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IN T H E C I R C U I T C O U R T O F T H E 1 1 T H
JUDICIAL
CIRCUIT
IN A N D F O R
MIAMI-DADE COUNTY, FLORIDA

G E N E R A L JURISDICTION DIVISION

NATIONAL COUNCIL OF STRENGTH &


F I T N E S S C O R P O R A T I O N , a Florida
corporation

Plaintiff,
vs.
FREEPLAY MUSIC, LLC, a Delaware
limited liability c o m p a n y a n d T U N E S A T ,
LLC, a D e l a w a r e limited liability c o m p a n y ,
Defendants.
/
COMPLAINT
Plaintiff,

National

Council

of S t r e n g t h

&

Fitness

Corporation

("Plaintiff'

or

" N C S F " ) , hereby s u e s D e f e n d a n t s Freeplay Music, L L C ("Freeplay") a n d T u n e s a t , L L C


("Tunesat") (collectively the " D e f e n d a n t s " ) , a n d alleges a s follows:
P A R T I E S , JURISDICTION, AND V E N U E
1.

T h i s is a n a c t i o n for d a m a g e s in e x c e s s of Fifteen T h o u s a n d

Dollars

( $ 1 5 , 0 0 0 . 0 0 ) , e x c l u s i v e of costs, interest, a n d attorney's fees.


2.

A t all relevant t i m e s , N C S F w a s a Florida corporation, w i t h its principal

place of b u s i n e s s in M i a m i - D a d e County, Florida.


3.

Upon

information

a n d belief,

Freeplay

is a D e l a w a r e

limited

liability

FACSIMILE

305/285-5555

c o m p a n y , with its principal place of b u s i n e s s in N e w York, N e w York.

TELEPHONE 305/285-2000

Marko & Magolnick, P.A.


AvtNUii, MIAMI, FLORIDA

3001 S . W . J " '

33129

P a g e 2 of 26

Case No.

Upon

information

a n d belief,

Tunesat

is a

Delaware

limited

liability

c o m p a n y , w i t h its principal p l a c e of b u s i n e s s in N e w York, N e w York.


5.

F r e e p l a y a n d T u n e s a t h a v e c o n d u c t e d b u s i n e s s in M i a m i - D a d e C o u n t y ,

Florida a n d h a v e s u b j e c t e d t h e m s e l v e s to t h e c o u r t s of this j u r i s d i c t i o n .
6.

V e n u e is p r o p e r in M i a m i - D a d e C o u n t y b e c a u s e , at all r e l e v a n t t i m e s ,

F r e e p l a y a n d T u n e s a t c o n d u c t e d b u s i n e s s in M i a m i - D a d e C o u n t y a n d t h e c a u s e s o f
a c t i o n a c c r u e d in M i a m i - D a d e C o u n t y .
NATURE O F THE ACTION
7.

This

action

arises from

years

of f a l s e

a n d deceptive advertising

by

D e f e n d a n t s to lure u n s u s p e c t i n g u s e r s into b e l i e v i n g that t h e m u s i c o f f e r e d o n t h e


w e b s i t e w w w . f r e e p l a v m u s i c . c o m is "free." B e g i n n i n g w i t h its very n a m e -

Defendants'

download what

business

model

is p r e m i s e d

on

Freeplay

enticing

"Freeplay"

consumers

to

is p r o m i n e n t l y a d v e r t i s e d to t h e p u b l i c t o b e "free" m u s i c f r o m its

w e b s i t e w w w . f r e e p l a y m u s i c . c o m , a n d t h e n , utilizing T u n e s a t to h u n t o u t c o n s u m e r s
w h o s u c c u m b e d t o t h e e n t i c e m e n t , to t h r e a t e n a n d t o c o m m e n c e ,

copyright

strike

l a w s u i t s i n a n a t t e m p t t o extort v a s t a m o u n t s of m o n e y after t h e c o n s u m e r a c t u a l l y
uses

that

music.

Since

its i n c e p t i o n

in 2 0 0 1 , F r e e p l a y

has asserted

copyright

i n f r i n g e m e n t c l a i m s in a t least t w o d o z e n lawsuits, e x t r a c t i n g s e t t l e m e n t s

in t h e s e

litigation m a t t e r s a n d , u p o n

of other

information

a n d belief,

in a n u n t o l d

number

i n s t a n c e s w h e r e t h e s i m p l e t h r e a t of litigation w a s e n o u g h to e x t r a c t a
from

consumers

who

mistakenly

thought

they

were

getting

shakedown

exactly

what

w w w . f r e e p l a y m u s i c . c o m a d v e r t i s e s - m u s i c that w a s "free" t o u s e .
8.

In t h e last s e v e r a l y e a r s , F r e e p l a y h a s a g g r e s s i v e l y t a k e n its d e c e p t i v e

Marko & Magolnick, P.A.


T E L E P H O N E 3 0 5 285-2000

3001 S . W . 3 A V E N U E , MIAMI, FLORIDA 3 3 1 2 9

F A C S I M I L E 305/285-5555

P a g e 3 of 26

C a s e No.

p r a c t i c e s to Y o u T u b e , a p l a t f o r m u s e d by t e n s , if n o t h u n d r e d s , of m i l l i o n s of u s e r s
around the world to upload videos.

W h e n a c o n s u m e r l o o k i n g for m u s i c to i n c o r p o r a t e

into a Y o u T u b e v i d e o s e a r c h e s G o o g l e w i t h t h e t e r m "free m u s i c , " o n e of t h e t o p t h r e e


s e a r c h results is F r e e p l a y ' s w e b s i t e , w w w . f r e e p l a y m u s i c . c o m . .

A u s e r w h o clicks

t h r o u g h t o F r e e p l a y ' s w e b s i t e t h e n s e e s t h e f o l l o w i n g offer, p r o m i n e n t l y d i s p l a y e d o n
Freeplay's homepage:

SEARCH

F r e e p l a y ' s c o p y r i g h t i n f r i n g e m e n t c l a i m s a r e p r e m i s e d o n t h e a b s o l u t e falsity of this


p r o m i s e of "free m u s i c f o r Y o u T u b e . "
9.

F r e e p l a y ' s w e b s i t e , a s it exists today,

a l l o w s a c o n s u m e r t o " a d d to cart" a

s p e c i f i c track or a l b u m - w h i c h a r g u a b l y s u g g e s t s t h e n e e d to p u r c h a s e t h e track. T h e
u s e r is t h e n r e q u i r e d to s e l e c t a license t y p e a n d t o effect t h e p u r c h a s e .
times

material

hereto,

when

Plaintiff

accessed

the Freeplay

H o w e v e r , at all

website

in o r d e r

to

d o w n l o a d m u s i c , t h e F r e e p l a y w e b s i t e w a s different. T h e r e w a s n o "cart" or d r o p d o w n
l i c e n s e p u r c h a s e ; i n s t e a d a u s e r c o u l d d o w n l o a d a "free s a m p l e " o n t o its c o m p u t e r at

Ill SMII Ifll'lMI)

Marko & Magolnick, P.A.

M\

P i J" A Y S W I i ! M I A M 1 !a D A "

FACSIMILE 305/2X5-5555

P a g e 4 of 26

C a s e No.

a n y t i m e , in t h e f o r m o f a n M P 3 file, w i t h o u t a n y k n o w l e d g e , a w a r e n e s s or r e q u i r e m e n t
o f f e e s , c h a r g e s or license restrictions.
10.
promise

Plaintiff,

, like m o s t

of F r e e p l a y ' s v i c t i m s ,

l e a r n e d that

Freeplay's

o f "free m u s i c f o r Y o u T u b e " w a s f a l s e o n l y w h e n F r e e p l a y a n d T u n e s a t , in

collusion with Freeplay, sent a d e m a n d for payment

for claimed

damages,

based

on

t h e o u t r a g e o u s n o t i o n that t h e user's u n w i t t i n g " c o p y r i g h t i n f r i n g e m e n t " w a s "willful."


11.
number
their

F r e e p l a y ' s false

of

consumers

YouTube

Defendants'
Defendants'

advertising

w h o innocently

h a s h a r m e d Plaintiff, a l o n g with a n u n t o l d
use

F r e e p l a y ' s "free"

music

in c r e a t i n g

v i d e o s . T h e s e c o n s u m e r s , i n c l u d i n g Plaintiff, b e c a m e t h e v i c t i m s of t h e

exorbitant
tactics

settlement

have

demands

deprived

Plaintiff

a n d h a d to t a k e
o f t h e de

minimis

their

videos

fair

down.

use of

small

s e g m e n t s o f t h e v i d e o s . M o r e significantly, h o w e v e r , in this a c t i o n , D e f e n d a n t ' s lulled


Plaintiff into b e l i e v i n g it w a s entitled to u s e t h e m u s i c , only to t h e n m a k e a n u n e x p e c t e d ,
e x t o r t i o n a t e f i n a n c i a l d e m a n d a g a i n s t Plaintiff, w i t h n o o p p o r t u n i t y f o r Plaintiff t o c a n c e l ,
r e q u i r i n g Plaintiff t o e i t h e r c a p i t u l a t e t o t h e e x t o r t i o n a t e d e m a n d o r incur significant
legal

fees

to

defend

against

Defendants'

improper

claims

of

copyright

" i n f r i n g e m e n t " c a u s e d by F r e e p l a y ' s deliberate false a n d deceptive advertising.


