Om Records, LLC v. OM Developpement, SAS

District Court, N.D. California·Decided June 17, 2024·No. 4:23-cv-04506·Unknown

Opinion

OM RECORDS, LLC, Case No. 23-cv-04506-JSW

Plaintiff, ORDER DEFERING RULING ON v. DEFENDANTS' MOTIONS TO DISMISS FOR LACK OF PERSONAL OM DEVELOPPEMENT, SAS, et al., JURISDICTION; ORDERING LIMITED JURISDICTIONAL Defendants. DISCOVERY; GRANTING THE BMG DEFENDANTS’ MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM; DENYING THE OM DEFENDANTS’ MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM; AND GRANTING, IN PART, AND DENYING, IN PART, PLAINTIFF'S MOTION TO FILE MATERIAL UNDER SEAL Re: Dkt. Nos. 39, 40, 47

Now before the Court is a group of related motions. Defendants OM Developpement, SAS and Olympique de Marseille, SASP (together, the “OM Defendants”) and BMG Rights Management (France), SARL (“BMG France” and, together, the “French Defendants”) move to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. The French Defendants and BMG Rights Management (US) LLC (“BMG US,” and, together with BMG France, the “BMG Defendants”) further move to dismiss the First Amended Complaint (“FAC”) for forum non conveniens and failure to state a claim under Rule 12(b)(6). Plaintiff Om Records, LLC (“Plaintiff”) has filed an administrative motion to seal portions of its opposition to Defendants’ motions to dismiss and, as part of its opposition, seeks permission to conduct jurisdictional discovery. case, and it finds this matter suitable for disposition without oral argument. See N.D. Civ. L.R. 7- 1(b). The Court HEREBY GRANTS, IN PART, and DENIES, IN PART, the pending motions. A. Complaint Allegations.1 Plaintiff has owned and operated Om Records since 1995. (Dkt. No. 10, FAC, ¶ 9.) Om Records is known worldwide for its electronic, dance, and hip-hop music releases. (Id.) BMG US has served as Plaintiff’s song rights administrator since 2011. (Id. ¶ 24.) BMG France and Olympique de Marseille launched the “OM Records” label from Marseille, France on September 24, 2020. (Id. ¶ 25.) BMG France and Olympique de Marseille also created Twitter (now known as “X”) and Instagram accounts with the handle “@om_records” and a Facebook account with the handle “@omrecordsfr.” (Id.) Defendants issued a press release on the Olympique de Marseille website in both French and English. (Id.) Billboard magazine ran an article on the “launch of OM Records.” (Id.) Defendants used the name “OM Records” to sell and stream music to customers via YouTube, Spotify, Deezer, iTunes Store, Apple Music, and Amazon Music. (Id. ¶ 30.) The recordings and videos were available to consumers within the United States and around the world. (Id. ¶¶ 30, 34.) On September 25, 2020, Plaintiff reached out to BMG US regarding the launch of OM Records. (Id. ¶ 26.) Plaintiff explained that the label name had “caused headaches” for Plaintiff’s business. (Id.) Indeed, consumers later tagged accounts for Plaintiff’s Om Records label when calling for a boycott of Defendants’ OM Records label online. (Id. ¶ 32.) The next day, Olympique de Marseille registered a mark with the French trademark office consisting of the words “OM Records” and a logo. (Id. ¶ 27.) In June 2023, the European Union Intellectual Property Office nullified the French mark because it was registered in bad faith. (Id. 1 The facts in this section are drawn from the allegations in Plaintiff’s FAC, as the Court must construe all well-pleaded facts as true for purposes of the motions to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Lazy Y Ranch Ltd. v. Behrens, 546 F.3d 580, 588 (9th Cir. 2008). As explained below, additional or controverted allegations will be ¶¶ 7, 38.) Some or all of the Defendants also used or registered the “OM Records” mark with the U.K. Intellectual Property Office. (Id. ¶ 37.) Plaintiff contested Defendants’ use of the name and mark and prevailed with a finding that its rights were superior to Defendants’. (Id.) Defendants filed for trademark registration with the U.S. Trademark Office of the OM Records name and logo. (Id. ¶ 31.) According to an email forwarded to Plaintiff from a BMG France officer to a BMG US correspondent, the OM Defendants were aware of Plaintiff’s label at the time they filed for registration in the United States. (Id. ¶ 28.) Plaintiff filed an opposition to the trademark registration application, and Defendants failed to respond. (Id. ¶ 40.) The U.S. Trademark Office thus issued a notice of default. (Id.) Based on the foregoing conduct, Plaintiff brings four claims for relief: (1) unfair competition under Section 43(a) of the Lanham Act; (2) common law trademark infringement under California law; (3) unfair competition under California Business and Professions Code section 17200 (commonly known as California’s “Unfair Competition Law,” and, hereinafter, “UCL”); and (4) intentional interference with prospective economic relations. B. Jurisdictional Allegations.2 Plaintiff is a California limited liability company headquartered in San Francisco. (FAC ¶ 9.) Since 1995, Plaintiff has participated in or produced hundreds of festivals and branded live events throughout the United States and Europe, included in Los Angeles, Seattle, Miami, Chicago, San Francisco, New York, Ibiza, Barcelona, London, and Paris. (Id. ¶ 15.) Plaintiff’s discography is distributed worldwide, and it sells “Om Records” brand merchandise on its website. (Id. ¶ 17.) BMG US is a Delaware limited liability company with a substantial presence in Los Angeles County. (Id. ¶ 11.) BMG US does not deny that it is subject to personal jurisdiction in this Court.

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