breullan IF 3971 Driebergen, The Netherlands. ("Collect") Upon
information and belief, at all relevant times Collect was and continues to be in the
business of sub-publishing in the Netherlands and other European nations musical
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compositions owned by other publishers and in that capacity commercially exploiting
those compositions.
Jurisdiction and Venue
3. The parties have contractually agreed to the jurisdiction of this Court. In addition, the
jurisdiction of this Court is based upon 28 U.S.C. Sections 1331 and 1338(a) in that the
controversy arises under an Act of Congress relating to copyright; to wit, the copyright
laws of the United States (17 U.S.C. Sections 101 etseq.)
4. To the extent that this action seeks declaratory relief, it is also brought under 28 U.S.C.
Section 2201 and Rule 57 of the Federal Rules of Civil Procedure.
5. To the extent this action involves claims that are related to the gravamen of this action
this Court has supplemental jurisdiction thereof pursuant to 28 U.S.C. Section 1367.
6. Venue is proper both because the parties have contractually agreed to venue in this
Court because under 28 U.S.C. Section 1391(b) the acts complained of in this complaint,
including acts which constitute acts of copyright infringement, occurred in the City,
State and Southern District of New York.
The Facts
7. Verse is the owner of federally registered copyrights in the musical compositions
which for business purposes are assigned to two companies under which it does
business, Salsoul Music Publishing and Lucky Three Music (collectively referred to
herein as the "Catalogs")
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8. At all times prior to the commencement of this action Verse, in respect of the
compositions contained in the Catalogs (collectively referred to herein as the
"Compositions") has fully complied with the statutory formalities governing copyrights,
including the display of appropriate notices on all copies distributed and sold to the
general public.
9. Verse's predecessor-in-interest, Bethlehem, in order to promote the commercial
exploitation of the Catalogs in Europe, entered into an agreement with Collect dated
January 1, 2008 pursuant to which Bethlehem retained Collect as Bethlehem's sub
publisher in the nations of the Netherlands, Belgium, Luxemburg, Germany, Austria,
Switzerland, France, Greece, the Scandinavian countries (Sweden, Denmark, Norway,
Finland), Iceland, Estonia, Latvia, Lithuania and Eastern Europe, (the "Agreement")
10. The Agreement authorized Collect, during the term of the Agreement, to, among other
things, exploit the songs in the Catalogs and to collect all fees and other monies
generated such exploitation.
11. In exchange for its services, the Agreement provided that Collect would retain a
percentage of the revenues it collected on behalf of Bethlehem, and pay the remaining
monies on a semi-annual basis to Bethlehem.
12. The term of the Agreement expired on June 30, 2012.
First Claim
13. Plaintiff Verse repeats and realleges each and every allegation set forth in paragraphs 1
through 12 hereof with the same force and effect as if fully set forth herein.
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14. Although the Agreement terminated on June 30, 2012, Collect, over plaintiff Verse's
objections, has continued to act as the sub publisher of many of the Compositions,
including the following: Doctor Love, GrooveJet If This Ain'tLove, Rap O Clap O, and
TouchMe While I'm Touching You (collectively, the "Infringed Compositions").
15. As a sub-publisher Collect has continued to license the use of the Infringed
Compositions to third parties and to collect fees generated by their commercial
exploitation since the expiration of the Agreement (i.e., June 30, 2012.)
16. Collect contends that the Agreement provides for it to retain for a period of two years
beyond the expiration of the term of the Agreement sub publishing rights in those
Compositions for which covers (i.e., recordings of the song) or synchronization use (i.e.,
use of the Composition in a film or commercial) have been secured, and to continue to
receive its sub publisher's fee with respect to monies generated by these Compositions
for a period of three years from the end of the Term. Collect maintains that it has
secured covers of synchronization uses for the Infringed Compositions and hence, it is
not a copyright infringer.
17. Verse disputes Collect's position, noting that paragraph 1(3) of the Agreement
expressly states that such extended rights apply only in the case where "a Composition is
covered in the territory or a synchronization-use is licensed subject to the written
approval ofOwner [i.e., Verse]." (emphasis added)
18. Since no such written approval of Verse has ever been granted to Collect for any of the
Infringed Compositions, Collect's rights to sub publish them expired on June 30, 2012.
19. In order to resolve this controversy, plaintiff Verse requests, pursuant to 28 U.S.C.
Section 2201 and Rule 57 of the Federal Rules of Civil Procedure, that this Court
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declare the respective rights and duties of the parties in this matter and, in particular, that
the Court declare that Collect's rights to sub publish the Infringed Compositions expired
on June 30, 2012.
Propriety of Declaration
20. An actual case and controversy exists sufficient for this Court to declare the rights and
remedies of the parties in that there is a dispute between the parties concerning whether
defendant Collect can continue to exercise sub publishing rights over the Infringed
Compositions.
21. Plaintiff Verse has the requisite standing to request this declaration since it is the
publisher and owner of the Infringed Compositions, and this controversy is ripe for
determination at this time because plaintiff Verse's rights as a copyright holder are
seriously compromised by defendant Collect's conduct which usurps those rights.
22. A decision on this issue is therefore needed as soon as possible.
Second Claim
23. Plaintiff Verse repeats and realleges each and every allegation set forth in paragraphs 1
through 22 hereof with the same force and effect as if fully set forth herein.
24. In addition to the Infringed Compositions, defendant Collect, despite plaintiff Verse's
protests, continues to exercise control over all of the Compositions in the territory
coveredby the Agreement and in so doing has collected licensing fees generatedby the
commercial exploitation of the Compositions since July 1, 2012 and retained a portion
of such fees as its purported fee.
