Bray v. Purple Eagle Entertainment, Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 11, 2024
Docket1:18-cv-05205
StatusUnknown

This text of Bray v. Purple Eagle Entertainment, Inc. (Bray v. Purple Eagle Entertainment, 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
Bray v. Purple Eagle Entertainment, Inc., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK DAVIDBRAY, Plaintiff, -against- . MEMORANDUM DECISION PURPLE EAGLE ENTERTAINMENT, INC. and RICHARD MGRDECHIAN, 18 Civ. 5205 (GBD) (SLC) Defendants. eee ee eee eee ee eee eee eee eee ex GEORGE B. DANIELS, United States District Judge: Plaintiff David Bray brought this suit against Defendants Purple Eagle Entertainment, Inc. (“Company”) and Richard Mgrdechian! (“Defendant,” together with Company, “Defendants”) asserting causes of action for violations of the Copyright Act of 1976 (the “Copyright Act”), 17 U.S.C. §§ 106 and 501, declaratory relief, accounting, unjust enrichment, and a constructive trust. (Second Am. Compl. (“SAC”), ECF No. 51, §§ 91-161.) Plaintiff alleges that Defendants infringed on his copyright interests in 17 songs that he contributed to a musical group Defendants owned and managed, Madison Rising (the “Band”). Ud. 9 1-5, 114-15). Plaintiffseeks monetary damages and injunctive relief for Defendants’ copyright infringement and unjust enrichment, as well as “fa] judicial declaration of the parties’ respective ownership rights and obligations in relation to the[{] songs... .” Ud. §§ 100, 138-41, 152.) Plaintiff further seeks an accounting and a constructive trust granting him “complete ownership” of the Company. (Ud. {J 145, 161; Obj. to R. & R. (“Objection”), ECF No. 173, at 6.) Plaintiff seeks relief from the Company only. (See Memo Endorsement, ECF No. 174, at 1.)

' A Suggestion of Death was filed on May 23, 2021 indicating that Mr. Mgrdechian passed away in August 2020. (Suggestion of Death, ECF No. 136.)

On March 21, 2023, this Court ordered that default judgment be entered in Plaintiff's favor after Defendants failed to defend themselves in this action. (Order Granting Mot. for Default J., ECF No. 163.) Before this Court is Magistrate Judge Sarah L. Cave’s January 3, 2024 Report and Recommendation to (1) declare that Plaintiffis the owner of copyrights in recordings of “Amazing America,” “Soldier’s Christmas,” “The Marine’s Hymn,” and “God Bless America”; (2) award Plaintiff actual damages for copyright infringement under the Copyright Act in the amount of $11,315.81, post-judgment interest pursuant to 28 U.S.C. § 1961, costs in the amount of $400.00; and (3) dismiss Plaintiff's other claims and requests for relief. (R. &R. (“Report”), ECF No. 167, at 2, 25.) Plaintiff filed a timely objection to the Report on January 17, 2024. Having reviewed the objected-to portions of the Report de novo and the remainder of the Report for clear error, this Court ADOPTS the Report, except for certain damages calculations and amounts. I. FACTUAL BACKGROUND On May 31, 2011, Plaintiff and Defendant entered into the Band Member Agreement (“Agreement”), which set forth the parties’ agreement that Plaintiff would join Defendants’ band. (Agreement, ECF No. 51—1, § 1-3.) Pursuant to the Agreement, Plaintiff agreed to work for the Company “as a work-for hire . . . band member in recording and performing (the ‘Obligations’) the music, songs and lyrics (the ‘Material’) as provided to [him] by [Company]... .” Ud. □ 1.) The Agreement was subject to a three-year term (the “Term”), with an option “to extend the [Term] for an additional three (3) year period upon payment of a mutually agreed to extension fee to [Plaintiff] not to exceed $25,000.” Ud. § 3.) The Agreement also sets forth the ownership rights to the Material, providing that the Material constituted “a work-for-hire” which the Company owned as “the sole and exclusive

