Nealy v. Atlantic Recording Corp.

CourtDistrict Court, S.D. Florida
DecidedJune 4, 2021
Docket1:18-cv-25474
StatusUnknown

This text of Nealy v. Atlantic Recording Corp. (Nealy v. Atlantic Recording Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nealy v. Atlantic Recording Corp., (S.D. Fla. 2021).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 18-CIV-25474-RAR

SHERMAN NEALY, et al.,

Plaintiffs,

v.

ATLANTIC RECORDING CORP., et al.,

Defendants. _________________________________/

ORDER AFFIRMING AND ADOPTING REPORT AND RECOMMENDATION

THIS CAUSE comes before the Court on Magistrate Judge Jacqueline Becerra’s Report and Recommendation [ECF No. 224] (“Report”), entered on March 8, 2021. The Report recommends that the Court: (1) deny Defendants’ Motion to Strike Plaintiffs’ Response to Defendants’ Statement of Material Facts [ECF No. 193]; (2) grant Defendants’ Motion to Strike Affidavits of Stevens, Knox, and Baker [ECF No. 194]; (3) grant in part and deny in part Defendant’s Motion for Summary Judgment [ECF No. 166]; and (4) deny Plaintiff’s Motion for Partial Summary Judgment [ECF No. 175]. See Rep. at 2. Both parties filed objections to the Report [ECF Nos. 248 and 249]. The Court may accept, reject, or modify a magistrate judge’s report and recommendation. 28 U.S.C. § 636(b)(1). Those portions of the Report to which objections are made are accorded de novo review so long as those objections “pinpoint the specific findings that the party disagrees with.” United States v. Schultz, 565 F.3d 1353, 1360 (11th Cir. 2009); see also Fed. R. Civ. P. 72(b)(3). Any portions of the Report to which no specific objection is made are reviewed only for clear error. Liberty Am. Ins. Grp., Inc. v. WestPoint Underwriters, L.L.C., 199 F. Supp. 2d 1271, 1276 (M.D. Fla. 2001); accord Macort v. Prem, Inc., 208 F. App’x 781, 784 (11th Cir. 2006). The Court having conducted a de novo review of the portions of the Report to which the parties’ objected,1 reviewed the remainder of the Report for clear error, and being otherwise fully

advised, it is hereby ORDERED AND ADJUDGED that the Report [ECF No. 224] is AFFIRMED AND ADOPTED as supplemented herein. ANALYSIS Plaintiffs raise three objections to the Report. First, Plaintiffs contend that Magistrate Judge Becerra erred in finding that Plaintiffs lacked standing to bring a copyright infringement action on behalf of Music Specialist Publishing (“MSP”) as to the songs “Jam the Box,” “I Know You Love Me,” and “Computer Language”2 (collectively, “MSP-Registered Songs”).3 See Pls.’ Obj. at 2. Second, Plaintiffs argue that Magistrate Judge Becerra erred in finding that the Supreme Court’s holding in Petrella v. Metro-Goldwyn-Mayer, Inc., 572 U.S. 663 (2014), limits damages

to a three-year period prior to the commencement of a copyright suit. Id. at 10. And third, Plaintiffs aver that Magistrate Judge Becerra erred in finding that the affidavits of William Stevens, Esq. (“Stevens”) and George Knox, Esq. (“Knox”) should be stricken. Id. at 15.

1 As discussed below, the Court reviews Magistrate Judge Becerra’s findings on the motions to strike for clear error even though Plaintiffs have objected to those findings. 2 For “Computer Language,” the copyright registration lists both MSP and Happy Stepchild Music Publ. Corporation as the claimants. See Rep. at 18. 3 Magistrate Judge Becerra’s holding also applied to a fourth MSP-registered song, “When I Hear Music,” which has since been removed from the case by stipulation of the parties. See Pls.’ Resp. to Defs. Obj. [ECF No. 255] at 2, n.3. The songs “Fix It In The Mix” and “Freestyle Express” were also removed from the case by stipulation, see id. at 2, n.2, so the Court has excluded those songs from its analysis herein. Defendants also raise three objections to the Report. First, Defendants argue that they are entitled to summary judgment as to all the songs (not just the MSP-Registered Songs) because Plaintiff has not proven copyright ownership of any of the works at issue. See Defs.’ Obj. at 3-8. Second, Defendants contend that Magistrate Judge Becerra should have recommended dismissal

of the entire case on statute of limitations grounds. Id. at 10-19. And third, Defendants argue that they are entitled to summary judgment because they obtained licenses from Tony Butler, who Plaintiffs have admitted is a co-owner of the copyrights in three of the works at issue: “Computer Language,” “I Know You Love Me,” and “Jam The Box.” Id. at 18-21. The Court will discuss each of the parties’ objections in turn. I. Whether Plaintiffs lack standing to bring suit as to the MSP-Registered Songs In the Report, Magistrate Judge Becerra concluded that Plaintiffs Music Specialist, Inc. (“MSI”) and Nealy have not established an ownership interest in the copyrights for the MSP- Registered Songs and therefore do not have standing to sue for infringement of those copyrights. See Rep. at 26-27. She reasoned that Plaintiffs are not listed as claimants in the copyright

certificates for the MSP-Registered Songs; Plaintiffs only vaguely pleaded that MSP is affiliated with MSI; and there is no evidence in the record to support the allegation that MSP and MSI are affiliated. Id. Plaintiffs object to this finding and maintain they have standing to bring a copyright infringement suit for the MSP-Registered Songs. They argue that “the record is replete with evidence and testimony” showing that MSI has been affiliated with MSP since 1984 and “that MSP was a d/b/a of MSI that administered the publishing rights to, or was the publishing arm of, MSI.” Pls.’ Obj. at 10. Under the Copyright Act, “only the legal or beneficial owner of an ‘exclusive right’ has standing to bring a copyright infringement action in a United States court.” Saregama India Ltd. v. Mosley, 635 F.3d 1284, 1290-91 (11th Cir. 2011) (citing 17 U.S.C. § 501(b)).4 As the parties asserting a copyright infringement claim, Plaintiffs bear the burden of proving standing by demonstrating their ownership of the subject copyrights. DRK Photo v. McGraw-Hill Glob. Educ. Holdings, LLC, 870 F.3d 978, 986 (9th Cir. 2017); Cramer v. Cecil Baker & Partners, Inc., No.

19-01503, 2019 WL 2774181, at *2 (E.D. Pa. July 1, 2019) (citing Clarity Software, LLC v. Fin. Indep. Grp., 51 F. Supp. 3d 577, 587 n.12 (W.D. Pa. 2014)). When the nonmoving party bears the burden of proof, “the movant can seek summary judgment by establishing that the opposing party has insufficient evidence to prevail as a matter of law, thereby forcing the opposing party to come forward with some evidence or risk having judgment entered against [it].” Maxi-Taxi Of Fla., Inc. v. Lee Cty. Port Auth., 301 F. App’x 881, 885 (11th Cir. 2008). Here, the Court agrees with Magistrate Judge Becerra that Plaintiffs’ evidence is insufficient to establish their ownership of the MSP-Registered Songs. Plaintiffs cite to the deposition testimony of MSI legal consultant Jonathan Black, who testified that during his time doing “some publishing administration work” for MSI, including setting up MSI’s music

publishing catalog, he was responsible for preparing the copyright registrations and the corresponding songwriter agreements executed by Tony Butler for the MSP-registered songs “I Know You Love Me” and “Jam the Box.” See Pls.’ Obj. at 3-4.

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