Marchante v. Reuters America LLC

CourtDistrict Court, S.D. New York
DecidedJune 7, 2024
Docket1:23-cv-08864
StatusUnknown

This text of Marchante v. Reuters America LLC (Marchante v. Reuters America LLC) 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
Marchante v. Reuters America LLC, (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK RAFAEL MARCHANTE, Plaintiff, 23 Civ. 8864 (DEH)

v. OPINION AND ORDER REUTERS AMERICA LLC, et al., Defendants. DALE E. HO, United States District Judge: In this action, Plaintiff Rafael Marchante sues Defendants Reuters America LLC and Reuters News & Media Inc., subsidiaries of Thomson Reuters Corporation, alleging copyright infringement. Defendants move to dismiss on grounds of forum non conveniens and failure to state a claim, and alternatively seek a stay of proceedings pending resolution of a parallel Spanish action. For the reasons given below, Defendants’ motion to dismiss is GRANTED. BACKGROUND The following facts are taken from the Complaint (unless otherwise indicated) and are assumed to be true solely for purposes of adjudicating Defendant’s motion. See Buon v. Spindler, 65 F.4th 64, 69 n.1 (2d Cir. 2023).1 Plaintiff is a photographer and photojournalist. See Compl. ¶ 21, ECF No. 1. He is a Spanish citizen, residing in Spain. Id. ¶ 9. Non-party Thomson Reuters Corporation (“Thomson Reuters”) is a large, publicly-traded Canadian corporation, and is one of the world’s largest

1 Because Defendants move to dismiss on the basis of forum non conveniens, the Court may consider materials outside the pleadings in resolving the motion. See Aguas Lenders Recovery Grp. v. Suez, S.A., 585 F.3d 696, 697 n.1 (2d Cir. 2009) (“The factual recitation here [on a motion to dismiss based on forum non conveniens], while primarily taken from the complaint, is supplemented with information from affidavits.”). To the extent the Complaint’s allegations are meaningfully contradicted by the submitted testimony, the Court relies upon the submitted evidence. The declaration testimony submitted by the parties is discussed infra, as necessary to resolve Defendants’ motion. providers of business information and newsgathering services. Id. ¶¶ 1 n.1, 13. Thomson Reuters owns and controls Defendants Reuters America LLC and Reuters News & Media Inc., two Delaware corporations which are Thomson Reuters’ principal United States operating subsidiaries. Id. ¶¶ 10, 11. Plaintiff began working for various subsidiaries of Thomson Reuters in November 2002 as a freelance photographer.2 Id. ¶ 22. Between 2002 and 2020, Plaintiff authored at least

20,110 photographs and supplied them to such subsidiaries. Id. ¶ 26. Throughout this period, Reuters entities paid Plaintiff for his services first at a fixed rate, then at a fixed rate subject to a minimum, and finally, on a salary basis. Id. ¶¶ 23-25.3 In July 2005, Plaintiff entered into a royalty agreement with Reuters Spain (the “Royalty Agreement”). Id. ¶ 28; Royalty Agreement § 1.1, ECF No. 1-1. The Royalty Agreement granted Reuters Spain an exclusive license to use and further license Plaintiff’s photographs supplied or taken while on assignment for Reuters, while affirming that Plaintiff retained copyright in his photographs. Compl. ¶¶ 31, 34; Royalty Agreement §§ 2.1. By its terms, the Royalty Agreement applied retroactively to photographs taken prior to the date of the agreement. Compl. ¶ 31; Royalty Agreement § 1.2. It obligated Reuters to compile information on the licensing of

Plaintiff’s photographs and to pay Plaintiff a percentage fee of any licenses, on a quarterly basis. Compl. ¶¶ 32-33; Royalty Agreement §§ 3.2, 3.5.