owner of the copyright in the Material, including all rights of copyright registration, renewal and extension... .” (/d. § 2(a).) Similarly, any material that Plaintiff “prepared, [wrote], and/or created .. . or contributed to the Material” was “on a work-for-hire basis” and “belong[ed] solely to the Company.” (Ud. § 2.) In the event that any such material failed to qualify as a work-for- hire, the Agreement specified that Plaintiff agreed to “irrevocably assign[] to the Company all of [his] right, title and interest in such Material.” (/d.) Further, for any contributions Plaintiff made to the Material, Plaintiff was only entitled to ‘writers’ credit and royalties in conjunction with all other co-author[]s of such Material for such Material per the terms of th{e] Agreement, other third party agreements and pursuant to the music industry standards.” (Ud. § 6.) The Band released three albums at issue, with the third being a remastered version of the second. (SAC { 36-37, 56, 60.) Plaintiff's creative input was incorporated into four songs on the Band’s self-titled debut album, “Madison Rising,” released on October 17, 2011, for which he received writers’ credit but not royalties: “Soldiers of America,” “Hallowed Ground,” “Before the Hyphens Came,” and “Right to Bear.” (/d. §§ 37, 40.) The Band released the second album, “American Hero,” on November 5, 2013, which comprised “original songs composed by [Plaintiff] and Plaintiff s rock adaptation of “America the Beautiful.” Ud. 956.) The third album, “American Hero (Red),” released after the Term’s expiration on June 15, 2015, consisted of “all of the songs from the original American Hero album (except ‘Come to the Ready’ . . .), plus two new original compositions by [Plaintiff], ‘Amazing America’ and ‘Soldier’s Christmas,’” as well as “rock versions of... ‘The Marine Hymn’ and ‘God Bless America.’” (/d. | 60.) In May 2014, just before the Term’s expiration, Defendant decided not to extend the Term. (See id. { 68.) Rather, Defendant explained to Plaintiff that “they did not need a new or extended contract because, with all of the valuable contributions [Plaintiff] had made, they would continue

without a contract and were ‘basically partners.’” (/d. § 71.) Defendant, accordingly, promised Plaintiff that “he would issue stock certificates for [Plaintiff's] partial ownership of [the Company],” but never did so. (/d.) Plaintiff and Defendant’s business relationship deteriorated thereafter, culminating in Defendant suspending Plaintiff for 30 days for “alleged behavioral issues” and Defendant providing Plaintiff with a new proposed agreement and an ultimatum: sign within seven days or be terminated. (See id. 4 72, 76-78.) Plaintiff refused to sign the proposed agreement, and Defendant “terminated the relationship.” (Ud. {| 78.) Plaintiff claims that the United States Copyright Office has issued registration certificates “evidencing [his] copyright interests to [17] songs”: “Soldier’s Christmas,” “Warrior Inside,” “Last Call,” “Amazing Grace/Taps,” “Ready If It Goes There,” “Amazing America,” “Hallowed Ground II,” “Reflection PTSD,” “Something Wicked,” “Open Road,” “Lock N’ Load,” “Hero,” “Come to the Ready,” “America the Beautiful,” “God Bless America,” “The Marine’s Hymn,” and “Star-Spangled Banner.” (/d. { 114). However, he fails to allege when these registration certificates were issued. Of the foregoing songs, four were released following the Term’s expiration: “Amazing America,” “Soldier’s Christmas,” “The Marine’s Hymn,” and “God Bless America,” (the “Post-Term Songs’). (/d. § 60.) Plaintiff holds a copyright interest in the “composition and sound recording” and as a “‘co- author” of “Amazing America” and “Soldier’s Christmas.” (Ud. § 92.) As for Plaintiff's arrangements of “The Marine’s Hymn” and “God Bless America,” which are “public domain musical compositions,” Plaintiff claims they are “new arrangements” solely of his creation and that he is the “owner of a copyright interest in and to those derivative musical compositions... .” (Ud. 495.)

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Bray v. Purple Eagle Entertainment, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/bray-v-purple-eagle-entertainment-inc-nysd-2024.