FACTS RELEVANT TO ALL CLAIMS
12.

N C S F is a n a c c r e d i t a t i o n a g e n c y w h i c h p r o v i d e s training for, a n d t e s t s t h e

k n o w l e d g e a n d skills of, c o a c h e s a n d t r a i n e r s in t h e fields of p h y s i c a l activity, p e r s o n a l


t r a i n i n g a n d athletic c o n d i t i o n i n g . N C S F e a r n s its r e v e n u e s f r o m t h e s a l e of s t u d y
materials

to

certification

individuals
exams

seeking

in e x c h a n g e

certification

and from

for a f e e . N C S F

also

the administration
engages

in

of t h e

non-revenue

Marko & Magolnick, P.A.

u.i..,. A
iAA

linn cn; W wmw uuu\ i\mm \\m

FACIEI; M M

P a g e 5 of 26

Case No.

g e n e r a t i n g activities a s part of its m i s s i o n . O n e s u c h activity is t h e e d u c a t i o n of t h e


p u b l i c r e g a r d i n g s a f e a n d effective e x e r c i s e t e c h n i q u e s . T h e v i d e o s c o n t a i n i n g t h e
m u s i c w h i c h is t h e s u b j e c t of this a c t i o n w e r e instructional v i d e o s illustrating t h e correct
posture

a n d technique

to perform

certain

physical

exercises.

T h e videos

instructional a n d e d u c a t i o n a l in n a t u r e , a s t h e y d i d n o t a d v e r t i s e a n y g o o d s

were
and/or

s e r v i c e s p r o v i d e d b y N C S F , a n d , m o s t importantly, d i d n o t g e n e r a t e a n y direct o r
indirect r e v e n u e f o r N C S F .
13.

Freeplay

purports

to

be

the

owner

and

operator

of

the

www.freeplaymusic.com website.
14.

Tunesat purports to be t h e enforcement a g e n c y for Freeplay a n d o t h e r

copyright owners.

According to Tunesat's website, Tunesat employs an automated

"listening" s y s t e m t o d e t e c t u n a u t h o r i z e d u s e s of its clients' m u s i c . T u n e s a t p r i d e s itself


o n b e i n g a b l e to r e c o g n i z e , u s i n g its p r o p r i e t a r y t e c h n o l o g y , a n u n a u t h o r i z e d u s e of
m u s i c a s short a s a t h r e e s e c o n d clip, e v e n if t h e m u s i c clip h a s undergone a certain
level of e d i t i n g .

H o w e v e r , T u n e s a t ' s s y s t e m d o e s not h a v e t h e c a p a b i l i t y t o inquire

a b o u t t h e c i r c u m s t a n c e s of t h e " u n a u t h o r i z e d u s e . " T h a t is, t h e "listening" s o f t w a r e d o e s


not r e c o g n i z e w h e t h e r a track, or p o r t i o n thereof,

is b e i n g played in a c l a s s r o o m

e n v i r o n m e n t , o r b y a non-profit o r g a n i z a t i o n , or, a s in t h e instant c a s e , in t h e c o n t e x t of


p u b l i c e d u c a t i o n a l v i d e o s . I n s t e a d , T u n e s a t ' s s o f t w a r e m e r e l y r e c o r d s a n y a n d all u s e s
o c c u r r e d w i t h o u t a l i c e n s e a s "violations."
15.

F r e e p l a y a l s o p u r p o r t s t o b e t h e o w n e r of v a r i o u s c o p y r i g h t s in m u s i c a l

works available f o r download o n the www.freeplaymusic.com website.

1nformation obtained from https://tunesat.com/tunesatportal/home/faqs (last visited Apr. 26,


2016).
Marko & Magolnick, P.A.

HlfilffilB

fflffffltt

WMflilnT AW,MIAMI,lliWKiiJrt .1,112?

r w i l l 3031203439]

P a g e 6 o f 26

C a s e No.

16.

F r e e p l a y h e a v i l y p r o m o t e s itself a s offering f r e e m u s i c to u s e r s .

In light o f

t h e limited u s e that Plaintiff w a s i n t e n d i n g to m a k e of t h e m a t e r i a l , t h e a d v e r t i s i n g


benefits

to F r e e p l a y ,

downloads,

Plaintiff

and the absence


wholly

believed

of a n y clear

a n d relied

regarding the free nature of t h e downloads.

preclusion

upon

to the

Freeplay's

Plaintiff's

representations

O n i n f o r m a t i o n a n d belief, t h r o u g h t h e d a t e

of t h e filing of this lawsuit, t h e w w w . f r e e p l a v m u s i c . c o m w e b s i t e c o n t a i n e d h u n d r e d s of


u s e s of t h e w o r d "free"

in its m e t a d a t a , i n c l u d i n g t h e s t a n d - a l o n e p h r a s e s "free m u s i c

d o w n l o a d s " a n d "free m u s i c . "


17.
offered

T h e s t a t e m e n t s in t h e m e t a d a t a that t h e w w w . f r e e p l a y m u s i c . c o m

"free

content,"

"free

music,"

and

"free

music

downloads,"

website

caused

the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e to a p p e a r third f r o m t h e t o p in t h e r e s u l t s of G o o g l e
Internet s e a r c h e s f o r "free m u s i c . "
18.
website

T h e s t a t e m e n t s in t h e

metadata

that

the

www.freeplaymusic.com

o f f e r e d "free c o n t e n t , " "free m u s i c , " a n d "free m u s i c d o w n l o a d , " c o n s t i t u t e d

affirmative

representations

by

Freeplay

that

the

music

available

on

the

W h e n NCSF downloaded music from the www.freeplaymusic.com,

the

www.freeplaymusic.com website w a s indeed free to download and use.


19.
website

d i d n o t utilize

shopping

cart

o r a n y o t h e r p a y m e n t f e a t u r e to collect

p a y m e n t in o r d e r to d o w n l o a d m u s i c f r o m t h e w e b s i t e . V i s i t o r s to t h e w e b s i t e c o u l d
freely d o w n l o a d a n y m u s i c a v a i l a b l e o n t h e w w w . f r e e p l a y m u s i c . c o m w e b s i t e , w i t h t h e
c o m p l e t e a n d r e a s o n a b l e belief that t h e d o w n l o a d w a s p e r m i s s i b l e a n d not infringing.
20.

N C S F , w h e n it d o w n l o a d e d m u s i c f r o m t h e F r e e p l a y w e b s i t e , d i d s o fully

a n d r e a s o n a b l y b e l i e v i n g a n d u n d e r s t a n d i n g that t h e d o w n l o a d w a s p e r m i s s i b l e a n d not

Til W l l 101 TRW!)

Marko & Magolnick, P.A.

,1)1 S.Wi f

hWty Miami, fwrtoa j m p

F A C S I M I L E 305/285-5555

P a g e 7 of 26

C a s e No.

infringing.
21.

W h e n N C S F downloaded the music from www.freeplavmusic.com, the

w e b s i t e d i d not r e q u e s t p a y m e n t n o r d i d it r e q u i r e N C S F t o a g r e e to a n y t e r m s of u s e in
order to download music from the website.
22.

W h e n N C S F downloaded the music from www.freeplavmusic.com. the

w e b s i t e d i d not e v e n r e q u i r e u s e r s t o r e a d , let a l o n e a g r e e to, a n y w a r n i n g , t e r m s of u s e


or o t h e r indication that F r e e p l a y m i g h t r e q u e s t p a y m e n t f o r u s e of t h e m u s i c in order to
d o w n l o a d m u s i c f r o m t h e w e b s i t e . Similarly, t h e w e b s i t e d i d not r e q u i r e N C S F to o b t a i n
a l i c e n s e f o r t h e d o w n l o a d e d m u s i c prior t o d o w n l o a d i n g .
23.
music

F r e e p l a y ' s f a i l u r e to i n d i c a t e that F r e e p l a y m i g h t s e e k p a y m e n t f o r u s i n g

made

available

on

the

www.freeplaymusic.com

website

constitutes

n o n d i s c l o s u r e a n d c o n c e a l m e n t of a m a t e r i a l fact r e g a r d i n g F r e e p l a y ' s a l l e g e d a s s e r t i o n
that it is e n t i t l e d to p a y m e n t f o r c e r t a i n u s e s of m u s i c m a d e a v a i l a b l e o n t h e w e b s i t e .
24.

