Martino v. The Orchard Enterprises Inc

CourtDistrict Court, S.D. New York
DecidedOctober 27, 2020
Docket1:20-cv-09062
StatusUnknown

This text of Martino v. The Orchard Enterprises Inc (Martino v. The Orchard Enterprises 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
Martino v. The Orchard Enterprises Inc, (S.D.N.Y. 2020).

Opinion

THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ANTHONY MARTINO, ) ) Plaintiff, ) v. ) No. 20 C 2267 ) THE ORCHARD ENTERPRISES, INC., ) Judge Virginia M. Kendall INDEPENDENT ONLINE ) DISTRIBUTION ALLIANCE, INC., ) MEDIANET, INC. ) ) Defendants. )

MEMORANDUM OPINION & ORDER

Plaintiff Anthony Martino filed suit against the Orchard Enterprises, Inc., Independent Online Distribution Alliance, Inc. (“IODA”), and Medianet, Inc., alleging that Defendants infringed his copyrights and deprived him of royalties. Defendants moved to dismiss for lack of personal jurisdiction and improper venue or, in the alternative, to transfer for improper venue. [Dkts. 30, 31]. After the parties fully briefed the Motions to Dismiss, Martino filed a Third Amended Complaint that added additional claims but did not add any jurisdictional allegations. [Dkt. 45]. The parties agreed that, since Defendants’ Motions to Dismiss as to jurisdiction and venue remain unchanged by the Third Amended Complaint, the Court should consider the pending Motions before Defendants file an answer to the newest Complaint. [Dkts. 46, 48]. Defendants’ Motions to Dismiss are granted because this Court does not have personal jurisdiction over them. Defendants’ Motions to Transfer Venue is granted. BACKGROUND The following factual allegations are taken from Martino’s Second and Third Amended Complaints (Dkt. 15, 45) and are assumed true for the purposes of this motion. W. Bend Mut. Ins. Co. v. Schumacher, 844 F.3d 670, 675 (7th Cir. 2016).

Plaintiff Anthony Martino brings claims against Defendants Orchard Enterprises and IODA for conversion (Dkt. 45 ¶¶ 66–95) and against all Defendants for copyright infringement and unjust enrichment. (Id. ¶¶ 96–183).1 Martino, a resident of the State of Illinois, is a professional singer/songwriter and self-funded recording artist. (Dkt. 15 ¶ 23). Defendant Orchard Enterprises is a Delaware corporation and wholly-owned subsidiary of SONY Music with its principal place of business in New York, New York. (Id. ¶ 24). Orchard Enterprises distributes music and video through multiple national platforms. (Id.). Defendant IODA is a California corporation and wholly-owned subsidiary of SONY Music in New York with its principal place of business in New York, New York. (Id. ¶ 25). IODA provides distribution, marketing, publishing, and administrative services to selected independent record labels, physical distributors,

video companies, recording artists, filmmakers, print media publishers, and independent authors. (Id.). Defendant MediaNet, a Delaware corporation with its principal place of business in Seattle, Washington, is a business-to-business licensor of certain rights in its music catalogue. (Id. ¶ 27). Martino is the sole copyright owner of the authorship, publishing rights, and sound recordings of eleven original songs composing two albums: Hope in Isolation (“HII”) and Slightly Defined. (Id. ¶¶ 2, 15). In February and March of 2020, Plaintiff first discovered that IODA and Orchard Enterprises reproduced and distributed (via an unauthorized license) each one of Plaintiff’s eleven copyrighted compositions/sound recordings on the HII Album to MediaNet;

1 Plaintiff added additional claims in the Third Amended Complaint so the Court cites to those, although the relevant jurisdictional allegations remain the same between the Second and Third Amended Complaint. third-party non-interactive music webcasters Last.Fm and Live365; an interactive music streaming provider called Gaana.com; and other currently unknown third-parties. (Id. ¶¶ 11, 98, 101, 107– 12, 132, 134, 137). Martino believes IODA and Orchard Enterprises registered a “rights ownership” claim to receive performance royalties related to three recordings contained on the HII

album and wrongfully obtained royalties from use of his copyrighted songs. (Id. ¶¶ 21, 53–65, 79–81). Martino levels similar allegations against MediaNet but additionally claims that MediaNet distributed his album Slightly Defined in addition to HII. (Id. ¶¶ 132, 134, 137). MediaNet infringed Martino’s copyright by obtaining HII from Orchard Enterprises and Slightly Defined from an unknown third-party, uploading the albums onto its computer servers, and distributing those albums to “at least 53 . . . separate third-party brick and mortar music retail stores located across the United States,” including two based in Illinois. (Id. ¶¶ 12, 16, 132, 134, 165). Each of the 53 third-party music retailers are selling or have already sold Plaintiff’s albums, with 21 songs between them, for $0.99 per song, or $9.99 for an entire album, directly to the general public in the United States without any geographic restriction, including to residents in Illinois through

their respective interactive online websites. (Id. ¶ 134). Martino alleges that all Defendants have been continuously conducting business in this judicial district by selling Martino’s music at two brick and mortar music stores in Illinois. (Id. ¶ 32). Martino does not allege that these retailers were selling physical copies of his albums or songs. (Id. ¶ 134). Instead, these stores received the albums from MediaNet and are either now “selling” or “have already sold” downloads of the albums (and their combined 21 individual tracks) to the general public, including to residents of Illinois, “through their respective interactive online websites.” (Id.). Defendants IODA and Orchard Enterprises allegedly offered employment opportunities to the members of the general public residing within Illinois and entered into distribution contracts with people and entities based in Illinois. (Id.). Martino also alleges that Defendants had actual and constructive knowledge that Plaintiff was an Illinois resident. (Id.). LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(2) allows dismissal of a complaint for lack of

personal jurisdiction. Fed. R. Civ. P. 12(b)(2). A plaintiff is not required to anticipate a personal jurisdiction challenge in its complaint; though, once challenged, the plaintiff bears the burden of demonstrating personal jurisdiction. Curry v. Revolution Laboratories, LLC, 949 F.3d 385, 392 (7th Cir. 2020) (citing Purdue Research Found. V. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003)). Whether the court holds an evidentiary hearing determines the nature of the plaintiff’s burden. Id. When the court does not hold an evidentiary hearing and decides the defendant’s Rule 12(b)(2) motion on the basis of written materials alone, the plaintiff must establish merely a prima facie case of personal jurisdiction. Id. In evaluating whether the plaintiff has satisfied the prima facie standard, the court must “take as true all well-pleaded facts alleged in the complaint and resolve any factual disputes in the affidavits in favor of the plaintiff.” Matlin v. Spin Master Corp.,

921 F.3d 701, 705 (7th Cir. 2019) (citing Tamburo v. Dworkin, 601 F.3d 693, 700 (7th Cir. 2010)). DISCUSSION Defendants move to dismiss the Second Amended Complaint on two grounds and alternatively moves to transfer venue. (Dkts. 30, 31). First, Defendants move to dismiss the Complaint pursuant to Rule 12(b)(2) and Rule 12(b)(3) for lack of personal jurisdiction and improper venue under 28 U.S.C.

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Martino v. The Orchard Enterprises Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martino-v-the-orchard-enterprises-inc-nysd-2020.