KGB NY LLC v. ROBERTO GUZMAN, et al.

District Court, S.D. New York·Decided March 31, 2026·No. 1:23-cv-10979·Unknown

Opinion

ELECTRONICALLY FILED) DOC#: □□□ UNITED STATES DISTRICT COURT DATE FILED; 221/06 SOUTHERN DISTRICT OF NEW YORK KGB NY LLC, Plaintiff, 1:23-ev-10979 (ALC) (RFT) -against-

ROBERTO GUZMAN, et al., OPISION & ORDER Defendants.

ANDREW L. CARTER, JR., United States District Judge: Plaintiff KGB NY LLC brings this action for copyright infringement of its photographs and furniture designs, tortious interference with business relations, unjust enrichment, and breach of fiduciary duties. Before the Court is KGB’s motion for partial summary judgement, pursuant to Federal Rule of Civil Procedure 56. For the reasons that follow, KGB’s motion is GRANTED in part and DENIED in part.

BACKGROUND

I. Factual History Plaintiff KGB NY LLC “Plaintiff” or “KGB”) is a furniture designer and manufacturer. ECF No. 112 § 1. KGB was formed in January 2009. See id. § 3. Christiaan Bunce (“Bunce”), David Khouri (“Khouri”), and Roberto Guzman (“Guzman”) were founding members and managers of KGB. See id. 4-9. On July 16, 2018, Bunce, Khouri, and Guzman entered into a Purchase Agreement that reallocated the shares each individual owned in KGB. See id. 9 10-12. Prior to the Purchase Agreement, Guzman and Khouri collectively owned 41 of the total 100 shares in KGB, and Bunce 50 of the total 100 shares in KGB. See id. J§ 11-12; see also ECF No. 105-

Exhibit B. The remaining nine shares were not yet issued. See ECF No. 105- Exhibit B. Following the Purchase Agreement, Khouri came to own 4 of KGB’s 100 total shares, Guzman came to own 5 of the total shares, and Bunce came to own 91 of the total shares. See ECF No. 112 ¶¶ 10-12. Khouri and Guzman remained members of KGB from founding until July 2023. See id. ¶¶ 13-14.

Around January of 2010, KGB engaged a photographer named Alan Tansey who took photographs of KGB’s furniture for marketing materials, KGB’s website, and KGB’s e-mail blasts. See id. ¶¶ 16-17. At some point in time, Tansey was engaged pursuant to a “Work for Hire Agreement” whereby “all right, title, and interest in and to the copyright in the photographs used by KGB on its website, marketing, and promotional materials were granted exclusively to KGB.” See id. ¶ 17. The parties dispute when the Work for Hire Agreement was executed. See id. During their time at KGB, Khouri and Guzman received and had access to photographs taken by Alan

Tansey on behalf of KGB. See id. ¶ 18. In June of 2023, KGB registered a copyright in four photographs: “Upper East Side Townhouse Staircase,” “KGBL Showroom Exterior,” “Tribeca Loft Dining Table,” and “West Chelsea Loft Living Space.” See id. ¶¶ 19, 22, 25, 28(hereafter referred to as the “Copyrighted Photographs”). As of at least June of 2023, the Copyrighted Photographs were published on Khouri’s personal website, Guzman’s personal website, and on CULTUM’s website without KGB’s consent or permission. See id. ¶¶ 19-30. Khouri and Guzman allege the photographs were used with authorization from the photographer Alan Tansey. See id. In June of 2023, Khouri and Guzman received cease-and-desist letters from KGB regarding the unauthorized publication of the Copyrighted Photographs and thereafter removed the photographs. See id. ¶¶ 31-34. On July 10, 2023, KGB called a special meeting of shareholders and Khouri and

