Albert v. Embassy of Music GMBH

District Court, N.D. California·Decided July 27, 2020·No. 5:19-cv-06652·Unknown

Opinion

MARCEL ALBERT, Case No. 5:19-cv-06652-EJD Plaintiff, ORDER DENYING LEAVE TO AMEND, v. GRANTING MOTION TO DISMISS AND DENYING MOTION TO STRIKE EMBASSY OF MUSIC GMBH, et al., Re: Dkt. Nos. 33, 42, 54 Defendants.

Plaintiff Marcel Albert, proceeding pro se, brought this action against Defendant Embassy of Music GMBH (“Embassy”) and YouTube, LLC (“YouTube”), a wholly owned subsidiary of Google LLC (together with YouTube, “Google”), alleging violations of the Digital Millennium Copyright Act (“DMCA”) and unjust enrichment. Dkt. No. 1 (“Original Complaint”). After amending his complaint once as a matter of course (Dkt. No. 13), Plaintiff now seeks leave to file a Second Amended Complaint in order to add new allegations and a new defendant, Jennifer Lee Taylor. Dkt. No. 33 (“Motion to Amend”). Google opposes the Motion to Amend and simultaneously moves to dismiss the claims against it in the First Amended Complaint. Dkt. No. 42 (“Motion to Dismiss”). Non-party Taylor also opposes Plaintiff’s Motion to Amend. Dkt. No. 43 (“Taylor Opposition”). In response, Plaintiff filed a Motion to Strike the Taylor Opposition for violation of Federal Rule of Evidence 408. Dkt. No. 54 (“Motion to Strike”). The Court took these motions under submission for decision without oral argument pursuant to Civil Local Rule 7-1(b). For the reasons stated below, the Motion to Amend is DENIED, the Motion to Dismiss is GRANTED and the Motion to Strike is DENIED. CASE NO.: 5:19-CV-06652-EJD I. Background1 Plaintiff is a professional in the music industry and acts as the “exclusive monetization agent for royalties” for Tuukka’s Tracks KY (“Tuukka’s Tracks”), a Finnish entity that allegedly has the exclusive right to exploit the song “Endless Summer,” by Oceana (the “Song”). Proposed Second Amended Complaint, Dkt. No. 33-1 (“PSAC”), ¶¶ 2-3. Plaintiff alleges that Defendant Embassy assigned the “Exclusive Rights for various global territories for exploitation of the copyright in and to [the Song]” and that Tuukka’s Tracks in turn licensed those rights to Plaintiff. Id. at ¶ 3. As evidence of the transfer, Plaintiff attaches to the PSAC the purported “Exclusive Licensing Contract” between Embassy and Tuukka’s Tracks. See Dkt. No. 33-4. Plaintiff alleges that as the monetization agent for Tuukka’s Tracks, he is entitled to any revenue generated by the Song on YouTube. PSAC at ¶ 3. Variations of the Song cumulatively have hundreds of millions of views on YouTube, which generates substantial revenue. Id. at ¶ 5. All revenue from the Song was being paid to Embassy until Plaintiff filed a DMCA Takedown Notice with YouTube asserting his “sole control of exclusive rights” as to the Song. YouTube took down the content. Id. at ¶ 8. Embassy then filed a DMCA Counterclaim with YouTube, and YouTube reinstated the content and gave notice that it would remain active absent the initiation of legal proceedings. On October 16, 2019, Plaintiff filed the present lawsuit. On March 27, 2020 Plaintiff filed his First Amended Complaint. Dkt. No. 13 (“FAC”), which asserts claims against Embassy for violation of the DMCA (Count 1) and unjust enrichment (Count 2). PSAC at ¶¶ 13-25. Plaintiff further alleged that YouTube violated its own “three strikes policy,” by which a user’s “channel” may be terminated following multiple uncontested copyright violations, and seeks a preliminary