2 The Complaint refers to “Plaintiff’s work for Reuters” and his “supplying his Photographs to Reuters” and states that the term “Reuters” refers to, “[u]nless otherwise specified, any Reuters subsidiary of Thomson Reuters Corporation.” Compl. ¶¶ 2 n.3, 22. This opinion will specify the Reuters entity at issue when possible. 3 The Complaint alleges that Defendants (i.e., Thomson Reuters’ American subsidiaries) paid Plaintiff for his services, see Compl. ¶¶ 23-25, while Defendants introduce evidence that Reuters Spain paid Plaintiff, see Valderrama Decl. ¶ 11, ECF No. 46, and Plaintiff produces evidence that he received payment from a Reuters office in London, see Marchante Decl. Ex. E, ECF No. 53-5. In November 2020, Reuters terminated Plaintiff’s services. Compl. ¶ 35. On March 26, 2021, Plaintiff and Reuters executed a settlement agreement in Lisbon related to the end of Plaintiff’s work, which included a stipulation between the parties that Plaintiff was not an employee for purposes of labor law. See id. ¶ 37; id. Ex. B at 1, 7, ECF No. 1-2. That agreement expressly reserved all rights related to the Royalty Agreement. Id. ¶ 37; id. Ex. B at No. 13. Through the end of his work with Reuters, Plaintiff regularly requested the quarterly

remittance statements, but did not receive any. Id. ¶¶ 38, 41. On April 30, 2021, on “susp[icion] that Reuters had committed serious and essential breaches of the Royalty Agreement,” Plaintiff sent letters to Reuters Spain and Reuters Portugal, terminating the Royalty Agreement and demanding Reuters stop using his photographs within thirty days, or as of May 30, 2021. Id. ¶ 39; Marchante Decl. Exs. A & B, ECF Nos. 53-1, 53-2. Plaintiff subsequently sent numerous letters demanding the remittance statements, each time stating that Plaintiff had terminated the Royalty Agreement. Compl. ¶ 41. On November 19, 2021, Reuters London provided Plaintiff with various remittance statements, which indicated that Plaintiff was not paid remittances at all from November 2002 through the first quarter of 2007, and was underpaid from 2007 through 2016. Id. ¶¶ 42, 43; Marchante Decl. ¶¶ 28-29. In communications directed to Reuters staff in

New York and Poland dated August 5, September 8, October 21, October 27, November 2, November 9, and November 15, 2022, Plaintiff requested that Reuters stop licensing and using his photographs, in light of the termination of the Royalty Agreement. Compl. ¶¶ 45, 47; Marchante Decl. Ex. C, ECF No. 53-3. Through counsel, Plaintiff also sent a takedown demand on June 19, 2023. Compl. ¶ 49. As of the filing of the Complaint, Defendants and other Thomson Reuters subsidiaries continue to use and license Plaintiff’s photographs. Id. ¶¶ 49-53. On October 9, 2023, Plaintiff filed the Complaint. See id. On October 11, 2023, Reuters Spain sued Plaintiff in Spain, seeking a declaratory judgment regarding the ongoing validity of the Royalty Agreement. See Seibel Decl., Ex. B, ECF No. 47-2. On December 4, 2023, Defendants moved to dismiss the Complaint. See Mot. to Dismiss, ECF No. 44. In letters filed March 8, 2024, March 20, 2024, and March 21, 2024, the parties reported that the Spanish action was dismissed for failure to respond to the Spanish court’s orders and pay a judicial tax, the equivalent of a filing fee, and that Reuters Spain subsequently filed an identical action, which was accepted by the Spanish Court on February 28, 2024. See ECF Nos. 63-65.

DISCUSSION The common law doctrine of forum non conveniens allows a district court to dismiss an action over which it has jurisdiction so that the case may be heard in a more convenient foreign forum. Cap. Currency Exch., N.V. v. Nat’l Westminster Bank PLC, 155 F.3d 603, 607 (2d Cir. 1998). There are three steps to the forum non conveniens inquiry: (1) determine the degree of deference properly accorded the plaintiff’s choice of forum; (2) consider whether the alternative forum proposed by the defendants is adequate to adjudicate the parties’ dispute; and (3) balance the private and public interests implicated in the choice of forum.

Celestin v. Caribbean Air Mail, Inc., 30 F.4th 133, 145 (2d Cir. 2022).4 “[F]orum non conveniens dismissal lies wholly within the broad discretion of the District Court and may be overturned only when . . .

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Marchante v. Reuters America LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marchante-v-reuters-america-llc-nysd-2024.