Atlantic Recording Corp. v. Project Playlist, Inc.

603 F. Supp. 2d 690, 90 U.S.P.Q. 2d (BNA) 1799, 2009 U.S. Dist. LEXIS 24912, 2009 WL 766224
CourtDistrict Court, S.D. New York
DecidedMarch 25, 2009
Docket08 Civ. 3922 (DC)
StatusPublished
Cited by57 cases

This text of 603 F. Supp. 2d 690 (Atlantic Recording Corp. v. Project Playlist, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Recording Corp. v. Project Playlist, Inc., 603 F. Supp. 2d 690, 90 U.S.P.Q. 2d (BNA) 1799, 2009 U.S. Dist. LEXIS 24912, 2009 WL 766224 (S.D.N.Y. 2009).

Opinion

OPINION

CHIN, District Judge.

Defendant Project Playlist, Inc. (“Play-list”) operates a website, www.project playlist.com (the “Website”), that provides an index of links to songs available on third-party websites. Users can create playlists of songs on the Website — hence the name — that they can save on the Web *693 site or upload to their profiles on social networking sites. Users can also download the songs from the third-party websites.

In this case, six of the world’s largest record companies sue Playlist for copyright infringement and unfair competition. Plaintiffs own copyrights to the majority of sound recordings in the United States, and claim that most of the songs on the third-party websites to which Playlist provides links are posted without plaintiffs’ permission,.- and therefore infringe plaintiffs’ copyrights. Through this action, plaintiffs seek to hold Playlist responsible for copyright infringement.

Playlist moves, pursuant to 28 U.S.C. § 1404(a), for a transfer of venue to the Northern District of California, where Playlist’s business is located. In the event that motion is denied, Playlist moves to dismiss plaintiffs’ state law claims. For the reasons set forth below, both motions are denied.

BACKGROUND

A. Allegations of the Complaint

Plaintiffs are some of the largest record companies in the world. (Compl. ¶ ll). 1 Atlantic Recording Corporation and Elek-tra Entertainment Group, Inc. are organized under the laws of Delaware and have their principal place of business in New York. (Id. ¶¶ 12-14, 17). Interscope Records is organized under the laws of California and has its principal place of business in California. (Compl. ¶ 15). Motown Record Company, L.P. is organized under the laws of California and has its principal place of business in New York. (Id. ¶¶ 16, 19; Orseck Deck ¶2®). 2 UMG Recordings, Inc. and Warner Bros. Records, Inc. are organized under the laws of Delaware and have their principal place of business in California. (Compl. ¶¶ 18, 20).

Playlist is a Delaware corporation with its principal place of business in Palo Alto, California, in the Northern District of California. (Riney Decl. ¶ 3). Playlist owns and operates the Website. (Compl. ¶ 2). The Website, through a computer program called a “spider,” searches the Internet to compile an index of links to sound recordings on other websites. (Id. ¶¶ 3, 29-30). The Website works as follows: A user searches for a particular song or artist, clicks “Search,” and then an index appears. 3 The user then has a num *694 ber of options. First, she can listen to the song, through the Website’s proprietary-music player, 4 by clicking the “Play” button located next to the song’s title. (Id. ¶ 33). Second, she can add the song to a playlist that she can save on the Website, share with other users of the Website, or upload to her profile on a number of social networking sites such as Facebook and MySpace. (Id. ¶ 36). Finally, she can download the song, but only by clicking on a link that reads, “Visit site.” The Website then opens a new window with the third-party website. At the top of the page is the following message, provided by Playlist:

Below is the website [address] containing the music file. Some music files located in this site may be subject to copyright. To be safe, don’t download from this site. If you like it, click here to download from itunes [link] or you can download the ringtone [link]!

Notwithstanding Playlist’s warning to users to exercise caution with respect to illegally downloading copyrighted works, users are not prevented from downloading songs from these third-party websites. (Id. ¶ 34).

In addition to providing an index of songs found through its “spider,” Playlist also builds its database of links by permitting users to submit links to songs they found on the Internet. (Id. ¶ 31).

The “overwhelming majority” of the songs in Playlist’s index are posted without permission of the copyright owners. (Id. ¶ 4). Plaintiffs own the copyright to many of these songs. (Id. ¶¶ 25-26 & Exs. A & B).

B. Procedural History

Plaintiffs filed the complaint in this action on April 28, 2008, asserting claims against Playlist for direct and secondary copyright infringement under 17 U.S.C. §§ 106 and 501, common law copyright infringement under New York law as to plaintiffs’ pre-1972 recordings, and unfair competition under New York law as to plaintiffs’ pre-1972 recordings. 5 Plaintiffs invoked the Court’s jurisdiction under 28 U.S.C. §§ 1331 and 1338 for the federal claims, and under 28 U.S.C. §§ 1367(a) and 1338(b) for the state claims.

These motions followed.

DISCUSSION

Playlist moves to transfer venue and to dismiss plaintiffs’ two state law causes of action. For the reasons set forth below, both motions are denied.

A. The Motion to Transfer Venue

Playlist seeks to transfer this case to the Northern District of California pursuant to 28 U.S.C. § 1404(a), arguing that venue would be more convenient for the parties, and that defendants only filed suit in this district to avoid the reach of an adverse Ninth Circuit precedent. Plaintiffs oppose the motion, arguing that, because three of the six plaintiffs are located in this District and none in the Northern District of California, venue in this District is appropriate.

1. Standard Under 28 U.S.C. § 1404(a)

Under 28 U.S.C. § 1404(a), a court may transfer any civil action to any *695

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603 F. Supp. 2d 690, 90 U.S.P.Q. 2d (BNA) 1799, 2009 U.S. Dist. LEXIS 24912, 2009 WL 766224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-recording-corp-v-project-playlist-inc-nysd-2009.