Freeplay's

representations, nondisclosure, and concealment,

coupled

w i t h t h e s t r u c t u r e a n d o r g a n i z a t i o n of t h e w w w . f r e e p l a y m u s i c . c o m w e b s i t e , c r e a t e d a n
a c t u a l or i m p l i e d license t o d o w n l o a d a n d u s e t h e m u s i c that w a s a v a i l a b l e o n t h e
w e b s i t e a n d p r o m o t e d as b e i n g "free."
25.

Freeplay's

representations,

nondisclosure,

a n d o r g a n i z a t i o n of t h e w e b s i t e w w w . f r e e p l a y m u s i c . c o m

concealment,

a n d structure

leads u s e r s in g e n e r a l , a n d

specifically led N C S F into r e a s o n a b l y b e l i e v i n g a n d e x p e c t i n g that t h e m u s i c o n t h e


www.freeplaymusic.com website w a s free as advertised.

It is only after u s e r s , s u c h a s

N C S F , a r e i n d u c e d into d o w n l o a d i n g a n d u s i n g t h e m u s i c that F r e e p l a y a n d / o r T u n e s a t ,
o n b e h a l f of F r e e p l a y , d e m a n d p a y m e n t f o r t h e u s e of that m u s i c u n d e r t h e t h r e a t of

Marko & Magolnick, P.A.

Trirniifiiir.

mn\\M

M I T

M M M M M i l lllfl

Page 8 of 26

Case No.

litigation for copyright infringement.


26.

O n information a n d belief, Freeplay a n d / o r T u n e s a t s e a r c h w e b s i t e s to

identify instances w h e r e m u s i c from t h e w w w . f r e e p l a v m u s i c . c o m w e b s i t e is being u s e d ,


a n d t h e n improperly

d e m a n d p a y m e n t for alleged copyright infringement f r o m those

users that d o w n l o a d e d the m u s i c believing t h e m u s i c to b e free.


27.
Freeplay,

O n or a b o u t S e p t e m b e r 2 0 1 5 , Freeplay and/or T u n e s a t , in collusion with


contacted

NCSF,

a n d a s s e r t e d that certain videos

on

NCSF's

website

included m u s i c c o p y r i g h t e d by F r e e p l a y a n d d e m a n d e d that N C S F c e a s e a n d desist


from u s e of the m u s i c
28.

N C S F p u r c h a s e d the p a i d licenses that T u n e s a t d e m a n d e d as s o o n as

practicable after consultation with c o u n s e l .


29.

D e s p i t e N C S F ' s p r o m p t a n d g o o d faith p u r c h a s e of the licenses that

T u n e s a t d e m a n d e d , T u n e s a t refused to honor the licenses claiming that they w e r e not


valid b e c a u s e N C F S h a d p u r c h a s e d t h e m in " b a d faith"!
30.

N C S F voluntarily t o o k d o w n the identified videos promptly thereafter.

31.

D e s p i t e N C S F ' s p r o m p t removal of the videos identified by

Freeplay

and/or T u n e s a t , in collusion with Freeplay, Freeplay a n d / o r T u n e s a t in collusion with


Freeplay, d e m a n d e d a $ 1 0 6 , 0 0 0 . 0 0 p a y m e n t .
32.

On

March

1, 2 0 1 6 ,

NCSF,

by

and

through

undersigned

counsel,

e x p l a i n e d in a detailed letter that F r e e p l a y ' s a s s e r t i o n of copyright infringement w a s


improper,

in

part,

because

of

the

repeated

use

of

the

word

"free"

in

the

w w w . f r e e p l a y m u s i c . c o m m e t a d a t a , the lack of any indication that the m u s i c w a s not free


as a d v e r t i s e d , a n d the fact that p a y m e n t w a s not r e q u e s t e d or required

for m u s i c o n

Marko & Magolnick, P.A.

.* iii i.-iiB Hiiin rirtmni 1*170

F1II.F,W^

5 5

P a g e 9 of 2 6

Case No.

the website.
33.

Subsequent

to the time that

NCSF

downloaded the music

from

www.freeplaymusic.com. Freeplay revised its website to implement changes. However,


Freeplay did not notify NCSF of those revisions.

Nonetheless, Freeplay and/or

Tunesat, in collusion with Freeplay, sought to retroactively impose and enforce the
amended and revised terms against NCSF.
FREEPLAY'S FALSE AND MISLEADING OFFER OF "FREE MUSIC"
34.

NCSF seeks redress for Freeplay's deliberate and unlawful false and

misleading representations that its music is "free" to use on YouTube videos.


35.

Freeplay is the third result shown in a Google search for "free music." It

appears high in the results of other Internet searches as well:


Gocgfe

f e e music

AH

Ap3

Videos

Aftoirt 1 ,WO,WBJXti

Shopping

rasuttc

N w i

Mora*

Semen t&oij

?.i 44 *eend)

Royalty-free theme music - boundoff.com


*:53 w w w

taur;dcff.com/

"

l o r your pedeast. youtube video, or personal dvd project

F r e e Music Archive
iTMiTiuaicarc.ntvie.org/ Fran w w . w

Preview at

Archive of public domain and Creative C o m m o n s licensed tonga managed vrth a


curatorial approach

Instrumental Electronic Rock Pop


J a n g o : F r e e M u s i c O n l i n e - Internet R a d i o
www.jango com.' *

Jango

F r e e internet radio, just like Pandora only fewer a d * and mare variety. Listen t c
hundreds of genre stations or create your o w n with youi favorite m u s i c
Ellie Goulding - Bruno Mars - W i z Khalifa Today'e Trjp 100

F r e e p l a y M u s i c | W e l c o m e | T h e b e s t m u s i c l i b r a r y o n t h e ...
frereiplaymusle.com/

15000 SONGS. FREE MUSIC FDR YOUTUBE AND MORE. THE SOUND OF YOUR
NEXT PROJECT STARTS HERE.
Browse Catalog

36.

Login Newly A d d e d Hew it W o r k s

Upon information and belief, the two websites appearing above Freeplay

M a r k o & M a g o l n i c k , P.A.
TeeiiimlAIIP U K r W HH1H

i n o i n f A m M t W i f i ?

FACSIMILE 305/285-5555

Page 10 of 26

C a s e No.

in t h e G o o g l e s e a r c h for "free m u s i c " d o in fact p r o v i d e f r e e m u s i c .


37.

It

is

reasonable

and

justifiable

that

consumer

that

proceeds

F r e e p l a y ' s w e b s i t e ( w w w . f r e e p l a v m u s i c . c o m . w h i c h p r o m i n e n t l y offers " F R E E

to

MUSIC

F O R Y O U T U B E " ) , after s e a r c h i n g t h e internet f o r "free m u s i c , " w o u l d a s s u m e t h a t


F r e e p l a y ' s m u s i c is a l s o f r e e .
38.

Individual Y o u T u b e u s e r s w h o a r e l u r e d b y F r e e p l a y ' s

"free" m u s i c
catalog on

for

their

its w e b s i t e .

YouTube

videos

have the

opportunity to

r e p r e s e n t a t i o n s of
browse

Freeplay's

T h i s c a t a l o g is a l s o directly a c c e s s i b l e f r o m G o o g l e , w i t h o u t

h a v i n g t o n a v i g a t e first to F r e e p l a y ' s h o m e p a g e :

Freeplay Music j Welcome j The best music library on the ...


freepiaymus;c.cor?V *
15000 SONGS. FREE MUSIC FOR YOUTUBE AND MORE THE SOUND OF YOUR
NEXT PROJECT STARTS HERE.
Browse Catalog Login - Newly A d d e d How ft Works

39.

B e f o r e , its w e b s i t e c h a n g e d , in or a b o u t 2 0 1 4 , F r e e p l a y d i d not require its

w e b s i t e u s e r s t o u s e any s h o p p i n g cart, or to r e a d or a g r e e t o a n y t e r m s a n d c o n d i t i o n s ,
a n d n e v e r r e q u i r e d users to p a y f o r a n y of t h e m u s i c d o w n l o a d e d f r o m t h e w e b s i t e
www.freeplaymusic.com. Any

user could simply

select a s o n g or a l b u m f r o m

the

h o m e p a g e , a n d t h e n click o n t h e r e q u i r e d length of t h e d e s i r e d d o w n l o a d . A t this point,


a t y p i c a l d o w n l o a d w i n d o w w o u l d o p e n , a l l o w i n g t h e u s e r t o either o p e n or s a v e t h e
d e s i r e d file: n o s h o p p i n g cart, n o p a y m e n t o p t i o n s , n o t e r m s a n d c o n d i t i o n s .
o b t a i n e d t h e m u s i c it d o w n l o a d e d f r o m w w w . f r e e p l a v m u s i c . c o m in this f a s h i o n .