25. Upon information and belief, to date Collect, as a result of its unauthorized retention of
sub publishing rights in the Compositions, has retained, at a minimum, 13,391.48
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(approximately $18,214) in third party fees and, despite due demand by Verse, refused
to tender these monies to plaintiff.
26. By reason of defendant Collect's actions, defendant Collect has breached the terms of
the Agreement.
27. As a result of defendant Collect's contract breach plaintiff Verse has been damaged in
an amount to be determined at a trial of this action, but which exceeds 13,391.48
(approximately $18,214), exclusive of interest and costs.
Third Claim
28. Plaintiff Verse repeats and realleges each and every allegation set forth in paragraphs 1
through 27 hereof with the same force and effect as if fully set forth herein.
29. Defendant Collect, with the intent to divert to itself monies rightfully belonging to
plaintiff Verse, has represented to third parties that it remains the sub publisher of the
Compositions in the territory set forth in the Agreement.
30. By reason of this misrepresentation defendant Collect has converted monies that
rightfully belong to plaintiff Verse.
31. As a result of the foregoing plaintiff Verse has been damaged in an amount to be
determined at a trial of this action, but which exceeds seventy five thousand ($75,000)
dollars.
32. Defendant Collect's conduct as alleged herein was wanton, willful and malicious.
Fourth Claim
33. Plaintiff Verse repeats and realleges each and every allegation set forth in paragraphs 1
through 27 hereof with the same force and effect as if fully set forth herein.
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34. Defendant Collect, by exercising dominion and control over the Infringed
Compositions, as well as the Compositions, all to the detriment of plaintiff Verse's
rights as the copyright owner of those Compositions, is a copyright infringer with
respect to each of the Infringed Compositions and each of the Compositions.
35. As a result of the foregoing, plaintiff Verse is entitled to a permanent injunction
prohibiting defendant Collect from exercising any further dominion and control over
the Infringed Compositions and the Compositions, and damages in an amount to be
determined by this Court.
Fifth Claim
36. Plaintiff Verse repeats and realleges each and every allegation set forth in paragraphs 1
through 27 and 33 through 35 hereof with the same force and effect as if fully set forth
herein.
37. Defendant Collect, acting in reckless disregard of plaintiff Verse's copyrights, has
willfully infringed plaintiff Verse's copyrights in each of the Infringed Compositions
and the Compositions.
WHEREFORE, Plaintiff Verse Music Group LLC demands judgment as follows:
1. On the first claim, that the Court render a declaratory judgment providing that the
Agreement terminated on June 30, 2012, holding that since that date defendant
Collect! Music Publishers B.V. has had no right to exercise dominion or control over
the Infringed Compositions and the Compositions and entering an order permanently
enjoining defendant Collect or any of its agents, licensees, representatives or
assignees from exercising such dominion or control.
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2. On the second claim, directing that defendant Collect! Music Publishers B.V. pay to
plaintiff Verse Music Group LLC compensatory damages in an amount to be
determined by the Court at a trial of this action, but which exceeds 13,391.48,
exclusive of interest and costs, and declaring that the Agreement expired as of June
30,2012.
3. On the third claim, directing that defendant Collect! Music Publishers B.V. pay to
plaintiff Verse Music Group LLC compensatory damages in an amount to be
determined at a trial of this action, but which exceeds seventy five thousand
($75,000) dollars, and seven hundred fifty thousand ($750,000) dollars in punitive
damages.
4. On the fourth claim, (a) permanently enjoining defendant Collect! Music Publishers
B.V. from infringing in any manner upon plaintiff Verse Music Group LLC's
copyrights in the Compositions and the Infringed Compositions, (b) requiring
defendant Collect! Music Publishers B.V. to pay plaintiff Verse Music Group LLC
such damages as plaintiff Verse Music Group LLC has sustained as a consequence of
defendant Collect! Music Publishers B.V.'s infringement of said copyrights, and to
account for and pay to plaintiff Verse Music Group LLC all gains, profits, and
advantages derived by defendant Collect! Music Publishers B.V. from its
infringement of plaintiff Verse Music Group LLC's copyrights (the total amount to be
determined by the Court at a trial of this action) or such damages as to the Court shall
appear proper within the provisions of the copyright law, but not less than seven
hundred fifty ($750) dollars per infringement pursuant to the provisions of 17 U.S.C.
Section 504(c)(1).
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5. On the fifth claim, directing that plaintiff Verse Music Group LLC be awarded the
same relief against defendant Collect! Music Publishers B.V. as requested in the
fourth claim of the complaint, except that in the event that plaintiff Verse Music
Group LLC's actual damages and/or defendant Collect! Music Publishers B.V.'s
profits from each of the infringing works are less than one hundred fifty thousand
($150,000) dollars per infringement, that plaintiff Verse Music Group LLC, in the
discretion of the Court, be awarded statutory damages in the amount of one hundred
fifty thousand ($150,000) dollars for each infringement pursuant to the provisions of
17 U.S.C. Section 504 (c)(2).
6. Awarding to plaintiff its costs and disbursements incurred in this suit, together with a
reasonable allowance for counsel fees as provided by Section 505 of the Copyright
Act, 17 U.S.C. 505; and
7. Granting such other and further relief as the Court may deem just and proper.
Dated: New York, New York
July 21, 2014
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EISENBERG TANCHUM & LEVY
Attorneys for Verse Music Group LLC
By: J4> r ST,
' Stewart L. Levy (SL&-2892)
675 Third Avenue
New York, New York 10017
(212) 599-0777