1 Except where otherwise noted, this background considers the facts as alleged in Plaintiff’s Proposed Second Amended Complaint and only discusses the facts pertinent to the motions at hand. CASE NO.: 5:19-CV-06652-EJD injunction against YouTube ordering it to redirect royalties to Plaintiff, among other things. Id. at ¶¶ 23-25. Upon receiving Plaintiff’s original complaint, Embassy hired as counsel Jennifer Lee Taylor, who sent Plaintiff a letter demanding that he withdraw his claims. Id. at ¶ 11. Ms. Taylor’s letter alleges that Plaintiff’s claim of ownership over the copyright for the Song is false and that Plaintiff forged legal agreements and other documentation in order to substantiate his baseless claim. See Taylor Decl. Ex 1 (“Demand Letter”).2 The Demand Letter states that Plaintiff engaged in a “campaign of harassment” against Embassy and its employees using threats, profanity, and vulgar language in order to extort a settlement payment from Embassy. Id. The Demand Letter further suggests that certain business associates of Plaintiff, such as Tuukka’s Tracks employees “Kyle Kennedy” and “Raphael Pleasant, Jr.,” are actually aliases of Plaintiff himself. In her declaration, Ms. Taylor states that about one month after sending the Demand Letter she and her colleague Nicholas Herrera received an email from a Tuukka’s Tracks email address, signed by Tuukka’s Tracks employee Kyle Kennedy. Taylor Decl. Ex. 4, Dkt. No. 43-5 (“Kennedy Email”). The Kennedy Email contained the header “Without Prejudice, Save As To Costs [] Settlement Rules Apply.”3 Id. In the email, Mr. Kennedy claimed that the Demand Letter

2 Plaintiff submitted two incomplete versions of the Taylor Letter to the Court: the first with his First Amended Complaint (Dkt. No. 13), and the second with his Emergency Motion for Temporary Restraining Order and Preliminary Injunction (Dkt. No. 20). Plaintiff redacted both versions without marking the letter or the omissions as “redacted.” Plaintiff is directed to comply with Civil Local Rule 79-5 for any future filings that he seeks to file in redacted form. 3 Following Ms. Taylor’s submission of her opposition, Plaintiff filed a Motion to Strike her opposition on the grounds that this exhibit and others are protected by Federal Rule of Evidence 408. For the reasons stated in Section III(C) below, the Court disagrees and finds it proper to CASE NO.: 5:19-CV-06652-EJD contained “outlandish and libelous statements” and demanded money for “remuneration for the damages” and “reimbursement for the costs” resulting from the Demand Letter. Id. Mr. Kennedy further stated: “[W]e are drafting complaints to be submitted to The State Bar of California against Ms. Taylor and Mr. Herrera for their part in this scheme to slander our entity, as well as our board members and Mr. Albert himself. Ms Taylor and Mr. Herrera have a legal ethics obligation to fully investigate all matters prior to making libelous allegations, and disseminating same to 3rd parties. By failing to take proper care, you both have breached your ethical obligations as members of The State Bar of California. Failure to comply will result in additional actions against you and your client.” Id. Plaintiff now seeks to amend his complaint to add Ms. Taylor as a defendant and to add allegations and claims against her based on her Demand Letter. Plaintiff argues that Ms. Taylor’s allegations in the Demand Letter are false and defamatory and that she published them by sending the letter to “several parties, including but not limited to Defendant YouTube.” PSAC at ¶ 28. Specifically, he asserts claims for “libel & slander” (Count 4) and tortious interference with contract (Count 5) against both Embassy and Ms. Taylor, and asserts a claim for “Negligence of Defense Counsel” (Count 6) against Ms. Taylor alone. Plaintiff attaches to the PSAC the Affidavit of Steven G. Burgess, a purported expert in cyber forensics, attesting to the validity of the Exclusive Licensing Contract. Dkt. No. 33-4. Ms. Taylor filed an opposition to Plaintiff’s Motion to Amend, arguing that Plaintiff’s proposed claims against her are brought in bad faith, would cause prejudice, and are futile. Dkt. No. 57. Plaintiff then filed a Motion to Strike Ms. Taylor’s opposition on the grounds that

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Albert v. Embassy of Music GMBH, (N.D. Cal. 2020).

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