MarKu & jyiagulnicK, F.A.

NCSF

Page 11 of 26

40

Case No.

Since that time, Freeplay has revised its website so that after browsing

Freeplay's catalog and listening to samples, the user has the o p t i o n to select "Add
to Cart" w i t h respect to any song. Upon checkout, the user is prompted to select f r o m
a dropdown menu of license options. Two of these options, shown below, are
"YouTube: Personal use on YouTube only" and "Internet: Personal Use (YouTube
only):"

Marko aMagolnfck,

P.A.

Page 12 of 26

Case No.

$0
.^^^^^.w..v^v^^^^^^^^^^^^^v.vAV......^....................

Select

S&i&ct
YouTube

Business Use-Youtube (unlimited URLs)(1 Year(8), $250.00)


Business

Multimedia Unlimited (non-broadcast) [worl0wldej(l Year(s)< 8250.00)


ttu$k on Huici [single track](1 Year(8), S25.0Q)
Web Page Use(1 Vtoarfc), 5100 00)
Multimedia on use (nojvbroadcaety jworsdwid^](l Day(s), $50.00)
Oame/App Use(1 Yfeanjs), $150 00)
Education

In-Cl.asaroom Uee(99 Year($). $0 00)


UlL Oris Act Play Competition^ Month., S.20.00)
Film
Commercial Film Festival (traek|(? Dayfs). $50.00)
Commercial Unlimited Film Festivals [per tracNJ<1 Yaerft), $150.00)
Student Film Psstiva? (non commercial)?! Year(s), JO.99)
Professional Use (ftertr&c.ty(1 Year(s)< $500.00}
indie trailer $e ttrtcai and weo) |U8 Onlv)(l Ysar(s), $230.00)

License Type

License Fee
$0

Select

UlL One Act Play Competition^ Month, $20.00)


film
Commercial Film Festival [tiacK](7 Pay(s) $50.00)
Commercial Unlimited Film Festivals (pertrack|(l Year, $180.00)
Student Film Festival (non commerciaQ(1 Year,
Professional Use (per track)(i Year(s), $500.00)
indie trailer (theatrical and web) [US Oniy](i Year, $250 00}
;

internet

Personal use (Social Media)- non promotronal(99 Year. $0.99)


Kicksterterflndie OoGo/Go Fund me campaign(2 Month<s), 550
Religious [In service]<1 f e a r , $100.00)
Non-profit (Web streamings Year. $25.00)
Personal
Personal home listening use(99 Year(s) $0 99)
4

Television

National Network Broadcasts Year, $0.00)


Regional (background cue)(1 Vear, $180.00)
QpenlngJClosing Theme [Natioral|(1 Year, $500.00)

M a r k o

& Magolnick,

^001 S i W i 3 * A v e n u e

P.A.

M i a m i , F l o r i d a 33129

F a c s i m i l e 305/285-5555

P a g e 13 o f 26

41.

C a s e No.

T h e c o s t o f b o t h o f t h e s e c a t e g o r i e s of licenses is z e r o , a s s h o w n in

the image a b o v e .
42.
a

Whichever o p t i o n t h e consumer

"Master Recording/Synchronization

selects, a popup w i n d o w a p p e a r s for

License" (the "License");

Section 4 of the

License sets forth t h e permitted uses as follows:


If t h e c o n s u m e r

selects the option for "YouTube:

Personal

use on

Y o u T u b e only," t h e L i c e n s e p e r m i t s " Y o u T u b e P e r s o n a l u s e o n Y o u T u b e o n l y . "


If t h e

consumer

selects

the

option

for "Internet: Personal

Use

( Y o u T u b e only)," the License permits " I n t e r n e t P e r s o n a l U s e (YouTube only)."


43.

The

videos

that

utilized

the downloaded

(and very

abbreviated)

s e g m e n t s of m u s i c d i s p l a y e d p r o p e r e x e r c i s e or w o r k o u t t e c h n i q u e s to p r e v e n t injury
and to m a x i m i z e effectiveness.

N C S F earned no fees from these viewers' personal

use of the videos nor a n y profit from the videos or the music.
44.

After the License

is s h o w n , all t h e u s e r h a s t o d o t o d o w n l o a d t h e

m u s i c a n d o b t a i n t h e "free" l i c e n s e is to enter a n e m a i l a d d r e s s a n d click his or h e r


a c c e p t a n c e of t h e L i c e n s e .
directly
and

on Freeplay's

belief,

T h e license

and

download

website www.freeplavmusic.com.

is m a i n t a i n e d

a n d operated from

Freeplay's

transaction
which,

takes

upon

place

information

p l a c e of b u s i n e s s in N e w

York.
45.

A t n o point in t h e p r o c e s s of d o w n l o a d i n g F r e e p l a y ' s m u s i c is t h e u s e r

p r o m p t e d or r e q u i r e d to r e a d a n y " T e r m s o f U s e , " n o r a r e a n y t e r m s ,

conditions,

r e q u i r e m e n t s , c o s t s or c o m m i t m e n t s c o n s p i c u o u s or b r o u g h t to t h e u s e r ' s a t t e n t i o n in

Marko & Magolnick, P.A.

P a g e 14 of 26

any way.
download

Case No.

It is n o t s u r p r i s i n g t h e n t h a t m a n y , if not m o s t , of t h e c o n s u m e r s w h o
Freeplay's

music,

including

NCSF,

a r e not a w a r e

of t h e f i n e

print

in

Freeplay's unilateral "Terms of Use."


46.

Freeplay's website a n d downloading

m e t h o d s h a v e c h a n g e d s i n c e its

i n c e p t i o n a n d s i n c e N C S F ' s d o w n l o a d s . U p o n i n f o r m a t i o n a n d belief, a t all r e l e v a n t


t i m e s , F r e e p l a y h a s falsely, d e c e p t i v e l y a n d m i s l e a d i n g l y r e p r e s e n t e d that its m u s i c w a s
"free" t o u s e u n d e r t h e c i r c u m s t a n c e s p r e s e n t e d in this a c t i o n .
47.

Because

of t h e p o w e r f u l

draw

of "free"

products

a n d services

on

c o n s u m e r s , virtually e v e r y level of g o v e r n m e n t h a s p r o m u l g a t e d rules, r e g u l a t i o n s a n d


g u i d e l i n e s that specifically prohibit f a l s e a n d m i s l e a d i n g r e p r e s e n t a t i o n s

concerning

"free" offers of t h e t y p e F r e e p l a y h a s m a d e .
48.

T h e Federal Trade Commission, for example, has promulgated a "Guide


2

C o n c e r n i n g t h e U s e of t h e W o r d ' F r e e ' a n d Similar R e p r e s e n t a t i o n s . " (the " G u i d e " ) )


T h e G u i d e e x p l a i n s : " B e c a u s e t h e p u r c h a s i n g public c o n t i n u a l l y s e a r c h e s f o r t h e best
buy, a n d r e g a r d s t h e offer o f ' F r e e ' m e r c h a n d i s e o r s e r v i c e to b e a s p e c i a l b a r g a i n , all
s u c h offers m u s t b e m a d e w i t h e x t r e m e c a r e s o a s t o a v o i d a n y possibility
c o n s u m e r s will

b e misled or deceived.'"

16 C.F.R. 2 5 1 . 1 ( a ) ( 2 ) .

that

T h e Guide thus

p r o v i d e s that " [ w ] h e n m a k i n g ' F r e e ' or similar offers all t h e t e r m s , c o n d i t i o n s a n d


o b l i g a t i o n s u p o n w h i c h receipt a n d r e t e n t i o n of t h e ' F r e e ' item a r e c o n t i n g e n t
set f o r t h clearly a n d c o n s p i c u o u s l y

should be

at t h e o u t s e t of t h e offer s o a s t o l e a v e n o

r e a s o n a b l e p r o b a b i l i t y that t h e t e r m s of t h e offer m i g h t b e m i s u n d e r s t o o d . "

Id. at

251.1(c).

See Guide Concerning the Use of the W o r d "Free" and Similar Representations, 16 CFR
251.1 https://www.ftc.qov/enforcement/rules/rulemakinq-requlatorv-reform-proceedinQs/quideconcerning-use-word-free-simiiar (last visited Apr. 26, 2016).
Marko & Magolnick, P.A.
T E L E P H O N E 305/285-2000

3 0 0 ) S . W . 3 " " A V E N U E , MIAMI, F L O R I D A 3 3 1 2 9

F A C S I M I L E 305/285-5555

Page 15 of 26

49.

C a s e No.

