Prepared Food Photos, Inc. v. Trip Restaurant LLC

District Court, S.D. New York·Decided April 14, 2023·No. 1:22-cv-07953·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK Case No. 1:22-cv-07953-ER PREPARED FOOD PHOTOS, INC. f/k/a ADLIFE MARKETING & COMMUNICATIONS CO., INC., Plaintiff, v. TRIP RESTAURANT LLC d/b/a WELLINGTON’S GRILL, Defendant. [PROPOSED] DEFAULT JUDGMENT AND PERMANENT INJUNCTION THIS CAUSE is before the Court upon plaintiff Prepared Food Photos, Inc. f/k/a Adlife Marketing & Communications Co., Inc. (“Plaintiff”) Motion for Default Final Judgment (the “Motion”) against defendant Trip Restaurant LLC d/b/a Wellington’s Grill (“Defendant”) [D.E. _22_]. The Court has considered the Motion, has noted the Clerk’s default against defendant Trip Restaurant LLC d/b/a Wellington’s Grill (“Defendant”), and is otherwise advised in the premises. Pursuant to Rule 55 of the Federal Rules of Civil Procedure, the Court concludes that Plaintiff has met its burden of showing that it is entitled to a final default judgment as to Defendant. Plaintiff has also met its burden of showing that it is entitled to permanent injunctive relief against Defendant as specified herein. Accordingly, it is ORDERED AND ADJUDGED as follows: I. Findings of Fact 1. Plaintiff is in the business of licensing high-end, professional photographs for the

food industry. 2. Plaintiff operates on a subscription basis whereby it charges its clients (generally, grocery stores, restaurant chains, food service companies, etc.) a minimum monthly fee of $999.00 (https://preparedfoodphotos.com/featured-subscriptions/) for access to its library of professional photographs. 3. Plaintiff’s standard licensing terms require a minimum of a twelve (12) month

licensing commitment (https://preparedfoodphotos.com/terms.of.use.php) to avoid scenarios whereby a licensee pays for one (1) month of access, downloads the entire library of 20,000+ photographs, and immediately terminates the license agreement. 4. Plaintiff’s business model relies on its recurring monthly subscription service and the income derived therefrom such that Plaintiff can continue to maintain its impressive portfolio. 5. Plaintiff has numerous paying subscribers paying monthly subscription fees ranging from $999.00/month to $2,500.00/month (depending on the number of ‘end users’ for which Plaintiff’s photographs are to be used). Generally stated, the bulk of Plaintiff’s subscribers are professional ad agencies that develop weekly ads/grocery store websites for their own ‘end

users’ (i.e., grocery stores, meat/dairy sellers, etc.). 6. Plaintiff owns each of the photographs available for license on its website and serves as the licensing agent with respect to licensing such photographs for limited use by Plaintiff’s customers. To that end, Plaintiff’s standard terms include a limited, non-transferable license for use of any photograph by the customer only. Plaintiff’s license terms make clear that all copyright ownership remains with Plaintiff and that its customers are not permitted to transfer, assign, or sub-license any of Plaintiff’s photographs to another person/entity. 7. This lawsuit concerns one (1) photograph titled “BeefPrimeRibSlice004_ADL” (the “Work”) owned by Plaintiff for which Plaintiff serves as the licensing agent. The Work is available for license on the above-stated terms. 8. The Work was registered by Plaintiff (pursuant to a work-for-hire agreement with the author that transferred all rights and title in the photograph to Plaintiff) with the Register of Copyrights on January 13, 2017 and was assigned Registration No. VA 2-047-019. A copy of the Certificate of Registration pertaining to the Work is attached to the Complaint as Exhibit A thereto. 9. Defendant is a family restaurant and grill that serves seafood, steaks, and burgers. 10. On a date after Plaintiff's above-referenced copyright registration of the Work, Defendant published the Work on its website (at https://www.wellingtonsgrill.com/menu):

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Main Course Wi Slow-Roasted Prime Rib of Beef Fish &

A true and correct copy of screenshots of Defendant’s website, displaying the copyrighted Work, are attached to the Complaint as Exhibit B thereto. 11. Defendant is not and has never been licensed to use or display the Work. Defendant never contacted Plaintiff to seek permission to use the Work in connection with its website/advertising or for any other purpose — even though the Work that was copied is clearly

professional stock photography that would put Defendant on notice that the Work was not intended for public use. 12. Defendant utilized the Work for commercial use – namely, in connection with the marketing of its business. 13. Plaintiff’s primary business is the creation of new photo/video content and licensing

such content to supermarkets, ad agencies, etc. To ensure that Plaintiff’s valuable intellectual property is not being misappropriated (which necessarily lowers the value thereof), Plaintiff employs a full-time paralegal and other staff that each (when time permits) perform reverse- image searches using Google Images (https://www.google.com/imghp?hl=en) and review grocery store electronic/print ads to determine whether Plaintiff’s images are being misused. 14. Plaintiff’s staff generally searches using a rotating sub-set of photographs that may be illegally/improperly published by non-licensees. Given the volume of Plaintiff’s library, Plaintiff was reasonably unable to discover Defendant’s improper use of the Work at issue in this lawsuit prior to the aforementioned date of discovery.

15. Through its ongoing diligent efforts to identify unauthorized use of its photographs, Plaintiff first discovered Defendant’s unauthorized use/display of the Work in approximately April 8, 2022. 16. Following Plaintiff’s discovery of Defendant’s infringement, Plaintiff retained counsel to pursue this matter. Plaintiff (through counsel) sent via e-mail and Federal Express one (1) infringement notice to Defendant to notify it of the impermissible use. Plaintiff (through counsel) sent several follow-up e-mails and made several phone calls to Defendant in an attempt to resolve this matter pre-suit. Despite speaking with Defendant’s representatives and the large number of other pre-suit communications, Plaintiff was unable to negotiate any payment from Defendant for its infringement of the Work and the Work – through at least the filing of the Motion – still remained published on Defendant’s website.

II. Conclusions of Law A. Applicable Legal Standards “Rule 55 of the Federal Rules of Civil Procedure provides a two-step process for obtaining a default judgment.” Priestley v. Headminder, Inc., 647 F.3d 497, 504 (2d Cir. 2011). First, under Federal Rule 55(a), the plaintiff must obtain a clerk’s entry of default. Fed. R. Civ. P. 55(a) (“When a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the

party's default.”). Second, under Rule 55(b), the plaintiff may apply for entry of default judgment by the clerk “[i]f the plaintiff’s claim is for a sum certain,” or by the court “[i]n all other cases.” Fed. R. Civ. P. 55(b)(1), (2).

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Prepared Food Photos, Inc. v. Trip Restaurant LLC, (S.D.N.Y. 2023).

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