Guzman were expelled for alleged breaches of duties of loyalty, good faith and fair dealing, and default/abandonment. See id. ¶ 36. Andrew Griffen worked at KGB between March 2019 and March 2020. See id. ¶ 40. Khouri and Guzman met Griffen during their time at KGB. See id. ¶ 39. Today, Khouri, Guzman, and Griffen are equal one-third members in a new business venture, Guzman Khouri LLC. See id. ¶ 43. Guzman and Khouri sent promotional e-mail blasts marketing their new business ventures to an e-mail list primarily generated by Griffen. See id. ¶ 38. One of such email blasts sent on April

23, 2024 was sent to at least one of KGB’s contacts—its accountant, Jonathan Cohen. See id. ¶ 42. II. Procedural History On December 19, 2023, KGB filed its complaint, initiating this action against Defendants Guzman, Khouri, and CULTUM (collectively the “CULTUM Defendants”). See ECF No. 1. On May 30, 2024, KGB amended the complaint, adding Squarespace as a defendant. See ECF No. 27. The Amended Complaint asserts six causes of action for: (1) copyright infringement of the

photographs against the CULTUM Defendants; (2) copyright infringement of the furniture designs against Guzman and Khouri; (3) contributory infringement of the furniture designs against Squarespace; (4) tortious interference with business relations against the CULTUM Defendants; (5) unjust enrichment against the CULTUM Defendants; and (6) breach of fiduciary duties against Guzman and Khouri. See AC at 5–10. All the copyright infringement claims are brought under the U.S. Copyright Act, 17 U.S.C. § 501. See id. at 5–8. On June 14, 2024, the CULTUM Defendants answered and brought a counterclaim for a declaration of non-liability. See ECF No. 30. KGB answered the counterclaim on June 28, 2024. See ECF No. 32.1 Magistrate Judge Robyn F. Tarnofsky set a briefing schedule for KGB’s anticipated motion for summary judgement against the CULTUM Defendants. See ECF No. 96.

1 On January 31, 2025, the Court granted Defendant Squarespace leave to file its motion to dismiss the claim against it. See ECF No. 76. Defendant Squarespace thereafter filed its motion to dismiss on February 21, 2025. See ECF Nos. 94-95. On May 12, 2025, KGB filed its motion for partial summary judgement and accompanying memorandum of law. See ECF Nos. 104, 107. That same day, KGB also filed its Rule 56.1 Statement of Material Facts. See ECF No. 105. Along with this, KGB filed a letter motion to seal Exhibits C and D to its Rule 56.1 Statement.2 See ECF No. 103. On June 26, 2025, the CULTUM Defendants filed their opposition to KGB’s motion for partial summary judgement. See ECF No.

111. That same day, the CULTUM Defendants filed their Rule 56.1 Counterstatement and Response along with their supporting declaration. See ECF Nos. 112, 113. On July 24, 2025, KGB filed its reply memorandum of law in support of its motion for partial summary judgement. See ECF No. 114. The Court considers the motions fully briefed. KGB now moves for partial summary judgement on its claims for (1) copyright infringement of the photographs against Defendants Roberto Guzman (“Guzman”), David Khouri

On September 18, 2025, this Court issued an Opinion and Order granting Defendant Squarespace’s motion to dismiss Count Three of the Amended Complaint—the claim for contributory infringement of the furniture designs against Squarespace. See ECF No. 115. Further, the Court sua sponte dismissed Count Two of the Amended Complaint—the claim for copyright infringement of the furniture designs against non-moving defendants Guzman and Khouri. See id. 2 The Court recognizes that there is a strong First Amendment presumption of public access to judicial documents and proceedings. See Lugosch v. Pyramid Co. of Onondaga, 435 F.3d 110, 119–20,123–24 (2d Cir. 2006). However, court documents may be sealed if “specific, on the record findings are made demonstrating that ‘closure is essential to preserve higher values and is narrowly tailored to serve that interest.’” Press-Enterprise Co. v. Superior Court, 478 U.S. 1, 13–14 (1986) (quoting Press-Enterprise Co. v. Superior Court,

KGB NY LLC v. ROBERTO GUZMAN, et al., (S.D.N.Y. 2026).

KGB NY LLC v. ROBERTO GUZMAN, et al. (KGB NY LLC v. ROBERTO GUZMAN, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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