Similarly, t h e R u l e s of t h e City of N e w Y o r k ("RCNY"), w h e r e ,

upon

information a n d belief, Freeplay a n d T u n e s a t a r e b a s e d , provide that "[a] seller w h o


imposes

a condition

conspicuously

o n a free

The description

near the word

'free'..

offer
of every

must

describe

condition

t h e condition

clearly

on a free offer must be

and
placed

T h i s condition m u s t be in print at least half a s large a s t h e print

u s e d for t h e w o r d 'free.'" 6 R C N Y 5-06(b) ( e m p h a s i s a d d e d ) .


50.
conditions
conspicuous

Similarly, in Florida, " [ a d v e r t i s i n g in w h i c h items are offered a s free with


o r obligations
statement

necessary

to acceptance

o f a n y s u c h conditions

shall

include

a clear

and

or obligations a n d advertising in

c o m p l i a n c e h e r e w i t h shall not b e c o n s i d e r e d deceptive." F/a. Stat. 8 1 7 . 4 1 5 ( 5 ) (2015)


(emphasis added).
51.

Notwithstanding

these

rules

a n d regulations,

m i s r e p r e s e n t e d t o c o n s u m e r s that it offers " F R E E

MUSIC

Freeplay

h a s brazenly

FOR YOUTUBE,"

without

t h e requisite "clear a n d c o n s p i c u o u s " disclosure of t h e conditions that purportedly m u s t


b e m e t f o r t h e offer of "free m u s i c " t o apply.
52.

N C S F h a s b e e n d e c e i v e d a n d misled by F r e e p l a y ' s f a l s e a n d m i s l e a d i n g

advertising a n d representations.
F R E E P L A Y ' S F A L S E A D V E R T I S I N G AND T U N E S A T ' S MANIPULATION O F THAT
F A L S E ADVERTISING HAS HARMED PLAINTIFF AND T H E P U B L I C
53.

T h e natural a n d p r o x i m a t e - a n d , indeed, deliberate - c o n s e q u e n c e o f

F r e e p l a y ' s a n d T u n e s a t ' s m i s c o n d u c t h a s b e e n t h e very copyright


w h i c h Freeplay a n d T u n e s a t purport to have b e e n injured.

"infringements" b y

In reality, Freeplay a n d

T u n e s a t s e e k to e a r n a windfall from t h e s e a l l e g e d "infringements" t h r o u g h exorbitant


a n d extortionate settlement a n d litigation d e m a n d s .

Marko & Magolnick, P.A.


-rn, ,-m</9<.?nnn

3001 S . W . 3

AVENUE, MIAMI, FLORIDA 3 3 1 2 9

FACSIMILE 305/285-5555

Page 16 of 26

54.

Case No.

Freeplay a n d T u n e s a t h a v e a s s e r t e d copyright

infringement claims in

d o z e n s of actions o v e r the last several years a n d h a v e t h r e a t e n e d to bring s u c h a n


action against N C S F in N e w York - Freeplay's a n d T u n e s a t ' s h o m e state - w h i c h w o u l d
result in N C S F incurring significant e x p e n s e , to t h e e x t r e m e prejudice of N C S F .

Upon

information a n d belief, most, if not all, of F r e e p l a y ' s a n d T u n e s a t ' s prior litigation m a t t e r s


resulted in m o n e t a r y s e t t l e m e n t s f o r Freeplay that e x c e e d e d w h a t it c o u l d or w o u l d h a v e
e a r n e d in license f e e s , h a d the purported t e r m s of u s a g e b e e n properly d i s c l o s e d o n
Freeplay's

website

www.freeplavmusic.com.

T h e forced

expensive

settlement

by

litigation is a k e y part of Freeplay's a n d T u n e s a t ' s b u s i n e s s m o d e l .


55.

U p o n information a n d belief, a substantial portion, if not the majority, of

Freeplay's r e v e n u e is e a r n e d from s e t t l e m e n t s following its threats or actual initiation of


litigation u p o n u s e r s w h o w e r e u n a w a r e of a n y i m p r o p e r uses o n their part a n d w h o
w e r e d e n i e d a n y opportunity by Freeplay a n d T u n e s a t to simply c e a s e u s e of the
d o w n l o a d s o n c e T u n e s a t a p p r i s e d t h e m of the p u r p o r t e d violations.
56.

U p o n information a n d belief, Freeplay and/or T u n e s a t , in collusion with

Freeplay, h a v e sent d e m a n d letters to o t h e r individuals a n d entities w h o m t h e y h a v e


never s u e d , a n d w h o e n t e r e d into m o n e t a r y s e t t l e m e n t s w i t h Freeplay and/or T u n e s a t
precisely to a v o i d t h e litigation that Freeplay and/or T u n e s a t improperly t h r e a t e n e d , but
that its victims c o u l d not afford to d e f e n d .
57.

U p o n information a n d belief, Freeplay a n d / o r T u n e s a t , in collusion with

Freeplay, routinely d e m a n d p a y m e n t s in e x c e s s of $ 1 0 0 , 0 0 0 f r o m their victims, w h e t h e r


in

settlement

demands

or

in

litigation

pleadings,

even

though

the

purported

"infringements" w e r e unintentional a n d , in fact, c a u s e d by Freeplay's o w n false a n d


d e c e p t i v e advertising. E v e n if there w e r e a n infringement, Freeplay a n d T u n e s a t ' s
Marko & Magolnick, P.A.

....

"i 11'i m i

Page 17 of 26

Case N o .

stated cost to license w o r k s f r o m F r e e p l a y for "business use" is $ 2 5 0 per work, w h i c h is


of

a c o n s i d e r a b l e m a g n i t u d e less t h a n t h e a m o u n t of Freeplay's a n d T u n e s a t ' s

unconscionable demands.
58.

Once

Tunesat

advised

NCSF

of

the

alleged

infringement,

NCSF

voluntarily a n d in g o o d faith offered t o p a y t h e licensing f e e , but Freeplay a n d T u n e s a t


rejected N C S F ' s effort.
59.

In o r d e r to further increase its d e m a n d s , T u n e s a t , o n behalf of Freeplay,

d o e s not notify t h e potential "targets" of their alleged infringements i m m e d i a t e l y after


learning of said infringements. Instead, Tunesat waits until the p u r p o r t e d infringements
a c c u m u l a t e over time, only to t h e n s e n d letters d e m a n d i n g o u t r a g e o u s s u m s of m o n i e s
for past alleged "infringements."

Such

letters include a n extensive

list of all t h e

"violations" a c c u m u l a t e d o v e r time, as well a s threats of i m m i n e n t litigation.


60.

T h e d e m a n d s m a d e by T u n e s a t , o n behalf of Freeplay, are predatory in

nature, a n d m a d e in b a d faith:
a.

T h e demand letter sent by Tunesat, in collusion with Freeplay, d o e s

not timely notify N I C S F of t h e alleged infringement, nor d o e s it require, or e v e n provide


a n opportunity for, N C S F t o r e m o v e t h e infringing material; instead, it simply d e m a n d s
money;
b.

T h e d e m a n d letter includes a list of alleged "violations." However,

s u c h "violations" a r e a m e r e list of t h e public "views" of t h e videos. W h e n a video is


p o s t e d t o a v i d e o sharing w e b s i t e , like Y o u t u b e . c o m , millions of v i e w e r s h a v e a c c e s s to
t h e video, a n d t h e public v i e w e r s h i p of t h e video is b e y o n d t h e control of t h e p e r s o n or
entity u p l o a d i n g t h e video t o t h e v i d e o sharing w e b s i t e . For e x a m p l e , in t h e instant
case, N C S F u p l o a d e d t w o v i d e o s to Y o u t u b e . c o m . T u n e s a t , o n behalf of Freeplay,
Marko & Magolnick, P.A.
UiM

PmimiiinllWrWHH

Page 18 of 26

Case No.

a t t e m p t e d to hold N C S F a c c o u n t a b l e for e a c h a n d every view t h e public m a d e of t h e s e


t w o videos, alleging in its d e m a n d

letter that e a c h a n d every v i e w constitutes a

"violation;" a n d
c.

T h e d e m a n d letter d o e s not afford a n y r e a s o n a b l e opportunity to

cure t h e alleged infringement. Instead, it contains threatening language s u g g e s t i n g


imminent litigation, additional fees, penalties, a n d interest o n p a y m e n t s , unless t h e
d e m a n d s are immediately satisfied.
61.

A s a direct result of Freeplay's f a l s e a n d deceptive representations and

a d v e r t i s e m e n t s , N C S F , a s well a s other victims of Freeplay's practices, h a v e b e e n


f o r c e d to e x p e n d costly legal f e e s to d e f e n d against Freeplay's a n d T u n e s a t ' s , in
collusion with Freeplay, p r e d a t o r y litigation efforts, all b a s e d u p o n t h e very a l l e g e d
"infringements" Freeplay h a s deliberately i n d u c e d t h r o u g h its false, deceptive a n d
misleading a d v e r t i s e m e n t s a n d representations.

Indeed, this action is N C S F ' s only

alternative to t h e extortionate d e m a n d s that Freeplay a n d T u n e s a t , in collusion with


Freeplay, are n o w m a k i n g in order to f o r e b e a r f r o m bringing suit against N C S F in N e w
York, w h e r e N C S F h a s no place of b u s i n e s s a n d n o m e a n s by w h i c h to d e f e n d itself.
62.

T h e h a r m to N C S F e x t e n d s b e y o n d legal f e e s . B e c a u s e N C S F relied o n

Freeplay's d e c e p t i v e offer of "free music" a n d u s e d d o w n l o a d e d m u s i c in its v i d e o s (in


most c a s e s , for de minimis

durations), t h e s e v i d e o s w e r e r e m o v e d f r o m Y o u T u b e after

Freeplay and/or T u n e s a t , in collusion with Freeplay,

issued

takedown

notices to

Y o u T u b e . T h e w a s t e d time, p r o d u c t i o n , a n d effort t h w a r t e d N C S F ' s ability to further its


presence

as

recognized

organization

establishing

proper

standards

and

m e t h o d o l o g i e s f o r strength a n d fitness f o r c o a c h e s , trainers a n d athletes.


63.

Freeplay's

misconduct,

false

advertising,

Marko & Magolnick, P.A.


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a n d false

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Page 19 of 26

Case No.

representations have therefore d a m a g e d N C S F in its reputation a n d goodwill.


64.

Freeplay's a n d T u n e s a t ' s c o n d u c t h a s c a u s e d

reputational

injury

by

falsely casting N C S F a s a copyright infringer.


65.

U n l e s s Freeplay's a n d T u n e s a t ' s predatory b u s i n e s s practices are put to a

halt, N C S F a n d m e m b e r s

of t h e public will c o n t i n u e to b e h a r m e d , a s Y o u T u b e users

c o n t i n u e t o d o w n l o a d a n d u s e w h a t t h e y believe t o b e exactly w h a t Freeplay a d v e r t i s e s "FREE MUSIC FOR YOUTUBE."


COUNT I
F E D E R A L F A L S E ADVERTISING
(Against Freeplay)
66

N C S F a d o p t s a n d re-alleges

t h e allegations

in p a r a g r a p h s

1 through

6 5 as if fully set forth herein, a n d alleges further:


67.

Freeplay h a s m a d e false, deceptive, a n d m i s l e a d i n g

representations
characteristics,

of

fact

in

its

commercial

advertising

descriptions a n d

concerning

a n d qualities of its g o o d s , services, a n d c o m m e r c i a l

the

nature,

activities, in

violation of t h e L a n h a m Act, 15 U.S.C. Section 1125(a)(1)(B).


68.

Freeplay's

false,

deceptive,

and

misleading

descriptions

and

representations that its m u s i c is "free," w i t h o u t a d e q u a t e disclosure of t h e conditions


a n d limitations under w h i c h its m u s i c is purportedly not "free," h a v e d e c e i v e d , a n d a r e
likely t o d e c e i v e , p u r c h a s e r s a n d c o n s u m e r s , s u c h a s N C S F .
69.

Freeplay's f a l s e ,

deceptive,

a n d misleading

advertising

have

caused

d a m a g e t o N C S F a s d e s c r i b e d in P a r a g r a p h s 61 t h r o u g h 6 5 a b o v e .
70.

Freeplay's false, deceptive,

a n d will c o n t i n u e to c a u s e ,

irreparable

a n d misleading
injury t o N C S F ' s

advertising

has caused,

goodwill, reputation a n d

Marko & Magolnick, P.A.


TELEPHONE 305-285-2000

3001 S . W . 3 AVENUE, MIAMI, FLORIDA 3 3 1 2 9

FACSIMILE 305/285-5555

Page 20 of 26

Case No.

v i e w e r s h i p , f o r w h i c h t h e r e is n o a d e q u a t e r e m e d y at law.
Section

1116, N C S F

P u r s u a n t to 15 U.S.C.

is entitled to an injunction restraining

Freeplay,

its agents

(including T u n e s a t ) e m p l o y e e s , representatives a n d all p e r s o n s acting in concert with it,


from directly or indirectly e n g a g i n g in further acts of false advertising, a n d o r d e r i n g
r e m o v a l of all of Freeplay's f a l s e a d v e r t i s e m e n t s .
71.

Pursuant to 15 U.S.C. Section 1 1 1 7 , N C S F is entitled to recover t h e

d a m a g e s s u s t a i n e d a s a result of Freeplay's acts in violation of L a n h a m

A c t Section

43(a), in a n a m o u n t to be p r o v e n at trial.
72.

Pursuant to 15 U.S.C. Section 1 1 1 7 , N C S F is entitled to recover from

Freeplay t h e profits that it h a s o b t a i n e d a s a result of its false, deceptive, a n d


misleading advertising
73.

Freeplay's

conduct

is a n d , at all relevant

deliberate, intentional, a n d in b a d faith.

times,

has been

willful,

Pursuant to 15 U.S.C S e c t i o n 1 1 1 7 , N C S F is

t h u s entitled to recover additional d a m a g e s , profits a n d r e a s o n a b l e attorneys' f e e s .


W H E R E F O R E , N C S F d e m a n d s j u d g m e n t against D e f e n d a n t Freeplay Music,
LLC

for compensatory d a m a g e s , treble d a m a g e s , p r e - a n d post- j u d g m e n t interest,

attorney's f e e s a n d costs, injunctive relief, a n d s u c h further relief a s this Court d e e m s


just a n d proper.

C O U N T II
VIOLATION O F FLORIDA'S D E C E P T I V E AND UNFAIR
TRADE PRACTICES ACT
(Against Freeplay and Tunesat)
74.

NCSF adopts

a n d realleges

t h e allegations

in p a r a g r a p h s 1 t h r o u g h

6 5 a s if fully set forth herein, a n d alleges further:

Marko & Magolnick, P.A.

Facsimile

mumm

Page 21 of 26

75.
Section

Case No.

Florida's D e c e p t i v e a n d Unfair T r a d e

5 0 1 2 0 1 , et

seq.

("FDUTPA"),

prohibits

Practices Act, Florida


"unfair

methods

of

Statutes,

competition,

u n c o n s c i o n a b l e acts or practices, a n d unfair or deceptive acts or practices in t h e


c o n d u c t of a n y t r a d e or c o m m e r c e . " Fla. Stat. 5 0 1 . 2 0 4
76.

T h e stated p u r p o s e of F D U T P A is to protect p e r s o n s from "those w h o

e n g a g e in unfair m e t h o d s of competition, or u n c o n s c i o n a b l e , deceptive, or unfair acts or


practices in the c o n d u c t of a n y trade or c o m m e r c e . " Fla. Stat. 5 0 1 . 2 0 4 .
77.

Florida

Statutes,

Section 8 1 7 . 4 1 5 ( 5 ) requires that: " [ a d v e r t i s i n g in w h i c h

items a r e offered a s f r e e with conditions or obligations n e c e s s a r y to a c c e p t a n c e shall


include a clear
advertising

and conspicuous

in c o m p l i a n c e

statement of a n y s u c h conditions or obligations a n d

herewith

shall not be c o n s i d e r e d d e c e p t i v e "

(emphasis

added).
78.

Freeplay a n d T u n e s a t h a v e c o l l u d e d in a s c h e m e to profit in d e r o g a t i o n

a n d purposeful violation of t h e r e q u i r e m e n t s of Section 8 1 7 . 4 1 5 ( 5 ) a n d F D U T P A .


79.

Freeplay a n d T u n e s a t e n g a g e d a n d continue to e n g a g e in t h e c o n d u c t of

t r a d e and/or c o m m e r c e

in Florida a n d t h e d e c e p t i v e c o n d u c t alleged herein w a s

i m p l e m e n t e d in Florida a n d carried o u t across the country, including t h e M i a m i - D a d e


County, Florida.
80.

T h e policies, acts a n d practices alleged herein w e r e i n t e n d e d to result a n d

did result in the p a y m e n t of millions of dollars. Specifically:


a. Freeplay a n d T u n e s a t h a v e e n g a g e d in unfair a n d d e c e p t i v e practices
by falsely a n d misleadingly advertising t h e free u s e a n d d o w n l o a d i n g of m u s i c a n d t h e n
claiming infringement, d e m a n d e d extortive s u m s to a v o i d or e n d e x p e n s i v e litigation;

Marko & Magolnick, P.A.

Ill SWf hWl MMFLQ1A2M

FACSIMILE

305/285-5555

Page 22 of 26

Case No.

b. D e f e n d a n t s engaged in unfair a n d deceptive practices by intimidating


Plaintiff a n d other c o n s u m e r s with t h e threat of litigation if they w e r e not paid a n
exorbitant a n d b a s e l e s s settlement s u m ;
c.

Freeplay's

false,

misleading,

and

deceptive

representations that its music is "free," without adequate


a n d limitations

statements

and

disclosure of the conditions

u n d e r w h i c h its m u s i c is purportedly not "free," a r e deceptive a n d

materially m i s l e a d i n g .
81.

D e f e n d a n t s ' s c h e m e w a s d e v i s e d a n d carried out in Florida, w h i c h has a n

interest in prohibiting violations of F D U T P A within t h e state a n d t h e n carried out a c r o s s


t h e country.
82.

NCSF

has sustained

damages

as a direct

and proximate

result of

D e f e n d a n t s ' unfair a n d u n c o n s c i o n a b l e practices. Florida Statute Section 5 0 1 . 2 1 1 ( 2 )


provides N C S F a private right of action against D e f e n d a n t s , a n d entitles N C S F to
recover its actual d a m a g e s a n d t o injunctive relief, including a n o r d e r that D e f e n d a n t s
immediately c e a s e a n d desist this u n c o n s c i o n a b l e practice.
83.

Defendants'

conduct

is a n d , at all relevant

times,

h a s b e e n willful,

deliberate, intentional, a n d in b a d faith.


84.

N C S F h a s suffered a n d will c o n t i n u e to suffer irreparable h a r m if t h e

D e f e n d a n t s c o n t i n u e to e n g a g e in s u c h deceptive a n d unfair practices.


WHEREFORE,
compensatory damages,

NCSF

demands

judgment

against

the

Defendants

for

treble d a m a g e s , p r e - a n d post- j u d g m e n t interest, attorney's

f e e s a n d costs pursuant t o Florida Statute 5 0 1 . 2 1 0 5 , injunctive relief, c o s t s incurred in


bringing this action, a n d a n y other relief a s this Court d e e m s just a n d proper.

Marko & Magolnick, P.A.


TELEPHONE 305/285-2000

3001 S . W . 3 A V E N U E , MIAMI, FLORIDA 3 3 1 2 9

FACSIMILE 305/285-5555

Page 23 of 26

Case No.

C O U N T III
DECEIT-- INTENTIONAL MISREPRESENTATION,
N O N D I S C L O S U R E AND C O N C E A L M E N T
(Against Freeplay)
85.

Plaintiff a d o p t s

a n d realleges

t h e allegations

in p a r a g r a p h s 1 t h r o u g h

6 5 a s if fully set forth herein, a n d alleges further:


86.

F r e e p l a y ' s w e b s i t e n a m e , w w w . f r e e p l a y m u s i c . c o m . w a s , at all relevant

t i m e s , a representation that t h e m u s i c p r o v i d e d o n that w e b s i t e is f r e e .

This w a s an

affirmative representation that Freeplay w o u l d not d e m a n d p a y m e n t for u s e of m u s i c


d o w n l o a d e d from t h e w e b s i t e .
87.

O n information a n d belief, at all relevant times, a n d at least f r o m 2 0 0 8

t h r o u g h t h e d a t e s of N C S F ' s d o w n l o a d s in a p p r o x i m a t e l y 2 0 1 0 , Freeplay's w e b s i t e
included s t a t e m e n t s in t h e m e t a d a t a

that t h e w w w . f r e e p l a y r n u s i c . c o m w e b s i t e offered

"free" content, "free music," a n d "free m u s i c d o w n l o a d . " T h e r e w e r e also affirmative


representations that Freeplay w o u l d not d e m a n d p a y m e n t for u s e of m u s i c d o w n l o a d e d
from the website.
88.
through

O n information a n d belief, at all relevant t i m e s , a n d at least f r o m 2 0 0 8


the

dates

of

NCSF's

downloads

in

approximately

2010,

the

w w w . f r e e p l a y r n u s i c . c o m w e b s i t e d i d not h a v e a n y requirement that u s e r s p a y for m u s i c


or e v e n a g r e e t o p a y for m u s i c a s a condition of d o w n l o a d i n g m u s i c f r o m t h e w e b s i t e .
Freeplay

knowingly

and willfully

concealed

and failed

regarding t h e actual cost t o N C S F to d o w n l o a d music.

to disclose

material

facts

Freeplay e n g a g e d in this n o n -

disclosure a n d c o n c e a l m e n t with t h e b a d faith intention of s u b s e q u e n t l y exploiting s u c h


h i d d e n information, in collusion with Tunesat, by demanding payment f o r N C S F ' s use of
the music on the www.freeplavmusic.com website.

Marko & Magolnick, P.A.


TELEPHONE 305/285-2000

3001

S,W, 3 ' AVENUE,MI*M1,FWPJl'A HIS?


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P a g e 24 of 26

89.

C a s e No.

On

information

and

belief,

Freeplay

knew

that

its a f f i r m a t i v e

m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e a n d c o n c e a l m e n t w e r e f a l s e a n d m i s l e a d i n g w h e n it
i n c l u d e d f r e q u e n t u s e s of t h e w o r d "free" in t h e m e t a d a t a in o r d e r to d r a w u s e r s t o t h e
www.freeplavmusic.com w e b s i t e w h e n users conducted

Internet

searches

for "free

music."
90.

O n i n f o r m a t i o n a n d belief, F r e e p l a y specifically

wrote

t h e t e r m s "free,"

"free m u s i c , " a n d "free m u s i c d o w n l o a d " into t h e m e t a d a t a k n o w i n g that it p l a n n e d to


assert that music o n the www.freeplaymusic.com website w a s not free.

Freeplay's

f a i l u r e to indicate t h a t it a n d T u n e s a t , in c o l l u s i o n w i t h F r e e p l a y , w o u l d later c o n t e n d
t h a t p a y m e n t w a s r e q u i r e d to u s e t h e m u s i c c o n s t i t u t e d intentional m i s r e p r e s e n t a t i o n ,
n o n d i s c l o s u r e , a n d c o n c e a l m e n t of m a t e r i a l f a c t s .
91.
conduct,

A s i d e f r o m a n y d u t y arising f r o m g o o d faith, fair d e a l i n g , ethical b u s i n e s s


or statutory

requirements,

F r e e p l a y h a d a d u t y t o d i s c l o s e t h e material

i n f o r m a t i o n that F r e e p l a y i n t e n d e d to a s s e r t that p a y m e n t w a s r e q u i r e d t o u s e t h e "free"


m u s i c a v a i l a b l e o n t h e w w w . f r e e p l a y m u s i c . c o m w e b s i t e b e c a u s e of t h e b u s i n e s s n a m e
it e l e c t e d to u s e , its o r g a n i z a t i o n a n d p r o m o t i o n of t h e w w w . f r e e p l a y m u s i c . c o m w e b s i t e ,
a n d t h e specific i n c l u s i o n of t h e t e r m s "free," "free m u s i c , " a n d "free m u s i c d o w n l o a d " in
its w e b s i t e ' s m e t a d a t a , .
92.

O n i n f o r m a t i o n a n d belief, F r e e p l a y intentionally c o n c e a l e d a n d d i v e r t e d

u s e r s ' a t t e n t i o n a w a y f r o m t h e t e r m s a n d c o n d i t i o n s o n its w e b s i t e , p u r p o s e f u l l y m a d e
the licensing structure confusing a n d seemingly free, revised the terms a n d conditions
without notice or warning to users a n d then applied the n e w terms a n d conditions
retroactively, a n d d e n i e d u s e r s a n y o p p o r t u n i t y , o n c e m a d e a w a r e of F r e e p l a y ' s pricing
s t r u c t u r e t o w i t h d r a w their licenses, w i t h o u t p a y i n g o u t l a n d i s h s e t t l e m e n t c o s t s in t h e
Mark" & Magolnick, P.A.
. .

...*A

t'.rimr W i l l i e { (

P a g e 25 of 26

C a s e No.

process.
93.

Freeplay's

misrepresentations,

nondisclosure

and concealments

were

s t a t e m e n t s r e g a r d i n g i m p o r t a n t f a c t s t h a t w e r e n o t true.
94.

Freeplay

knew

www.freeplavmusic.com

and

website

intended
generally

misrepresentations, nondisclosures

that

NCSF

would

be

and

users

deceived

of
by

the
these

a n d c o n c e a l m e n t into b e l i e v i n g that t h e m u s i c w a s

f r e e to d o w n l o a d a n d u s e .

95.

Freeplay

knew

a n d intended

that

NCSF,

and

users

of the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e g e n e r a l l y , w o u l d r e a s o n a b l y rely to their d e t r i m e n t o n
the

misrepresentations, nondisclosure, and concealment

by d o w n l o a d i n g

a n d using

t h e m u s i c b e l i e v i n g it w a s f r e e .
96.

O n i n f o r m a t i o n a n d belief, at t h e t i m e F r e e p l a y m a d e its m u s i c a v a i l a b l e

for d o w n l o a d o n its w e b s i t e , F r e e p l a y f a i l e d to d i s c l o s e , a n d c o n c e a l e d t h e fact that t h e


m u s i c o n w w w . f r e e p l a y m u s i c . c o m w a s in f a c t n o t "free," w i t h t h e p u r p o s e a n d intent of
c r e a t i n g a d e c e p t i v e trap.

T h i s t r a p c o n s i s t e d of N C S F a n d o t h e r u s e r s d o w n l o a d i n g

m u s i c , b e l i e v i n g it to b e f r e e , w h e r e a f t e r F r e e p l a y w o u l d h a v e T u n e s a t d e t e c t t h e s e
u s e s of m u s i c d o w n l o a d e d f r o m t h e w w w . f r e e p l a y m u s i c . c o m w e b s i t e , F r e e p l a y a n d
Tunesat would assert a copyright

i n f r i n g e m e n t claim a g a i n s t

NCSF,

and any other

c o n s u m e r that d o w n l o a d e d m u s i c f r o m its w e b s i t e , a n d F r e e p l a y a n d T u n e s a t w o u l d
d e m a n d an extortionate settlement from N C S F a n d other users.
97.

N C S F r e a s o n a b l y a n d j u s t i f i a b l y relied o n F r e e p l a y ' s r e p r e s e n t a t i o n s in

t h e w e b s i t e a n d N C S F r e a s o n a b l y r e a c h e d its u n d e r s t a n d i n g resulting f r o m F r e e p l a y ' s


nondisclosures and concealments.

Marko & Magolnick, P.A.

fo m

warn

i i S I f kmi

Miami. F i r m 33129

Facsimile 5 5 5

P a g e 26 of 26

98.

Case No.

N C S F w o u l d n o t h a v e d o w n l o a d e d a n d u s e d t h e "free" m u s i c o n t h e

www.freeplavmusic.com

website

absent

Freeplay's

misrepresentations,

nondisclosures and concealments


99.
described

As a
above,

direct

a n d proximate

consequence

of t h e w r o n g f u l

conduct

N C S F h a s b e e n i n j u r e d a s s e t f o r t h h e r e i n a b o v e at p a r a g r a p h s 6 0

through 6 5 , , as well as t h e time a n d expense associated with having to remove a n d


r e p l a c e v i d e o s a n d h a v i n g t o p u r s u e this a c t i o n .
100.

Freeplay's

intentional

misrepresentations,

nondisclosures

and

c o n c e a l m e n t s w e r e s u b s t a n t i a l , direct a n d p r o x i m a t e f a c t o r s in c a u s i n g N C S F ' s h a r m .
WHEREFORE,

N C S F d e m a n d s judgment against Defendant Freeplay

Music,

L L C f o r c o m p e n s a t o r y d a m a g e s , p r e - a n d p o s t - j u d g m e n t interest, c o s t s i n c u r r e d in
b r i n g i n g t h i s a c t i o n , a n d f o r s u c h f u r t h e r relief a s this Court d e e m s j u s t a n d proper.
DEMAND F O RJ U R Y TRIAL
N C S F d e m a n d s a trial by j u r y o n all i s s u e s triable a s of right by a jury.

D a t e d this 3

r d

d a y of M a y , 2 0 1 6 .

Respectfully submitted,
M A R K O & M A G O L N I C K , P.A.
Attorneys for N C S F
3001 S.W. 3rd A v e n u e
M i a m i , Florida 3 3 1 2 9
Telephone. (305) 285-2000
Facsimile:
(305)285-5555

By. Isl Joel S. Magolnick


Joel S . Magolnick
Florida B a r N o . 7 7 6 0 6 8
maqolnick@mm-pa.com

Marko & Magolnick, P.A.


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FACSIMILE

305/285-5555

Filing # 41013895 E-Filed 05/03/2016 01:24:32 P M


F O R M 1.997. C I V I L C O V E R S H E E T
T h e civil c o v e r s h e e t a n d t h e information c o n t a i n e d h e r e i n n e i t h e r r e p l a c e n o r s u p p l e m e n t t h e filing a n d s e r v i c e of
p l e a d i n g s o r o t h e r p a p e r s a s r e q u i r e d by l a w . T h i s f o r m s h a l l b e filed by t h e plaintiff o r petitioner for t h e u s e of t h e C l e r k
of t h e C o u r t for t h e p u r p o s e of reporting j u d i c i a l w o r k l o a d d a t a p u r s u a n t to F l o r i d a S t a t u t e s s e c t i o n 2 5 . 0 7 5 .

I.

CASE

STYLE

IN T H E C I R C U I T C O U R T O F THE E L E V E N T H
IN A N D FOR

JUDICIAL CIRCUIT,

MIAMI-DADE C O U N T Y , F L O R I D A

Case No.:
Judge:

NATIONAL COUNCIL OF STRENGH & FITNESS CORPORATION


Plaintiff
vs.

F R E E P L A Y MUSIC. L L C , a Delaware L L C . TUNF.SAT. L L C


Defendant

II.

TYPE O F CASE

Condominium

Contracts and i n d e b t e d n e s s

Eminent domain

A u t o negligence

N e g l i g e n c e - other

Business g o v e r n a n c e
Business torts

E n v i r o n m e n t a l / T o x i c tort

Other real property a c t i o n s $ 5 0 , 0 0 1 - $ 2 4 9 , 9 9 9


Other real property actions $ 2 5 0 , 0 0 0 or m o r e

Professional malpractice

Malpractice - business
Malpractice - medical
Malpractice - other professional

Other

L.I

Business Transaction

M a s s tort

[ I

Circuit Civil - N o t A p p l i c a b l e

Negligent security

Constitutional challenge-statute or
ordinance

I I

Constitutional c h a l l e n g e - p r o p o s e d
amendment

JI

Corporate Trusts

o
[ I

D i s c r i m i n a t i o n - e m p l o y m e n t or other

P r e m i s e s liability - c o m m e r c i a

P r e m i s e s liability - residential

Products liability
R e a l P r o p e r t y / M o r t g a g e foreclosure

C o m m e r c i a l foreclosure SO - $ 5 0 , 0 0 0

C o m m e r c i a l foreclosure $ 5 0 , 0 0 1 - $ 2 4 9 , 9 9 9

C o m m e r c i a l foreclosure $ 2 5 0 , 0 0 0 or more

H o m e s t e a d residential foreclosure $0 - 50,000

H o m e s t e a d residential foreclosure $50,001 $249,999

H o m e s t e a d residential foreclosure $ 2 5 0 , 0 0 0 or
more
N o n - h o m e s t e a d residential foreclosure $ 0 $50,000

LJ

LJ

C o n s t r u c t i o n defect

Nursing h o m e negligence

Other real property actions $ 0 - $ 5 0 , 0 0 0

Third party indemnification

LJ

N o n - h o m e s t e a d residential foreclosure
$50,001 - $ 2 4 9 , 9 9 9
N o n - h o m e s t e a d residential foreclosure
$ 2 5 0 , 0 0 or more

Antitrust/Trade Regulation

Insurance claims

LI

Intellectual property

fl

Libel/Slander

LI.

S h a r e h o l d e r derivative action

LI

Securities litigation

Li

T r a d e secrets

I I

Trust litigation

COMPLEX BUSINESS COURT


T h i s action is a p p r o p r i a t e for a s s i g n m e n t t o C o m p l e x B u s i n e s s C o u r t as d e l i n e a t e d a n d m a n d a t e d by t h e
A d m i n i s t r a t i v e Order. Y e s D N o K

III.

R E M E D I E S S O U G H T (check all that apply):


Monetary;

IV.

Non-monetary

Jg.

N o n - m o n e t a r y declaratory or injunctive relief;

Punitive

NUMBER O F C A U S E S O F ACTION: (
(Specify)

3
V.

VI.

VII.

IS THIS C A S E A C L A S S A C T I O N L A W S U I T ?

Yes

No

HAS NOTICE O F ANY KNOWN R E L A T E D C A S E B E E N F I L E D ?


K

No

Y e s - If "yes" list all related c a s e s by n a m e , c a s e n u m b e r a n d court:

I S J U R Y T R I A L D E M A N D E D IN C O M P L A I N T ?
K

Yes

No

I C E R T I F Y that t h e information I have p r o v i d e d in this c o v e r s h e e t is a c c u r a t e to t h e best of my k n o w l e d g e a n d belief.


S i g n a t u r e s / JOEL S M A G O L N I C K
A t t o r n e y or party

JOEL S M A G O L N I C K
(Type or print n a m e )

FL B a r No.:

776068
( B a r n u m b e r , if attorney)

05/03/2016
Date

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